Export Controls – European Sanctions Enforcement

December 17, 2024 by Mark Handley

United Kingdom – company convicted of export control violations

His Majesty’s Revenue and Customs (HMRC) has announced the conviction of the company EDM Limited on three counts of exporting controlled military goods without the appropriate licence.

The good in question were military flight simulators valued at £38,967.68.

The company was fined £89,359.80, including costs, but HMRC’s Notice does not mention whether a confiscation order was also made.

EDM Limited had been offered a civil compound penalty to resolve the matter but had not accepted the offer in time and so the case went to trial.

November 4, 2024November 4, 2024 by Mark Handley

United Kingdom – HMRC compound penalties for Russian sanctions and export control violations totaling £1.9m

The UK’s HMRC has issued several “Notices to Exporters” with updates as to recent enforcement activity.

In one Notice, HMRC states that is has agreed three compound penalties with different entities:

“August 2024 – £402,417.75 was paid relating to the unlicensed exports of military goods controlled by The Export Control Order 2008
August 2024 – £37,743.34 was paid relating to the unlicensed exports of dual-use goods controlled by Retained Regulation 428/2009
September 2024 – £1,480,785.44 was paid relating to the unlicensed exports of military goods controlled by The Export Control Order 2008″

As ever with such penalties the nature of the offending is not given, the identity of the offender is not given, and no indication is given as to whether or not the fine includes a confiscation element for the proceeds of the crimes.

In a second Notice, HMRC describes the compound penalty:

“August 2024 – £58,426.45 was paid relating to the export of goods in breach of The Russia (Sanctions) (EU Exit) Regulations 2019”.

Again, no other details or information is provided, although HMRC notes that this is its 6th compound penalty in relation to Russian sanctions totaling £1,363,129.

October 18, 2024 by Mark Handley

Norway – 37 ongoing Russian sanctions investigations

It is being reported that Norway’s Politiets Sikkerhetstjeneste (Norwegian Customs), has 37 ongoing investigations in relation to alleged breaches of Norway’s Russian sanctions. Many of these are said to involve attempts to evade detection by exporting to Russia via third countries, but some are described as relating to imports into Norway.

It is also being reported that there is a further investigation under Norway’s Export Control Act.

October 15, 2024 by Mark Handley

Finland – three Russian nationals under investigation for dual-use exports

Further to our earlier post from May when three Russian national university students were arrested in Finland, an update on the case has now been reported.

The investigation of all three individuals continues, with two having been released from custody over the summer and the third recently released.

The conditions of bail include a travel ban, and it is said that the three are being investigated in relation to the “gross regulatory crime” of exporting dual use goods from Finland to Russia in breach of EU sanctions.

It is unclear whether this case is related to Tampere University recently reporting itself to the Finnish police.

October 10, 2024October 10, 2024 by Mark Handley

Finland – university calls in police to investigate suspected breach of sanctions

It is being reported that the University of Tampere in Finland has asked the police to investigate a suspected breach of sanctions “at the institution”.

The suspicions relates to potential breach of sanctions as well as export controls on dual-use goods. The particular sanctions regime involved is not specified in the material that is public.

Little other information is available including whether the suspicions relate to staff or students.

September 11, 2024 by Mark Handley

UK – HMRC fines two companies for export control breaches

The UK’s primary export controls enforcement body, HMRC, has today issued a Notice to Exporters giving some details on two compound settlements reached with two UK companies.

The first was reached in April 2024 and the unnamed company agreed to pay £258,000 in relation to the “unlicensed transfer of dual-use goods controlled by Retained Regulation 428/2009”.

The second was reached in June 2024 and the unnamed company agreed to pay £90,853.20 in relation to the “the unlicensed exports of military goods controlled by The Export Control Order 2008”.

No other information has been made available.

July 31, 2024 by Mark Handley

UK – investigation by HMRC into potential Airbus violations of export controls

Reuters has reported that Airbus’s most recent half-yearly financial statements include reference to an ongoing investigation by HMRC.

Under the heading “HMRC Export Control Investigation”, the financial company records: “Airbus is fully cooperating with an investigation by the Revenue and Customs Authority of the United Kingdom into possible violations of the United Kingdom’s export control rules. It is not expected that the resolution of this matter will have a material financial impact“.

No further details are provided.

July 23, 2024August 1, 2024 by Mark Handley

UK – extradition to the US for person suspected of Iran sanctions breaches

A press release from the US Department of Justice records that an individual, Saeid Haji Agha Mousaei, was arrested in the UK on 24 January 2023 pursuant to an Interpol diffusion notice.

Mr Mousaei was then subsequently extradited to the US where he faces multiple charges arising from the alleged supply of “controlled electronics with military applications, including signals equipment like oscilloscopes and spectrum analyzers, for export and re-export to Iran”.

It is alleged that false documentation was prepared which indicated that the goods were to remain in countries such as the UAE and Armenia, but the goods were all transshipped to Iran via the UAE.

June 25, 2024 by Mark Handley

Italy – seizure of Russian-origin military cargo bound for Libya

It is being reported that the Italian authorities, upon receipt of information from the US authorities, have conducted an operation in the Mediterranean to seize millions of dollars in unspecified military equipment on board the MSC Arina.

The goods are suspected of being exported to Libya in breach of the arms embargo that forms part of the UN sanctions.

The vessel had departed Shenzen, China in April and was allowed to continue after the cargo in question was removed.

It is being reported that the equipment was destined for General Khalifa’s forces in eastern Libya.

April 25, 2024May 16, 2024 by Mark Handley

United Kingdom – HMRC issues £2.3m in compound penalties for sanctions and export controls breaches

His Majesty’s Revenue and Customs, the body empowered to enforce export controls and trade sanctions in the UK, has today published two Notices to Exporters setting out compound penalties in relation to Russian sanctions and export control violations.

The first Notice, in relation to an unnamed company, relates to a penalty of £1,058,781.79 imposed for breaches of the UK’s Russian sanctions regulation.

No information is given as to the nature of the conduct, the value of the goods, or why a criminal prosecution was not brought. There is no mention of a confiscation of the proceeds of crime.

The second Notice relates to export control violations that are not described as breaches of the UK’s sanction. Again no information is given as to the names of the companies, the nature of the violations, or an indication given as to the confiscation of the proceeds of crime.

To quote the Notice:

“The 6 settlements made by UK companies were:

- January 2024 – £12,700.00 was paid for a breach of licence conditions in relation to the export of military goods
- February 2024 – £33,822.64 was paid relating to the unlicensed exports of military goods controlled by The Export Control Order 2008
- February 2024 – £971,726.00 was paid relating to the unlicensed exports of military goods controlled by The Export Control Order 2008
- February 2024 – £139,841.85 was paid relating to the unlicensed exports of military goods controlled by The Export Control Order 2008 and dual use goods controlled by Retained Regulation 428/2009
- March 2024 – £92,817.40 was paid relating to the unlicensed exports of military goods controlled by The Export Control Order 2008
- March 2024 – £56,915.27 was paid relating to the unlicensed exports of military goods controlled by The Export Control Order 2008“.