China to Cut Off Corrupt Officials from Escape Routes

A Chinese senior prosecutor has pledged efforts to chase fugitive corruption suspects as well as to “resolutely cut off the escape route of suspects.”

At a conference on an international manhunt of duty-related crime suspects on Saturday, Qiu Xueqiang, deputy procurator-general of the Supreme People’s Procuratorate (SPP), urged prosecutors to intensify their work to prevent relevant suspects from escaping.

Such efforts include proper risk evaluation of the targets’ fleeing and early warning against such situations, Qiu said.  Prosecutors should enhance the information sharing with other authorities and formulate detailed plans to prevent suspects’ absconding.  Qiu told the prosecutors to target on suspects both in China and abroad and they should take measures to chase the suspects at large and at the same time stop potential fugitives.

The SPP announced the launch of a half-year campaign targeting fugitive suspects of corruption and other duty-related crimes. On Saturday, Chinese police announced that it has seized 102 suspects in a separate campaign targeting corrupt officials and suspects in economic crimes that have fled abroad.

In a latest move, Chinese police escorted four suspects captured in Thailand to Beijing.  One of the four was suspected of loan fraud and has been at large for 10 years. The other three were suspected of contract frauds with one case involved money up to 67 million yuan (10.9 million U.S. dollars), the Ministry of Public Security (MPS) said in a statement.

It was also the fourth time Chinese police conducted arrests in Thailand amid the police’s recent manhunt campaign and to date a total of 16 suspects of major economic crimes in the country have been seized and brought back to China.

China launched the Fox Hunt 2014 operation in July to “block the last route of retreat” for corrupt officials and other economic criminals at a time when China’s major crackdown on graft has already narrowed the space for abuse of power.

Meng Qingfeng, director of the economic crime investigation bureau of the MPS said the international pursuit is an important step of China to crack down on graft and to promote the rule of law.  Meng said Chinese police will continue the efforts to deepen international cooperation of law enforcement and diligently practice its duty to fight crimes and protect the people.

Capturing Economic Criminals

 

China/India Relations

A. G.  Noorani writes:  Chinese President Xi Jinping’s visit to India, from Sept 17 to 19, was successful in some important respects but not so in others. On matters economic, success was predictable and achieved. Politically, the result was disappointing.

Uniquely, the Chinese president’s visit began from Ahmedabad, in the prime minister’s home state Gujarat. The talks, which began there, were continued in Delhi. Both sides agreed that the boundary question should be settled “at an early date”. Neither spelt out by which process.

A boundary agreement defines the border which is then demarcated actually on the ground. Xi’s stand was simple: there’s no need to freeze the existing status quo by demarcating the LAC. That will postpone the agreement on a proper boundary. Instead, both parties should negotiate a settlement “at an early date”.

Thereby hangs a tale. In September 1993 India and China concluded an agreement on “the resolution of differences between the two sides on the alignment of the Line of Actual Control”. Three years later, they signed another agreement “to speed up the process of clarification and confirmation of the Line of Actual Control.” As an “initial step”, the segments on which their perceptions differed would be taken up. Maps would be exchanged “indicating their respective perceptions of the LAC as soon as possible”.

The Sino-Indian boundary is divided into three sectors to facilitate clarity in discussion. The western sector (Ladakh), the middle sector (Uttar Pradesh) and the eastern sector (the McMahon Line). Very sensibly, they began by exchanging maps on the middle sector, where the area in dispute is small and so are the differences. By March 2002 this process was complete. Not quite sensibly they moved next to the western sector, instead of the eastern sector.

This led to the collapse of the entire exercise in June 2002.  This was due to ignorance and narrow nationalism. India’s map covered the segment to the west of the Karakoram Pass right up to the tri-junction of Pakistan, Afghanistan and China. The depiction was hopelessly wrong factually. The Sino-India LAC did not extend to that area.

China had repeatedly made plain that it would not discuss this part of the segment in the western sector — first, in the Nehru-Zhou En-lai talks in Delhi in April 1960 and next, in the talks between their respective officials at Beijing soon after.

China’s position did not change 42 years later. In between came the Pakistan-China Boundary Agreement of March 1963, based on a sensible understanding. It was based on Curzon’s letter to London in August 1905. The agreement resulted in Pakistan acquiring 1,942 square kilometres of administered territory. No territory was given to China. It will never agree to any agreement with India which challenges the 1963 agreement.

This step backward on the boundary dispute was, however, accompanied by several steps forward in the economic sphere. China is eager for engagement with India.

China:India Trade

 

Hillary Clinton to Run as a Woman

In 2008 her policy advisor Mark Penn advised against it.  This time, she probably won’t have another ‘first’ to contend with in the primaries, so Clinton is going to brave it out.

Many women prefer to vote for the best candidate, and we don’t yet know who will be opposing her.  Biden.  Warren,  Webb.  Bernie Sanders has already announced.

On the east and west coasts of the US, Mrs. Clinton is very popular, but spend time in the flyovers and you can see quite the opposite reaction.  Oscar WIlde has said only the superficial ignore appearances, but the scratchy, chalk on the blackboard voice of Mrs. Clinton’s has not been overcome yet.

Hillary Clinton for Women

 

Cutting Off Criminal Funds to ISIS

Jamie Dettmer writes:  Turkey needs to stem money laundering and to stop traders in Turkey buying smuggled oil from the Islamic State.

For years, Ankara has fallen foul of international money-laundering agreements, and despite passing a law last year aimed at preventing the financing of terrorism, Turkey remains on a global list of uncooperative countries. It languishes on what is known as the gray list overseen by the Financial Action Task Force, an inter-governmental body.

The G7-founded body, which is tasked with implementing global standards to counter illicit financing, says Turkey has a weak framework for identifying and freezing terrorist assets. With the U.S. gunning for ISIS and determined to hit its funding, Turkey will be pushed to play its part on hitting the militants in their wallets.

From racking in millions in ransom money for Western hostages to trafficking in rare antiquities looted from museums and archaeological sites in Syria and Iraq, militants of ISIS have turned their jihad into a cash cow and become terror tycoons. Analysts say they are the world’s first self-funding terrorist organization and, unlike al Qaeda, don’t need to go cap-in-hand to wealthy sympathizers in the Gulf—although they don’t say “no” when offered donations.

Depriving ISIS of its oil revenue is going to be a monumental task. Hitting a dozen rudimentary refineries isn’t going to undercut the group, according to analysts.

Even more than bombing, a key component in stopping ISIS from profiting from oil will be blocking militants from getting their oil to market by locking up the border with Turkey and Jordan and pressing Kurds to stop dealers in semi-autonomous Kurdistan from trading. The Turks have shown little enthusiasm for halting the trafficking in the past, although in recent weeks they have interdicted some tankers carrying illicit oil.

Western and Iraqi officials were given a good rundown on where the militants’ wealth comes from when ISIS computers and databases were seized by Iraqi intelligence officers from the Mosul home of an ISIS courier, Abdulrahman al-Bilawi, a few days before jihadists overran the northwestern Iraqi city. The breakdown of the group’s financial resources shocked even senior Iraqi officials and it suggested ISIS was worth more than $800 million even before it added loot pillaged in Mosul to its coffers.

The databases revealed ISIS is receiving cash not only from oil trafficking but also from selling to overseas traders, other Syrian insurgent groups and even the Assad regime. It is also reaping profits from selling industrial machinery from plants and factories pillaged in Aleppo, priceless antiquities stolen from archaeological sites and museums, and cars and weapons captured from the Syrian army.

ISIS leaders on the ground prioritize quickly what is to be looted when they capture new territory, and there is strict management of resources.

Turkish Money Laundering

Modi to Madison Square Garden and then the White House

Joshua Keating writes:  At this time last year, Narendra Modi was legally banned from the United States.  Modi had been denied a business visa due to accusations that in 2002, when he was chief minister of the state of Gujarat, he allowed or even encouraged riots in which more than 1,000 people, most of them Muslims, were killed. The U.S. ambassador wouldn’t even meet with him until February, when it became overwhelmingly clear he was about to be elected prime minister of India.

While Modi, once known as a Hindu nationalist firebrand, toned down his rhetoric on the campaign trail, there was widespread concern that his business-friendly modernizing message masked ethnic nationalist, internationally hawkish, or autocratic tendencies.   But in the four months since he’s been elected, he’s done little to confirm the direst predictions of his critics.

Relations between India and its neighbors China and Pakistran have been rocky in recent months, though it’s hard to blame that on any provocations from the prime minister. He invited Prime Minister Nawaz Sharif to his inauguration, has has held talks with the Pakistani leader, and went on a successful tirp to Beijing this summer. Modi took the unusual step of pressing Chinese President Xi Jinping over the countries’ ongoing border dispute during a meeting in New Delhi last week, but the exchange could certainly have gotten a lot more heated.

On domestic issues, Modi has relieved some and disappointed others who expected he would take a free-market hatchet to India’s public sector.  He has moved slowly on economic policy and focused on reforming  India’s bloated and notoriously slow-moving bureaucracy.

Modi promises to “create world-class infrastructure that India badly needs to accelerate growth and meet people’s basic needs” in a “sustainable and environmentally sensitive” manner. Modi’s obviously a long way from delivering on some very big promises—access to electricity, sanitation, and financial services for every one of India’ 1.2 billion people, to name just a few of those vows—but from the point of view of foreign governments, including the U.S., that were extremely skeptical of him a few months ago, Modi’s been on his best behavior so far.

Though a U.S. administration desperate for reliable allies in Asia would probably prefer to let bygones be bygones, nearly every newspaper article about a meeting between Modi and a senior U.S. official will note the controversy over the riots and the travel ban. We may someday get to the point where what happened in Gujarat in 2002 no longer colors the international perception of Modi, but we’re not there yet.

Modi Looking Forward

Retiring USAG Holder Did Not Hold Individuals Liable for Criminal Activity

Attorney General Eric Holder has efforts and achievements to be proud of, no doubt, but will probably be remembered above all for something he didn’t do: prosecute top executives for their role in the 2008 financial crisis.

He declined to hold senior executives accountable not because he wished to be soft on financial crime but because of a strategic error. In a 1999 memo written when he was deputy attorney general under President Bill Clinton, he’d explained how prosecutors could charge corporations as criminal enterprises. In 2002, the testing of that doctrine on Enron Corp. auditor Arthur Andersen LLP caused the company to fold, and thousands of innocent people lost their jobs.

During and after the financial crisis, Holder kept the focus on corporations, but moved more cautiously. Fearing a repeat of the Arthur Andersen debacle, prosecutors were careful to leave companies standing, even as they extracted tens of billions of dollars from banks for transgressions ranging from mortgage-related fraud to laundering money for drug cartels.

The inhibition was understandable. Yet it arose because, under Holder’s leadership, prosecutors lost sight of what mattered most: holding individuals, not companies, accountable for crimes. Of 21 separate actions against major financial companies from 2009 through May 2014, only eight were accompanied by charges against individuals, and none of them were high-level executives. The authors of any offenses related to the 2008 financial crisis can relax: In most of the cases, the statute of limitations now applies.

Could it be that nobody went to prison because no crimes were committed? This seems unlikely, at the very least.

Holder’s successor should strive to put this right. First, insist that prosecutors taking action against companies charge individuals, too. Second, eliminate non-prosecution agreements, in which prosecutors settle without pressing charges. These make it too easy to hide bad behavior or subject companies to shakedowns. Third, ask Congress or the Judicial Conference which drafts changes to the rules of criminal procedure — to give judges power to review deferred prosecution agreements, in which prosecutors file and settle charges, to make sure these serve the public interest.

Jail Offending Bankers.

US Educated Mubarak Rashad Khamis to head Central Bank of UAE

The UAE said on Monday that Mubarak Rashid Khamis Al Mansouri has been appointed as the new governor of the country’s central bank, replacing Sultan Nasser Al Suweidi.

The move was announced as part of a federal decree issued by UAE President Sheikh Khalifa bin Zayed Al Nahyan to restructure the board of directors of the Central Bank of the UAE. Mansouri is the chief executive of Emirates Investment Authority, a federal investment fund.

According to the decree, Khalifa Mohammed Al Kindi will be chairman, Khalid Juma Al Majid, vice chairman, and Younis Haji Al Khoori, Khalid Ahmed Al Tayer, Khalid Mohammed Salem Balama and Hamad Mubarak Bu Amim will be board members. All will serve a four-year term, official news agency WAM reported.

Mansouri, who served as a central bank board member in the past, also sits on the board of the stock market regulator, the Securities and Commodities Authority, as well as telecom operator Etisalat, Abu Dhabi Securities Exchange and some other Abu Dhabi entities.
Mr. Mubarak Rashed Khamis Al Mansouri has been the Chief Executive Officer of Emirates Investment Authority since May 2008. Mr. Al Mansouri has been Governor of Central Bank of United Arab Emirates since September 23, 2014. He served as General Manager of The Abu Dhabi Retirement Pensions & Benefits Fund. He serves as Director at Arab International Bank, Abu Dhabi National Co., Securities & Commodities Authority of UAE (SCA), Etisalat Misr in Egypt, Emirates Telecommunications Corporation and Etihad Etisalat Company. Mr. Al Mansouri has been Director at Abu Dhabi Securities Exchange since May 2010. He has been a Director of Central Bank of United Arab Emirates since September 23, 2014. He served as Director at Abu Dhabi Holding and National Central Cooling Company PJSC. In 1994, he worked on establishing the âEURË UAESwitchâ which started operations in 1996 and was able to connect all bank ATMs in the UAE. He has Master’s degree in Finance from University of West Florida, USA.

UAE Central Bank

Barclays Fined for Failing to Safeguard Customer Assets

 British bank Barclays was fined 38 million pounds ($62 million) on Tuesday for exposing customers to unnecessary risks by failing to ensure client assets were properly safeguarded and adequate records kept.

Imposing its highest fine for client asset breaches, Britain’s financial regulator said there were “significant weaknesses” in Barclays’ systems and controls between November 2007 and January 2012 that put 16.5 billion pounds of client’s assets at risk.

The Financial Conduct Authority (FCA), which has tightened rules governing client asset protection since the collapse of Wall Street bank Lehman Brothers in 2008, said that customers risked incurring extra costs, lengthy delays or losing their assets if the bank had become insolvent.

“Barclays failed to apply the lessons from our previous enforcement actions, numerous industry-wide warnings and exposed its clients to unnecessary risk,” said Tracey McDermott, the head of enforcement and financial crime at the FCA.

Protecting Assets

Women on Boards and Stock Prices Rise

A recent Credit Suisse report shows that women on board add value.

Companies that have female directors out perform those that only have men.

Companies with a market cap greater than US$ 10 billion that have at least one woman on the board of directors outperformed those that had no women at all by 26% for large caps over the six years leading up to 2011.  “Importantly, this mix of companies would also have outperformed global equities as measured by MSCI’s ACWI,” write Credit Suisse analysts Julia Dawson, Richard Kersley and Stefano Natella.

This is a global phenomenon.

From 2012 to June 2014, companies with at least one woman on the board have seen a 5% outperformance on a sector neutral basis.

That amounts to a compound excess return since 2005 of 3.3%.

global_edited 1Credit Suisse

Countries in the Asia-Pacific saw the greatest outperformance with a 55% excess cumulative return. That’s a huge number.

APACCredit Suisse

They were followed by the US, which saw 20% outperformance, also a significant amount.

Screen Shot 2014 09 24 at 5.11.07 PMCredit Suisse

And third in Europe, which had 18% outperformance.

Screen Shot 2014 09 24 at 5.11.07 PM

Schulz, head of EP, Demands Response from Juncker on Health and Environment Portfolios

Advocates unhappy with new structure on heath and environment.  Schulz has said about the environment:  We need to diversify our energy sources, and reduce the high energy dependency of several of our Member States.  We need to keep our European energy market open to our neighbours. Howeveri if theprice for energy from the East becomes too expensive.

in political terms, Europe should be able to switch very swiftly to other supply
channels.  We need to be able to reverse energy flows when necessary.
And we need to strengthen the share of renewable energies on our continent. This is
not only a matter of a responsible climate change policy. It is, at the same time, an
industrial policy imperative if we still want to have affordable energy at our disposal in
the medium term. I strongly believe in the potential of green growth.
I therefore want Europe’s Energy Union to become the world number one in renewable
energies I would also like to significantly enhance energy efficiency beyond the 2020
objective notably when it comes to buildings and I am in favour of an
ambitious, binding target to this end.  I want the European Union to lead the fight
against global warming ahead of the United Nations Paris meeting
in 2015 and beyond.
Direction of the EU