Ravi Nayyar’s Post

Interesting Swiss Court case on the validity of covering a claim that involves a ransomware payment to a sanctioned entity. Also an analysis on how often these sanctions are enforced. Please note the correct link to the source article is in the comments. Jamie M. as always, great insights. #cyberinsurance #claims #sanctions

𝑪𝒚𝒃𝒆𝒓𝒊𝒏𝒔𝒖𝒓𝒂𝒏𝒄𝒆 𝑪𝒐𝒗𝒆𝒓𝒂𝒈𝒆 𝒇𝒐𝒓 𝑹𝒂𝒏𝒔𝒐𝒎𝒘𝒂𝒓𝒆 𝑷𝒂𝒚𝒎𝒆𝒏𝒕𝒔 𝒗𝒔 𝑼𝑺 𝑺𝒂𝒏𝒄𝒕𝒊𝒐𝒏𝒔 𝑹𝒆𝒈𝒖𝒍𝒂𝒕𝒊𝒐𝒏𝒔 New case comment on an interesting Swiss contract law decision (judgment of the Swiss Federal Supreme Court of 17 August 2023 – ref. 4A_206/2023) concerning the insurer’s refusal to reimburse ransomware payments made by the cyberattacked company due to the potential risk of violating US sanctions regulations authored by Jacques de Werra, Célian Hirsch and Thomas Hua (gbf Attorneys-at-law Ltd - https://lnkd.in/e36FYkNB).   ⇒ Case comment: https://lnkd.in/exmV64zi ⇒ Judgment of the Swiss Federal Supreme Court (in German): https://lnkd.in/eZm9xj6i   Faculté de droit - UNIGE - Université de Genève - Digital Law Center - University of Geneva   #Insuranceagreement #USsanctions #cyberinsurance #sanctionsinterest #ransomware #swisscontractlaw #contractlaw #commercialcontracts #swisslaw

This is a very interesting legal comment on a cyber insurance dispute over a ransomware claim that played out in Swiss courts last year. In short, the insurer contested reimbursing part of a ransom payment that Garmin made to an Evil Corp-linked ransomware strain in 2020, because they argued the payment was being made to a sanctioned entity (Evil Corp). Alexander Martin had a great scoop on this back in 2020: https://lnkd.in/en-StG9U The Swiss supreme court sided with Garmin because: 1. The prospect of being sanctioned by OFAC is very low -- OFAC has never penalised an organisation for paying a ransom to a sanctioned entity 2. The insurer couldn't attribute the ransomware attack to Evil Corp with enough certainty (personally, I would argue that Evil Corp is one of the few sanctioned ransomware threat actors where you *can* prove a stronger link because of the use of custom tooling and malware. It's interesting because: 1. There is a say do gap for ransomware sanctions currently. The US and UK ransomware sanctions regime are currently not being enforced and are designed in a way to make them harder to enforce (e.g. naming individuals rather than ransomware strains). The insurance/incident response/negotiator ecosystem knows this, but I don't think it's seeped out into the wider community. 2. The bar on what minimum sanctions due diligence or ransomware attribution looks like right now is too low, and OFAC and OFSI (the UK authority) should be demanding on-chain analysis and assessments of tradecraft and tooling.

AML/CFT and Predicate Offences   We all know that the FATF has identified 21 predicate offences, and that the EU has 22. But what do we have as predicate Offence in Mauritian Law. These are my findings and happy if you have anything to add/correct! In Mauritian law, the predicate offenses for money laundering align closely with the Financial Intelligence and Anti-Money Laundering Act (FIAMLA) and other relevant legislation. These offenses include a wide range of serious crimes that can generate illicit proceeds, mirroring many of the categories outlined by the FATF. Here are some key predicate offenses under Mauritian law: 1. Drug Trafficking and Related Offenses Illegal possession, sale, and trafficking of narcotics and psychotropic substances are strictly prohibited and serve as significant predicate offenses under the Dangerous Drugs Act. 2. Terrorism and Terrorist Financing Mauritius criminalizes terrorism and terrorist financing activities under the Prevention of Terrorism Act, which is consistent with FATF standards and international conventions. 3. Human Trafficking and Exploitation Human trafficking, including the exploitation of children and forced labor, is penalized under the Combating of Trafficking in Persons Act. 4. Fraud, Theft, and Corruption Fraud and theft, including corporate and financial fraud, are treated as predicate offenses. The Financial Crimes Commission Act outlines various corruption-related offenses, especially for public officials. 5. Environmental Crimes Illicit trafficking in protected species, illegal logging, and other forms of environmental crime are considered predicate offenses and are regulated under environmental protection laws; the Environment Protection Act and the FCCA. 6. Tax Evasion Tax evasion, including avoidance of direct and indirect taxes, is treated as a serious offense under the Mauritian Revenue Authority Act and other tax legislation, making it a predicate offense for money laundering. 7. Forgery and Counterfeiting Offenses like forgery, counterfeiting of currency, and piracy of products fall under Mauritian criminal law and are treated as predicate offenses. 8. Cybercrime Cyber-related offenses, including hacking, identity theft, and cyber fraud, are covered under the Cybercrime and Cybersecurity Act. 9. Extortion and Kidnapping Crimes such as extortion, kidnapping, and hostage-taking are also considered serious offenses with implications for money laundering; Criminal Code. 10. Insider Trading and Market Manipulation Mauritius criminalizes insider trading and other financial market abuses under securities regulations, including the Financial Services Act and the Securities Act. 11. Organized Crime and Racketeering Involvement in organized criminal groups, as well as activities related to racketeering, are treated as predicate offenses, supporting broad-based financial crime prevention. What have I missed?

Nigeria's Data Landscape Booming! But Over 1000 Institutions Face Probes for Data Breaches #DataPrivacy #Nigeria The Nigeria Data Protection Commission (NDPC) reports a thriving data ecosystem valued at over N10 billion! However, a recent statement by National Commissioner Vincent Olatunji reveals that over 1,000 institutions, including banks, schools, and insurance companies, are currently under investigation for data breaches. Key Takeaways: ➡️ The implementation of the Nigeria Data Protection Act (NDPA) in June 2023 has significantly boosted data compliance (private sector up to 55%, public sector up to 15%). ➡️ The NDPC has imposed sanctions totaling N400 million on four major banks and three other institutions for data breaches. ➡️ The commission is actively investigating ongoing data infractions and plans to train 10,000 public servants and 1,000 data protection officers. Solfix Security applauds the NDPC's efforts in safeguarding citizen data privacy. We offer comprehensive cybersecurity solutions to help businesses comply with the NDPA and protect sensitive information. Let's build a secure digital future together! Contact us: [email protected] +2349024419325 #cybersecurity #infosec #bussiness Link to full article https://lnkd.in/dyGMSFTP

"Man is not what he thinks he is; he is what he hides." – André Malraux This statement underscores the importance of conducting thorough due diligence. In today’s world, where financial crimes are increasingly sophisticated and regulatory pressures are mounting, businesses cannot afford to overlook this critical process. A robust due diligence framework not only ensures compliance but also fosters trust among clients, investors, and regulators. Due diligence is no longer a mere regulatory formality; it is a proactive strategy to safeguard against financial crimes, maintain integrity, and build enduring stakeholder relationships. At Due Diligence Advisory Africa, we prioritize the essential elements of due diligence to help your organization remain compliant and secure: 1. Customer Identification and Verification (KYC) We confirm the identity of clients and partners by verifying personal and business information through trusted documentation, protecting your business against fraud and identity theft. 2. Risk Profiling and Assessment By assessing potential risks for each relationship, we identify vulnerabilities linked to financial crime, fraud, and reputational damage. 3. Screening for Sanctions, PEPs, and Watchlists Our advanced tools ensure clients and partners are not listed on sanctions, Politically Exposed Persons (PEP), or global watchlists. This helps mitigate risks related to corruption, terrorism, and other illegal activities. 4. Source of Funds and Wealth Verification We rigorously verify the origins of funds and wealth to prevent involvement in money laundering and illicit financial activities while promoting transparency. 5. Ongoing Monitoring and Regular Reviews Compliance is a continuous process. We monitor transactions and update records regularly to ensure sustained compliance. 6. Enhanced Due Diligence (EDD) for High-Risk Cases For high-risk clients or transactions, we perform in-depth investigations, including reviews of ownership, financial histories, and business structures. 7. Data Privacy and Security Compliance Adhering to data protection regulations (e.g., GDPR, CCPA), we prioritize safeguarding sensitive customer information to reduce the risk of breaches. 8. Third-Party and Supplier Due Diligence We extend due diligence to third-party vendors and suppliers, evaluating their compliance practices to mitigate supply chain risks. Why Due Diligence Matters: • Legal Compliance: Avoid penalties, lawsuits, and reputational damage. • Risk Mitigation: Minimize exposure to financial crimes and fraud. • Reputation Management: Build trust through a commitment to ethics and compliance. • Operational Efficiency: Streamline processes for efficient onboarding while maintaining full compliance. For more information, contact us: 📧 Email: [email protected] 🌐 Website: www.diligence.co.ke 📞 Phone: +254 743 558 953

Criminal Scenarios in Mexico for 2025: A Call for Preparedness As 2025 unfolds, Mexico faces a complex landscape shaped by Donald Trump’s re-election, protectionist U.S. policies, and domestic reforms such as the “Plan C” proposed by the current administration. These factors, combined with global economic uncertainty, could create significant challenges for foreign companies operating in Mexico. Criminal dynamics are evolving, and businesses must prepare to mitigate risks and respond effectively to threats. Here are the potential criminal scenarios foreign companies might encounter: 1. Organized Crime Targeting Supply Chains Protectionist U.S. policies and economic slowdowns may fuel organized crime activities: • Smuggling and cargo theft: Trade routes could become hotspots for illicit activities. • Extortion: Companies may face demands from criminal groups seeking to exploit vulnerabilities in supply chains or operations. 2. Corruption Risks in the Justice System Proposed judicial reforms, such as the popular election of judges, may introduce new challenges: • Delayed or compromised legal processes: Corruption or political influence could undermine the resolution of criminal cases. • Challenges in asset recovery: Recovering losses from fraud or other crimes may become more complex in a weakened judicial environment. 3. Cybersecurity Threats As businesses rely increasingly on digital operations, they face heightened risks: • Cyberattacks on critical systems: Ransomware and data breaches could disrupt operations and compromise sensitive information. • Fraudulent schemes: Sophisticated phishing attacks targeting employees or vendors could lead to financial losses. 4. Employee Safety and Migration Risks Border regions and migration routes could experience increased criminal activity: • Kidnapping and extortion: Criminal groups may target employees traveling in high-risk areas. 5. Tax Crimes and Informal Economy Impacts Economic uncertainty may drive illegal practices that affect legitimate businesses: • Fake invoices and tax-related fraud: Fraudulent schemes could involve suppliers or partners. • Operational disruptions: Extortion and corruption may impact compliance with regulatory frameworks. How I Can Help As a professional specializing in risk prevention and criminal investigations, I offer tailored services to help your business navigate these challenges: • Risk Mitigation Plans: Proactively identify vulnerabilities and implement strategies to protect your operations, employees, and assets. • Criminal Investigations: If your business has been a victim of fraud, theft, or cybercrime, I provide thorough investigations to recover losses and hold perpetrators accountable. • Compliance Support: Ensure adherence to local laws and regulations while minimizing exposure to legal and reputational risks. Contact me today to learn more about how I can support your business.

U.S. Federal Agencies' Notice & Sanctions on Purchase and Sale Scams involving Timeshares in Mexico Attempts to defraud owners who wish to divest themselves of timeshares located in Mexico have been rampant for years. On July 16, 2024, the Financial Crimes Enforcement Network issued a joint notice to financial institutions concurrently with an OFAC sanctions action against Mexican accountants and companies for their role in facilitating timeshare fraud. Read full announcement below. [Title:] FinCEN, OFAC, and FBI Issue Joint Notice on Timeshare Fraud Associated with Mexico-Based Transnational Criminal Organizations Today [July 16, 2024], the Financial Crimes Enforcement Network (FinCEN) issued a Notice to financial institutions on the methodologies, financial typologies, and red flag indicators associated with timeshare fraud orchestrated by Mexico-based transnational criminal organizations (TCOs). Mexico-based TCOs such as the Jalisco New Generation Cartel (CJNG) are increasingly targeting U.S. owners of timeshares in Mexico through complex and often yearslong telemarketing, impersonation, and advance fee schemes. They use the illicit proceeds to diversify their revenue streams and finance other criminal activities, including the manufacturing and trafficking of illicit fentanyl and other synthetic drugs into the United States. The Notice was issued jointly with Treasury’s Office of Foreign Assets Control (OFAC) and the Federal Bureau of Investigation, and published concurrently with an OFAC sanctions action against Mexican accountants and companies for their role in facilitating timeshare fraud on behalf of CJNG. ◆ Financial institutions with questions about the content of today’s joint Notice should contact FinCEN’s Regulatory Support Section at [email protected]. ◆ FinCEN Notice (FIN-2024-NTC2): https://lnkd.in/gcR4jXjs ◆ Treasury Press Release: https://lnkd.in/gPqB7r34 [Original article source: July 16, 2024: FinCEN email subscription.]

Exciting news! We've just launched our sanctions module, completing the Quest One platform - the marine insurance market's first and only complete risk management solution. We've been listening to the industry's frustrations with juggling multiple tech providers for mapping, sanctions, and war cover. That's why we've developed Quest One - a single, integrated platform that serves brokers, underwriters, P&I clubs, and fleet owners/operators. Quest One now offers: 👉 Sanctions compliance 👉 Submission automation 👉 Expected loss and risk analysis 👉 ESG monitoring 👉 Aggregations 👉 War risk monitoring 👉 Real-time news alerts All in one place, saving you time and money while providing best-in-class technology to stay ahead. In today's complex sanctions landscape, our new module harnesses daily updates from S&P Global Market Intelligence and combines it with our real-time monitoring. This addresses the urgent need for comprehensive sanctions compliance, helping mitigate the risk of unintended breaches. This is the solution the market has been waiting for. Thanks to Reinsurance News for giving this airtime. https://lnkd.in/eyaHZUw2

𝗚𝗿𝗲𝘆 𝘇𝗼𝗻𝗲 𝗮𝘁𝘁𝗮𝗰𝗸𝘀 𝘀𝗼𝗮𝗿𝗶𝗻𝗴 – 𝗪𝗧𝗪 Willis Towers Watson says grey zone attacks have soared in recent years, making it a significant political risk. Grey zones include destruction of critical infrastructure, state cyber-attacks, weaponisation of migration, sponsorship of violent non-state actors, disinformation campaigns, and declared or undeclared economic sanctions. The latest WTW Political Risk Index maps global patterns of gray zone attacks in the emerging world – both aggressors and victims. #Insurance #RiskManagement #Insurtech #CyberRisk #Cyber