Latvia – bank fined €1.1m for Russian sanctions compliance failings

The Latvian financial services regulator (the FKTK) has fined SEB Bank €1.8 million, of which €1,121,140 related to shortcomings in the banks sanctions compliance.

The inspections leading to the fine had taken place in 2017 and 2018.

The failings are said to have been specific to the EU’s Russian sanctions in regulation 269/2014 (as amended).

The fine was stated to be for not screening for companies and other assets owned by designated persons.

France – Council of State upholds €50m fine for bank’s sanctions compliance failings

The French Council of State has today dismissed the appeal by Banque Postale against the fine of €50m imposed by the regulator, the ACPR.

The fine was imposed for EU sanctions compliance failings which had permitted designated persons subject to asset freezes to still transfer funds through the use of “money orders”.

This is the largest fine imposed by the French authorities.

See our earlier post in relation to the original fine.

Latvia – raids and arrests for arms sales in breach of UN sanctions

The Latvian Intelligence Services have announced a series of five raids in Riga and elsewhere relating to “illegal arms trade, violation of sanctions determined by international organisations” and money laundering.

As stated: “The information acquired during the investigation indicates that the group of persons has illicitly supplied a large number of arms to African countries that are subject to the sanctions determined by the UN and the EU. The accomplishment of illicit contracts was followed by laundering of criminally acquired financial resources”.

The release does not specify the African country.

Germany – trial commences of individual charged with Russian exports

A trial has commenced in Hamburg of a 69-year old charged with making numerous exports to Russia in breach of EU sanctions.

The man is a Russian national and is alleged to have exported 15kg of Decaboran which is used to make rocket propellant and explosives.

He is also alleged to have exported special machinery used to manufacture rockets. The total value of the exports is said to be over €1.8 million.


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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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