Financial crime Malta graylisted for Financial crimes

Status: 06/24/2021 9:40 a.m.

Corruption, money laundering and “golden passports”: the Mediterranean island of Malta has fallen into twilight. An international institution to combat money laundering now wants to monitor the country more closely. The attempts by the Maltese government to avert the decision of the Financial Action Task Force (FATF) were unsuccessful: The international institution for combating money laundering, terrorist financing and the financing of weapons of mass destruction has put Malta on the gray list for financial crimes, according to the Times newspaper of Malta “reported. Inclusion on this list means that the country is under increased surveillance, that it is being monitored more and more. At the same time, the state undertakes to remedy the deficiencies identified in the context of financial crime. Who is the FATF?

The Financial Action Task Force, based in Paris, is an independent international institution that develops and promotes measures to combat money laundering, the financing of terrorism and the financing of weapons of mass destruction. It was founded in 1989 by the G7 countries and currently has 37 members. More than 200 states and jurisdictions have committed to complying with the FATF standards. The FATF is supported by a secretariat affiliated with the Organization for Economic Cooperation and Development (OECD).

Malta pledges cooperation

Prime Minister Robert Abela confirmed the decision and described it as “unjust”. Most of the concerns expressed by the reviewers have already been addressed. Malta wants to continue with its reform program, said Abela. “We will intensify our exchanges to better explain Malta’s achievements and to ensure that they are respected and understood by the international community.” Malta will never show itself to be uncooperative in the fight against financial crime or resist it, he assured the international partners.

Cayman Islands and Syria are also on the gray list

It is not the first time that Malta has fallen into twilight: the country has already been screened for financial crime more intensely because of its “golden passport” program. Like Cyprus, Malta had granted citizenships in return for financial commitments. The EU Commission then initiated infringement proceedings.

With the jump on the gray list of the FATF there is now a further loss of reputation for the country. As of February 2021, the FATF gray list includes countries such as Burkina Faso, the Cayman Islands, Ghana, Mauritius, Panama, Syria, Uganda, Yemen and Zimbabwe.

Germany holds the FATF presidency

Germany took over the presidency of the FATF in July 2020. The term of office of Marcus Pleyer from the Federal Ministry of Finance ends on June 30, 2022.

Marcus Pleyer is currently the President of the FATF. Image: Felix Zahn / photothek.net

Incidentally, the Federal Republic of Germany is currently also being routinely audited by the FATF. In its last evaluation in 2010, the organization came to the conclusion that Germany was susceptible to money laundering and terrorist financing

According to overseas media reports, Ukraine hopes to join NATO and fight its long-time enemy Russia.

Ukrainian President Zelensky said that he welcomes Ukraine’s eventual joining of the military alliance, which is a landmark move for Kiev.

Ukraine will hope that joining NATO means they can call on the support of major powers such as the United States and the United Kingdom to defeat Russia’s bullying strategy under Putin.

But Biden warned that Kiev needs to eradicate corruption before it can be officially included in NATO.

After the NATO summit on Monday, the American president said: “In fact, they still need to fight corruption.”

“At the same time, we will make every effort to enable Ukraine to resist Russian aggression… to maintain their personal safety.”

Biden added that Russia’s annexation of Crimea and Moscow’s role in the east of the country does not mean that Kiev will never be accepted.

But Putin said in an interview with Russian state television that if Ukraine joins NATO, Russia will “unacceptable”.

He claimed that Ukraine’s joining the NATO military alliance will enable NATO to obtain missiles that can reach Moscow within seven minutes.

He said in an interview: “At least 50% of Ukrainian residents do not want to join NATO. They are smart people.”

“They understand that they don’t want to be victims on the line of fire, they don’t want to be bargaining chips or cannon fodder.”

Earlier, Zelensky urged NATO to speed up Ukraine’s accession to NATO through a member action plan.

Earlier Monday, he told reporters that he hoped that Biden would give a clear “yes” or “no” answer to Ukraine’s plan.

Earlier this month, Biden reiterated his support for the territorial integrity of Ukraine and invited Zelensky to the White House in July.

But Zelensky said: “It is better to hold this meeting before the summit.”

He added that he did not want Putin and Biden to propose a solution to the conflict in Ukraine at the summit.

“It is impossible to make a decision for Ukraine,” he said. “So there will be no concrete results.”

Zelensky sought support from Washington for the Seven Years War between Ukraine and Russia-backed separatists.

On Friday, the Pentagon announced a new $150 million military aid to Kiev.

The conflict escalated in early 2021. In April of this year, Russia assembled 100,000 troops near the Ukrainian border and Crimea, prompting NATO to issue a warning.

Russia subsequently announced its withdrawal, but both Washington and Kiev stated that the withdrawal was limited.

Zelensky estimates that there are more than 90,000 Russian troops stationed on the Ukrainian border, and said that tensions are still likely to escalate.

“Any escalation can lead to conflicts,” he said. “If the number of troops near our border increases, it may lead to a large-scale war.”

The conflict in eastern Ukraine, including the escalation of tensions in the past few months, is expected to be discussed in Geneva.

Zelensky said that his country is ready to join NATO. He explained: “We are fighting a war. This is proof that we are ready to join.”

“We prove every day that we are more willing to join NATO than most NATO countries.”

In April, Zelensky invited Putin to meet in eastern Ukraine, but Putin seemed to have rejected the invitation, saying that Moscow would welcome the Ukrainian leader “at any time.”

Putin also emphasized that Zelensky should directly discuss the conflict in eastern Ukraine with the separatists.

Since Moscow annexed the Crimean Peninsula in 2014, Kiev has been fighting pro-Russian separatists in the eastern Donetsk and Luhansk regions. This war claimed the lives of more than 13,000 people.

Kiev and its Western allies accuse Russia of sending troops and weapons to support the separatists. Moscow denies this.

Transparency International Germans concerned about economic influence

Status: 15.06.2021 09:26 a.m.

Many EU citizens perceive corruption as a major problem – this is evident from the current corruption barometer from Transparency International. Germany too has to do significantly more. From Philipp Eckstein, ARD capital studio Corruption: a problem across the European Union. The perception of the citizens is correspondingly critical. This is how the statements of the corruption barometer from Transparency International can be summarized. Between October and December 2020, more than 40,000 people were interviewed by telephone for the representative survey in the EU. Around a third of them said that they believe that corruption has increased in their country in the past year. The increase in Cyprus was particularly strong at 65 percent.

Corruption scandal in Cyprus

Last year, journalists there discovered that politicians had sold passports to criminals from abroad – probably for a fee. That is one reason why the perception of corruption in Cyprus has deteriorated so significantly, according to Transparency International. Almost two thirds of the EU citizens questioned said in the survey that corruption was a major problem in their government. There are clear differences within the EU.

Big differences between countries

While in Denmark and Finland only twelve and 16 percent perceive a corruption problem in their government, in Bulgaria it is 90 percent and in Croatia even 92 percent. Of the 4800 or so respondents in Germany, 34 percent said corruption was a problem in the federal government. Overall, according to the study, trust in government and politics in Germany is relatively high compared to many other European countries.

03/11/2021

Nevertheless: “We still have a problem with corruption,” says Hartmut Bäumer, Chairman of Transparency Germany. 62 percent of those questioned would say: “The government is essentially controlled in its decisions by large financial interests.” So it follows financially strong interest groups and not the interests of the general public. In addition, more than 38 percent have the perception that the federal government is doing too little against corruption. Taken together, “these are numbers that are really worrying,” said Bäumer, “because they feed those who are critical of the state and our liberal democracy anyway. And that is, so to speak, the breeding ground for everything that changes from lateral thinkers or right or left radicalism developed from. ”

Stricter requirements for lobby registers

The federal government urgently needs to do more to combat corruption and, above all, to ensure more transparency, according to Transparency International, for example through stricter rules for the lobby register. The anti-corruption organization is also calling for corporate criminal law to be introduced. Such measures can regain lost trust.

01/28/2021

This seems to be urgently needed, especially in the business sector. According to the survey, one in three respondents in Germany believe that all or most of the business leaders are involved in corruption. More than half believe companies use money or relationships to get public contracts.

In the Declaration, Member States signed a commitment to “provide a safe and appropriate environment for journalists” and to “investigate, prosecute and punish threats and acts of violence” against to journalists. Marking the first session of UNGASS working in the field of prevention and combating corruption, the Declaration called for effective international cooperation and stronger preventive measures to protect reporting and denouncing parties. and fight against corruption. This statement highlights the role of law enforcement officials, prosecutors and the judiciary as key actors in anti-corruption law enforcement, promoting transparency and the rule of law. The declaration was welcomed by the G7 Ministers and the High Representative of the European Union, who issued a joint statement reaffirming the important role of civil society and the free media in combating corruption. . The G7 affirmed that it will “protect and promote the right of access to information for all citizens, including civil society organisations, media and journalists”. UNESCO contributed to a side event about the importance of protecting journalists and strengthening the implementation of the Sustainable Development Goals (SDGs). As a watchdog monitoring Indicator 16.10.2, SDG 16 on ensuring public access to information and protecting fundamental freedoms, UNESCO has emphasized protecting and promoting the regulated press. investigation as an important part of the fight against corruption. “Investigative journalism and the press in general play an important role in bringing allegations and cases of corruption to light. Therefore, it is extremely important to ensure a safe and free environment. for journalists to assist it in uncovering corruption, money laundering to other organized crime.” – Mr. Guilherme Canela, Head of UNESCO’s Division of Freedom of Expression and Safety of Journalists UNESCO’s designation as a watchdog for SDG Target 16.10.2 has provided a key impetus for the organization to step up efforts to promote public access to information. Based on the monitoring results of SDG 16.10.2, UNESCO plays an important role in strengthening the United Nations’ support for the development of policies and laws on access to information, to protect the right to equal participation. equality as well as providing tools for civil society and the media, informing citizens, enhancing transparency of procurement, budgeting and many other areas of public life. In just four years, UNESCO has assisted 14 countries in passing Access to Information legislation. As a result, the public is informed to participate actively in public debates with decision-makers, including in the development of public policy and legislation. “Access to information allows citizens to obtain information held by public authorities, including the right to request and receive information, and the government’s obligation to proactively disclose information.” – Mr. Jaco du Toit, Head of UNESCO’s Global Access to Information Department Thông The Declaration of the 14th United Nations General Assembly on Crime Prevention and Criminal Justice recognized the uniqueness of the threats facing journalists and called for global cooperation to change the situation. new to end immunity for crimes against journalists. To that effect, since 2013, UNESCO and its partners have trained more than 18,000 judicial authorities and 8,500 security forces on international and regional standards for freedom of expression, to promote promote a freer and safer environment for journalists and media workers around the world. Quynh Hoa According to UNESCO

Thousands of emails and documents from the citizenship and citizenship consulting firm Henley & Partners have revealed an unprecedented “door” on the mechanism of the so-called “golden passport” program, in which countries are semi-national. citizenship for foreign giants. This revelation showed for the first time how some people buy Malta passports through a government investment program, allowing them to pretend they are “residing” in the country for a year by renting an apartment. then leave it blank. Two weeks to own a “golden passport” Officially known as the Individual Investor, this program is designed to attract wealthy investors and enrich the national budget. Eight years ago, Malta announced plans to “sell” passports making the European Union (EU) not satisfied. The EU authorities are concerned that “buyers” can travel freely within the EU and Schengen bloc as well as be able to travel to many countries without applying for a visa in advance. In January 2014, a spokesperson for the European Commission gave a speech contradicting the proposals and stressed that EU members should only provide passports to individuals with “real affiliation”. to their country. After two weeks, the issue was somewhat resolved when the Government of Malta released a joint statement announcing anyone “buying” Maltese citizenship would need to reside in the country for one year, while also demonstrating the authenticity of the relationship with their new home. However, Malta’s golden passport program does not specify “place of residence”. Government officials also eluded when asked about the ratio between those who applied for a 12-month period and those who would actually be present. Malta is a beautiful island nation located in the Mediterranean. Photo: Guardian. The vulnerability has allowed some customers, who pay more than 1 million euros under the program, to successfully confirm that they have an “authentic link” with Malta. What they need to do is just spend a few weeks there and do a few activities over the loudspeaker, such as yacht rental or donation to a local charity. Guardian reviewed 250 open letters clients sent to Henley explaining their intentions to Malta. Internal emails show customers constantly asking if they can spend less time here. In the case of a 2014 Middle East client, the representative even asked their manager if “would go to Malta in about 7-14 days (ie the minimum time period) to take a biometrics. study and register and receive card (residence) ”. “If it is not possible to visit for longer, opening a bank account, donating to local charities and becoming a member of a local club will help demonstrate the bond with the country,” the manager answer. This advice shows that instead of 12 months, it seems just two weeks is enough to get a “golden passport” here. “The applicant does not have to be present in that country,” advised a client. “However, in order to create an ‘authenticity link’, (the Malta government) would appreciate it with at least 14 days’ time.” Out of all 250 letters, the applicant’s average commitment to stay in Malta is 16 days. Two bedrooms for 12 people To demonstrate commitment to a new home, Malta “golden passport” applicants will be required to invest € 1.15 million in the country, including a purchase of at least a real estate. 350,000 euros or a 5-year rental for 80,000 euros. Passport of Malta. Photo: Loving Malta. Some properties are rented significantly smaller than the actual size required by the applicant’s family if they plan to live there. In one case, Chinese citizens even rented a two-bedroom apartment for 1,500 euros / month despite applying for citizenship for 12 people, including 6 children. A Maltese citizenship-seeking South African businessman refused to pay Henley an apartment management fee on the grounds that no one would visit it. “The apartment is not used, no one will be there in a year,” he complained in a letter to the company. Malta’s immigration regulatory loopholes have the potential to have serious consequences such as security risks, money laundering, tax evasion, corruption and the risk of escaping water criminals. outside of residence, traveling freely within the EU territory. The European Union Commission recently accused Malta of “selling” citizenship, allowing individuals with little or no connection to the EU. However, the Malta government denied any allegations that the country’s residency requirement was “fake”. It argued that “authentic links” are not defined in EU law and the government of Malta “sets the rules as well as makes the final decision on all citizenship applications”.

Conference scene – Photo: Phu Khanh

According to the Hanoi People’s Committee, over the past years, Hanoi has been drastic in the leadership and direction of anti-corruption; focus on effective implementation of 5 groups of measures on anti-corruption. According to the reports of the units, from 2009 to June 2020, through the internal self-inspection, no corruption cases have been detected and handled.

From June 1, 2009 to June 1, 2020, inspection units across the city held 3,136 inspections, and concluded 3,078 inspections. Through inspection, found wrongdoings of over 3,597 billion VND, proposed withdrawing and remitting the state budget over 2,380 billion VND, other proposals were over 1,185 billion VND; proposing to recover over 2,000 ha of land, administratively handle 523 collectives and 579 individuals; administrative sanction over 375 billion VND; transfer investigation agency 57 cases.

At the same time, the city’s administrative agencies received 237,109 turns of citizens; receiving and processing 230,960 applications of all kinds (45,988 complaints, 23,300 denunciations, petitions, reflecting 161,672 petitions); accept and settle 18,160 / 18,319 complaints and 6,612 / 6,647 denunciations under their jurisdiction.

Through settlement of complaints and denunciations, they have proposed to recover 22.5 billion VND and 17.5 hectares of land; proposing to return benefits to citizens 43.8 billion VND and 3.7 ha of land; proposing adjustment of 109 compensation plans, support for site clearance; additional sale of 8 resettlement houses, revocation and modification of 31 certificates of land use rights; administrative handling of 229 collectives and 389 individuals; transfer to investigation agency for 30 cases

Regarding the results of the investigation, prosecution and trial of corruption cases, the City Police accepted the investigation: 256 cases / 627 defendants (of which, prosecution: 240 cases / 610 defendants). Resolved: 221 cases / 601 accused (Suspension of investigation: 9 cases / 13 suspects; Suspension of investigation: 6 cases / 10 defendants; At the end of the investigation, the Procuracy proposes prosecution: 206 cases / 578 accused). Currently investigating 35 cases / 26 defendants.

The City People’s Procuracy accepted 207 cases / 579 defendants. Prosecution, court transfer: 204 cases / 568 defendants. Suspension: 3 cases / 11 accused.

City People’s Court has tried at first instance 352 cases / 1059 defendants; resolution: 342 cases / 1023 defendants (including: trial of 265 cases of 777 defendants, return of documents for additional investigation of 77 cases of 246 defendants); are dealing with 10 cases of 36 defendants. The number of assets lost in the trialed corruption cases was over 15,687 billion VND …

However, according to the People’s Committee of Hanoi, forecasts of corruption in the area will still develop complicatedly and potentially in many areas such as credit, banking; land management and use, land clearance; construction investment; finance, tax … with increasingly complex nature; more sophisticated tricks; scope and field are increasingly wide.

In particular, there is still public opinion about the harassment situation of a part of cadres and civil servants in the performance of public duties and duties. Some corruption cases have been discovered in the health sector, the implementation of the meritocracy policy has caused public frustration; Interestingly group corruption has emerged in some areas …

Speaking at the conference, Mr. Nguyen Trong Dong, Vice Chairman of Hanoi City People’s Committee, said that anti-corruption is the responsibility of the entire political system, an important, urgent, long-term, and frequent during the socio-economic development. It is necessary to continue to improve institutions, mechanisms, policies and laws in all fields, eliminate the “ask – give” situation to limit corruption. Along with that, improving the effectiveness and efficiency of state management in areas prone to negative issues such as financial management, construction investment, public procurement, land management, construction order management … At the same time, strengthen inspection, examination and audit; strictly and promptly handle acts of corruption, thoroughly recover the property of the State, collectives and individuals that are appropriated and lost.

The scene of the Vietnam Provincial Governance and Public Administration Performance Index (PAPI) in 2020. Photo: Hien Chi

2 content indexes change positively

Ms. Caitlin Wiesen, UNDP Resident Representative in Viet Nam said: “The study of PAPI 2020 report is the performance of the local government in two terms (2011-2016 and 2016-2021), properly published. at a time when the Government begins a new term. This helps to provide in-depth data on people’s experiences in interacting with the government apparatus at all levels in 63 provinces and cities. Not only that, PAPI is also an important measure for provinces and cities to review and further improve their performance in eight areas of governance and public administration ”.

According to the published results, 2 content indexes changed positively, including: “Control of corruption in the public sector”, “public administrative procedures”. Specifically, in the content index of “controlling corruption in the public sector”, 18 provinces and cities have made significant progress compared to the results in 2019 (6 provinces and cities significantly decreased compared to 2019). .

Out of 16 provinces and cities with the highest score, there are 7 provinces in the South, 5 provinces in the Central and 4 provinces in the North. The remarkable point is that the people’s perceptions of some manifestations of corruption tend to be good when many people think that it is not “paved the way” to apply to work in state agencies. “The content sector index score for” controlling corruption in the public sector “in 2020 reached its highest level in 10 years. This result partly reflects the impact of the anti-corruption campaign in Vietnam from 2016 to present ”, said Dr. Dang Hoang Giang (PAPI Research Group).

As for the content index “public administrative procedures”, among the 16 leading provinces and cities, there are 9 localities in the North. Most localities improve communal administrative services compared to previous years. In addition, the scores of the 3 content indicators: “People’s participation at the grassroots level”, “public service provision”, and “environmental governance” decreased slightly compared to the results in 2019. Meanwhile , 2 content indicators tended to slow down, including: “Openness, transparency”, “accountability to the people”.

In 2020, PAPI was surveyed from 14,732 Vietnamese citizens randomly selected across all 63 provinces and cities. PAPI 2020 continues to include 8 content indicators: People’s participation at grassroots level; transparency; accountability to people; control of corruption in the public sector; public administrative procedures; providing public services; environmental governance; electronic management.

Hanoi achieves the target of 5-step increase

The total number of PAPI scores in 2020 of Hanoi City is 41,629 / 80 points. In which, the index “participation of people at the grassroots level” reached 5.059 / 10 points; “Openness and transparency in decision making” reached 5,244 / 10 points; “Accountability to the people” reached 4,812 / 10 points; “Control of corruption in the public sector” reached 6,598 / 10 points. In addition, the indexes: “Public administrative procedures” reached 7,169 / 10 points; “Public service provision” reaches 6.87 / 10 points; “Environmental governance” reached 2,959 / 10 points; “Electronic management” reached 2,918 / 10 points.

Among the 7 out of 8 content indexes that the PAPI study compared with 2019, Hanoi has 4 content indexes that have improved, 3 content indexes “stalled” and no content indexes decreased. reducing and improving 5 levels compared to 2019 – achieving the target of increasing at least 5 steps set out in the Plan No. 122 / KH-UBND dated 11-6-2020 of the Hanoi People’s Committee on “ , improving the Hanoi City’s Public Administration and Public Administration Performance Index by 2020 ”.

It is the result of the city’s determination and concrete work to improve the PAPI Index. Typically, in 2020, the city organized a seminar “Solutions to improve PAPI Index of Hanoi” to share information on PAPI Index to communes, wards and towns. Although the total score of Hanoi increased compared to 2019, but still in the group of provinces and cities with the lowest PAPI composite score, ranked 48/63 provinces and cities.

From an expert perspective, UNDP Viet Nam public policy expert Do Thanh Huyen highly appreciated the interest and practice of Hanoi city in recent times. Analyzing more closely, Ms. Do Thanh Huyen said that Hanoi also has its own “burdens” (large population; many immigrants; many central agencies located in the area …), so there will be many higher demands. on public administrative services. Therefore, the city governments at all levels need to look at the weaknesses, evaluate each specific criterion where to improve, not necessarily how much to rank.