XNT Ltd, formerly known as Exante, has recently faced legal challenges involving sanctions imposed on its Cypriot sister company for its connections to a privately owned Russian international investment group.
Just days before a Maltese court overturned a €244,679 fine imposed by Malta’s financial services watchdog against XNT for breaches of anti-money laundering (AML) laws, sanctions were imposed on its sister company.
FIAU Fine Overturned
The First Hall of the Civil Court in Malta’s Constitutional jurisdiction overturned the €244,679 fine imposed by the Financial Intelligence Analysis Unit (FIAU) against XNT, previously known as Exante, for various violations of the Prevention of Money Laundering Act and the Prevention of Money Laundering and Funding of Terrorism Regulations.
Sanctions on Cypriot Sister Company
On July 5, Ukraine’s President Zelensky implemented a series of National Security and Defense Council (NSDC) sanctions that targeted entities linked to the Russian Alfa Group, including Exante Group Company, registered in Cyprus as EXT Ltd. These sanctions were aimed at entities posing potential threats to Ukraine’s national interests, security, sovereignty, and territorial integrity, as well as promoting terrorist activities or violating human rights and freedoms.
Exante’s Business Activities and Controversies
Exante, which provided brokerage services for investments in foreign assets, was one of the few international intermediaries that worked with Ukrainians after 2014, allowing them to invest in foreign assets. However, in 2015, the United States Securities and Exchange Commission (SEC) filed a complaint against Exante, accusing it of using insider information obtained by cybercriminals to buy and sell securities, resulting in substantial profits.
Additionally, in March of last year, the FIAU imposed a fine on XNT, which is owned by the Malta-registered Lartemisis Holding Ltd, a holding company controlled by three British Virgin Island firms and part of the Russian-Maltese Exante Group, which also includes EXT Ltd.
XNT’s legal challenges involving sanctions on its sister company and the overturning of the FIAU fine have brought scrutiny to the company’s connections and business practices. The situation highlights the importance of regulatory compliance and the need for financial institutions to adhere to anti-money laundering laws and regulations to maintain the integrity of the financial system.