It was reported today that the Belgian authorities have conducted raids on the Belgian offices of GBL, a company holding a 9.4% stake in Lafarge-Holcim as part of a wider investigation into allegations that funds were made available to designated persons in breach of EU sanctions.
Netherlands – fine of €100,000 imposed on payment services provider
In 2015 the Dutch National Bank had imposed a financial penalty of €125,000 on an unnamed payment services provider for failings in relation to sanctions and PEP screening as part of a review by the bank.
The payment services provider appealed the decision.
On appeal to the District Court of Rotterdam the penalty was upheld but the fine reduced to €100,000.
The National Bank had originally calculated the fine as €550,000 which was then reduced due to the financial condition and size of the defendant.
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.
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.
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.
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.
Danish bank confirms it is the subject of an investigation
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.
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.
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”.