Fine – Page 10 – European Sanctions Enforcement

December 14, 2021January 11, 2024 by Mark Handley

Denmark – sentences and fines for breach of Syrian sanctions

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.

July 13, 2021March 7, 2024 by Mark Handley

Germany – €11 million confiscation for unlicensed exports upheld on appeal

The German Federal Court of Justice has upheld the confiscation of €11 million imposed on Sig Sauer for unlicensed exports of small arms to Colombia.

See our earlier post, for the original fine from 2019.

The exports were made as part fulfilment of a contract by the US government to supply weapons to the Colombian police, but the necessary export licences were not obtained from the German authorities.

The judgment is available here.

June 25, 2021March 15, 2024 by Mark Handley

UK: OFSI’s second penalty for the day – Russian sanctions

OFSI has today issued a second penalty for breach of the EU’s Russian sanctions, again using its civil enforcement powers.

The penalty notice is available here.

The penalty, of £36,393.45, was imposed on Clear Junction Limited. The transactions in this case are the same as those relating to TransferGo, although OFSI makes clear that it was Clear Junction which reported the transactions. It is noteworthy that some of the impugned transactions took place after the first report to OFSI.

OFSI’s notice also makes the point that the breach here was of the EU’s Russian sanctions, and that post-Brexit OFSI will continue to investigate breaches of the EU’s regulations that may have taken place before Brexit.

June 25, 2021March 15, 2024 by Mark Handley

UK – OFSI imposes civil penalty for sanctions breaches

Today OFSI announced it had imposed a £50,000 financial penalty on TransferGo in the latest example of the use of its civil enforcement powers.

OFSI’s penalty notice is available here.

The fine was imposed in relation to 16 transactions over nearly 2 years valued at just £7,674.77 through which funds were made available Russian National Commercial Bank, which is a designated person under the EU’s Russian sanctions.

TransferGo did not self report but did cooperate with the investigation.

OFSI’s notice makes clear that the RNCB was not the intended beneficiary of the transactions, rather the recipients of the transfers were accounts held by non-designated persons with RNCB. OFSI has made clear that as funds held in bank accounts are legally held by the banks, that these transfers all amounted to making funds available to RNCB

March 4, 2021January 11, 2024 by Mark Handley

Germany – convictions and fines for Russian exports

Further to our earlier post, it has been reported today that the Higher Regional Court in Hamburg has sentenced two men to prison for supplying machine tools to a Russian arms company.

The first defendant received a sentence of three years and nine months. In addition, almost €8 million in profits from the sale of the machinery will be confiscated

The second defendant was sentenced to two years’ probation for aiding and abetting with a payment of €150,000 to secure that probation. A further €184,000 are to be confiscated.

November 24, 2020March 15, 2024 by Mark Handley

UK: HMRC fines 19 companies for export controls violations

Today the UK government announced compound penalties of £700,386.01 imposed for breaches of the UK’s export controls.

The announcement from the Export Control Joint Unit provides little detail, but there were 19 settlements in all with the individual penalties ranging from £1,000 to £211,250.

The exports were of dual-use goods and military goods.

This announcement is in line with the HMRC’s policy of entering into civil settlements using its compounding powers, and with anonymised publication of the details.

June 17, 2020March 15, 2024 by Mark Handley

UK: FCA imposes fine including sanctions compliance

Today, the UK’s Financial Conduct Authority imposed a fine of £38,805,400 on Commerzbank.

The Penalty Notice can be found here.

The penalty reflected a 30% reduction from £54,007,800 to reflect cooperation by the bank.

The fine related to failings identified by the FCA in AML and sanctions screening and compliance.

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 7, 2020January 11, 2024 by Mark Handley

Netherlands – €4.6m in gross profits confiscated from Iran exports

Further to our earlier post, following the successful prosecution of two companies for exports to Iran in breach of sanctions, the Dutch authorities have secured confiscation orders against the two companies for the gross profits obtained from the unlawful exports.

The confiscations were of €600,000 and €4 million respectively.

December 20, 2019March 1, 2024 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 banks 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.