UNODC and ARINSA Strengthen Namibia’s Anti-Money Laundering Efforts with Crucial Workshops

Further Reading

[i] Prevention of Organized Crime Act, 29 of 2004 (“POCA”) provides measures to combat organised crime, money laundering and criminal gang activities.

Businessman who laundered over R3 million from government department sentenced

UNODC and ARINSA Host Workshops for Prosecutors and Investigators to Strengthen The Seychelles' Anti-Money Laundering Efforts.

By Staff Writer 13 June 2024 | UNODC Website

In an effort to strengthen The Seychelles' ability to combat money laundering and terrorism financing, the United Nations Office on Drugs and Crime (UNODC) and the National Prosecuting Authority of South Africa as the joint secretariat of the Asset Recovery Inter-Agency Network of Southern Africa (ARINSA) organized two workshops: one for prosecutors and another for investigators. The workshops, which took place from 3-6 June 2024, aimed to build the capacity of investigators and prosecutors in applying effective asset confiscation methodologies and practices.

The workshops were conducted as part of The Seychelles' membership in ARINSA and were made possible through the generous support of the U.S. State Department’s Bureau of International Narcotics and Law Enforcement Affairs (INL). ARINSA is a regional network established to facilitate intelligence sharing and capacity building among Southern African countries in the area of asset recovery. As a member of this network, The Seychelles actively involved and invested in enhancing the capabilities of its asset recovery practitioners. Through this program, UNODC supported the workshop by providing platforms for prosecutors and investigators to enhance their expertise and exchange knowledge on best practices in the field of asset confiscation. Through a combination of theoretical and practical training sessions, participants gained insights into the global transnational nature of asset recovery and the importance of international cooperation.

The Prosecutor Placement Programme (PPP), attended by 27 participants from the Office of the Attorney General, Anti-corruption Commission, and The Seychelles Revenue Commission, focused on enhancing prosecutorial strategies and expertise. Meanwhile, the Investigator Placement Programme (IPP), attended by 8 participants from The Seychelles Police Force, Customs division of The Seychelles Revenue Services, and the Anti-Corruption Commission, aimed to strengthen investigative skills and practices.

Present at the opening ceremony, where participants from both programs convened on the first day, were Attorney General Mr. Frank Ally, Commissioner of Police Mr. Ted Barbe, Commissioner of the Anti-Corruption Commission of The Seychelles Ms. May Desilva, Deputy Commissioner of Police Mr. Francis Songoire, and members of The Seychelles Police Executive Board. During his opening remarks, Commissioner of Police Mr. Ted Barbe emphasized that financial crimes pose a significant threat to communities and The Seychelles as a whole.

Participants in the Prosecutor Placement Programme acquired valuable insights and practical knowledge in areas such as prosecutorial strategies for addressing money laundering cases, effective presentation of evidence in court, understanding and application of relevant legislation, procedures related to unexplained wealth orders, and handling virtual assets and associated legal challenges. Participants in the Investigator Placement Programme learned skills in the basics of asset tracing, collating evidence and joint planning with advocates, beneficial ownership, and other investigation strategies for identifying and addressing money laundering cases.

Commissioner of Police Mr. Ted Barbe during the opening session.

“Asset recovery and fighting money laundering is a global phenomenon and in order to be successful, we need to work together. It is often said that fighting money laundering and recovering the proceeds of crime is a contact sport. Relationships between law enforcement agencies across countries are critical to fighting this crime as well as recovering the proceeds of those crimes. Working together and sharing best practices and lessons learned therefore puts us in a much stronger position,” said Dianne William, NPA of South Africa during the opening ceremony.

Speaking on the lessons learned, Brigitte Valentin from the Revenue Collection and Border Security Unit of The Seychelles Revenue Commission said, “We have been trying to implement the fusion center idea at the airport, but until now it has not been successful. I will take the example provided to my manager, and we will see how to proceed as I feel it would be helpful to us.”

Although the training delivered by South African trainers as part of the peer-to-peer learning offered by UNODC, they explained foreign laws and international standards, customizing the training to the needs of The Seychelles. Attendees were required to bring their country’s asset recovery legislation and cases with them to engage by discussing their particular legal environment during the course of the program.

The two workshops brought great promise for The Seychelles and its efforts to combat money laundering and terrorism financing. By equipping prosecutors and investigators with the necessary tools and knowledge, this collaborative initiative aimed to contribute to a safer and more secure financial environment in The Seychelles and the wider region.

More suspects linked to R2.8bn Ponzi scheme arrested

The long arm of the law has finally caught up with two more suspects implicated in the R2.8-billion BHI Ponzi scheme.

The recent arrests of 54-year-old Sona Pillay and Michael Philip Adam, 55, come after the Hawks’ serious commercial crime investigation put Graig Roy Warriner behind bars.

The 60-year-old Warriner was convicted and sentenced to 25 years imprisonment on 206 counts of fraud and one of contravening the Financial Advisory and Intermediary Services Act for operating an investment scheme without a licence or being registered as a financial service provider.

Michael Philip Adam has been nabbed for his alleged role in a multibillion-dollar Ponzi scheme.

“Pillay was arrested on Friday after he attempted to flee overseas, where he was refused entry and sent back to South Africa, where he found the Hawks’ investigating team waiting for him at the OR Tambo International Airport, while Adam handed himself over on the morning of June 3,” said Hawks spokesperson Colonel Katlego Mogale.

“The pair subsequently appeared in the Palm Ridge specialised commercial crimes court, sitting in the Palm Ridge magistrate’s court.”

She said the Hawks investigation has linked Pillay and Adam to the Ponzi scheme that started in 2008, wherein individuals invested capital to the tune of over R2.8-billion with promises of generating profits exceeding interest of more than 10%.

Losses for investors

“In typical Ponzi scheme fashion, the BHI Trust scheme started to falter and failed to keep up with the promised returns on investment.”

The scheme used capital for payments to investors withdrawing their capital from BHI Trust as fictitious profits. The elaborate misrepresentation of the scheme led to massive losses for the investors.

Warriner has been in prison since his arrest in August 2023, culminating in his recent sentencing, said Mogale.

“It is expected that more individuals will be arrested in this case.”

Suspects remanded in custody

Mogale stated that the Palm Ridge specialised commercial crime court has postponed the case to June 10 for formal bail application, with the pair remanded in custody.

The Gauteng provincial head of the hawks, Major-General Ebrahim Kadwa, has welcomed the arrests.

“We are pleased with the progress made, and we are looking forward to the finalisation of the case,” Kadwa said.

“The public is hereby warned to treat any investment scheme that promises more than usual returns with scepticism.”

Anti-money laundering agency flags terror financing risk in banks

By John Mutua | 20 May 2024 Business Daily

Zimbabwe’s goal to save billions spurs an aggressive crackdown on political criminals

Authorities in Zimbabwe have decided to take more drastic measures against corruption to reduce the losses the nation experiences every year.

The country has decided to crack down on assets illegally obtained and hidden outside the country.

The government is also providing its law enforcement agents with the tools they need to combat graft.

According to a recent report in the Zimbabwean Newspaper, The Herald, the Anti-Corruption Commission of Zimbabwe has decided to aggressively tackle corruption.

The commission aims to do this by seizing all assets acquired corruptly in Zimbabwe and stashed overseas in order to save an estimated $ 1.8 billion lost to graft annually.

As criminals get cleverer, law enforcement agencies are being equipped to handle any new developments, the National Prosecuting Authority and the Zimbabwe Anti-Corruption Commission (ZACC) assured.

Combined efforts from such agencies including the ZACC, the Zimbabwe Revenue Authority, the police force, and more have brought about the recovery of $100 million in assets believed to be proceeds of looting.

The Prosecutor-General, for the International Centre for Asset Recovery (ICAR), Justice Loice Matanda Moyo assured that things would no longer go smoothly for individuals who acquire corrupt wealth and hide it outside the country.

“As Zimbabwe, we have not started reparation of stolen assets which are hidden outside of our jurisdiction. It’s high time we start doing so,” she said.

She then went on to add, “In order to do that we need to understand mutual legal assistance and international cooperation”

Zimbabwe’s Prosecutor-General, Justice Loice Matanda Moyo, and ZACC Chairperson Michael Reza made the statement at a capacity-building session on financial investigations and asset recovery conducted by the International Centre for Asset Recovery (ICAR).

“It is time that we totally eradicate corruption in Zimbabwe and recover the stolen assets. As a result of these illicit flows, governments are left with little or no financial resources to channel towards development and the provision of basic services such as health and education,” Matanda Moyo said.

Africa’s Fight against Illicit Financial Flows and renewed calls to Return Stolen Assets

SACCOs, MFIs put Uganda at risk by flouting anti-money laundering rules

The failure of Savings and Credit Co-operatives (SACCOs) and Microfinance Institutions (MFIs) to comply with Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) regulations poses a significant threat to Uganda’s financial integrity on the global stage.

Despite being obligated to adhere to AML/CFT regulations like banks, insurance companies, and NGOs, SACCOs and MFIs are largely non-compliant. According to the Financial Intelligence Authority (FIA), fewer than 20 of these institutions are registered with the authority, the first requirement for compliance.

As a member of the Financial Action Task Force (FATF), Uganda must ensure adherence to AML/CFT laws to maintain its international financial status. Compliance is evaluated during mutual evaluations, and Uganda’s recent removal from the financial grey list underscores the importance of maintaining progress in this regard.

Phionah Nabaggala, FIA’s Manager for Training and Outreach, emphasizes the need for compliance with international standards to avoid reverting to the grey list or facing the worst-case scenario of being placed on the black list. She stresses the importance of SACCOs and MFIs developing internal AML/CFT policies and training employees to adhere to them.

Based on the National Risk Assessment, SACCOs and MFIs are categorized as medium-high-risk entities for money laundering, necessitating tighter operational controls to safeguard the nation’s overall ranking. Under the Anti-Money Laundering Act, SACCOs and MFIs must register with FIA, develop internal AML/CFT policies, train employees, conduct due diligence on clients, report suspicious transactions, and appoint a focal person accountable to FIA. Non-compliance can result in significant fines and imprisonment.

Sheila Birungi, head of the legal department at UMRA, highlights the importance of addressing compliance gaps in SACCOs and MFIs, which handle a significant portion of Uganda’s financial transactions. UMRA is committed to integrating AML/CFT compliance into its regulatory frameworks for tier-four financial services providers.

Birungi emphasizes the vulnerability of SACCOs and MFIs, particularly in reaching underserved populations through Village Savings and Loan Associations (VSLAs). She stresses the need for tighter compliance measures due to the potential for even small transactions to facilitate illicit activities.   “Many of the people in the tier financial services sector are not aware of the intensity of AML/CTF.

For example, CTF goes up to just aiding someone to buy airtime of only 1,000 shillings, which can facilitate the process of terrorist activity. So compliance in this sector has to be very tight,” Birungi explained. Overall, enhancing compliance with AML/CFT regulations among SACCOs and MFIs is crucial for safeguarding Uganda’s financial integrity and preventing illicit financial activities.

Nine sentenced to a cumulative 10 939 years

The sentencing of nine people for a cumulative of 10 939 years for committing various crimes including money laundering, fraud and forgery, has been welcomed by National Head of the Directorate for Priority Crime Investigation (DPCI), Lieutenant General Godfrey Lebeya.

The sentence was handed down at the South Gauteng High Court for 391 counts of money laundering, fraud, forgery, uttering, assisting another to benefit from unlawful activities and acquisition, possession or use of proceeds of unlawful activities.

They also contravened legislation in relation to birth and death registration, the Identification Act as well as the Prevention and Combating of Corrupt Activities Act.

“It is reported that during 2009 and 2016, the accused were members of various entities registered in terms of the Close Corporations Act, No 69 of 1984 and/or the Companies Act, No 61 of 1973 and thus also registered their companies for Value Added Tax (VAT) in terms of the South African Revenue Services Act.

“A total of 23 cases were opened at the Johannesburg Central police station against the accused for investigation.  These cases were referred to the Gauteng-based Serious Corruption Investigation for in-depth probe,” the DPCI said on Thursday.

The accused, while acting in furtherance of a common purpose, submitted fraudulent VAT returns for and on behalf of the said close corporations and/or companies claiming undue VAT refunds from the South African Revenue Services (SARS).

“In support of their claim, the accused forged and uttered invoices to SARS. The undue VAT refund was then paid by SARS into various bank accounts of the said various entities, and were then transferred into various other accounts, which were under the control of the accused or withdrawn.

“The entities in question were not trading or conducting any business during the period they claimed the undue refund which is from 2009 to 2015 and did not incur any input expenses to warrant a refund from SARS therefore prejudicing SARS R300 million,” the DPCI said.

Initially, 13 people were charged in the case, however, two passed away during the course of the trial while the other two turned state witness.

The accused were sentenced as follows:

• Jeremiah Nyasha Musiwacho Dube (59), a Zimbabwean male, was sentenced to 3 376 years’ imprisonment. The court ordered that the accused should serve only 65 years having taken into consideration mitigating circumstances.
• Rebecca Dube (51), a South African female, was sentenced to 1 596 years’ imprisonment. The court ordered that the accused should serve only 25 years having considered mitigating circumstances.
• Mavudzi Maxwell Ndlovu (59), a Zimbabwean male, was sentenced to 3 272 years’ imprisonment. The court ordered that the accused should serve only 65 years having considered mitigating circumstances.
• Moliehi Constance Ramone (44), a Lesotho female, was sentenced to 953 years imprisonment. The court ordered that the accused should serve only 15 years having considered mitigating circumstances.
• Edward Shoniwa (56), a Zimbabwean male, was sentenced to 168 years imprisonment. The court ordered that the accused should serve only 15 years having considered mitigating circumstances.
• Zamaswazi Audrey Radebe (51), a South African female, was sentenced to 73 years imprisonment. The court ordered that the accused should serve only 5 years having considered mitigating circumstances.
• Bongani Mbonani (42), a South African male, was sentenced to 57 years imprisonment. The court ordered that the accused should serve only 5 years having considered mitigating circumstances.
• Sello Atlone Rathethe (52), a South African male, was sentenced to 1557 years imprisonment. The court ordered that the accused should serve only 15 years having considered mitigating circumstances.
• The last accused, Christopher Dube (56), a Zimbabwean male, absconded just before conviction and his warrant of arrest has been authorised by the court.

NPA RECOVERS ZMW 777,751,595.42 MILLION IN HIGH-PROFILE FORFITURE CASES 

By Chali Mbewe-Hambayi | 16 April 2024 National Prosecution Authority of Zambia

In a strategic move towards combating financial crimes, the National Prosecution Authority (NPA) has over the last one month successfully recovered US$30,902,855.00 (ZMW 777,751,595.42) in forfeitures from multiple high-profile cases. The unprecedented recoveries not only demonstrate the State’s dedication to justice, but also the importance of asset recovery as a potent alternative to the traditional criminal prosecution system. 

The State in the flagship case of the Director of Public Prosecutions vs. Milingo Lungu, recovered US$24 million. The NPA also oversaw the successful surrender of US$5, 000, 000 to the State in the case of the  Director of Public Prosecutions vs. World Aviation Sinai International, Mountains Limited, Ibissair (Pty) Limited and Michael Adel Michel Botros. The State released the chartered plane in the case due to the fact that  the rightful owners claimed ownership of it in a third party claim which was filed before the Lusaka High Court with documentary proof of ownership as provided for under the Forfeiture of Proceeds of Crime Act Number 19 of 2010. Investigations pertaining to the ownership of the subject aircraft revealed that it was indeed chartered and, therefore, the State had no further action to pursue in this regard.  

Further, in diverse cases involving mostly foreign nationals, the DPP also secured forfeitures totalling US$1,813,093.42,  €32, 717.62 Euros,  £8,139.20 British Pounds and K1, 320 Zambian Kwacha.

These asset recoveries were made possible by the diligent efforts of   the Drug Enforcement Commission (DEC). Their meticulous investigations and asset seizures paved way for these legal actions and subsequent forfeitures, demonstrating the crucial role of collaborative inter-agency law enforcement. 

These forfeitures not only mark a significant and unprecedented financial recovery for the State, but also underscores the Authority’s commitment to fiscal prudence and accountability. As an authority, we will continue to be proactive in combating financial crimes. The Authority is facilitating these forfeitures to the State who will redirect the resources towards national development, by so doing, the Authority is not only upholding the rule of law but also contributing to economic growth and national development.