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Sanctions against Russia (status 7 October 2022)
Published: 13 October 2022
Sanctions against Russia (status 7 October 2022)
On 6 October 2022, the European Union imposed new sanctions against Russia. As this is an extraordinary situation, we are providing a brief explanation in this news release. Below, we discuss the sanctions in force on 7 October 2022 at the time of writing.
Developments in the situation in Ukraine
We expect institutions to ensure they keep abreast of the latest developments as they arise from the situation in Ukraine. We will provide updates on developments should the situation warrant this. Based on the most recent sanctions package, we would expressly draw your attention to the following:
- The provision of all crypto-asset wallet, account and custody services to Russian nationals or natural persons residing in Russia and to legal persons, entities or bodies established in Russia is now prohibited. Previously these services were allowed up to €10,000. This prohibition does not apply to nationals of countries in the EU, EEA or Switzerland, or to natural persons holding temporary or permanent residence permits for the said countries.
Sanctions against Russia
The European Council has adopted a new package of sanctions against Russia over the illegal annexation of Ukraine's Donetsk, Luhansk, Zaporizhzhia and Kherson regions. The agreed package includes a series of biting measures intended to reinforce pressure on the Russian government and economy, weaken Russia's military capabilities, and make the Kremlin pay for the recent escalation.
The new package introduces into the EU legislation the basis to put in place a price cap related to the maritime transport of Russian oil for third countries and further restrictions on the maritime transport of crude oil and petroleum products to third countries.
As concerns trade, the EU is extending the import ban on steel products that either originate in Russia or are exported from Russia. Further import restrictions are also imposed on wood pulp and paper, cigarettes, plastics and cosmetics as well as elements used in the jewellery industry such as stones and precious metals, that altogether generate significant revenues for Russia. The sale, supply, transfer or export of additional goods used in the aviation sector will also be restricted.
The new package also comprises:
- The sanctioning of individuals and entities that have played a role in the organisation of illegal “referenda”, representatives of the defence sector, and well-known persons spreading disinformation about the war. The Council also decided to broaden the listing criteria on which specific designations can be based, in order to include the possibility to target those who facilitate the circumvention of EU sanctions.
- The extension of the list of restricted items which may contribute to Russia's military and technological enhancement or the development of its defence and security sector The list will now include certain electronic components, additional chemicals and goods that can be used for capital punishment, torture or other cruel, inhuman or degrading treatment.
- A prohibition to sell, supply, transfer or export civilian firearms and their essential components and ammunition, military vehicles and equipment, paramilitary equipment, and spare parts.
- A ban on EU nationals to hold any posts on the governing bodies of certain Russian state-owned or controlled legal persons, entities or bodies.
- The insertion in the list of state-owned entities that are subject to the transaction ban of the Russian Maritime Shipping Register, a 100% State-owned entity which performs activities related to the classification and inspection, including in the field of security, of Russian and non-Russian ships and crafts.
- A full ban of the provision of crypto-asset wallet, account or custody services to Russian persons and residents, regardless of the total value of those crypto-assets. This prohibition does not apply to nationals of countries in the EU, EEA or Switzerland, or to natural persons holding temporary or permanent residence permits for the said countries.
- The prohibition to provide architectural and engineering services as well as IT consultancy services and legal advisory services to Russia.
The Council also decided that the geographical scope of the restrictions introduced on 23 February, including notably the import ban on goods from the non-government controlled areas of the Donetsk and Luhansk oblasts, will be extended to cover also the non-controlled areas of the oblasts of Zaporizhzhia and Kherson.
What institutions supervised by DNB must do
Read this article on what your obligations are for complying with the Sanctions Act and what you should do if you encounter a hit In short, we expect you to act as follows:
- Check whether these regulations apply, for example, to your customers, members or investments made.
- If they do, immediately act in compliance with the regulations’ orders and prohibitions.
- If you find that the identity of a relationship matches that of a natural or legal person, entity or body mentioned in the sanctions regulations (a “hit”), you must notify us immediately. To do so, please use the appropriate reporting template in the Digital Supervision Portal (DLT).
- If DNB has any questions about your notification, you should answer them immediately.
- In certain cases, a “hit” can be regarded as an unusual transaction within the meaning of the Anti-Money Laundering and Anti-Terrorist Financing Act (Wet ter voorkoming van witwassen en financiering van terrorisme – Wwft). If so, report this transaction to FIU-the Netherlands.
This is an additional news service. Institutions retain the responsibility to stay abreast of and comply with sanctions legislation in a timely and accurate manner. We realise that a lot is being asked of you and that the changes in sanctions are taking place in rapid succession.
We also distribute regular email updates on the UN, EU and Dutch sanctions regimes. If you want to subscribe, you can sign up for our news service. We sent out a Dutch-language email update on 7 October. Click here to read it.
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