Financial Sanctions – Page 12 – European Sanctions Enforcement

March 12, 2024 by Mark Handley

France – investigation into bank’s Sudan transactions

It is being reported today that BNP Paribas remains the subject of an ongoing investigation by the Paris Prosecutor’s office in relation to allegations of complicity in crimes against humanity, torture and genocide arising from the financial services it provided to the government of Sudan between 2002 and 2008.

BNP’s Swiss subsidiary is also the subject of the investigation.

BNP Paribas has previously pled guilty to US sanctions charges, and the Swiss regulator FINMA has previously punished BNP Paribas Suisse.

While the relevant limitation period for sanctions offences in France has expired, the case is a reminder that same sanctions breaches can potentially give rise to liability for other offences.

March 4, 2024 by Mark Handley

Denmark – investigation into importation of aviation fuel from India in potential breach of Russian sanctions

It has been reported that the Danish Business Authority is currently investigating the Danish shipping company Hafnia for possible breaches of the EU’s Russian sanctions.

The allegations relate to the importation in October of 30 million litres of aviation fuel from a refinery in India which may be owned or controlled by designated persons.

Hafnia is reported to have denied the allegations and stated that it acts in full compliance with all relevant laws and regulations.

February 20, 2024 by Mark Handley

France – €120 million villa allegedly owned or controlled by GazpromNeft seized by French prosecutors

The Parquet de Paris (Paris Prosecutor’s Office) has seized a villa valued at €120 million in the south of France, and the shares of the company that is the registered owner of the villa.

The Paris Prosecutors allege that the villa is really owned or controlled by GazpromNeft, the Russian state-owned gas company which is designated in the EU and so subject to an asset freeze.

The seizure forms part of a ongoing investigation.

February 14, 2024 by Mark Handley

Finland – conviction of Russian national for breach of the EU travel ban

In a rare example of the enforcement of the travel ban imposed on designated persons, a court in Finland has convicted the Russian national Yan Petrovsky for travelling into Finland under an assumed alias, Voislav Torden, in 2022 and 2023.

Petrovsky was sentenced to 40 days in jail, and ordered to pay a fine of €80.

February 9, 2024March 19, 2024 by Mark Handley

Latvia – further sanctions enforcement statistics including seven convictions

The Latvian authorities have provided a further update to their enforcement efforts. As reported:

- 281 sanctions-related suspicious activity reports in 2022
- 510 sanctions-related suspicious activity reports in 2023
- 310 criminal cases commenced
- 22 prosecutions in which the trial has started
- 7 convictions to date.

Of the convictions, all involved guilty pleas and all involved Latvian nationals. The highest penalty related to the export of a luxury car, and the fine was €170,000.

The conduct prosecuted included in relation to the sale of a professional footballer to a club owned by a company designated under Belarus sanctions, and the provision of content to the Russian Federal News Agency.

UPDATE: It has now (18 March 2024) been reported that the fine imposed in relation to providing economic resources to the Russian news agency in the form of employment services, was €15,500.

February 9, 2024 by Mark Handley

Germany: BaFin investigation into bank ongoing

There has been press reporting into the ongoing investigation by the German financial service regulator, BaFin, into the German bank Varengold Bank AG.

The investigation remains ongoing and so far no individuals have been accused of wrongdoing, and no reference has been made in relation to a criminal prosecution.

For our earlier post regarding the BaFin announcement see here.

February 7, 2024March 15, 2024 by Mark Handley

UK – FCA investigating banks over Iran sanctions allegations

Following widespread press reports (initially in the Financial Times) that a series of front companies linked to the Iranian Revolutionary Guard held accounts in the UK with Lloyds Bank and Santander, it is now being reported (behind a paywall) that both banks have been contacted by the Financial Conduct Authority in relation to the allegations.

Both banks have denied breaching sanctions.

February 2, 2024 by Mark Handley

Germany – ISIS prosecutions and the meaning of “making funds or economic resources available”

In three decisions last year, the German Federal Court of Justice (Bundesgerichtshof) issued judgments dealing with persons charged with (amongst other crimes) making funds available to ISIS in breach of the relevant EU sanctions regulation.

One of the questions considered in the judgments is the extent to which transfers to individual members of the ISIS rank and file count as “making funds available” to ISIS itself.

Continue reading “Germany – ISIS prosecutions and the meaning of “making funds or economic resources available””

February 1, 2024February 1, 2024 by Mark Handley

United Kingdom – NCA charges Russian national with seven counts of circumventing sanctions

It has been reported today that the UK’s National Crime Agency has arrested and charged Dmitry Ovsyannikov, a Russian national, with seven counts of circumventing sanctions as well as two money laundering charges.

Ovsyannikov was formerly the governor of Russian-seized Sevastopol and was designated by the EU in 2017 and then post-Brexit by the UK in 2020.

He is due to first appear in Southwark Crown Court on 20 February. He was arrested on 22 January.

To date the National Crime Agency has not issued a press release

January 19, 2024December 9, 2024 by Mark Handley

Denmark – Danish FSA concludes investigation into payment services provider

The Danish FSA has issued a press release stating that an investigation it commenced into Nets Danmark A/S, has not resulted in a need for any further regulatory action to be taken.

The investigation was commenced in May 2023 and related to compliance with EU sanctions in general and Russian and Belarusian sanctions in particular.