Tag: money-laundering

U.S. and Cuba Continue To Confer Over Common Concerns 

Despite various Trump Administration’s hostile actions regarding Cuba, the two countries continue to confer over common concerns. Three such conferences occurred this week in Washington, D.C..[1]

Conference on Money Laundering [2]

On February 12, 2018, the two countries met in Washington, D.C. to discuss combatting the crime of money laundering. This exchange, which falls within the context of the law enforcement dialogue between both countries, provided both parties with the opportunity to discuss this crime at a regional level, the main experiences gained in combatting this crime and the next steps that would be taken to advance the bilateral collaboration on this matter. 

The Cuban representatives underscored the necessity to increase the two countries’  cooperation and both parties shared the view that determined action is required against these acts and against those who commit them and the consensus was that impunity cannot be permitted.

The Cuban delegation also stated that for the comprehensive analysis of these issues, Cuba favors the exchange in different forums, mainly of the U.N. system. In addition, the Cuban government actively collaborates with the Financial Action Task Force of Latin America (GAFILAT), a regional inter-governmental organization to prevent and combat money laundering, terrorist financing and the funding of the proliferation of mass-destruction weapons. In its Mutual Evaluation Reports, GAFILAT acknowledges that the general risk for money laundering and terrorist financing in Cuba is low, highlights the inter-institutional coordination and cooperation existing at all levels in the country to combat these crimes and the updated legal framework Cuba has for this purpose.

The Cuban delegation was composed of representatives of the Ministry of the Interior, Banco Central de Cuba, the Office of the Attorney General of the Republic and the Ministry of Foreign Affairs. The U.S. delegation was composed of officials of the Departments of Homeland Security, Justice, State, Health and Human Services and Treasury.

This was the second such meeting and took place in a respectful and professional ambience. Both parties agreed to continue with these technical exchanges in the future and to coordinate actions that may contribute to the effective combat against this crime.

Conference on Human Trafficking [3]

On February 13, 2018, at the U.S. State Department the parties met to give updates on the advances made, experiences gained and the challenges faced in the prevention of, and combat against, trafficking in persons and protection of victims.

Cuba emphasized its ratification of the zero-tolerance national policy against human trafficking, adoption of a National Plan of Action for 2017-2020 to Prevent and Combat Trafficking in Persons and to Protect the Victims thereof, the establishment of  a Commission to implement the multidisciplinary actions contained in said Plan, and the results of the visit to Cuba by Ms. María Grazia Giammarinaro, U.N. Special Rapporteur on trafficking in persons, especially in women and children.

Cuba also mentioned its establishment of a Family Protection Division and the operation of a Unique Telephone Line of the Attorney General’s Office; its specialized training seminars for prosecutors, judges and law enforcement officers, the workshops and training courses for educators, and the celebration of the World Day against Trafficking in Persons. In addition, Cuba stresses the preventive nature of its National Health System and the important role played by the Cuban medical doctors in the early detection and attention of potential victims of human trafficking, both in Cuba and in other countries where our nation provides medical cooperation.

In 2016, 21 cases were prosecuted in Cuba for crimes with typical features of trafficking in persons, through the typified crimes of “Corruption of Minors” and “Procurement and Trafficking in Persons”. In this same period, Cuba maintained international collaboration for the investigation and solution of cases transcending the national territory.

Cuba also asserted that the low incidence of trafficking in persons in Cuba is associated with its social and public safety achievements, equal opportunities and policies and programs aimed at empowering women, providing free access to health services, education, culture and sports, which reduces the country’s vulnerability and strengthens its capacity to increase international cooperation in this field, as a State Party to the legal instruments signed on this and other related matters.

This was the fifth such bilateral meeting on this subject since December 2014, the last occurring in January 2017, and both parties ratified the usefulness of the exchange, which took place in a professional and respectful ambiance, and agreed to continue holding these exchanges in the future.

Conference on Technical Issues About Human Trafficking [4]

On February 14, the U.S. Department of Homeland Security hosted a technical exchange on trafficking in persons, one of the eight working-level exchanges under the U.S.-Cuba Law Enforcement Dialogue. Participants discussed best practices on investigations and prosecutions, human trafficking trends in the region, and potential areas of coordination to fight the scourge of trafficking, which threatens national security and public health and safety in both countries.

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[1] Other posts to dwkcommentaries have discussed other U.S.-Cuba bilateral meetings in the Trump Administration: U.S. and Cuba Hold Discussions About Human Trafficking and Migration Fraud (Dec. 10, 2017); U.S. and Cuba Hold Bilateral Migration Talks (Dec. 12, 2017); Cuba and U.S. Continue To Hold Bilateral Meetings on Various Issues (Jan. 18, 2018).

[2] Cuba Foreign Ministry, Cuba and the United States hold exchange on the cooperation to prevent and combat money laundry (Feb. 13, 2018). 

[3] Cuba Foreign Ministry, Delegations from Cuba and the United States Hold Exchange on Trafficking in Persons (Feb. 13, 2018); U.S. State Dep’t, United States and Cuba Meet to Combat Trafficking in Persons (Feb.14, 2018).

[4]  U.S. State Dep’t, United States and Cuba Meet to Combat Trafficking in Persons (Feb.14, 2018); Cuba Foreign Ministry, Cuba and the USA carry out technical exchanges on trafficking in persons and child sexual abuse (Feb. 14, 2018).

U.S. Praises Cuba’s Record on Narcotics Trafficking

On this March1st the U.S. Department of State released its annual “International Narcotics Control Strategy Report” covering the year 2014. [1]

The Report’s discussion of Cuba is overwhelmingly positive. It states,“Despite its location between the largest exporters of illegal drugs in the hemisphere and the U.S. market, Cuba is not a major consumer, producer, or transit point of illicit narcotics.”

This Cuban success story is a result of Cuba’s sustained anti-narcotics efforts. “Cuba’s domestic production and consumption remain low due to active policing, strict sentencing, and nationwide prevention and educational programs. Cuba’s intensive security presence and interdiction efforts have kept supply down and prevented traffickers from establishing a foothold. Cuba concentrates supply reduction efforts by preventing smuggling through territorial waters, rapidly collecting wash-ups, and conducting thorough airport searches. Cuba dedicates significant resources to prevent illegal drugs and their use from spreading, and regional traffickers typically avoid Cuba.”

The U.S. Report also comments on the excellent U.S.-Cuba cooperation on narcotics trafficking: “The U.S. Interests Section [in Havana] has a USCG Drug Interdiction Specialist to coordinate with Cuban law enforcement. The USCG and Cuban authorities share tactical information related to vessels transiting Cuban territorial waters suspected of trafficking and coordinate responses. . . . Cuba has demonstrated an increased willingness to apprehend and turnover U.S. fugitives and to assist in U.S. judicial proceedings by providing documentation, witnesses, and background for cases in U.S. state and federal courts.”

This excellent record, says the U.S. Report, is expected to continue. “Enhanced communication and cooperation between the [U.S.], international partners, and Cuba, particularly in terms of real-time information-sharing, would likely lead to increased interdictions and disruptions of illegal drug trafficking.”

The Report also covered money laundering and financial crimes. Here too Cuba got good marks. It was placed in the category “Other Jurisdictions Monitored” for those that “do not pose an immediate concern, . . . [but that are] important to monitor their money laundering situations because, under certain circumstances, virtually any jurisdiction of any size can develop into a significant money laundering center.”

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[1] Dep’t of State, International Narcotics Control Strategy Report (Mar. 2015);  Dep’t of State, Narcotics Control Reports. A Cuban website discussed the latest Report: State Department recognizes that Cuba is an example in the drug fight, CubaDebate (Mar. 21, 2015).

 

Baseless Ground for U.S. Designation of Cuba as a ”State Sponsor of Terrorism”

One of the purported grounds for the May 30, 2013, U.S. designation of Cuba as a “State Sponsor of Terrorism” was the assertion,“The Financial Action Task Force (FATF) has identified Cuba as having strategic anti-money laundering/combating the financing of terrorism deficiencies.” That very U.S. statement, however, went on to contradict its own first sentence by saying, “In 2012, Cuba became a member of the Financial Action Task Force of South America against Money Laundering, a FATF-style regional body. With this action, Cuba has committed to adopting and implementing the FATF Recommendations.”

If the self-contradictory nature of this charge by itself was not enough to show the speciousness and unfairness of this charge, further confirmation of the unfounded nature of this U.S. claim has been provided by the following five public statements of FATF reporting Cuba’s progress and eventual compliance with “its commitments in its action plan regarding the strategic deficiencies that the FATF had identified in February 2013. Cuba therefore is no longer subject to the FATF’s monitoring process.”

On June 21, 2013, FATF said, “Since February 2013, Cuba has taken notable steps towards improving its AML/CFT [Anti-Money Laundering / Countering the Financing of Terrorism] regime, including by signing an MOU [Memorandum of Understanding] for cooperation with FIUs [Financial Intelligence Units] in GAFISUD [Financial Action Task Force on Money Laundering in South America] and issuing new CDD [Customer Due Diligence] and STR [Suspicious Transaction Report] measures. Due to the recent nature of these measures, the FATF has not yet reviewed them. The FATF has determined that certain AML/CFT deficiencies exist. Cuba should continue to work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising [sic] money laundering and terrorist financing; (2) establishing and implementing adequate procedures to identify and freeze terrorist assets; (3) improving customer due diligence measures; (4) improving suspicious transaction reporting requirements; (5) ensuring a fully operational and effectively functioning Financial Intelligence Unit; and (6) ensuring that appropriate laws and procedures are in place with regard to international cooperation and mutual legal assistance.”

On October 18, 2013, FATF said, “Since June 2013, Cuba has taken steps towards improving its AML/CFT regime, including by issuing regulations which improve provisions for customer due diligence and suspicious transaction reporting. Cuba has recently issued instruction 31/2013, aimed at further detailing the procedures for freezing of terrorist assets.  Due to the recent nature of this instruction, the FATF is currently reviewing it. Cuba has also constructively engaged with GAFISUD. However, the FATF has determined that certain AML/CFT deficiencies remain. Cuba should continue to work on implementing its action plan to address these deficiencies, including by: (1) adequately criminalising [sic] money laundering and terrorist financing; (2) establishing and implementing adequate procedures to identify and freeze terrorist assets; (3) ensuring comprehensive customer due diligence measures and suspicious transaction reporting requirements; (4) ensuring a fully operational and effectively functioning Financial Intelligence Unit; and (5) ensuring that appropriate laws and procedures are in place with regard to international cooperation and mutual legal assistance. The FATF encourages Cuba to address its remaining deficiencies and continue the process of implementing its action plan.”

On February 14, 2014, FATF said, “Since October 2013, Cuba has taken significant steps towards improving its AML/CFT regime, including by enacting two Decree-Laws enhancing the criminalisation [sic] of money laundering and terrorist financing, the framework for freezing terrorist assets, and preventive measures for financial institutions. However, the FATF has determined that certain strategic AML/CFT deficiencies remain. Cuba should continue to work on implementing its action plan to address these deficiencies, including by: (1) addressing the remaining issues in the criminalization [sic] of money laundering (2) ensuring adequate procedures to identify and freeze terrorist assets; (3) ensuring comprehensive customer due diligence measures and suspicious transaction reporting requirements; (4) ensuring that appropriate laws and procedures are in place with regard to international cooperation and mutual legal assistance. The FATF encourages Cuba to address its remaining deficiencies and continue the process of implementing its action plan.”

On June 27, 2014, FATF said, “Since February 2013, when Cuba made a high-level political commitment to work with the FATF and GAFISUD to address its strategic AML/CFT deficiencies, Cuba has made significant progress to improve its AML/CFT regime. Cuba has substantially addressed its action plan, including by: becoming a member of GAFISUD; adequately criminalising [sic] money laundering and terrorist financing; establishing procedures to identify and freeze terrorist assets; establishing adequate customer due diligence requirements; ensuring a fully operational and effectively functioning financial intelligence unit and enhancing suspicious transaction reporting requirements. The FATF will conduct an on-site visit to confirm that the process of implementing the required reforms and actions is underway to address deficiencies previously identified by the FATF.”

On October 24, 2014, “FATF welcomes Cuba’s significant progress in improving its AML/CFT regime and notes that Cuba has established the legal and regulatory framework to meet its commitments in its action plan regarding the strategic deficiencies that the FATF had identified in February 2013. Cuba therefore is no longer subject to the FATF’s monitoring process under its on-going global AML/CFT compliance process. Cuba will work with GAFISUDto further strengthen its AML/CFT regime.”

It, therefore, is not surprising that there was no mention whatsoever of this purported ground for the April 30, 2014, U.S. re-designation of Cuba as a “State Sponsor of Terrorism.”

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

http://dwkcommentaries.com/2014/05/06/u-s-stupidity-and-cowardice-in-continuing-to-designate-cuba-as-a-state-sponsor-of-terrorism/