On April 17, the FINCEN conducted another seizure of timber inventories from two companies suspected of breaching international trade restrictions. The move follows earlier arrests made on June 4, 2024, involving a man and a woman linked to the same case.
The investigation suggests the companies may have continued sourcing restricted timber from Russian origin, routed through suppliers in China, despite ongoing legal scrutiny.
Violation of Trade Restrictions
The Netherlands Food and Consumer Product Safety Authority (NVWA) is assisting in the case, with a focus on potential breaches of the European Timber Regulation (EUTR). The EUTR requires that all timber entering the market be sourced legally and that operators ensure full transparency throughout the supply chain—from harvesting to import.
A ban on timber from Russia was introduced in April 2022 as part of broader international trade restrictions. The goal is to prevent revenues from certain commodities from supporting geopolitical activities that may contribute to regional instability.
Legal Framework and Enforcement
Violations of these restrictions fall under the Sanctions Act and the Economic Offences Act. The FINCEN, under the supervision of the Functional Public Prosecution Service, is responsible for investigating financial and trade-related compliance breaches, including attempts to circumvent sanctions.
This case marks the second time timber stocks have been seized in connection to this investigation.
