Risk of sanctions violations and fines at European subsidiaries
First written in FY2023-Q3. 2 of 4 entries say "Mitigated", first in FY2024-Q1. Latest entry: FY2024.
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- FY2024MitigatedAnnual report
「Subsequently, an investigation by the Dutch tax authorities was conducted in December 2023, but no fines or other issues were identified. As fines and other charges are not expected to arise in the future, the provision was reversed and the resulting reversal of the provision for losses related to sanctions was recognized as extraordinary income in the third quarter of the current fiscal year.」
Regarding the sanctions violation cases involving the European subsidiary, the investigation by the Dutch tax authorities identified no fines or other issues, and the provision for losses related to sanctions of ¥9.554 million was reversed. The disclosure states that measures addressing transactions with clear violations remain, but the risk of fines has declined. - FY2024-Q2RestatedAnnual report
「For transactions clearly involving sanctions violations, the provision amount has been reasonably estimated and recognized as a provision for losses related to sanctions.」
For the sanctions violation cases involving transactions with Russia and Belarus by the European subsidiary, provisions for transactions with clear violations have continued. The provision for losses related to sanctions amounted to ¥1.0358 million at the end of the second quarter of the current fiscal year. - FY2024-Q1MitigatedAnnual report
「During the first quarter of the current consolidated fiscal year, Dutch Customs responded that printers shipped by Mimaki Europe B.V. among the transactions where sanctions violations had not been established did not violate sanctions. Inquiries remain pending with Dutch Customs regarding whether maintenance parts and cutting plotters similarly shipped by Mimaki Europe B.V. violated sanctions. Of the transactions shipped during the period subject to sanctions where violations had not been established, printers accounted for 78.6% by value.」
Dutch Customs confirmed that the printers among the transactions under review did not involve sanctions violations. Printers accounted for 78.6% by value, while inquiries regarding maintenance parts and cutting plotters remain ongoing. - FY2023-Q3MaterialisedAnnual report
「There were concerns that our European subsidiary Mimaki Europe B.V. (the Netherlands) may have violated sanctions relating to Russia and Belarus. Following an investigation by external legal experts that began in January 2023, transactions clearly involving sanctions violations were identified. For transactions clearly involving sanctions violations, the provision amount has been reasonably estimated and recognized as a provision for losses related to sanctions.」
Following an investigation by external legal experts, transactions clearly involving sanctions violations were identified at Mimaki Europe B.V., and a provision for losses related to sanctions of ¥9.274 million was recognized. For transactions where a violation has not been established, the company states that it is difficult to reasonably estimate the provision. It also explains that fines under Dutch law can be as high as €900,000 and, in certain cases, may be capped at 10% of annual revenue.