Financial Sanctions – Page 20 – European Sanctions Enforcement

February 18, 2020March 15, 2024 by Mark Handley

UK: OFSI imposes £20.4m civil penalty

Today the UK’s Office of Financial Sanctions Implementation imposed a civil penalty of £20,471,809.83 on Standard Chartered Bank in the latest (and largest) use of its civil enforcement powers. The fine included a 30% reduction to take account of self-reporting and cooperation.

OFSI’s Penalty Report can be found here.

The breaches of the EU’s Russian sanctions regulation 833/2014 arose out of the provision of multiple loans to the non-EU subsidiary of a Russian bank in breach of the restrictions on certain Russian banks accessing the EU’s capital markets. In total 21 loans valued at over £97m were issued during the period after OFSI acquired its civil enforcement powers.

Initially OFSI’s fines were £31.5m, but the fines were reduced after Standard Chartered exercised its right to a ministerial review of the penalties.

February 5, 2020January 11, 2024 by Mark Handley

Estonia and Latvia conduct joint raids into suspected sanctions breaches

The Latvian security service, the VDD, and the Estonian Internal Security Service, have conducted joint raids in the two countries as part of ongoing criminal investigations.

The raids were on the premises of companies in Riga and Tallinn owned or controlled by designated persons under the EU sanctions.

It is reported that one of the companies raided was Baltic Media Alliance.

February 4, 2020January 11, 2024 by Mark Handley

UK – bank investigated for alleged Iran sanctions breaches

It has been reported that Metro Bank is being investigated in the UK for allegedly receiving funds from Iran in breach of EU sanctions.

The bank has also reported itself to the US authorities in relation to possible breaches of US sanctions against Cuba.

February 4, 2020April 23, 2024 by Mark Handley

Netherlands – DNB issues instruction to trust provider

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.

February 1, 2020January 11, 2024 by Mark Handley

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.

December 20, 2019January 14, 2025 by Mark Handley

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.

November 21, 2019January 10, 2024 by Mark Handley

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.

November 5, 2019January 10, 2024 by Mark Handley

Netherlands – conviction for breach of ISIS sanctions

The Rotterdam District Court has convicted an individual for the financial transfer of €471 in breach of the EU’s sanctions against ISIS.

In light of other offences, the man was sentenced to 18 months in jail, with 6 months conditional and a probation period of 3 years.

November 5, 2019January 11, 2024 by Mark Handley

Netherlands – two month suspended sentence for €200 transfer

The District Court of Rotterdam has imposed a two-month suspended sentence on an individual for the transfer of €200 to his brother.

The brother was fighting for ISIS in Syria and so the transfer was in breach of EU sanctions.

November 1, 2019January 11, 2024 by Mark Handley

Netherlands – Dutch National Bank fines trust office for KYC failings

The Rotterdam District Court has heard an appeal against fines imposed by the Dutch National Bank on a trust office.

The fines were of €593,750 and €10,000.

Some aspects of the appeal were upheld and the fines were reduced, but the court agreed with the KYC failings (including related to sanctions screening) and imposed revised fines of €534,375 and €9,000.