Motion Filed for Asset Forfeiture Concerning more than 720 Million Euros based on Suspected Violation of the Foreign Trade and Payments Act

Year of issue 2023
Date 20.12.2023

On 7 July 2023, the Federal Public Prosecutor’s Office filed a written motion before the State Security Chamber of the Higher Regional Court Frankfurt am Main, requesting independent confiscation proceedings (Section 435 para. 1 of the German Code of Criminal Procedure [StPO] in conjunction with Section 76a para. 1 of the German Code of Crimes [StGB]). The aim of these proceedings is to seize more than 720 million euros deposited by a Russian financial institution in a bank account in Frankfurt am Main due to a suspected attempt to violate embargo regulations, criminalized under the German Foreign Trade and Payments Act (sections 18 para. 1 No. 1 lit. c, para. 6 Foreign Trade and Payments Act [AWG], Sections 22, 23 para. 1 StGB).

In essence, the submitted motion sets out the following facts:

On 3 June 2022, the Council of the European Union listed the above-mentioned Russian financial institution in annex I to the so-called Russia Embargo Order (Council Regulation [EU] No 269/2014). As a consequence, any assets of the entity deposited with European financial institutes could no longer be subject to transactions, but were “frozen”. Shortly after the listing, unknown individuals acting on behalf of the Russian financial institute attempted to deduct more than 720 million euros from its account at a bank in Frankfurt am Main. The bank did not execute the electronic transfer order.

The German Customs Criminal Investigation Office (Zollkriminalamt) was tasked with investigations in the present case. Independent confiscation is being requested as it is currently impossible to prosecute specific individuals for the offence at issue.