The Nederlandsche Bank (DNB) has issued a press release relating to Erez Corporate Service B.V.
Erez was issued an “instruction” in June 2021 by the DNB in relation to the remediation of various compliance failings, including compliance with EU sanctions.
Erez has sought to challenge, and then appeal, this instruction, but those efforts have not been successful which is why the DNB are now publishing the details of the instruction.
Further to our earlier post that the Dutch Public Prosecution Service had brought an appeal seeking to extend an 18-month prison sentence for exporting sanctioned goods to Russia, the Court of Appeal in The Hague has now issued its judgment.
While most of the judgment relates to the issue of the amount of the “proceeds of crime” to be confiscated from the convicted defendant (reducing the level of confiscation from €72,697.71 to €71,582.95), the custodial sentence was also increased to detention for 1080 days, which is just under the 3 years sought by the Prosecution.
In an earlier post, we reported on the October 2023 sentence of an individual to 18 months in jail, and a fine of €200,000 imposed on the company operated by the individual.
It is now being reported that an appeal has been brought by the Dutch Public Prosecution Service (the “OM”) seeking to increase the sentence.
The OM are seeking a three-year custodial sentence, a five-year ban from the individual acting as a director, and confiscation of €72,697.71 of the proceeds of the sanctions breaches.
It is reported that the appeal is based on the deliberate nature of the offending with the export of sanctioned goods to Russia via third countries including the Maldives and Kazakhstan.
There is no appeal in relation to the fine of €200,000 imposed on Woerd-Tech BV.
The Dutch Public Prosecution Service has announced that it has charged the Dutch shipbuilding company Damen with an offence under the Dutch Sanctiewet. Other (non-sanctions) offences are also alleged.
The alleged breach of sanctions is said to have taken place in 2022 and to have involved exports to Russia of goods and technology.
The company has issued its own release which states in part:
“With regard to the suspicion of violating the Sanctions Act, Damen can report that it has always acted in accordance with the applicable sanctions packages and that full transparency has been exercised about its activities. Damen is therefore surprised that one case from June 2022 is now being submitted to the court. This is a case involving the supply of a very limited number of civilian cranes to Russia. This delivery took place within the sanctions legislation in force at the time”.
As reported in our post from June 2024, at that time the Dutch FIOD conducted raids and arrested two individuals suspected of importing Russian-origin timber in breach of the EU’s sanctions.
FIOD has now announced a further round of seizures from the same companies. The allegation is that the companies have continued to trade in Russian timber during the pendency of the ongoing investigations into their activities.
The Dutch FIOD, has issued a press release regarding its arrest of a 32-year old man suspected of violating the Dutch Sanctiewet 1977 through the suspected transfer of bitcoins to sanctioned terrorist organisations between 2020 and 2022.
The investigation was commenced as a result of a suspicious activity report made by a crypto exchange to the Dutch FIU.
Updated enforcement statistics are being reported (here behind a paywall, and here in summary) for the Dutch Fiscal Intelligence and Investigation Service (FIOD) and from Dutch Customs.
FIOD is reported to have conducted 30 cases in the three years since February 2022, with six resulting in convictions, and twenty investigations ongoing.
Customs are reported to have started 80 cases, with 16 ongoing, and 64 settled with fines of between €500 and €200,000.
On 31 January the Rotterdam District Court published its decision convicting an individual of breaches of the EU’s ISIS sanctions.
The individual was sentenced to 90 days in jail, of which 74 days is suspended for 2 years. Community Service of 80 hours was also imposed.
The transfers giving rise to the offences were US$4,350 and 150,000 Syrian pounds.
The individual was also charged with financing of terrorism and human trafficking.
The District Court in Amsterdam has issued a judgment arising from the export of machinery from the Netherlands to Crimea in 2016 and 2017 for use in the construction of the Kerch Bridge.
The company (a B.V. unnamed in the judgment) reached a settlement with the prosecution, whereby no defence was advanced, no appeal would be lodged, and the company agreed to pay the fine of €120,000.
The court found that the prosecution case was made out, and confirmed the terms of the settlement and the proposed fine.
The judgment does not mention any confiscation of the proceeds of crime.
Judgments have also been released in relation to the related prosecutions of two individuals (here and here), both of whom were acquitted.
The Dutch FIOD has issued a press release relating to the arrest of an individual suspected of various offences including unlicensed ‘hawala’ banking and breaches of the Dutch Sanctions Law.
As part of the investigation a residential property was raised and mobile phones and other devices seized.
It is alleged that the suspect was at the centre of a network capable of large-scale financial transfers from the Netherlands to other countries.
