2020 – Page 2 – European Sanctions Enforcement

February 18, 2020March 15, 2024 by Mark Handley

UK: OFSI imposes £20.4m civil penalty

Today the UK’s Office of Financial Sanctions Implementation imposed a civil penalty of £20,471,809.83 on Standard Chartered Bank in the latest (and largest) use of its civil enforcement powers. The fine included a 30% reduction to take account of self-reporting and cooperation.

OFSI’s Penalty Report can be found here.

The breaches of the EU’s Russian sanctions regulation 833/2014 arose out of the provision of multiple loans to the non-EU subsidiary of a Russian bank in breach of the restrictions on certain Russian banks accessing the EU’s capital markets. In total 21 loans valued at over £97m were issued during the period after OFSI acquired its civil enforcement powers.

Initially OFSI’s fines were £31.5m, but the fines were reduced after Standard Chartered exercised its right to a ministerial review of the penalties.

February 13, 2020January 11, 2024 by Mark Handley

Germany arrests man for Russian sanctions violation

It has been reported today that customs officials in the Bavarian city of Augsburg have today arrested Alexander S. on suspicion of exporting machinery to Russia in breach of the EU’s trade sanctions.

Premises have been raided in Bavaria, Saxony and Berlin.

The exports are alleged to have valued over €8m and to have taken place between 2016 and 2018 to military end users.

The allegations include the provision of false information to try and optain export permits.

February 7, 2020January 11, 2024 by Mark Handley

Netherlands – €4.6m in gross profits confiscated from Iran exports

Further to our earlier post, following the successful prosecution of two companies for exports to Iran in breach of sanctions, the Dutch authorities have secured confiscation orders against the two companies for the gross profits obtained from the unlawful exports.

The confiscations were of €600,000 and €4 million respectively.

February 5, 2020January 11, 2024 by Mark Handley

Estonia and Latvia conduct joint raids into suspected sanctions breaches

The Latvian security service, the VDD, and the Estonian Internal Security Service, have conducted joint raids in the two countries as part of ongoing criminal investigations.

The raids were on the premises of companies in Riga and Tallinn owned or controlled by designated persons under the EU sanctions.

It is reported that one of the companies raided was Baltic Media Alliance.

February 4, 2020January 11, 2024 by Mark Handley

UK – bank investigated for alleged Iran sanctions breaches

It has been reported that Metro Bank is being investigated in the UK for allegedly receiving funds from Iran in breach of EU sanctions.

The bank has also reported itself to the US authorities in relation to possible breaches of US sanctions against Cuba.

February 4, 2020April 23, 2024 by Mark Handley

Netherlands – DNB issues instruction to trust provider

The Dutch National Bank has issued a public instruction to Corporate Trust Services BV in relation to its failed compliance with the due diligence and screening requirements of the Sanctiewet 1977.

No fine has been imposed.

February 1, 2020January 11, 2024 by Mark Handley

Estonia – company owned by designated person required to close

The Estonian branch of Sputnik, controlled by Rossiya Segodnya which has a CEO under EU sanctions, has closed under threat of criminal prosecutions from the Estonian authorities. Staff members were told that continuing employment would amount to providing “economic resources” to a designated person in breach of EU sanctions.

January 11, 2020January 11, 2024 by Mark Handley

German prosecution for sale of dual-use goods to Russia

On Friday the trial in Germany starts of Vladimir D. who is accused of eight counts of exporting dual use goods (both chemicals and equipment) to Russia and allegedly for a military end user in breach of the EU’s sanctions.

The exports are alleged to have taken place between 2014 and 2018.

The man was arrested in late 2018 and raids conducted in Baden-Württemberg. The value of the exports is reported to be €1.83 million.

January 9, 2020January 11, 2024 by Mark Handley

Germany – seven year sentence for Russian exports

The Higher Regional Court of Hamburg has today sentenced a man to seven years in jail for exports to Russian in breach of EU sanctions.

Our earlier post had outlined that the man was charged with exports of chemicals and machinery to Russia which could be used in the manufacture of military rockets. False documentation had been created in an attempt to mask the exports.