Tyler Grove Quoted by Global Trade Review on Russian Export Control Evasion
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For its article “Banks report US$1bn of suspected Russian export control evasion,” Global Trade Review quoted Akin international trade partner Tyler Grove. The article notes that almost $1 billion in transactions, suspected to have moved exports from the U.S. to Russia in possible violation of trade sections, have been detected by banks, according to a report by the Financial Crimes Enforcement Network.
Tyler said that the involvement in sanctions evasion of companies in allied countries such as the U.K., Germany and Belgium might indicate that vigilance regarding Russia-related export control violations needs to be extended beyond Russia’s neighbors.
Said Tyler, “Goods flowing through intermediaries in Europe may violate EU and UK export controls and sanctions as well as US regulations. This highlights that suppliers must conduct due diligence on their customers and end-users of their products even in countries that, on the surface, pose a relatively low risk.”
He added that the odds are long that banks would face enforcement action for handling payments linked to export control violations: “In the absence of egregious misconduct by the bank, it is probably unlikely.”
