Financial Sanctions – Page 7 – European Sanctions Enforcement

April 19, 2024 by Mark Handley

Netherlands – four month prison sentence for breach of ISIS sanctions

The Court of Appeal in the Hague has quashed some convictions and upheld others of a suspect charged with terrorist financing and with breaching the EU’s ISIS sanctions.

The underlying actions were the indirect transfer of approximately €4,550 in several tranches to the suspect’s daughter and son-in-law who were then in Syria as part of ISIS.

The Court of Appeal quashed the convictions for terrorist financing saying there was no evidence that that was the suspect’s intention.

The convictions under the EU’s sanctions were, however, upheld with the court noting that intention does not form part of the offence which consists simply of making funds or economic resources available to a designated person.

The defendant was given a four month custodial sentence.

April 15, 2024 by Mark Handley

Cyprus – company raided as part of sanctions investigation

Last week the compliance and oversight department of the Cyprus Bar Association raided the premises of the company Finsol controlled by a Greek national regulated by the CBA.

The raid is part of a wider investigation which includes the Cypriot Anti-Money Laundering Authority and Cyprus police.

While the investigation includes allegations unrelated to sanctions, part of the investigation, further to our earlier post, includes allegation of back-dated asset transfers in relation to the company Santinomo Limited, allegedly in an attempt to avoid the impact of a new designation.

April 11, 2024 by Mark Handley

Cyprus – more than 40 ongoing Russian sanctions investigations and first indictments expected soon

The Cypriot authorities have more than 40 ongoing criminal investigations related to alleged breaches of the EU’s Russian sanctions.

It is being reported that yesterday the current status of “all open cases exceeding 40 were reviewed” by the Law Office and the state’s Attorney General, with the Office for Economic Crime Investigation.

It is also being reported that for the completed investigations “indictments will be prepared to initiate criminal prosecutions in court”.

April 9, 2024 by Mark Handley

United Kingdom – charges to two further individuals added to existing prosecution

Further to our earlier post, regarding the UK’s National Crime Agency charging Dmitry Ovsyannikov with multiple counts of breaching the UK’s Russian sanctions, following a hearing in London it is now apparent that the National Crime Agency has also charged Ekaterina Ovsiannikova (the first defendant’s wife) and Alexei Owsjanikow, (the second defendant’s brother).

As per Spotlight on Corruption, a further hearing is listed for 28 June to hear application by the defendants to dismiss the charges.

The hearing, as reported by Global Investigations Review (behind a paywall), on Monday was largely procedural and dealt with issues like bail terms. The defendants have yet to enter a plea.

April 5, 2024 by Mark Handley

Cyprus – sanctions investigation into purported share transfer by Mordashov in the “final stages”

Further to our earlier post there has been an ongoing investigation in Cyprus in relation to the alleged transfer of over $1 billion in shares by Alexey Mordashov in breach of the asset freeze imposed upon him by the European Union.

It is now being reported that the Cypriot investigation has reached its “final stages”.

The report gives no indication of the outcome of the investigation.

The allegations relate to transfers of the shares in the tourism operator Tui.

April 4, 2024 by Mark Handley

United Kingdom – Gambling Commission fines two operators citing sanctions compliance failings

The UK’s regulator for the gambling sector, the Gambling Commission has issued a press release recording fines of £343,035 against Hillside (UK) Gaming ENC and £239,085 against Hillside (UK Sports) ENC.

Both companies operate under the Bet365 brand.

The fines in part relate to social responsibility failings, and partly to financial crime compliance failings including “failing to undertake financial sanctions checks on new customers prior to their first deposits”.

April 2, 2024 by Mark Handley

Latvia – criminal investigation into helicopter sale discontinued

It is being reported that the Latvian State Security Service (the VDD) has discontinued a criminal investigation started in November 2023 into the sale of a helicopter by a company indirectly co-owned by the designated person Petr Aven .

The sale had been reported to the VDD by a court-appointed bailiff on suspicion that the sale (which took place as part of an insolvency proceeding of the helicopter owning company) may be being used as a tool to circumvent the relevant asset freezes imposed by the EU.

The investigation included the questioning of a number of witnesses, and the freezing of the sale proceeds.

The VDD has concluded that the insolvency was proper, that the loan agreement which funded the helicopter purchase pre-dated the imposition of sanctions, and that the debts of the company could be discharged from the sale proceeds

March 29, 2024 by Mark Handley

United Kingdom – joint sanctions investigation with US into $20 billion crypto transactions

It is being reported that the UK and the US are undertaking a joint investigation into $20 billion in crypto currency transactions said to be in breach of Russian sanctions.

The payments under scrutiny flowed through the Moscow-based Garantex crypto exchange, utilizing the dollar-pegged stablecoin Tether.

The original story was published by Bloomberg, behind a paywall.

It is also being reported that the National Crime Agency and HM Treasury have provided no comment in relation to the investigation.

March 28, 2024 by Mark Handley

Estonia – arrest and detention of journalist for alleged Russian sanctions breach

It is being reported today that a further journalist, Svetlana Burtseva, associated with the Russian media group Rossiya Segodnya has been arrested on suspicion of breaching EU sanctions.

The journalist was arrested in early March and is currently in detention.

This is a further Estonian example, see our earlier post, of a charge being brought on the basis that under EU sanctions services amount to an “economic resource” and to provide services to a designated person is to breach the asset freeze.

March 27, 2024 by Mark Handley

Netherlands – 137 new investigations into Russian sanctions breaches commenced since September 2023

In not commenting on whether a specific investigation was or was not ongoing , the Dutch Foreign Ministry has confirmed publicly that there are currently 192 ongoing investigations into possible Russian sanctions breaches.

Further to our earlier post from September 2023 there were at that stage 55 ongoing investigations.

The new figures indicate that 137 new investigations have been commenced since September last year.

No further information has been released on the status or nature of those investigations.