The Financial Crimes Enforcement Network issued an advisory April 14 urging banks and other financial institutions to focus on catching illegal transactions related to kleptocracy and corruption. The advisory outlines various “typologies and potential indicators” of kleptocracy and other forms of foreign corruption, including bribery, embezzlement, extortion and the “misappropriation of public assets.” The advisory said banks should specifically scrutinize Russia-related transactions for “sanctions evasion” attempts. It also outlines suspicious-activity report filing requirements for transactions that banks may suspect of violating sanctions.
Ericsson will record “extraordinary costs” of about 900 million Swedish krona ($94.3 million) from its decision to suspend its “effective business in Russia indefinitely,” CEO Borje Ekholm” said on a Q1 earnings call April 14. When Russia invaded Ukraine Feb. 24, “we realized that our business in Russia could not be sustained, and we suspended all deliveries to Russia already at that point in time,” he said. When the exemption for public telecom networks was removed from the EU’s Russia sanctions on April 10, Ericsson immediately suspended its Russia operations, he said.
The Swiss Federal Council adopted the EU's fifth sanctions package on Russia and Belarus following their invasion of Ukraine, the council said in an April 13 news release. Restrictions include a ban on coal imports and other Russian goods such as wood, seafood and vodka; an export ban on kerosene and other goods; and a ban on Russian companies from participating in public procurement. The sanctions also included a ban on Russian and Belarusian road transport from taking place within the EU. However, Switzerland neglected to impose this restriction, which it said is unnecessary, given its geographic location.
The U.K. revoked the General License for GEFCO under the Russian sanctions regime following the sale of Russian Railways' position in GEFCO, a joint venture between Russian Railways and Stellantis. The license permitted business operations with the joint venture or its subsidiaries, but after Russian Railways' sale of its stake on April 8, GEFCO is no longer subject to U.K. sanctions. Also on April 8, French shipping group CMA CGM announced it had acquired nearly 100% of GEFCO, an auto transport company.
Andrew Adams, head of DOJ's "KleptoCapture" task force, charged with enforcing the deluge of Russia sanctions following the invasion of Ukraine, is targeting the personal assets of Vladimir Putin and his family, Adams told Bloomberg. Adams said this can be done by targeting individuals who have agreed to hold assets on his behalf.
The U.K. added 206 entries to its Russia sanctions list, in an April 13 notice. The new additions include Russian oligarchs and businessmen, family members of sanctioned individuals and Viktor Medvedchuk, a pro-Russian member of the Ukrainian parliament. Members of the Donetsk and Luhansk parliaments are also included.
Japan imposed another wave of sanctions on Russia following its invasion of Ukraine, according to a notice from the Ministry of Foreign Affairs. The new restrictions apply to 398 individuals, 25 companies and Sberbank and Alfa-bank. The sanctioned Russian individuals include members of the State Duma, President Vladimir Putin's daughters and Foreign Minister Sergey Lavrov's wife and daughter. The restrictions will take effect on May 12, the ministry said in an accompanying press release.
The EU announced exceptions to sanctions placed on Russia over its war in Ukraine and its recognition of the independence of that nation's Donetsk and Luhansk regions. Organizations acting as humanitarian partners of the EU are exempted from the ban on making funds available to designated individuals or entities, the European Council said April 13. Also, certain categories of humanitarian organizations won't be subject to export restrictions and bans on the provision of services under the Donetsk and Luhansk regime for their humanitarian work in the non-Russian-government-controlled areas of Donetsk and Luhansk.
Treasury Secretary Janet Yellen this week urged China to join other countries in standing up to Russia, saying Beijing risks alienating itself from the global economy if it continues to sit out the conflict. Although the U.S. hasn’t yet seen evidence that China is helping Russia evade U.S. sanctions or export controls, Beijing hasn’t condemned Russia’s actions in Ukraine and could still hand Moscow an economic lifeline, which would be met with U.S. secondary sanctions and strong export restrictions (see 2203080053, 2203140009 and 2203140009).
Russia’s war on Ukraine has greatly accelerated U.S. and EU collaboration on export controls, officials said, even surpassing some of the short-term goals of the Trade and Technology Council formed last year. Because of the highly coordinated controls, officials from both sides speak frequently and are able to discuss a range of shared export control issues, the officials said, including enforcement, licensing and the future of multilateral regimes.