Kenneth Rijock

Kenneth Rijock

Monday, September 25, 2017

US ADDS VENEZUELA TO TRAVEL RESTRICTIONS LIST, LOOK FOR RESPONSE



The US Government has now placed Venezuela on its list of primarily Middle Eastern countries subject to major restrictions on visas, and you can expect to see a Venezuelan reply to these sanctions. This may mean that American businessmen could face restrictions upon their ability to enter Venezuela, which could seriously impact efforts to conduct financial transactions, react to problems, and put out fires that arise.

By any measure of risk management principles, Venezuela could make it impossible for bank clients, and US banks themselves, to collect on debt, resolve commercial disputes, and do business in Venezuela. If you do not already show Venezuela as unacceptable, for Country Risk purposes, you should immediately reexamine your position, reduce financial exposure, and advise clients accordingly.

Saturday, September 23, 2017

NAMES OF 40 VENEZUELANS SANCTIONED BY CANADA

If you live in Canada, and work in financial services, then you are aware that the Foreign Minister of Canada has sanctioned forty prominent Venezuelan nationals. Unfortunately, the articles covering the sanctions fail to list the full names of each of the individuals included in the Special Economic Measures.

Therefore, we are making that information available by posting a hyperlink to the government website. Please access the names, as well as the Regulations, here.

Friday, September 22, 2017

CHINA SAID TO CURTAIL ITS BANKS' RELATIONSHIP WITH NORTH KOREA



Reports from China indicate that the country's Central Bank has notified Chinese banks to cease extending credit to North Korea, to refrain from accepting any new clients from the DPRK, and to wind down all business with that rogue nation. It is said this is in response to massive United Nations, and American, financial sanctions.

Thursday, September 21, 2017

EXECUTIVE ORDER AUTHORIZES CLOSING CORRESPONDENT ACCOUNTS OF FOREIGN BANKS THAT WORK WITH NORTH KOREA



By Executive Order, President Donald Trump has today given the Secretary of the Treasury authority to close correspondent accounts of foreign banks that have transactions benefiting North Korea, in addition to massive other sanctions. Readers who wish to review the complete text of the Executive Order may access it here.
 

FINCEN PUBLISHES RED FLAGS OF CORRUPT VENEZUELAN FINANCIAL TRANSACTIONS

 We have been covering Venezuelan governmental corruption, and the dangers that it poses to US banks and NBFIs, for many years. This week, the Financial Crimes Enforcement Network, or FinCEN, issued an alert, FIN-2017-A006, entitled Advisory to Financial Institutions on Widespread Political Corruption in Venezuela. The advisory details many of the Red Flags that have previously appeared on this blog, and it is humbly suggested that it be  required reading for all compliance officers whose bank clients have any international trade with Venezuela, in both its private, as well, as public sectors.

Readers may access the complete text of the advisory here.

COMPLIANCE MUST UNDERSTAND ISIS POSSESSION OF VALID SYRIAN PASSPORTS PRESENTS A CLEAR AND PRESENT DANGER


The authoritative American think tank, the Gatestone Institute, has reported that ISIS is in possession of 11.000 valid, blank Syrian passports*. This statement, if verified, means that compliance officers must consider ALL Syrian passports invalid, for the purposes of due diligence and enhanced due diligence. Only through alternative methods of investigation, can any compliance query of Syrian nationals, be considered adequate, and given the current state of the civil war in Syria, there is no
acceptable means of vetting Syrians.

Whether ISIS is using those passports to place terrorist agents into the countries of the European Union is not known, but it must be assumed, given ISIS acceptance of responsibility for a number of terrorist acts committed recently in Europe. Could ISIS terrorist financiers, or terrorist operatives, masquerading as refugees, make their way to the United States and Canada ? Compliance officers, who operate a risk-based system, must now regard all Syrian passports as suspect, and not true evidence of identity.
__________________________________________________________________________
* The use of blank passports by terrorist organizations is not new. Though there was a concerted campaign to keep the story out of the media, American Forces in Afghanistan in 2011 confiscated a large number of valid, blank passports, issued by the Republic of Haiti, in Taliban-controlled territory. Sources from Haiti alleged that they has been purchased, by Palestinian businessmen, before 9/11, and shipped to the Middle East.

Tuesday, September 19, 2017

BANNED FOR LIFE, AMERICAN STOCKBROKER STILL FLAUNTS FINRA FROM OFFSHORE

www.interpacificinvestors.com/
 
Gary James Lundgren, banned from selling securities for the rest of his life by FINRA*, after a long history of violations, capped by a flat refusal to open his books to the agency, is still thumbing his nose at the American regulator, by selling bonds to Americans, while he resides in the Republic of Panama, an offshore sanctuary, outside the reach of American justice.

Lundgren, who has a long and sordid career involving the sale of suspicious High Yield Investment Products (HYIP), and defrauding expats by stealing their real estate, is believed to have stayed out of the Continental United States for years, due to the fact that there are warrants for his arrest. He is operating as a broker-dealer, but he has no license to sell securities.

Above is a screenshot from one of his websites; note that he is using the name "Interpacific Investors," which was the name of his US firm,  reportedly closed at the insistence of American regulators.

Additionally, Lundgren is acting as a finance company in Panama, though he is not authorized to do so, as he is not licensed to provide financial services. 
____________________________________________________________________________
* Readers who are not familiar with Mr. Lundgren's case are advised to read our prior blog articles, which detailed the FINRA proceedings against him.