Swiss firm files complaint against Deutsche Bank over blocked funds

A Swiss company, Aluminium Silicon Mill Products (ASMP),  has filed a complaint against 2 of Deutsche Bank’s American divisions in the Southern District of New York District Court. Deutsche Bank froze a $212,266 transfer in a US correspondent account, which was due to be transferred from ASMP to Kamensk-Uralsky Metallurgical Plant (KUMZ), a Russian aluminium company.

Deutsche Bank informed ASMP that it blocked the funds because KUMZ’s bank (Metcombank) is beneficially owned by Viktor Vekselberg, designated under E.O. 13662, pursuant to OFAC’s Countering America’s Adversaries Act ‘CAATSA’, which targets Russian oligarchs (see post). ASMP claims Vekselberg held only a 9.9% ownership of the bank at the time of the transaction, and therefore the transaction should not be blocked as Vekselberg does not own more than 50% of the bank, as required under the E.O.. Deutsche Bank have until 1 November to respond to the complaint.

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About Michael O'Kane

Michael O'Kane

Michael was called to the Bar in 1992 and prior to joining Peters & Peters was a senior specialist prosecutor at the Crown Prosecution Service Headquarters (CPS). He was a key member of a small specialist unit responsible for the prosecution of serious and high-profile fraud, terrorist,...

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