‘Members of the Revolutionary Armed Forces of Colombia’ permitted money laundering in Switzerland

The US Treasury has imposed sanctions on four alleged FARC members under the 1999 Kingpin Act for drug trafficking and money laundering using a shop in Zurich, Switzerland as a facade for their activities.

Jose Vicente Peña Pacheco, Adolfo Fonnegra Espejo, Ivan Gonzalez Zamorano, and Cristian David Gonzalez Mejia, who all live in Switzerland, were designated as Specially Designated Narcotics Traffickers on Thursday.

Their assets in the US have been frozen, and all American firms and citizens have been banned from doing business with them.

The four men have been linked to drug trafficking and money laundering conducted by the FARC and Omar Padilla a.k.a. “Lucas Gualdron”, FARC’s International Commission member for France Italy and Switzerland, according to the US treasury.

Behind the Zurich-based Colombiano Latin Shop, which sold Colombian products, traded gold, and provided phone and money remittance service, Pacheco, in partnership with Padilla, was allegedly moving FARC money around the world, giving the group access to the international financial system.

Espejo, Zamorano, and Mejia have allegedly been trafficking drugs from Colombia and Panama to Switzerland.

“Today’s action combats the FARC’s efforts to finance its ruthless operation and expand the flow of drugs to US and world markets,” said John E. Smith, Acting Director of the Office of Foreign Assets Control.

Padilla, allegedly one of the key members of the FARCs “International Commission” and considered to be the groups prime representative in Europe, has been living in Switzerland since 2006.

Padilla was designated as a Specially Designated Narcotics Trafficker in 2009 for carrying out FARC activities from Europe.

By tracking the movements of these criminals, it also allegedly became apparent that FARC money has been arriving in Costa Rica where it is managed by the family of Jorge Victoria, a member of the guerrilla group who has taken part in the peace negotiations in Havana between the Colombian government and the group that started in 2012.

The FARC are currently engaged in peace talks with the Colombian government in an attempt to de-escalate the countries 51 year conflict. This deal would include the rebels’ abandoning of drug trafficking.

Singapore takes tough stance on financial crime: anti-money laundering

In response to queries on its anti-money laundering and countering the financing of terrorism regime, the Monetary Authority of Singapore said the Republic is firmly committed to maintaining its status as a clean and trusted financial centre.

SINGAPORE: Singapore’s regime for anti-money laundering and countering the financing of terrorism (AML/CFT) meets global standards - and the central bank's regulation and supervision of the financial sector has been evaluated by the International Monetary Fund as “among the best globally” the Monetary Authority of Singapore said on Wednesday (Jul 15).

It issued a statement in response to recent queries over its AML/CFT regime. The MAS said Singapore is firmly committed to maintaining its status as a clean and trusted financial centre. The country has "no tolerance for its financial system to be used as a refuge or conduit for illicit fund flows", MAS stated.

Its AML/CFT regime comprises four key elements, namely, strict regulation, rigorous supervision, effective enforcement, and close cross-border co-operation.

MAS said all financial institutions in Singapore are required to conduct stringent checks on the sources of their customer funds, including customer due diligence and regular account reviews. Financial institutions are required to monitor for and report any suspicious transactions.

financial system

On its part, MAS undertakes regular reviews to strengthen its regulatory regime and to mitigate emerging risks, it said. It also conducts regular on-site inspections to ensure that banks and other financial institutions comply with AML/CFT laws and regulations. And when breaches are found, MAS will take enforcement actions, ranging from formal warnings, reprimands, restriction on operations, to financial penalties and revocation of licences.

Between April 2013 and March 2014, MAS said it conducted 83 AML/CFT inspections, issued nine supervisory warnings and reprimands, restricted the operations of six financial institutions, and revoked the licences of two remittance agents. It also fined five financial institutions for breaches of AML/CFT requirements.

In the global fight against money laundering and terrorism-funding, MAS said Singapore authorities have established effective channels to facilitate international co-operation and exchange of information.

The central banks adds that taking a tough stance on financial crime and keeping the financial sector clean is critical to Singapore's reputation and development as an international financial centre.

Govt starts work on extending anti-money laundering provisions to professions

The government has started work on expanding anti-money laundering obligations to professionals including lawyers and accountants as the number of suspicious transactions reported to law enforcement agencies more than triples since legislation came into effect.

Ministry of Justice officials have started early work on considering a second tranche of legislative reform that would extend anti-money laundering requirements to professions and businesses dealing in high-value goods, such as lawyers, accountants, conveyancing practitioners and real estate agents, Justice Minister Amy Adams said at the Asia/Pacific Group on Money Laundering annual meeting in Auckland.

Ministry of Justice officials are considering legislation that will extend anti-money laundering requirements to professions including lawyers and real estate agents.