Canadian Sanctions Evasions
An article about how Russians could be disguising cash to evade Canadian sanctions from FINTRAC was posted from CTV (https://www.ctvnews.ca/business/russians-could-be-disguising-cash-to-evade-canadian-sanctions-federal-agency-warns-1.6403816).
The potential evasion of economic sanctions by Russians is very concerning as are the methods used. The quote that sticks out to me most from the article, "Open source analysis of cryptocurrency transactions indicates that Russian entities and individuals represent a disproportionate share of cryptocurrency-enabled crime, including online fraud and ransomware."
The use of shell companies, cryptocurrencies, and real estate transactions can be employed to circumvent sanctions imposed in response to the Moscow-Ukraine conflict. FINTRAC also highlights the possibility of individuals attempting to launder illicit proceeds through asset transfers to family members or close associates, aiming to hide their assets. These tactics pose challenges for detection and prevention efforts in combating financial crimes.
Additionally, an interesting article about the shifting trade routes of Russian gold, prompted by Western sanctions in response to the Ukraine situation. Notably, the United Arab Emirates (UAE) has emerged as a prominent trade hub for Russian gold, with Temis Luxury Middle East and Transguard leading the handling of Russian gold exports to the UAE. Their involvement in substantial gold volumes underscores the significant scale of this trade.
The article also highlights the participation of non-Russian companies in the transportation of Russian gold. It mentions that JPMorgan and Loomis received gold shipments in London prior to the implementation of Western import bans. According to the customs records, some of these shipments were addressed to French bank Societe Generale. However, Societe Generale clarifies that any such transactions were debt settlements arranged prior to the Ukraine conflict and involved gold bars manufactured before the London Bullion Market Association banned Russian gold.
Furthermore, the article unveils Vpower Finance Security Hong Kong Ltd as the primary handler of Russian gold shipments to Hong Kong and mainland China, involving substantial volumes of gold. The lack of response from the company to requests for comment raises questions about its role in these transactions and warrants further investigation.
This article underscores the UAE's significance as a trade hub for Russian gold and raises concerns about transparency and potential risks associated with these operations. Conducting a thorough investigation into the involvement of non-Russian companies and their adherence to relevant regulations is essential to preserve the integrity of the global financial system.
The Reuters article can be read at: https://uk.news.yahoo.com/factbox-russian-gold-shipments-uae-050507319.html
