European Sanctions Enforcement

September 14, 2017January 10, 2024 by Mark Handley

Germany – Iran sanctions prosecution case sent to Federal Court

A prosecution in relation to the export of valves for use in the Iranian nuclear sector which has been ongoing since 2014 has now been referred to the German Federal Court.

The prosecution of three individuals, named only as Bernd Gehrad L., René L. and Ralf C, relates to the export of 51 specialized valves to Iran between 2010 and 2011. The value of the valves was approximately €1 million.

The case has been sent to the Federal Court after a court in Berlin had ruled that the penalties being sought were unconstitutional.

September 4, 2017January 10, 2024 by Mark Handley

Netherlands – investigation into alleged breach of Crimean sanctions

It has been reported that the Dutch International Development minister has ordered an investigation into the alleged involvement of two Dutch companies, Dematec Equipment and Biljard Hydrauliek, in providing equipment for the building of the Kerch Strait Bridge designed to join Russia and Crimea.

The allegations, if proven, would be a breach of the EU’s Crimean sanctions.

September 4, 2017January 10, 2024 by Mark Handley

Netherlands – fine and custodial sentence imposed for breach of Iran sanctions.

The District Court of East Brabant has convicted an individual for breaches of the EU’s Iran sanctions.

The defendant had traded for 2 years with a designated Iranian entity. The unspecified goods had been shipped via intermediary countries Turkey and Dubai.

He was sentenced to 16 months in jail, with a further 4 months suspended subject to a two-year probation period. He was also fined €500,000. The fine was on the individual personally and not on the company through which he traded.

August 21, 2017January 10, 2024 by Mark Handley

Lithuania – prosecutors commence investigation into possible Crimean sanctions breaches

The Lithuanian Prosecutor General’s Office has announced that the Lithuanian Financial Crime Investigation Service has opened an investigation into alleged breaches of the EU’s Crimean sanctions by three different enterprises:

a) two Lithuanian companies: BT Invest, and Hanner Group OÜ; and

b) one Crimean company owned by a Lithuanian: Pluošto Linija LLC.

It is understood that the allegation relate to investments and business dealings by Lithuanian nationals in Crimean companies and property developments in breach of the EU’s sanctions against Crimea.

August 15, 2017January 10, 2024 by Mark Handley

Danish bank confirms it is the subject of an investigation

The Danish bank, Nordea, has today issued a press release confirming it is the subject of a criminal investigation by the Public Prosecutor for Serious Economic and International Crime.

The investigation relates to alleged AML and sanctions screening failures at Nordea.

July 21, 2017January 10, 2024 by Mark Handley

Latvia – two further banks fined by regulator for North Korean sanctions failings

The Latvian Finance and Capital Markets Commission has today announced a fine of €1.3 million against Norvik Banka and of €1.56 million against Rietumu Banka in relation to transactions related to circumvention of North Korean sanctions between 2013 and 2014 and 2009 and 2015 respectively.

Both banks have cooperated with the FCMC and have undertaken as part of administrative agreements to improve their internal compliance functions.

July 13, 2017January 10, 2024 by Mark Handley

Italy – sentences for arms exports to Iran and Libya

It has been reported today that a plea deal has been reached for the final two defendants in the Italian prosecution of arms exports to Libya and Iran in breach of EU sanctions and export controls.

Mario Di Leva negotiated 3 years and 8 months of imprisonment and a fine of €8000, and for Annamaria Fontana the sentence was 3 years and 6 months and a fine of €7000.

See our earlier post for the plea deal for the first defendant.

June 27, 2017January 10, 2024 by Mark Handley

Latvia – three banks fined by regulator for sanctions and AML failings

On June 27, 2017, the Latvian Financial and Capital Market Commission entered into administrative agreements with three different Latvian Banks for failings related to breaches of North Korean sanctions. Each of the banks cooperated with the investigations.

JSC Baltikums Bank and JSC PrivatBank were each fined €35,575 for “weaknesses in customer due diligence and transaction monitoring that led to the situation that bank had been used to circumvent international sanctions requirements imposed against North Korea”.

JSC Reģionālā investiciju Banka, was fined €570,364, for the same failings, but also for “failure to ensure effective functioning of internal control system”. To remedy this, the bank was undertaken to invest €2.8 million on “the improvement of its internal control system in 2017/2018”.

In addition official warnings were issued to those at the bank responsible for AML and CTF controls. The bank also undertook to “assess its AML/CTF internal control system and take the necessary measures to improve its functioning and effectiveness in line with the action plan, to perform external testing on the categorization of customer base and IT solutions, as well as assess the risks associated with cross-border enforcement of sanctions”.

June 13, 2017January 10, 2024 by Mark Handley

France – investigation commenced into allegations of terrorist financing

It was reported today that the French authorities have commenced an investigation into the cement company Lafarge-Holcim with regards to payments made relating to its Syrian manufacturing operations that are alleged to be payments made to designated persons under the EU’s terrorist financing and ISIS sanctions.

May 10, 2017January 10, 2024 by Mark Handley

Netherlands – investigation into trust office ongoing

It is being reported in the Netherlands that the Dutch authorities are undertaking an investigation into trust companies within the BK Group for alleged breaches of the EU’s misappropriation sanctions in relation to the Ukraine.