The adoption of a European Union money-laundering blacklist, which includes Saudi Arabia as well as Puerto Rico and three other U.S. territories, could be blocked by EU governments under a procedure launched on Thursday, two EU diplomats told Reuters.

At a meeting on Thursday, some national envoys opposed adopting the list, triggering a process that could lead to it being delayed or withdrawn, the diplomats said.

The move came after Saudi Arabia’s King Salman sent letters to all 28 EU leaders urging them to reconsider the inclusion of Riyadh on the list, one of the letters seen by Reuters showed.

The listing of the Saudi Kingdom “will damage its reputation on the one hand and it will create difficulties in trade and investment flows between the Kingdom and the European Union on the other,” the King wrote.

One diplomat said Washington has also pressured EU countries to scrap the list.

The U.S. Treasury said when the list was approved by the European Commission that the listing process was “flawed” and it rejected the inclusion of the four U.S. territories.

The diplomat said the Saudi lobby had intensified at the summit of EU and Arab League leaders earlier this week in Sharm el-Sheikh.

At that meeting, British Prime Minister Theresa May discussed the issue with the Saudi King, the diplomat said, adding that Britain and France are leading the group of EU countries opposed to the kingdom’s inclusion on the list, confirming a Reuters report earlier in February.

For the list to be blocked, a majority of 21 states is necessary. EU officials said that around 15 countries have already declared their opposition to the listing.

The list was first adopted by the European Commission on Feb 13 and lists 23 jurisdictions including Nigeria, Panama, Libya, the Bahamas and the four U.S. territories of American Samoa, U.S. Virgin Islands, Puerto Rico and Guam.

For the first time, the EU listing used different criteria from those used by the Financial Action Task Force (FATF), which is the global standard-setter for anti-money laundering.

The FATF list is much smaller and does not include Saudi Arabia and U.S. territories.

 
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A U.N. human rights expert has published a draft list of questions to measure countries’ privacy safeguards, a first step towards ranking the governments that are potentially doing the most snooping on their own citizens.

Joseph Cannataci, the U.N. special rapporteur on the right to privacy, submitted the draft questionnaire – touching on everything from chatrooms to systematic surveillance – to the U.N. Human Rights Council, and invited comments by June 30.

Cannataci’s role investigating digital privacy was created by the council in 2015 after Edward Snowden’s revelations about U.S. surveillance, and he has strongly criticized surveillance activities by the United States and other countries.

As the first person in the job, Cannataci set out an action plan for tackling the task and said he planned to take a methodical approach to monitoring surveillance and privacy laws to help him to decide which countries to investigate.

The council’s 47 member states are not be obliged to agree with his findings, but special rapporteurs’ reports are generally influential in a forum where governments are keen to appear to have an unblemished human rights record.

The 28 draft questions, each with a suggested score attached, begins with a potential five points if a country’s constitution had a provision to protect privacy or has been interpreted to encompass such a protection.

Under the first version of Cannataci’s scoring system, systematic monitoring of private communications could subtract 55 points, as could intensive policing of the internet and monitoring of chatrooms.

Other questions focus on subjects ranging from parliamentary and judicial oversight of surveillance and intelligence activities, profiling of civilians, and the use of “bulk powers” — such as downloading an entire set of phone records rather than getting a judge’s permission to listen into one call.

The last question asks: “Does your country have a police and/or intelligence service which systematically profiles and maintains surveillance on large segments of the population in a manner comparable to that of the STASI in the 1955-1990 GDR (East Germany)?”

Any country answering “yes” to that would forfeit 1,000 points and should abolish its system and start again, he wrote.

Cannataci stressed that the questionnaire was incomplete and “very much a work in progress”, and more questions might be added on open data, health data and privacy and gender.

“The intention would be to use such metrics as a standard investigation tool during country visits, both official and non-official,” Cannataci wrote in his report. He will report to the Council on Friday.
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Ukrainian lawmaker and presidential hopeful Vitaliy Kupriy survived two violent attacks in the past — and he is taking no chances now. One attack involved an assailant coming at him with a hammer.

As campaigning heats up in the country’s presidential race, he is shadowed by two mountainous bodyguards.

It is hardly surprising that he is alert to danger — he has been a thorn in the side of the rich and powerful for years. He has used an NGO he founded to try to kick-start a string of high-profile corruption cases, including one against businesses owned by incumbent President Petro Poroshenko for profiting from currency speculation using, Kupriy alleges, insider information.

The rights lawyer and deputy chairman of a parliamentary panel overseeing Ukraine’s law enforcement agencies does not have any illusions about his chances of emerging as a frontrunner from the pack of also-rans in an election featuring an unwieldy field of 44 candidates. That is not the point of his candidacy, he tells VOA.

Broken system

His objective is to highlight how broken the judicial and law enforcement system is in Ukraine and how political corruption is as bad now, he says, as it was when pro-Moscow authoritarian president Viktor Yanukovych was ruling the country and plundering Ukraine. Yanukovych was driven from office in 2014 by the Euro-Maidan uprising.

“Our agencies have collapsed. We don’t have the rule of law,” he says. “I go to different cities and hold town-hall meetings and last year I traveled to 130 cities. Aside from poverty, the major complaints are about the courts and law enforcement and how when people complain to the police about crimes against them nothing happens and the criminals just pay off the police.”

From petty bribery to high-level graft, corruption is one of the key issues in a presidential race that many say is one of the dirtiest they can recall. The current surprise front-runner popular TV comedian Volodymyr Zelenskiy has built his political outsider campaign around the issue. With a month to go before the first round of polling, Zelenskiy’s nearest rivals Poroshenko and former prime minister Yulia Tymoshenko have been slinging mud at each other, trading corruption accusations.

Tymoshenko made a fortune in the natural-gas business, earning her the nickname “the gas princess” for her role in shadowy dealings back in the 1990s.

On Tuesday, an investigation by an independent news outlet, BIHUS.info, rocked the election with allegations linking the son of one of Poroshenko’s closest associates and former business partner, Oleg Gladkovsky, the first deputy secretary of Ukraine’s National Security and Defense Council, to a money-laundering and smuggling scandal.

The scheme, the outlet alleged, led to the embezzling of millions of dollars from state defense enterprises and involved the smuggling of used parts from Russia and selling them to Ukrainian defense companies at inflated prices. According to the National Security and Defense Council, Gladkovsky was suspended from his post after the allegations were aired pending an investigation into the claims. Later it was reported he had resigned, but both he and his son deny the allegations.

‘Ugly and dirty campaign’

Poroshenko has not been directly implicated in the accusations of wrong-doing. Even so, Tymoshenko has demanded Poroshenko’s impeachment, and some analysts suggested the expose could upend the incumbent president’s bid for re-election.  

“Just wonder if this will be a terminal blow for Poroshenko’s campaign,” Tim Ash, senior sovereign strategist at BlueBay Asset Management, a major European investment house, said in a note to clients. “All sides have a lot to lose in this campaign, I guess it is going to be an ugly and dirty campaign. The gloves just came off,” he added.

Corruption involving the armed forces is a highly emotive issue in Ukraine. The conflict in the east with Russia has cost an estimated 13,000 lives since 2014.

The embezzlement allegations come as no surprise to Kupriy, a native of the eastern Ukrainian city of Dnipro (formerly Dnipropetrovsk), where he headed a department combating racketeering.

He was briefly a member of Poroshenko’s parliamentary bloc but broke with the president in March 2015 after clashing with him over stalled reforms. Last year, he was involved in an ugly verbal spat with Poroshenko in the parliament over the war in the east, which he believes the president has not pursued with enough vigor.

Breaking with Poroshenko has had consequences, he says. Friends and allies of his have been targeted for prosecution and he is under investigation himself by the country’s chief military prosecutor, Anatoliy Matios.

“His wife is a multi-millionaire,” he says of the prosecutor’s spouse. “How is this possible? He has spent his whole career in government agencies. He says it is his wife’s business, but we know what’s going on,” he adds. A request for comment by VOA from the military prosecutor’s office went unanswered.

Inaction

Kupriy’s tactic has been to follow high-profile graft cases and when there’s no action by prosecutors and the anti-corruption agencies to go to the courts to get them to order probes are advanced. “I have 60 current cases. My style is to be like a bulldozer and push hard,” he says. But once he has secured a court order there is little he can do to get the investigations to be handled seriously.

His biggest focus has been on corruption involving former Yanukovych aides and friends. Most of the cases have just stalled but meanwhile the assets are stripped off the accused and transferred into offshore companies, whose ownership is unclear.

“The property should be seized for the people, and not just confiscated and transferred into the hands of others. This is a question of due process. We lose the opportunity of the property being sold and the proceeds put into the national treasury,” says Kupriy, a father of three who spent four years studying and working in Australia.

The West is frustrated

His outrage has been echoed by Western governments and independent observers, who have urged Ukrainian authorities to enact root-and-branch reform.

Since Yanukovych’s ouster of 2014, several anti-corruption agencies have been set up in close cooperation with the assistance of Ukraine’s Western allies, including the U.S.. Among them the National Anti-Corruption Bureau (NABU), the Special Anti-Corruption Prosecutor’s Office, the State Bureau of Investigation, and an anti-corruption court.

But there has been open warfare between the agencies. Forty-eight out of 180 major investigations into top officials and oligarchs have been completed, but no one has been sentenced to jail terms and hearing dates keep being postponed. Analysts say there’s been progress in reducing corruption in the gas and banking sectors, but otherwise graft has returned to pre-Maidan levels.

“What went wrong? The short answer is that the new institutions don’t work, or in the case of NABU, they’re being blocked from doing their job,” wrote Mykola Vorobiov, a Ukrainian journalist, in a study for the Atlantic Council, a U.S. think tank.

To the frustration of Western allies, Ukraine’s highest court struck down Wednesday a provision forcing officials suspected of corruption to prove that their assets are legitimate. The court ruled the requirement unconstitutional on the grounds it violates the principle of the presumption of innocence. The provision was introduced in 2015, a quid pro quo demanded by the International Monetary Fund for loans need to shore up Ukraine’s economy.

NABU officials say the ruling will force them to shut down more than 60 corruption cases.

 
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Venezuela’s foreign minister said on Wednesday the United States was trying to overthrow the government of Nicolas Maduro and suggested talks with U.S. President Donald Trump — an idea the Trump administration immediately rejected.

Jorge Arreaza, addressing the U.N. Human Rights Council, suggested that Maduro and Trump meet to “try to find common ground and explain their differences.” He also said his country had lost $30 billion in assets “confiscated” since November 2017 under sanctions.

U.S. Vice President Mike Pence ruled out prospects of talks. “The only thing to discuss with Maduro at this point is the time and date for his departure,” Pence said on Twitter.

“For democracy to return and for Venezuela to rebuild — Maduro must go,” Pence said.

Dozens of diplomats, mainly from Latin American countries, walked out as Arreaza began to speak, while some European ambassadors boycotted the speech.

The United States and dozens of other nations have recognised opposition leader Juan Guaido as Venezuela’s legitimate president, but Maduro still controls the military, state institutions and oil company Petroleos de Venezuela SA , which provides 90 percent of the country’s export revenue.

Maduro also “stands ready for dialogue” with the Venezuelan opposition, Arreaza said.

“There is an attempt by external powers to overthrow an elected government, this goes against all rules of international law,” Arreaza said.

‘Ilegal pillage’

The United States targeted Venezuela’s government with new sanctions on Monday and called on allies to freeze the assets of state-owned PDVSA after deadly violence blocked humanitarian aid from reaching the country over the weekend.

The “blockade” against Caracas amounts to “theft of the assets and gold” of Venezuela, Arreaza said.

Some $30 billion in state assets had been confiscated since November 2017, he said, adding: “This is the illegal pillage of the resources of our state oil company in the United States.”

U.S. refiner Citgo Petroleum Corp is cutting ties with its parent PDVSA to comply with U.S. sanctions imposed on the OPEC country, two people close to the decision told Reuters on Tuesday.

The Bank of England has blocked $1.5 billion and Belgium $1.4 billion, Arreaza said. The Bank of England has previously declined to comment on questions about Venezuela’s gold, citing client privacy considerations.

“The humanitarian crisis is being used as a pretext for foreign intervention in my country,” Arreaza said.

In weekend clashes at the Colombian border, Venezuelan security forces acted with “proportionality and caution,” as humanitarian aid was burned, he said.

Earlier, an aide to President Ivan Duque of neighboring Colombia called for action to end Venezuela’s humanitarian crisis and bring about a political transition leading to free elections.
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Britain’s opposition Labor Party will put forward or support an amendment in favor of a public vote to prevent a damaging Brexit, the party’s Brexit spokesman said on Wednesday. 

British lawmakers voted 323-240 against a Labor proposal for a permanent customs union with the EU.

“Disappointed the government has rejected Labor’s alternative Brexit deal,” Labor Member of Parliament Keir Starmer said. “That’s why Labor will put forward or support an amendment in favor of a public vote to prevent a damaging Tory Brexit.”
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Ukraine’s Constitutional Court has struck down a law against officials enriching themselves, a move that raises concern about the country’s fight against endemic corruption and about whether it can get further aid from the International Monetary Fund.

The Ukrainian branch of Transparency International said Wednesday that the decision meant that at least 50 corruption cases would have to be closed.

The court said the law was unconstitutional because it violated the presumption-of-innocence principle by obliging suspected officials to prove their assets were legitimate, rather than obliging prosecutors to show assets were obtained by corrupt practices.

The law was introduced in 2015 to meet a demand of the IMF in order to receive badly needed loans. The IMF in 2015 authorized $17.5 billion in aid to Ukraine to support reforms.

President Petro Poroshenko said he would instruct his government to formulate a new draft law on punishing officials for corruption and that it would be submitted to parliament as an urgent priority.

Official corruption is a major issue in Ukraine as it approaches a presidential election on March 31. On Tuesday, one of Poroshenko’s top challengers in the race, Yulia Tymoshenko, called for him to be impeached following a media investigation into alleged embezzlement schemes in the country’s military industries.

Hundreds of demonstrators gathered outside the prosecutor general’s office on Wednesday to protest corruption, crying “Death to the marauders.”

 
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A Russian military court convicted a former senior counterintelligence officer and a cybersecurity firm executive of treason Tuesday, concluding a case that initially aroused speculation of a manufactured effort to punish the source of leaks about Russian campaign hacking.

 

Moscow’s District Military Court heard several months of evidence and arguments behind closed doors before it found Col. Sergei Mikhailov, an ex-officer at Russia’s Federal Security Service (FSB), and Kaspersky Lab executive Ruslan Stoyanov guilty.

 

The basis for the charges remains murky given the top-secret nature of the criminal proceedings. Russian media have reported the case centers on accusations that Mikhailov contacted Stoyanov to pass information from an FSB probe of a Russian businessmen Pavel Vrublevsky to an analyst with alleged ties to the FBI.

 

Mikhailov, the deputy head of cyber intelligence at the domestic security agency, also known as FSB, received a 22-year prison sentence and was stripped of his military rank and decorations, which included the elite “For Services to the Fatherland.”

 

The court gave Stoyanov 14 years. The two men listened to the verdicts and sentences from a glass cage inside the courtroom, flanked by masked men.

 

After the pair were arrested and charged in December 2016, the timing led some people to suggest the actions were linked to the 2016 U.S. presidential election and a possible mole who tipped off U.S. intelligence agencies about Russian interference.

 

Later news reports said Mikhailov was prosecuted for passing on details about an unrelated case to an American cybercrime analyst.

 

Andrei Soldatov, an expert on the Russian security services and co-author of “Red Web” told The Associated Press on Tuesday he still thinks the criminal case against Mikhailov and Stoyanov was a direct response to U.S. officials investigating election-related hacking.

 

“Their arrest… was a direct follow-up to the outcry in the U.S. over the Russian meddling,” Soldatov said. “Mikhailov was the top FSB officer in charge of maintaining contacts with Western security agencies in the cyber-sphere, something that went out of fashion after the last scandal.”

 

Inga Lebedeva, Stoyanov’s defense lawyer, said secrecy rules prevented her from providing details about the trial. But Lebedeva said after the verdicts were given that allegations involving potential meddling in the U.S. elections did not come up.

 

She alleged the charges were trumped up to appease the Russian businessman Mikhailov was accused of passing on information about, Pavel Vrublevsky.

 

“The case has been concocted at Vrublevsky’s orders” Lebedeva alleged.

 

Vrublevsky, who testified during the long trial, rejected her accusation. It was not the content of the information Mikhailov allegedly passed on to the American analyst that constituted treason, but that he shared information about an active FSB investigation with a foreign citizen.

 

The businessman alleged Mikhailov abused his position at the FSB to go after internet entrepreneurs like him and “turn them into cybercriminals,” thus “whipping up cyber-hysteria around the world.”
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Robots, cars, drones and virtual-reality gaming sets connected by cutting-edge 5G networks are among the thousands of futuristic gadgets on display at this year’s Mobile World Congress in Barcelona, Spain.

While there is much excitement over how 5G will transform our everyday lives, the conference is overshadowed by the standoff between the United States and Beijing over the Chinese telecoms giant Huawei, which the U.S. says could be used by the Chinese government for espionage.

Some U.S. cities and parts of Asia are already operating 5G mobile networks. They offer speeds of over a gigabyte per second and low latency — in other words, practically instant connections with no delay.

Experts say that opens up whole new fields of connectivity, from new generations of virtual reality gaming and communication, to remote robotic surgery.

The technology promises to transform not only the mobile phone in your pocket — but also the world around us, says Paul Triolo of the Eurasia Group, who spoke to VOA from the conference.

“The really key aspects of 5G, like some of the low latency communications and massive sensor, massive machine-to-machine communications, that’s more about industry and industrial uses. And that gets into thing like critical infrastructure so you’re going to have a lot more non-personal or industrial data flying around and that really has people concerned. For example, military forces in countries like the U.S. will also leverage large parts of the commercial network,” said Triolo.Chinese firm Huawei is a big presence at the Mobile World Congress and a big player in 5G network technology.

Washington has banned the company from 5G rollout in the United States, citing Chinese legislation requiring companies to cooperate with the state — raising fears Huawei 5G networks overseas could be used as a ‘Trojan horse’ to spy on rivals.

Attending the Mobile World Congress Tuesday, the U.S. State Department’s Deputy Secretary for Cyber Policy Robert L. Strayer urged allies to do the same.

“We will continue to engage with these governments and the regulators in these countries to educate them about what we know and keep sharing the best practices for how we can all successfully move to next generation of technology. I´ll just say there are plenty of options in the West,” Strayer told reporters.

Huawei’s management has said the company would never use ‘back doors’ for espionage — and the Chinese government has dismissed the accusations.

Australia, New Zealand and Japan have followed Washington’s lead and restricted Huawei’s involvement in 5G. Europe remains undecided — but the industry needs clarity, said analyst Paul Triolo.

“The European community in particular and also the U.S. have to clarify what these policies mean, what a ban would mean or what some kind of a partial ban would mean, if there’s really a middle ground that can be found here.”

Vodafone’s CEO Nick Read told the Barcelona conference that banning Huawei could set Europe’s 5G rollout back another two years.

The eye-catching gadgets show the potential that 5G networks are about to unleash. But the question of who controls those networks, and the data they carry, looms large over this futuristic world.
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A federal judge on Tuesday agreed to delay sentencing for Maria Butina, who has admitted to working to infiltrate a gun rights group and make inroads with U.S. conservative activists and Republicans as an agent for Russia, after a prosecutor said her cooperation was continuing.

Butina, 30, has been in custody since her arrest in July.

She pleaded guilty in December to one count of conspiring to act as a foreign agent of Russia. Butina’s attorney Robert Driscoll told U.S. District Judge Tanya Chutkan in court on Tuesday his client is ready to be sentenced.

“From our perspective, we’re ready to go,” Driscoll said.

But the lead prosecutor in the case said the prosecution stills need Butina’s cooperation in its ongoing probe.

The judge said she is sensitive to the defense’s concerns, but agreed to postpone sentencing and hold another status conference next month.

“Ms. Butina has been detained for a substantial portion of what she would likely face,” Chutkan said. But, the judge added that “her cooperation continues to be needed by the government.”

The next status hearing is now scheduled for March 28.
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