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.
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.
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.
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.
Austria – military goods enforcement
The Austrian annual criminal statistics reveal 4 convictions for the year 2018 for breaches of section 7 the “War Materials Law”. Two other convictions for other offences were obtained in the year.
No information was published on the nature of the offending, the identity of the offenders or the sentences.
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 bank’s 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.
Latvia – TV channels owned by designated person blocked from broadcasting
It has been reported today that the Latvian authorities have placed a block on the broadcasts of nine Russian television stations owned by a designated person under the EU’s sanctions.
The stations are owned by Yury Kovalchuk.
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.
UK – 9 companies issued compound penalties for unlicensed exports
The UK’s HMRC has today announced that it has imposed compound penalties on nine separate exporters for the unlicensed exports of dual use goods, military goods and related activity controlled by Export Control Order.
The fines were between £5,000 and £90,000 in value.