Further to our earlier post of an investigation being commenced into alleged exports to Crimea in breach of sanctions, it is now being reported that the investigation has closed with no further action taken.
The Danish Business Authority is reported to have concluded that the company Grundfos, had no reasonable grounds to suspect that its products were being shipped to Crimea.
It is being reported that the Danish authorities have opened a number of investigations into suspected breaches of the EU’s sanctions against Russia and Belarus since the start of the full-scale invasion of Ukraine.
The Police have confirmed via a Freedom of Information request that they have 12 ongoing investigations.
Separately, the Danish Business Authority has confirmed that they have opened 34 investigations since February 2022.
Of those 23 have closed without further action being taken; 3 were reported to the Police and 2 have been reported to other authorities. A total of 6 investigations remain open.
It is being reported that the Danish Business Authority has commenced an investigation into alleged exports of heat exchangers for use by the Russian army and navy by the Russian subsidiary of Danish company Danfoss – called AO Ridan.
Danfoss is reported to have denied the allegations and to be cooperating with the investigation.
Two Danish companies have been convicted of exporting 177,000 tonnes of jet fuel to Syria in breach of the EU’s sanctions.
In total some 33 transactions took place between 2015 and 2017, with the exports routed through Russian companies bound for Syria.
The company Dan-Bunkering was fined DKK 30 million ($4.6m), with a further DKK 15 million of unlawful profits confiscated.
The parent company Bunker Holding was fined DKK 4 million.
The Dan Bunkering CEO was also convicted and given a four-month custodial sentence , suspended pending a one year probation period.
The Danish Financial Services Authority has today published its findings in relation to Danske Bank’s internal compliance function.
The findings included:
The Danish FSA finds that there is a risk that possible breaches of sanctions may not be detected by the bank’s sanctions screening because the bank does not have procedures in place for cooperation, including the exchange of information, between the units responsible for sanctions screening, customer due diligence data and transaction monitoring.
The Danish FSA also finds that there is a risk that possible breaches of sanctions may not be detected and escalated to the bank’s team of experts in the Sanctions & Embargo Team, who investigate possible breaches of sanctions, because the employees of the units of the bank who deal with customer due diligence data and transaction monitoring to prevent breaches of sanctions receive no training.
In addition, the Danish FSA finds that there is an increased risk of employee errors and abuse in the sanctions area because of matters relating to the bank’s internal controls in the sanctions area, including the fact that the four-eyes principle is not applied in connection with the screening of customers, the organisation of controls of manual processes for escalation as well as the organisational embedding of the Sanctions and Embargo Team in Group Compliance.
It has been reported today in the German press that the Danish authorities are investigating allegations that the Danish company Grundfos may have exported pump equipment and machinery for use in the Crimea in breach of the EU’s sanctions.
Denmark’s financial crimes unit on Wednesday announced charges against a Danish company suspected of violating EU sanctions on Syria by delivering large quantities of fuel to Russian warplanes there.
The 33 transactions, involving 172,000 tonnes of kerosene, carried out between 2015 and 2017, amounted to 647 million kroner (87 million euros, $102 million), according to the Danish State Prosecutor.
Danish media has reported the company as Dan-Bunkering. A holding company and the director of one of the companies involved are also being prosecuted.
