OTTAWA — Canada's financial intelligence agency and its European allies are highlighting attempts to export sensitive technology to Russia in violation of sanctions against Russia.
The warning comes in a new joint advisory from Canada's Center for Financial Transactions and Reporting Analysis, known as Fintrac, and its counterparts in the Netherlands and Germany.
Authorities said they had received reports “from a variety of sources” of such suspected illegal activities after Russia's full-scale invasion of Ukraine in 2022.
The agency found similar tactics used by individuals and organizations seeking to evade sanctions and export control measures in their respective jurisdictions.
This advisory aims to enable banks and others to be aware of financial transactions and related activities that may be related to the purchase of goods for illegal export or the laundering of the proceeds of crime obtained from this activity. .
The specific objective is to prevent the Russian Federation from accessing the technology and materials needed to supply and replenish its military and defense industrial base.
This joint recommendation was developed by the financial intelligence departments of the three countries in consultation with the U.S. Department of the Treasury's Financial Crimes Enforcement Network.
Among the items of concern are products related to microelectronics and wireless and satellite communications.
“When trying to identify whether your customers are using dual-use products to engage in sanctions evasion or export control evasion, it can be helpful to look at the products, the actors involved in the transactions, and their financial behavior. ” states the recommendation. .
Fintrac seeks to identify funds associated with illegal activity by electronically screening millions of reports of suspicious transactions from banks, insurance companies, money services businesses, and more. We will then disclose information about the suspected incident to police or other law enforcement agencies.
This advisory provides guidance to reporting entities on signs that a customer may be attempting to evade sanctions or regulation. These include:
– Companies that previously exported a large amount to Russia have not seen a decrease in their trading activity after the invasion.
— The entity involved in shipping the item is not the same entity that transfers funds to pay for the item.
— Payments are processed by a third party not involved in the trade transaction.
— Goods are shipped through Russia using a fictitious end user in another country.
— Alternatively, the goods can be shipped to countries bordering Russia, where intermediaries can re-export them to sanctioned jurisdictions.
This report by The Canadian Press was first published Feb. 20, 2024.
Jim Bronskill, Canadian Press
