Mark Handley – Page 24 – European Sanctions Enforcement

August 10, 2023January 11, 2024 by Mark Handley

Netherlands – National Bank critical of de Volksbank sanctions compliance

The annual report for de Volksbank N.V. has revealed the results of a sanctions-review by the Dutch National Bank.

The report states:

“Furthermore, de Volksbank has initiated a comprehensive remediation project to enhance the customer screening and transaction screening systems. This project will remediate findings from regulatory testing of our screening systems conducted by DNB in the second half of 2022, and is expected to be finalised in the first half of 2024”.

The report also notes that the DNB had identified compliance failings in the AML and anti-terrorist financing space, and de Volksbank has made a provision of €1 million in anticipation of the expected fine.

August 3, 2023February 9, 2024 by Mark Handley

Germany: BaFin investigating German bank over Iran sanctions

The German financial services regulator, BaFin, has issued a press release confirming an investigation into the money laundering and sanctions compliance of the bank Varengold Bank AG. The particular focus is Iran sanctions.

BaFin has prohibited the bank from processing payment transactions involving Iran, or person or companies resident in Iran. BaFin has also appointed a representative to oversee compliance with this prohibition.

July 20, 2023March 15, 2024 by Mark Handley

UK’s FCA investigating 100 suspected sanctions breaches

The UK’s financial services regulator, the FCA, has published its annual report today for the year ending 31 March 2023.

Included in the report the FCA states that: “We reviewed nearly 100
suspected sanction breaches. We have also introduced a data-led approach to proactively supervise firms to ensure they have appropriate sanctions systems and controls, we also conducted 38 proactive assessments looking at firms’ systems and controls”.

July 19, 2023February 26, 2024 by Mark Handley

Ireland – investigation into drone parts and possible trade sanctions breach

It has been reported today that the Department of Enterprise, Trade and Employment is investigating potential breaches of sanctions, after a “Made in Ireland” tag was found on components within drones used by Russia in Ukraine.

July 18, 2023January 11, 2024 by Mark Handley

Netherlands – man arrested on suspicion of breaching Russian trade sanctions

The Dutch authorities have announced the arrest of a 41-year old man on suspicion of exporting microchips indirectly to Russia through third countries in circumvention of the EU’s sanctions.

The products are computer parts and were exported through third countries such as Kazakhstan, Kyrgyzstan, Mongolia, Uzbekistan, Turkey and the UAE.

Residential and business premises were searched in Moerdijk as part of the investigation.

July 14, 2023January 19, 2024 by Mark Handley

Estonia – arrest and extradition to the US for Russian sanction offences

The US Attorney’s Office for the Eastern District of New York has issued a press release relating to charges against Vadim Konoshchenok, who was arrested in Estonia and extradited to the US.

Konoshchenok is charged with exporting US-made goods to Russia.

According to the release, Konoshchenok was arrested in Estonia in December 2022 attempting to smuggle into Russia 35 different electronic components including US-made controlled products.

Earlier efforts to export ammunition to Russia had resulted in the seizure of half a ton of material.

July 13, 2023January 11, 2024 by Mark Handley

Czechia – investigation into Czech company suspected of illegal Russian exports

It has been reported that the Czech authorities are investigating the activities of Kovosvit MAS, which is suspected of shipping machinery to Russia via Turkey potentially in breach of EU sanctions.

July 4, 2023January 11, 2024 by Mark Handley

Switzerland – investigation into oil trading company

It has been reported that the Swiss authorities are currently investigating allegations that Paramount Energy & Commodities SA has been unlawfully trading oil of Russian origin through a Dubai-incorporated subsidiary in breach of the Swiss adoption of sanctions against Russia.

June 26, 2023January 11, 2024 by Mark Handley

Norway issues first fine for breaching Russian sanctions

It was reported today that the Norwegian authorities have imposed their first fine for breaches of sanctions against Russia.

The fine was NOK 50,000 being the profit from the unlawful sale of a car to a Russian customer in breach of Norway’s sanctions against the export of luxury goods.

June 26, 2023May 21, 2024 by Mark Handley

Netherlands – two arrested on suspicion of transferring funds to Hamas

The Dutch authorities have arrested two people on suspicion of transferring funds for the benefit of Hamas – an organisation designated under EU sanctions.

The transfers are alleged to have amounted to €5.5 million.

Searches were conducted in Leischendam and Rotterdam including the seizure of cash.