Uganda: writing in New Vision, Joachim Buwembo calls for the abolition of words such as “embezzlement” and “corruption” saying that these words confuse people who would strip naked and run through town a chicken thief but do not realise that those who take millions by means usually called by these less clear terms are simply thieves but on a much grander scale. He says “By obscuring theft and referring to it in more glorious terms, the masses do not even realise it is their money that is stolen….As long as obscure terms like corruption and embezzlement are used instead of the clear word theft, criminals will continue walking with their heads high”.

UK: The British Government has published The Terrorism Bill that extends the definition of terrorism, seemingly to include civil disorder, even on a minor scale. On the face of it, this would include the so called anti-capitalist demonstrations (that turned into riots) in London and Seattle as the offences can be result from conduct committed outside the UK and, perhaps more worryingly, the demonstrations against foreign dictators that visit or are harboured in Britain or elsewhere. The Bill (for discussion in next month’s WMLR) also includes anti-money laundering provisions.

Trinidad: The Caribbean Financial Action Task Force has claimed that drug traffickers in the Caribbean launder about USD60Md each year. Calvin Wilson, executive director of the CFATF claimed a total global laundering figure of USD500Md but did not exlpain how either figure was calculated.

Austria: Put in fear of expulsion from the Financial Action Task Force, Austria’s caretaker government has announced that it intends to make changes to the country’s bank secrecy laws. Austria reluctantly granted concessions to the EU by agreeing as part of its entry package that it would no longer allow certain types of anonymous accounts to be used and that no more of the popular “Sparbruch” accounts would be opened. Even so, there are reports that as much as 90% of the Euro120Md held in Austrian savings accounts is in anonymous accounts.

Liechtenstein: The tiny mountain country has been identified by German intelligence as a major money laundering centre. The Prime Minister, Mario Frick, has called the allegations “lies” but the financial services sector supports an economy that has little else earning money. There is a construction boom and a growth in luxury consumer items. The country is proposing to all but abolish income tax, so rich has it become from the selling of services including brass plate companies and secretive trusts. Liechtenstein’s astonishing growth (after decades of poverty) took off after the country joined the European Economic Area – which gives countries bordering the EU many privileges but without requiring them to comply with EU law. This meant an open door for Germans seeking to avoid that country’s high taxes. Cynical observers see the German allegations as a step in the German attempt to force through the EU a withholding tax on savings within the EU and to try to bring EEA countries within the scheme. Frick accepts that there is money laundering in Liechtenstein but points out that every other country has it too. He does, however, consider that some measures similar to the EU Directive may be needed. Even so, this will be difficult to implement because of the need to put someone in charge of receiving and acting on reports. There is no intelligence service in Liechtenstein. As part of the process of investigating the position, Frick has appointed an Austrian investigator to look into allegations that persons in government has solicited investments from known criminals.

Switzerland: after a period of wrangling with the Nigerian authorities, Swiss prosecutors have frozen USD645 in an investigation into alleged money laundering by the dead Nigerian dictator Sani Abacha. In Nigeria there are claims that Abacha diverted sums exceeding £1.75Md from the Central Bank alone.

Japan: The Financial Supervisory Agency launches its Financial Intelligence Unit, FIMO, on 1 February with a range of new anti-money laundering laws and guidance. At present the laws and guidance are available only in Japanese.

USA: The bank of New York case rumbles on amidst allegations that a primary source of information is of questionable veracity. The New York Times is one of several news outlets that allegedly sourced information from Emanuel Zeltzer. But in a massive falling out, the NYT has denounced Zeltzer, accusing him of a range of scurrilous activities.

Austria: The United Nations is to launch “The United Nations Offshore Forum” to try to address the concerns about offshore centres and their use by money launderers. Those centres that agree to accept the principles laid down by the UN will be offered technical assistance and training. The initiative is being run within the auspices of the United Nations Drug Control Programme, which recognises that there may be a short term downturn in business in those centres that adopt the principles, but says that there will be in improvement in the long term.

UK: The Home Office has released figures comparing the cost of various aspects of the criminal justice system. Trials in the Magistrates’ Court cost an average of £500 and trials in the Crown Court cost an average of £8,600. The average cost of a sentence imposed at a Magistrates’ Court is £250 and the average cost of a sentence imposed at Crown Court is £23,900. Of course, this reflects the severity of offence brought before each Court and the sentencing that results from the difference.