Investigation by attorney-general examines claims against unnamed company
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https://www.ft.com/content/c625d34e-6e9c-4db2-8aac-d4d88e1a0639Switzerland’s attorney-general has opened a criminal investigation into alleged violations of its Russia sanctions by an unnamed company, in the first sign that the country is willing to prosecute groups for doing business with Moscow. The company allegedly violated Swiss rules through its use of subsidiaries abroad, the attorney-general’s office said, declining to identify the group or sector involved. The move against the Swiss-based group marks a watershed for sanctions enforcement in Switzerland, a country known for banking secrecy and commodity trading that has never before acknowledged launching a criminal probe into Russia trade.
https://www.ft.com/content/c625d34e-6e9c-4db2-8aac-d4d88e1a0639Switzerland’s attorney-general has opened a criminal investigation into alleged violations of its Russia sanctions by an unnamed company, in the first sign that the country is willing to prosecute groups for doing business with Moscow. The company allegedly violated Swiss rules through its use of subsidiaries abroad, the attorney-general’s office said, declining to identify the group or sector involved. The move against the Swiss-based group marks a watershed for sanctions enforcement in Switzerland, a country known for banking secrecy and commodity trading that has never before acknowledged launching a criminal probe into Russia trade.
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https://www.ft.com/content/c625d34e-6e9c-4db2-8aac-d4d88e1a0639The attorney-general took over the case after the State Secretariat for Economic Affairs (Seco), the government department in charge of sanctions enforcement, asked it to initiate criminal proceedings. The Swiss sanctions, introduced following Vladimir Putin’s full-scale invasion of Ukraine in 2022, mirror measures taken by other western countries. While Seco is responsible for policing sanctions violations, the attorney-general can initiate criminal proceedings “if the significance of the offence justifies it”, Linda von Burg, a spokesperson for the attorney-general, said in a statement to the Financial Times. Seco also asked the prosecutor to initiate criminal proceedings against a second company for similar reasons, but the attorney-general rejected that request, ruling that it did not constitute “a case of special significance”.
https://www.ft.com/content/c625d34e-6e9c-4db2-8aac-d4d88e1a0639The attorney-general took over the case after the State Secretariat for Economic Affairs (Seco), the government department in charge of sanctions enforcement, asked it to initiate criminal proceedings. The Swiss sanctions, introduced following Vladimir Putin’s full-scale invasion of Ukraine in 2022, mirror measures taken by other western countries. While Seco is responsible for policing sanctions violations, the attorney-general can initiate criminal proceedings “if the significance of the offence justifies it”, Linda von Burg, a spokesperson for the attorney-general, said in a statement to the Financial Times. Seco also asked the prosecutor to initiate criminal proceedings against a second company for similar reasons, but the attorney-general rejected that request, ruling that it did not constitute “a case of special significance”.
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https://www.ft.com/content/c625d34e-6e9c-4db2-8aac-d4d88e1a0639“The Federal Prosecutor’s Office has taken over one of these proceedings and declined to take over the second,” von Burg said. Patrick Eberhardt, a Geneva-based partner in international trade and trade finance at the law firm Eversheds Sutherland, said the decision represented a “turning point” in sanctions enforcement in Switzerland. “For one, Swiss authorities signal to the market that they do not tolerate circumvention via subsidiaries in places like Dubai,” he said. “Second, by referring the matter to the federal prosecutor, Seco also signals that it seeks considerable punishment, maybe even prison sentences.”
https://www.ft.com/content/c625d34e-6e9c-4db2-8aac-d4d88e1a0639“The Federal Prosecutor’s Office has taken over one of these proceedings and declined to take over the second,” von Burg said. Patrick Eberhardt, a Geneva-based partner in international trade and trade finance at the law firm Eversheds Sutherland, said the decision represented a “turning point” in sanctions enforcement in Switzerland. “For one, Swiss authorities signal to the market that they do not tolerate circumvention via subsidiaries in places like Dubai,” he said. “Second, by referring the matter to the federal prosecutor, Seco also signals that it seeks considerable punishment, maybe even prison sentences.”
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https://www.ft.com/content/c625d34e-6e9c-4db2-8aac-d4d88e1a0639Seco told the FT it was currently investigating “several cases” of suspected violations of sanctions by the foreign subsidiaries of Swiss companies, declining to identify the parties involved as the proceedings are ongoing. In total, Seco has initiated 49 administrative proceedings for potential violations of Russia-related sanctions, it said. Several Swiss commodity traders have used foreign subsidiaries in the United Arab Emirates to facilitate continued trade with Russia since the start of the war, the FT has reported. Under Swiss rules, “legally independent” subsidiaries of Swiss companies abroad or Swiss citizens based outside the country are exempt from complying with sanctions unless prosecutors identify additional “points of contact” with Switzerland, such as payments or instructions made from the country.
https://www.ft.com/content/c625d34e-6e9c-4db2-8aac-d4d88e1a0639Seco told the FT it was currently investigating “several cases” of suspected violations of sanctions by the foreign subsidiaries of Swiss companies, declining to identify the parties involved as the proceedings are ongoing. In total, Seco has initiated 49 administrative proceedings for potential violations of Russia-related sanctions, it said. Several Swiss commodity traders have used foreign subsidiaries in the United Arab Emirates to facilitate continued trade with Russia since the start of the war, the FT has reported. Under Swiss rules, “legally independent” subsidiaries of Swiss companies abroad or Swiss citizens based outside the country are exempt from complying with sanctions unless prosecutors identify additional “points of contact” with Switzerland, such as payments or instructions made from the country.