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Reports from Antigua confirm that the country's Prime Minister Gaston Browne, and the actor/investor Robert De Niro, took a personal trip to Dubai & Lebanon (Home of Hezbollah) three weeks ago. It was Browne's seventh visit to the UAE. Their destination: a private meeting with the UAE-based CBI builder, Range Developments. Their purpose: to explore the ongoing, but very private, discussion regarding Range's proposal to build a luxury hotel on storm-ravaged Barbuda. What's wrong with the picture ?
On the surface, it appears to be a win-win for Antigua; jobs in its damaged sister island would be created, CBI cash would flow into the national treasury, and the hotel could attract additional investments, including rehabilitation of the residences destroyed by an Act of Mother Nature. But look behind the rosy predictions, and peel back the onion. Where will the investment capital come from, and from what nations will the CBI applicants hail ? therein lies the knotty problem.
On the surface, it appears to be a win-win for Antigua; jobs in its damaged sister island would be created, CBI cash would flow into the national treasury, and the hotel could attract additional investments, including rehabilitation of the residences destroyed by an Act of Mother Nature. But look behind the rosy predictions, and peel back the onion. Where will the investment capital come from, and from what nations will the CBI applicants hail ? therein lies the knotty problem.
IS THIS THE NEW ANTIGUA & BARBUDA
True, Range has constructed some impressive projects in the East Caribbean CBI jurisdictions, with other in the pipeline, but its Karbala, Iraq project is a major cause for concern. We have previously* detailed our assessment of the risks posed by the matter, but suffice it to say that using an OFAC-sanctioned contractor to build it, and then selling it off to that contractor, while offering the time-share units to Americans, and personally marketing it within the United States, indicates a total and dangerous disregard for American and international sanctions upon Iran.
The fear is that sanctioned Iranian capital, funneled through the UAE, will fund the Barbuda project, which will be offered to US nationals or residents, exposing them to potential OFAC fines & civil penalties, possible forfeiture of their investment, and perhaps even the participation of Specially Designated Global Terrorist Organizations in the investment portfolio.
The fear is that sanctioned Iranian capital, funneled through the UAE, will fund the Barbuda project, which will be offered to US nationals or residents, exposing them to potential OFAC fines & civil penalties, possible forfeiture of their investment, and perhaps even the participation of Specially Designated Global Terrorist Organizations in the investment portfolio.
HAMAS TERRORIST GROUPS ROAMING IN ANTIGUA & BARBUDA
Whether there is a money laundering issue here is a matter of legal interpretation, but one only need look as Turkish Halkbank Deputy General Manager Mehmet Atilla, now awaiting in New York Federal Court what could amount to a life sentence, for Iran sanctions violations, to see that it could get ugly. Will Range be totally transparent on Source of Funds, as well as the true identities of the Iranian CBI applicants from the Middle East ? We cannot say, but the issues will certainly draw the attention of OFAC and FinCEN this time around, for OFAC's failure to bring sanctions has been repeatedly brought up, and you can be sure it will be paying close attention.
Chronicles of Monte Friesner - Financial Crime Analyst
Contributed by Kenneth Rijock - Financial Crime Consultant
