Aperio Intelligence

The latest edition of the Financial Crime Digest is out now: https://lnkd.in/dQZMVzXY The #FCD is free to access and you can register through your LinkedIn account: https://lnkd.in/dFpKHD4U Highlights of the new edition include: - World observes Day Against #Trafficking in Persons - France restricts public access to its #beneficialownership register, requiring demonstration of legitimate interest - London Appellate Court says NCA refusal to probe #Xinjiang-origin cotton consignments was illegal - Central Asia: #ESG opportunity and risk - US #sanctions spotlight: Developments and measures adopted in July - UK sanctions spotlight: Developments and measures adopted in July - Environmental, Social and Governance Update - Aperio Analysis by Pierre le Jeune d'Allegeershecque, Head of Western Europe and Sub-Saharan Africa Practices, and Francesca Povey, #MENA Analyst

International companies should be cautious when entering El Salvador's market, Aperio's LatAm and Iberia Head Luis L. argues in an opinion piece for fDi Intelligence. Amid views that #ElSalvador could turn into a new version of Singapore, the piece is looking at some of the risks and challenges that companies should consider when assessing business and #investment opportunities in El Salvador.

Last month #Burkina Faso’s new #mining code was passed by the transition parliament in an unsurprisingly unanimous vote. Amidst the backdrop of continuing political volatility and a consistently deteriorating security situation – illustrated most bleakly by the killing over the weekend of hundreds of labourers by Islamist insurgents, in what has been described as the country’s worst-ever terrorist attack – the mining code included new stipulations which should worry existing and prospective players in the sector alike. These are: - Increasing the “free stake” of the Burkinabe government in all mining concerns from 10% to 15% - Requirements to allow Burkinabe investors to acquire stakes in all mining firms registered in the country – a process which could be heavily targeted by politically-exposed rentiers, and which will consequently have to be carefully navigated by mining firms present in Burkina Faso - A requirement to on-shore 50% of all refining of gold in Burkina Faso, via the country’s soon-to-be sole operating facility – operated in partnership with a Malian firm - Most concerningly, a compulsory participation in the Mining Development Fund. This fund will in turn be funding the Patriotic Support Fund, the key source of money for the paramilitary Defense of the Homeland (#VDP). This could carry extensive risks of exposure (albeit indirect) to the war crimes VDP forces have been accused of, as well as potential sanctions exposure should VDP troops be shown to be trained or fighting alongside #Wagner/Africa Corps fighters, who are already present in the country. The deteriorating security situation as well as the new mining code will likely be a significant concern to the #gold-mining firms which produce Burkina Faso’s key export (80% of total exports). But it bears repeating that it is civilian populations which will bear the brunt of both worsening security and economic prospects. The VDP and regular Burkinabe army have proven incapable of countering the insurgency in the country. In this context, similar to what we have seen in #Mali, it will likely be very tempting for Burkina Faso’s junta to rely increasingly on Wagner – which has so far been limited to bodyguarding and training duties – for counterinsurgency. There is ample evidence from Mali about the human and economic predation this cooperation entails. Read our full article here – I can also send you a PDF version. https://lnkd.in/dG6PVhUZ

Last month #Burkina Faso’s new #mining code was passed by the transition parliament in an unsurprisingly unanimous vote. Amidst the backdrop of continuing political volatility and a consistently deteriorating security situation – illustrated most bleakly by the killing over the weekend of hundreds of labourers by Islamist insurgents, in what has been described as the country’s worst-ever terrorist attack – the mining code included new stipulations which should worry existing and prospective players in the sector alike. These are: - Increasing the “free stake” of the Burkinabe government in all mining concerns from 10% to 15% - Requirements to allow Burkinabe investors to acquire stakes in all mining firms registered in the country – a process which could be heavily targeted by politically-exposed rentiers, and which will consequently have to be carefully navigated by mining firms present in Burkina Faso - A requirement to on-shore 50% of all refining of gold in Burkina Faso, via the country’s soon-to-be sole operating facility – operated in partnership with a Malian firm - Most concerningly, a compulsory participation in the Mining Development Fund. This fund will in turn be funding the Patriotic Support Fund, the key source of money for the paramilitary Defense of the Homeland (#VDP). This could carry extensive risks of exposure (albeit indirect) to the war crimes VDP forces have been accused of, as well as potential sanctions exposure should VDP troops be shown to be trained or fighting alongside #Wagner/Africa Corps fighters, who are already present in the country. The deteriorating security situation as well as the new mining code will likely be a significant concern to the #gold-mining firms which produce Burkina Faso’s key export (80% of total exports). But it bears repeating that it is civilian populations which will bear the brunt of both worsening security and economic prospects. The VDP and regular Burkinabe army have proven incapable of countering the insurgency in the country. In this context, similar to what we have seen in #Mali, it will likely be very tempting for Burkina Faso’s junta to rely increasingly on Wagner – which has so far been limited to bodyguarding and training duties – for counterinsurgency. There is ample evidence from Mali about the human and economic predation this cooperation entails. Read our full article here – I can also send you a PDF version. https://lnkd.in/dG6PVhUZ

In Italy on Wednesday, the Court of Catania authorised a €100 million asset seizure against a Sicilian family, revealing deep ties between their vast business empire and organised crime groups. This significant move by the Anti-Mafia Investigative Directorate marks a critical step in the ongoing fight against environmental crime and corruption in Italy, writes Aperio Senior Analyst Mairi Bocker. #Mafia #AntiMafia #OrganisedCrime #Italy #Sicily #HiddenWealth #Catania #Corruption #Bribery #WasteManagement

Read Aperio Head of Latin America and Iberia Luis L.'s latest commentary in Canning House on the way forward for #Venezuela. #Maduro #Chavismo #LatinAmerica #Brazil #Argentina #Colombia #geopolitics #OAS #StrategicIntelligence

On the same day that France dealt a significant blow to corporate transparency by restricting the public’s access to its Ultimate Beneficiary Owner (#UBO) registry, the #Cayman Islands (of all places) brought into force its new Beneficial Ownership Transparency Bill, which had published in August 2023. While the CJEU ruling to dismantle its 5th anti money laundering directive (#AML5) on grounds that it violated the protection of privacy demonstrated how such concerns could be weaponised against corporate transparency, the Cayman Islands’ bill shows how effective political pressure can bring about positive change in even the most "well-known" offshore jurisdictions. The Cayman Islands has been under sustained pressure from international organisations and states due to its low corporate disclosure requirements, which have made it a preferred destination for investment vehicles and in particular investment funds, with the latter also benefiting from an advantageous regulatory framework. They were listed on the Financial Action Task Force (FATF) grey list in March 2022 and to the EU’s “AML blacklist” – countries which have deficient anti money laundering regulatory frameworks – in February of that year. There was also pressure from the UK, of which the Cayman Islands are an Overseas Territory, to bring its corporate disclosure and transparency regimes closer in line with the UK’s. As a result of the Transparency Bill, previously-exempt corporate entities, including Cayman Islands funds, will be required to disclose UBO information to the corporate registry. All direct and indirect owners of a company holding stakes of 25% or over will be subject to beneficial ownership disclosure requirements. In situations where investment fund vehicles wish to disclose a fund administrator or other corporate services provider to the beneficial ownership registry, rather than a direct contact person at the fund, the fund administrator will be required to keep a contact person at the fund on file and provide this to the registrar of companies. After the bill was published in August 2023, the Cayman Islands were swiftly removed from FATF's grey list and the EU's AML blacklist, in October 2023 and January 2024 respectively. Even though this is good news for corporate transparency, the wide-ranging and damaging effects of the November 2022 AML5 CJEU ruling are felt even here. The UBO register will not be made available to the public; the August 2023 Cayman Islands press release announcing the Transparency Bill explicitly refers to the CJEU ruling – even though the UK is not part of the EU – as justification for pushing approval for public access to the registry to a “future meeting of Parliament.” Although not impossible, it is difficult to see how the Cayman Islands Parliament would approve public access to the UBO register given how important financial services and offshore company servicing are to the territory’s economy. 

Last week France became the latest EU country to restrict access to its Ultimate Beneficiary Ownership (#UBO) registry. Individuals or companies looking to access the registry, previously accessible by all members of the public through national corporate registry Infogreffe, will now need to demonstrate legitimate interest to the French government before being granted access. EU countries have been restricting or prohibiting access by the public to UBO registries following the November 2022 ruling by the EU Court of Justice; following a successful legal challenge to the EU’s #AML5 directive originally filed in Luxembourg. The rules for access under the new “legitimate interest” regime are very stringent in France. Companies or individuals must either be journalists, members of relevant government bodies, or “service providers” to persons falling under two legal provisions in France, namely regulated persons in specific sectors (such as insurance, gambling, and financial services), or empowered persons at large French companies or French subsidiaries of international groups. The rules are equally stringent for the sharing of such information: information obtained from the UBO register must only be shared for the original purpose of the relevant journalistic investigation, or in the context of the specific service provider contractual arrangement with the relevant regulated person. France’s INPI has the right to audit all individuals or companies with access to the UBO register, and there are legal penalties for anyone failing to provide the necessary information or having been found to have misused information acquired from the register. While frustrating to those who work with French corporate data, restricting access to the UBO register does not prevent researchers from accessing ownership data for French companies. These companies are still required to file updated articles of association, which usually list the subscribers to a company’s share capital (aka its direct shareholders). It is then a question of “going up the chain” to determine a company’s UBO. Even before the UBO register had been restricted, there were already a significant number of companies which did not have a UBO listing on the French registry. It is also not a requirement for French private companies to include their statement of share capital in articles of association; however, this requirement predates any UBO register. This is just the latest example of apparent concerns about privacy being turned against corporate #transparency. While making accessing information harder keeps corporate investigators in business, there are countless of examples of how corporate opacity enables money laundering, fraud, and corruption. The successes of independent investigative organisations, as well the gradual stripping of resources from multilateral and national anti-corruption bodies, should make us worry every time a public information register is closed down.

An engaging piece by David Hodari at NBC News featuring Charles Hollis, Aperio’s Director of Strategic Intelligence. A former UK diplomat with tenures in Saudi Arabia and Iran, Charles weighs in on the consequences of JD Vance’s potential foreign policy for the Middle East. Our team's deep understanding of global dynamics positions Aperio as a leader in navigating complex international landscapes. Contact Aperio to leverage insights that shape informed, strategic decisions. #Geopolitics #RiskAnalysis #StrategicIntelligence #Aperio #FinancialIntelligence #CorporateDueDiligence

Hasina has been Bangladesh’s longest ruling leader, serving as prime minister of the Awami League party from 1996 to 2001, and again in 2009. Her last two consecutive terms have been mired in controversy, as well as her association with rampant corruption within government, curbing press freedoms and accusations of extrajudicial killings. Having fled the country, what next? The current military interim government overseen by army chief, General Waker-uz-Zaman, issued a statement on Sunday stating that “the Bangladesh Army will always stand by the people in the interest of the public and in any need of the state.”  General Waker-uz-Zaman stepped into the role of Chief of Army Staff in June 2024, a three year term, following a long military career starting in 1985. Interestingly, his father-in-law is Sheikh Hasina’s uncle General Mustafizur Rahman, who also served as Chief of Army Staff of the Bangladesh Army from December 1997 to December 2000. Bangladesh is no stranger to military rule. Since independence in 1971, the country has been through as many as 29 military coups. The latest being in 2011 when it was announced that the Bangladesh Army had stopped a planned coup to establish Islamic law in Bangladesh. A number of officers were arrested, and it was reported that those involved claimed to be nationalists trying to prevent Bangladesh from being turned into a puppet of India. Hasina has had a good relationship with India. Local Indian media reports that her departure has resulted in India losing a trusted partner in the region. The two countries share a 4,100 km porous border and have worked together on counter-terrorism measures with the Indian government concerned about anti-India outfits operating across the India-Bangladesh border. The announcement of Hasina's departure comes at a time when India is facing increased security concerns along its borders with other neighbouring countries.