The Central Bank of Uzbekistan announced that the license for Credit Standard Bank to conduct banking operations was withdrawn due to violation of the banking legislation.

CSB informed its customers and partners that the bank was closed by the Central Bank of Uzbekistan by adding that “We bring our apologies for any inconvenience caused and hope for your understanding.”

By closing down Credit Standard Bank the Central Bank is sending out a “significant signal” insiders say. Credit Standard Bank (CSB) was allegedly engaged in money laundering for Gulnara Karimova, president’s Islam Karimov oldest daughter.

The dismantling of Gulnara Karimova’s business empire started in early October. The once omnipotent business mogul Karimova has lost many of her assets – TV and radio stations, clothing shops, movie theaters and her charity organization Fund Forum among others.

The president Islam Karimov and his regime have been silent on the situation surrounding the president’s daughter.

Karimova accuses her mother Tatiana Karimova in taking revenge on her for trying to intervene in her mother’s own corrupt business empire.

In 2012 investigators in Switzerland and Sweden were probing alleged links between a leading European telecommunications company and a high-level multi-million dollar fraud and corruption scandal in Uzbekistan.

The allegations stretch all the way to businesswoman, pop diva and one-time UN ambassador Gulnara Karimova, the eldest daughter of Uzbek President Islam Karimov.

Swedish-based TeliaSonera, which is partly state-owned, has been at the centre of a huge political storm since Swedish TV broadcast a report accusing it of making a $300m payment to an intermediary company for the rights to operate a 3G mobile phone service in the Central Asian republic.
Uzbekistan’s Lola Karimova-Tillyaeva reveals rift in first family

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CSB_PressRelease_27.11.13

Kaloti Group ‘compliant with Dubai
gold audit? Tradearabia

Mr. Munir R. Kaloti, President of Kaloti Jewellery International DMCC stated: “The DFSA confirmed that neither I nor the Kaloti Group of Companies are or were part of the DFSA’s investigation of Deutsche Bank. The manner in which my name was cited in the claim was extremely damaging to my reputation and my lawyers are investigating why this was the case. I was given no prior warning that I would be named and had at no time been contacted by either party regarding my account.”

“Nonetheless, I want to make it clear that I have authorised my office to submit all documents in my possession should they be requested by the DFSA,” he said.

On November 17, 2013 DFSA had announced that it had commenced proceedings in the DIFC Courts to enforce compliance by Deutsche Bank DIFC Branch (DBDIFC), with a notice requiring information.On November 21, 2013 DFSA confirmed that neither Munir Kaloti nor the Kaloti Group of Companies are or were the subject of the DFSA’s investigation of Deutsche Bank DIFC branch.

Kaloti Group of Companies published on November 27, 20013 a self-evaluation titled “DMCC Responsible Sourcing of Precious Metals Guidance Compliance Report” and a report Ernst & Young Dubai commissioned from Kaloti Group of Companies titled “Independent Reasonable Assurance Report”.

Katloit’s “Compliance Report” outlines the steps taken by Kaloti Jewellery International DMCC (KJI) and Kaloti Jewellers Faclory Ltd. (KJF) to achieve full compliance with the DMCC’s Responsible Supply Chain Guidance as well as following all international regulations covering Anti Money Laundering and Terrorist Financing.

Katoti Jewellery International DMCC (K]I), which is based in Dubai, is responsible for the management of all aspects of the physical precious metals business in the United Arab Emirates. It is the licensed entity that faces clients and counterparty service providers such as international bullion banks, security and logistics companies, insurance and airline firms. Kaloti Jewellers Factory Ltd. (KIF), an independent entity based in Sharjah, is the refinery service provider of the Kaloti’s United Arab Emirates operations and is the entity that enjoys Dubai Good Oelivery accreditation. References to systems, procedures and controls in this refinery report collectively cover both KJI and KJF.

Not surprisingly, the self-evaluation comes to the conclusion:

• We have fully implemented all aspects of the Practical Supply Chain Guidance issued by the Dubai Multi Commodity Centre (DMCC) which is based on the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. We are fully committed to adopting any future guidelines, rules or regulations with res pect to the responsible supply of gold and precious metals and all other international rules relating to anti-money laundering and the fighting of terrorist financing.

• We will continue to strive to upgrade and improve our risk classification and risk mitigation processes and educate our staff and our suppliers on an on-going basis to ensure that the highest possible standards of responsible supply chains a re maintained.

Ernst & Young Report “Independent Reasonable Assurance Report on Kaloti Jewellers Factory Ltd’s Refiner’s Compliance report”

As can be expected, the commissioned Ernst & Young report resulted in EY’s opinion, that the Refiner’s Consolidated Compliance Report dated 27 November 2013 in all material respects. describes fairly the activities undertaken during the period from 1 June 2012 to 31 December 2012 and in cases where high and medium risks deviations were noted, the subsequent corrective action plan implemented to demonstrate compliance and management’s overall conclusion contained therein is in accordance with the requirements of the DMCC’s Practical Guidance for Market Participants in the Gold and Precious Metals Industry, version 1 April 2012 and with the DMCC Review Protocol on Responsible Sourcing of Precious Metals in issuance as at the date of this report.

However the EY report made the following caveat:

Without modifying our conclusion, we draw attention to

• the respective instances of deviations noted for the period from 1 June 2012 to 31 December 2012 set out in the Refiner’s Consolidated Compliance Report at the end of Steps 1 and 2 that have been subject to a subsequent corrective action plan; and

• the description at the end of Step 2 of the Consolidated Compliance Report of the corrective actions on assisting suppliers in moving away from cash settlement that was remediated in November 2013 subsequent to the implementation of the corrective action plan

The German financial watch-dog BaFin had hired Ernst & Young in August 2013 to investigate Deutsche Bank’s alleged AML/CFT deficiencies. This is another disturbing example that the auditors, the so-called gate keepers, have a conflict of interest by indiscriminately serving all parties.
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EY_Kaloti_Evaluation_27.11.13

This year’s index ranks 177 countries/territories by their
perceived levels of public sector corruption. The index draws on 13 surveys covering expert assessments and views of businesspeople. The Corruption Perceptions Index is the leading global indicator of public sector corruption, offering a yearly snapshot of the relative degree of corruption by ranking countries from all over the globe.2013_CPIBrochure_EN

transparency.org

Switzerland has been listed alongside well-known tax havens in a new ranking by the Organisation for Economic Co-operation and Development (OECD), showing the country still has work to do on banking secrecy despite recent steps aimed at tackling the issue.

OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes released ratings for 50 jurisdictions at a meeting in the Indonesian capital.

The forum has rated jurisdictions on how well they comply with rules on tax transparency.

Switzerland, however, failed even to make it past the first stage of a two-stage assessment.

Other countries which also did not make it to the second stage included Panama, the Marshall Islands and Trinidad and Tobago, although OECD’s final judgement on them was harsher than on Switzerland.

It came after Switzerland took steps last month to tackle its long-criticised banking secrecy, including signing an international tax evasion agreement brokered by the OECD and introducing new legislation to increase cooperation on money-laundering.

Swiss authorities have come under pressure from the international community to clamp down on the concealment of illicit funds and on tax evasion, in the wake of the global financial crisis of 2008 and the subsequent euro zone debt crisis.

Despite Switzerland’s failure to complete the process, OECD’s head of tax issues, Pascal Saint-Amans, struck an upbeat note, telling it was now “moving ahead”.

He, however, said the OECD would continue to monitor the country closely to ensure its recent steps “are actually enacted and become law, which is not yet the case”.

Of the jurisdictions that completed the two-stage assessment, 18 were deemed to be “compliant” with the tax transparency rules set out by the forum; many others were considered “largely compliant”; while Austria and Turkey were “partially compliant”.

Four were deemed to be “non-compliant”: Cyprus, Luxembourg, the Seychelles and the British Virgin Islands.
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