Netherlands – company convicted of sanctions breaches ordered to be liquidated

As per our earlier post, in November last year the Public Prosecution Service in the Netherlands applied to wind up a company convicted of breaching the EU’s sanctions by unlawfully exporting goods to Russia.

Yesterday, the District Court of Gelderland issued its order and judgment in the case. The court granted the application to wind up the company and appointed a liquidator to oversee the process.

The court noted that the company had ceased to trade and that its director and shareholder (also convicted) had fled the Netherlands for Russia.

The court did not grant the Prosecution’s application to immediately turn over all funds in the company’s bank accounts as the proceeds of crime. Rather the court has left the question of what funds are the proceeds of crime “to the liquidator to make an independent assessment”.

The case is an illustration of the powers available to courts post-conviction.

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.

Netherlands – three arrested on suspicion of circumventing Russian sanctions

The Dutch FIOD has today announced three arrests as part of an ongoing criminal investigation into suspected  exports in circumvention of the EU’s trade sanctions against Russia.

The individuals are two men from Diemen and a woman from The Hague. The men were both directors of a company founded in 2017, and the arrested woman was an employee.

UPDATE: it is now being reported that the Dutch company involved is ETW-Tekhnologiya and that the company’s founder, Mikhail Volovik,  is being sought but has not yet been arrested

The goods are described as technological and laboratory goods capable of military use – i.e. dual-use goods.

Searches and witness interviews have taken place in the Netherlands, Germany, Latvia, Lithuania and Canada.

Netherlands – sanctions fines imposed by Dutch National Bank upheld and reduced on appeal

An unnamed financial services provider regulated by the Dutch National Bank has challenged fines imposed upon it in relation to KYC and due diligence failings including in relation to sanctions screening.

The DNB had initially fined the provider €1.1m and €625,000, but these were reduced through a review process to €850,000 and €480,940.

The first fine in particular related to allegations of a failure to screen any of the sample of analysed customers against EU and Dutch sanctions lists.

On further appeal to the Rotterdam District Court the fines were upheld but further reduced to €718,841.25 and €451,250.

Netherlands – arrests and raids regarding Russian sanctions

It has been reported today that the Dutch authorities, after a tip-off from unnamed US “agencies” have conducted searches at homes and business addresses in Sluis and Rotterdam.

Related search and arrests took place in the Belgium (see our related post) at the same time, and in total across both countries six have been arrested.

The allegations relate to the export of products and technology to Russia.

Dutch fine four companies for sanctions breaches

The Dutch authorities have today secured settlement against four companies and eight individuals for breaching the EU’s Russian sanctions concerning Crimea through involvement in the export and machinery used in the construction of the Kerch Bridge.

The eight people were sentenced to community service ranging from 20 to 60 hours while the four companies paid fines totalling €160,000, with profits of €71,000 confiscated from one of the companies.

The case was resolved without a trial. The investigation commenced in 2017 after press reporting, and initially involved investigation into the activities of seven companies.

The names of the companies have not been published.

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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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