global witness

P

UNDERMINING SANCTIONS

Evidence suggests scandal- hit billionaire is trying to dodge US sanctions using a suspected network

2 July 2020

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$ $ $

$ $ On 8 March 2018, a manwalks into friends, and crush his enemies, Gertler's a nondescriptbank on Boulevard30 deals have drawnthe interestof investigators and prosecutors around the world . For his former Juin, a congestedand chaotic artery business partners in DRC, Gertler has morphed runningthrough the heart of from lucky charm into Achilles heel. Various Kinshasa , the sprawling capital of multinationalcompanies, such as , Och DemocraticRepublic of Congo (DRC). He has come to Afriland First Bank Ziff and Eurasian Natural Resources Corporation to make a deposit: $6 million, over ( ENRC) , who have all worked with Gertler in DRC, have faced or are facing investigations by three separate cash deposits, into American , Swiss and British law enforcement the account of an obscure company bodies into their Congolese deals.3 he had set up less than two months earlier On 21 December 2017 - just a few months before Abihassira found himself delivering millions in The company appears to be a sham, and the cash to a Kinshasa bank - wheeling and provenance of the $6 million deposited at dealingfinally caughtup with him: he was AfrilandBankthat day is unclear.The money sits sanctionedby the USfor hundredsof millionsof inthe companyaccountfor several months, but dollars' worth of opaque andcorrupt miningand is latersent on a circuitousjourney via a oil deals” in DRC.4 Congolesemiddlemanand anothersuspicious Overnight, Gertler, 18 of his companies, his family company, before some ofthe money is funneled foundation and any other company he owns a abroad . majorityof shares in, alongwith his right- hand This man is not typicalof the clienteleof man, Pieter Deboutte, were locked out of the US Kinshasa's banks . The bank recorded his name as economy and US individuals and companies were Shlomo Abihassira (sometimes spelled prohibited from doing business with them..5 Abuhatzeira in news reports), and he is the son Gertler's reputation internationally was already of a famous and wealthy Israeli rabbi. does tarnished after years of public reporting on his not seem to have any obvious reason to be in DRC suspect deals, and now his freedom to do depositing large sums of cash in person . Yet he business was heavily constrained by the US does have one connection to the country , and it sanctions . For an international businessman , this holds the key to explaining his activities at ought to have been a financial death sentence . Afriland Bank that day. But in DRC, Gertlerwas still king.Whenthe US Abihassirais an oldfamily friend of DanGertler, a sanctionswere announcedin December2017, miningmagnatewho spent two decadesas a Gertler'sally PresidentKabilawas still in power, dominantforce in DRC'slucrativeminingsector. and would remain so for another 12 months. Gertler leveragedhis friendship with 'salmosttwo decade longreignas Kabila, presidentof DRC from 2001to 2019,to presidentwas characterisedby and facilitategiantWestern miningcorporations' . The country's public institutions under access to the Congolese sector , Kabila were opaque and hamstrung by powerful and to make himself a huge fortune along the officials routinely abusing their public office for way. private gain. This offered an opportunityfor Gertler to find a way out ofhis impasse he was in However, controversy has dogged Gertler at a position to exploit the loopholes and weak every step . Accused of paying bribes to maintain his position in DRC's mining sector , help his

GLOBALWITNESSJULY 2020 UnderminingSanctions 1 governance in DRC's banks, corporate registries criminalcharges broughtagainstGertlerby the and mining sector to become a sanctions -buster. US orany other state.

Within a week of his designation as a sanctioned Kabila's decision to finally step down in early individual, Gertler was busy reorganising his 201911 paved the way for the country's first business empire. His galaxy of offshore peacefultransitionof powersinceits companies, based in tax havenslike the British independencein 1960.12Yetthe electionswere Virgin Islands(BVI), were either redomiciledto marred by irregularitiesand rumoursthat new DRC or replacedwith new Congolesecompanies. PresidentFélix Tshisekedihad struck a dealwith Around the sametime the end of 2017 new Kabila,who retainedcontroland influenceover companies, with subtleand detectablebut, manyof DRC'sinstitutions. 13 14 It is unclear unsurprisingly, no overt connectionsto Gertler, whetherthe continuationof Kabila's influence beganto sproutup on corporate registries. allowed his old friendGertlerto continueto operate freely in DRC. At least two of these new companies, without any pedigree in miningor DRC, even went on to What follows is an account of the evidence secure rights to DRC mining permits at what may suggestingthat this controversial billionaire may have been a knock-down price, just ahead of the now have access to a network of shell companies, December2018 elections. These activities frontmen, and proxy bank accounts to move echoed the pattern of Gertler's previous deal- millions of dollars in and out of DRC, fund making, where miningrights sold bythe state business there, and evade US sanctions. The were picked up by him at below market ratesjust details shine a light on how Gertler's complex ahead of the 2011elections and latersold on at a business empire is likelyto function post huge profit, which he pocketed.10 sanctions , and reveal a system well able to conceal the origin of the enormous sums of Gertler and the other individuals and companies money passing through it. This is how, despite about whom Global Witness and the Platform to being sanctioned , Gertler appears to have Protect in Africa (PPLAAF) have continued reaping the vast financial benefits of found evidence suggesting concerted efforts to his business activity in DRC a country where sidestep sanctions , have each strenuously denied over 72 percent of the population lives on less any such endeavour . There has not been, they than $ 1.90 a This complex web draws in say, any attempt or conspiracy to evade huge firms like commodities giant Glencore , and sanctions : there is no money laundering scheme mining companiessuch as Eurasian Resources - Global Witness and PPLAAF's suspicions were Group ( ERG) and Sino-Congolaise des Mines said to be ridiculous ' and , whatever has been ( Sicomines)—alldeny doing business with Gertler uncoveredhas legitimate business explanations, in violation of US sanctions , or any other and Gertler is certainly not connected with it. wrongdoing . It also encompasses one of Abihassira , they said , was no cash mule for Francophone Africa's largest banks and its Gertler nor in DRC when deposits appear to have correspondent banks abroad. been made by him, but raisingfundsfor Kinshasa real estate investments, for example . Since they In summary, what emerges is an apparent were first made some years ago, Gertler and scheme to laundervast sums of money in and out Kabila representativeshave also continuously of DRC, allowingGertlerto evade the effects of US denied the historic accusationsof . sanctions. As such, it reveals critical loopholes Sanctions may be in place but there have been no and lapses in sanctions enforcement and the international financial system at large.

GLOBALWITNESSJULY 2020 UnderminingSanctions 2 Dan Gertleris an Israelibillionairewho was sanctionedby the UnitedStatesin December2017 for opaqueand corruptminingdeals” in DRC.

Global Witness has been investigating Gertler since / 2011. We have exposed how he acted as a Image Dawson gatekeeper for oil and mining assets in DRC, Getty requiring large multinational companies to go SimonBloomberg via through him to do business with the Congolese State and pocketingvast profits in the process. (Simon Dawson / Bloomberg via Getty Images) Dan Gertler

Alain Mukonda is a Congolese businessmanand associate of Dan Gertler.

After the sanctions against Gertler, Mukonda Mukonda redomiciled sanctioned entities and established ten new companies , all of which ultimately belong to

Alain/ Gertler family . Facebook He also made 16 cash deposits with a total value of €11 million into the bank accounts of these companies . (Facebook / Alain Mukonda ) Alain Mukonda

Shlomo Abihassira is the son of a famous Israeli rabbi and a family friend of Dan Gertler.

Just after Gertler was sanctioned, Abihassira established a company in DRC despite having no experience in the country, and made cash deposits of $ 19 million into the company'saccountwithin a few http://shturem.net/ months. The cash wasthen all withdrawn in one go by an unknown individual, and deposited into the account of another company belongingto Elie Shlomo Abihassira Yohann Berros.(http://shturem.net/

Elie-Yohann Berros is a French national. Following the sanctionsagainst Gertler, Berros incorporated a company with the exact same name as one of Gertler's companies.

He also incorporated two other companies in DRC: gram one of them was the recipient of Abihassira's 19 million cash and funnelled some of it abroad; the other one picked up a valuable mining licence in DRC's rich Copperbelt,just a few months before the Elie - Yohann Berros 2018 Congolese elections. Berros is a business associate of Avi Ben Ezra . (Instagram / elieberros)

GLOBAL WITNESS JULY 2020 UnderminingSanctions 3 Ruben Katsobashvili is an 87-year -old purported billionaire who lives in Moscow . He is the ultimate owner of Interactive Energy, a group of companies that moved vast sums of cash around DRC and landed Commons a mining contract worth $75 million . Katsobashivili Research by PPLAAF and Global Witness shows that WikipediaRuben Katsobashvili is not wealthy, drives a second- hand car and lives in modest accommodation in the outskirts of Moscow. It appears highly unlikely that he is the source of the funds used to obtain mining licences in RubenKatsobashvili DRC. (Wikipedia Commons Ruben Katsobashivili)

Johan ShimonLamantwas one of Interactive Energy'sdirectors, and is a businessassociateofAvi BenEzra and Elie-Yohann Berros.

JohanShimon Lamant

Avi Ben Ezra is a French- Israelicitizenwho was sentencedto four years in prison in Francefor a huge VAT carbontax , which resultedin France losing €1.6billion in tax revenue. Ezra Ben Ben Ezra dodged his prison sentence and currently Avi lives in Israel, where he works in the tech sector. He / created a companycalledSnatchApp, in which Twitter Lamantand Berroshold shares.

The companyis also partlyowned by a mysterious companyownedand managedby Gertler's long-time Avi Ben Ezra lawyers. (Twitter/ Avi BenEzra)

GLOBALWITNESSJULY 2020 UnderminingSanctions 4 DAN GERTLER REACTS TO US also considered blocked persons, even ifthey SANCTIONS: PROXY COMPANIES , don't appear on the Treasury department's CASHAND A LOCAL PROXY list.22The implications of this are vast :American companies, individualsand banksmusttake Dan GertlerunderGlobal Magnitsky greatcare to ensurethat they are notengagedin sanctions transactions with companies owned 50% or more In December 2017 , the Office of Foreign Assets by Gertler and / or other sanctioned individuals or Control ( OFAC ) at the US Treasury Department entities , even if they have not been explicitly sanctioned Dan Gertler, his family foundation and designated as sanctioned entities by OFAC. 23 Any 18 of his companies under Executive Order 13818. transactions that have the effect or attempt to This order builds on the US Global Magnitsky evade the sanctions are also prohibited . Accountability Act , also known as In addition, those who provide anysort of the Global MagnitskyAct 17 ExecutiveOrder supportto a sanctionedentity ( whetherfinancial, 13818 and the GlobalMagnitskyAct authorisethe materialor technological support) may also open US President to impose economic sanctions on themselvesupto sanctions.25OFAC can sanction humanrightsabusersor corruptactorsaround any non-US companythat does business with a the world, as the acts ofthose on the list have sanctioned entity. reached scope and gravity that they threaten the stability of international political In June 2018, the US added another 14 entities and economic systems”. 18 affiliatedwith Gertlerto itssanctionslist. The

TreasuryDepartmentsaid thatthesecompanies In a pressreleaseannouncingthe sanctions, the have enabled Dan Gertler to access the Treasury described Gertler as an international internationalfinancialsystemand profitfrom businessman and billionairewho [ ] used his corruptionand misconduct” . Followingthis closefriendshipwith DRCPresidentJoseph second roundofdesignations, a total of 34 Kabila to act as a middleman for miningasset individualsand entitiesconnectedto Gertler salesin the DRC ] a result, between2010 includingGertlerhimself, had beensanctioned and2012alone, the DRCreportedlymissedout under the Global Magnitsky Followinga on over $ 1.36 billion in revenuesfrom the March2020OFACrevision, oneof these underpricingof miningassetsthatwere soldto companieswas removedfrom the sanctions list.28 offshorecompanies linkedto Gertler." At that time, $ 1.36 billion was equivalentto double DRC'sannual budgeton health and education combined.20

Global Magnitskysanctionshavefar- reaching effects. As a designatedindividual,Gertleris prohibitedfromvisitingthe UnitedStatesor from accessingany assets held underits jurisdiction. All US entitiesand individualsare prohibitedfrom engagingin transactionswith Gertleror other sanctionedentities- be itexchangesof money, goodsorservices.21

Moreover, entities owned 50 percent or more, DanGertlerwassanctionedbythe USfor “ corruptminingand oil deals” in DRC. SimonDawson/Bloombergvia GettyImages. individually or in the aggregate, directly or indirectly, by Gertler or the named entities are

GLOBAL WITNESS JULY 2020 UnderminingSanctions 5 Perhaps the most important consequence of Global Magnitsky designations is that the sanctioned individual is, in effect, cut out of the E DU US dollar system.29 The US dollar is the international currency of business, the go -to denomination for transactions across the globe.30 As a result, many banks, investors and other financial institutions use OFAC's sanctions list in their due diligence and compliance procedures. 31 This means that although OFAC sanctions are only immediately relevant to US entities, most DRC's outgoing President Kabila shakes handswith newly financial institutions, includingthose outside the inaugurated PresidentTshisekedion 24 January 2019. Kabila has US, would rather ban exchanges with any retained influence over many of DRC's institutions. Tony Karumba/AFP via GettyImages. individualor companysanctionedby the US than risk penaltiesthat could cut offtheir abilityto Global Witness and PPLAAF cannot definitely trade in dollars . 32 prove that Gertler has established a complex In DRC , most business transactions are carried network to evade US sanctions since 2017 due to out in US dollars , and historically much of the natureof a system that would appearto be Gertler'swealth was generatedin dollar designed to conceal the identity and connections denominated deals. imposition of US of persons to any such scheme . However, this sanctions therefore presented Gertler with a huge investigation looks at a series of new companies challenge : how could he manage his money now incorporatedin DRC andwith apparent that bankswould or leastshould refuse to connectionsto Gertler, particularlyasthey allow him (or any companycontrolled by him) to coincide with , or come in the wake of, US . hold dollar accounts ? One part of the answer sanctions wouldlie in creatinga vast network of Congolese GlobalWitnessand PPLAAFare notallegingthat shellcompaniesand proxybankaccountsto sanctions evasion is a criminal offence, but rather allow him to secretly move his money out of DRC thatsuch activitycouldunderminetheprinciple and intothe internationalfinancialsystem. and purpose of the Global , and The evidence Global Witness and PPLAAF have calling for further enquiries in regards to those found begs further investigation and urgent who may have facilitated the evasion of scrutiny , all the more so as Gertler is assembling a sanctions.All those asked by PPLAAFand Global crack team, includingformer FBI director, Louis Witnessabouttheir activities provided Freeh,andlawyer, Alan Dershowitz, to lobbythe alternativeexplanationsanddenied any U.S.State Departmentand OFAC to lift the involvement with Gertler in sanctions evasion or sanctions imposed on him in 2017 and 2018.35 other impropriety. His representatives make the point that no paperwork referenced by Global The US sanctions were intended to disrupt and Witnessand PLAAFPPLAAFis expresslyin his with businessas usual preventGertlercontinuing nameand that the moneydoes not lead openly in DRC. The evidencepresentedinthis report to his door this is hardly surprising however suggests they have not done so and highlights where the exercise is one of escaping detection. how the well- resourced and well-networked can LawyersrepresentingGertlersaidthat someof find ways around such measuresby leveraging the bank data providedto GlobalWitness and the opacityof the internationalfinancialsystem. PPLAAF had been falsified ' and that the source of

GLOBALWITNESSJULY 2020 UnderminingSanctions 6 the documents had stolen them and was a To do so, he receivedthe helpof one key criminalwho fraudulentlywithdrewmoneyfrom individual:Alain Mukonda, a Congolese client accounts ” accordingto an Afriland Bank businessmanandfaithful long-time associate. report. WhenGlobalWitnessand PPLAAFasked Mukonda had been workingfor Gertlerfor over a for the evidenceof falsificationandthe bank's decade, and seems to havestarted actingas a report, neitherwas forthcoming. particularlycrucial Congolesefixer for Gertler towards the end of 2017 , when he became Lawyers representing Gertler also accused Global director for two companies sanctioned for being Witness and PPLAAF of corrupt practices and or controlledby Gertler 38 Mukonda providingbribes to sources. Again, noevidence deniedbeinga partnerof Mr Gertler, or having wasever provided, and the allegationsreliedon everactedfor him, thoughhe recognisedbeinga flawed, fake and inaccurateinformation. Gertler's and trustees of companies in [ ] lawyers dropped their accusations in their group ' . Afriland also recognised that Mukonda . following correspondence was publically to bethe managerofone Dan Gertlerrelocateshis offshore of Gertler's companies . business empire to DRC Within weeks of the sanctions announcement, In the weeks and months following the US Mukonda started to redomicile some of Gertler's sanctions , Gertler reorganised his corporate companies to DRC . He moved Fleurette Mumi structure, moving the heart of his business Holdings Limited a Gertler company that had empire from Gibraltar and the BVI to DRC . The held shares in Mutanda Mining and was at the move appeared to be a strategic one DRC, the centre of a controversial loan to DRC's state odds were still in Gertler’s favour. His friendship owned mining company Gécamines39 from the with President Kabila 36 and the weakness of BVI to Kinshasa , renaming it Ventora DRC's public institutions would allow Gertler to Development SASU in the process. Gertler's hide his interests behind a new web of Congolese companyCaprikatLimitedwas alsorelocated, shellcompaniesand proxybankaccounts. and changed its name to Albertine DRC SASU .

Gertler's new business empire in DRC August 2018

GERTLERFAMILY

GERCO

100% 100 % 100% OPERA VENTORAGLOBALSERVICES PALATINA

100 % 100%

VENTORA GEMINI MINING

100% 100 % 100% VENTORA DEVELOPMENT KALTONA MULTREELIMITED WOODFORD LIMITED ENTREPRISES LIMITED 100% ROSEHILLDRC ALBERTINEDRC Relocatedfromoverseas ( previouslyFleuretteMumi Relocatedfromoverseas WOODHAVEN DRC HoldingsLimited) and previouslyCaprikatLimited) subsequentlyreincorporatedin DRC andsubsequently reincorporatedinDRC

GLOBALWITNESSJULY 2020 UnderminingSanctions 7 InAugust2018, afterthe second roundof US pointed out that he had no notice of the sanctions, Mukondaestablishedten new imposition of such sanctions against him. companiesin DRC.Thesewouldbe readyto form Gertler denies havingreorganisedhis corporate the core ofGertler’snew Congolesebusiness structure.Heregisteredallofthemwithin less structureandcreatingproxycompaniesandbank accountsto evadethe sanctionsor hide his than a month,andallat the same Kinshasa interests.Gertlerand MukondatoldGlobal address. Severalof thesecompanieshad Witnessand PPLAAFthat the corporate accountsatAfrilandBank,oneof which was in dollarsand alsoestablishedin 2018. restructuringwas indisputably before sanctionswere imposed. LawyersfromCarter Global Witness and PPLAAF have found that all of Ruck, representingDan Gertler, claimed that the these new DRC companies are owned by a relocationof his companieswas partlyintended company called Gerco SAS , which belongs to the to ensurethat they would pay taxes to DRC. Gertler family.According to its corporate records , Gertler has been in businessin DRC sincethe Gerco - probably short for Company - 2000sand, until2018, almostalwaysvia belongs to Gertler's wife Anat and nine of their companiesbased intax havensratherthan family members . Gertler's previous holding onshore. company , which was sanctioned in 2017 , was also Inthe six monthsfollowingthe December2017 owned by Gertler family members , 40 making it sanctions, bank documentsstate that Mukonda likely that Gerco has become his new holding madeover 16 cash deposits, totallingalmost € 11 company . Mukonda denied that Gerco belongs to million ($13.2 million), intoAfriland accountsfor the Gertler family . companies he incorporatedand which ultimately Gerco was createdin DRC in October 2017, and belongto Gertler'sfamily. Mukondaalso seems weeks later becamethe sole owner of Fleurette to have helped out one ofGertler'sold friends in Properties Limited, Gertler'slong-standing need holdingcompany. Thistook placepriorto the US Mukondathereforeappearsto havedone more issuingthefirst round ofsanctionsagainst Gertler thanjust set up Congolesecompaniesfor Gertler: and his companies, though lawyers for Gertler he also opened bank accounts at Afriland and moved moneythroughthe new network paying into Gertler'snew proxy bank accountsandthose linked to Deboutte. Moreover, bank documents reviewedby PPLAAF and GlobalWitnessshow that, inApril 2018, Mukondadepositedat least $1 millionintoan account belongingto Shlomo Abihassira,Gertler'sfamilyfriend who had paid $6 million in cash to a Kinshasa bank one month earlier

DanGertler'slawyerstold PPLAAFand Global Witnessthat any evidenceof cash depositswas fake' and must be based on falsificationof documents . Mukondaand Gertlerdenied ever makingcash deposits intoGertlercompanies'

Alain Mukonda paid €11million incash intothe accounts of accounts, denying he was evenin DRC atthe time Gertler - affiliated companies that were set up just after the of some ofthe deposits. An Israelilawyeralso sanctions . Facebook.

GLOBALWITNESSJULY 2020 UnderminingSanctions 8 produced a certificate , based on Mukonda's followedthe US Treasury designations. Infact, passport , providing dates of entry and exit of the accordingto informationobtained by Global DRC. The document suggested that Mukonda was Witnessand PPLAAF, and Abihassira were not in DRC at the time where the cash deposits seen enteringthe bank together on a coupleof had been made , despite his name appearing in occasionsat the beginningof2018. bank records for cash deposits . ShlomoAbihassira, also known as “ Shlomi”, is an Mukondaalso deniedmakingdeposits into old family friend ofGertlerwho has, by his own Abihassira'saccount.Abihassirafor himselfdid account, knownhimsince he was young . not confirm nor deny that Mukondahad ShlomoAbihassira is the son of David transferred $ 1m to his account, but statedthat Abihassira, 41one of Israel's mostfamousrabbis, there was no connectionbetweenthese funds and also a close confidant of Dan Gertler, and Dan Gertler, implyingthat any paymentwas accordingto the IsraelinewspaperHaaretz.42 connectedwith a realestateventurein DRC. In2012, David Abihassira'sfortunewasvaluedat SHAM COMPANIES, SECRET BANK 750 millionNewIsraeliShekels(around $ 200 ACCOUNTS AND SHADY million) by Forbes magazine, makinghim the second wealthiest rabbi in Israel.43DanGertler ASSOCIATES: GERTLER'S MONEY has hada close relationshipwith the Abihassira LAUNDERING NETWORK ? family sinceat least2013, accordingto Haaretz.44 A complex network of companies capable of Gertler attendsAbihassirafamilycelebrations, laundering large sums of cash between DRC and and travels occasionallyto seek the rabbi's Europe sprang up shortly after sanctions were advice and blessings, Israelipresshas further introduced. Individuals within this network may reported.45 have started acting on Gertler's behalfjust In January 2018,just weeks after Gertlerwas around the time of the sanctions. Companies sanctioned, Shlomo Abihassira registered a were set up in DRC, usingsimilar names to in Kinshasa trading underthe instantly existing European companies , which appear to be company forgettable name of RDHAGD. Abihassira set up shell companies , and those incorporatingthe with Congolese entities had no obvious connections to RDHAGD the help of Simon Niaku, one of the Central African State. Yet several elements Gertler's lawyers. As far as PPLAAF and Global lead Global Witness and PPLAAF to believe that Witness could establish, the company is this network was designed to secretly move Abihassira’s first and only Congolese business venture. Abihassira told PPLAAF and Global millions of dollars connected to Gertler, in and out of DRC Witness that he had established RDHAGD to invest in real estate in DRC following a tip from Shlomo Abihassira : old friends , new Gertler, but within six months the venture was money ? abandoned and funds of $ 19m were returnedto When bank records show Shlomo Abihassira went investors. However, corporate documents for into the Afriland branch on Kinshasa's main RDHAGD indicate that it was registered for boulevard and deposited $ 6 million in cash, he “ import-export ”, while others say that it was a paid the money into a bank account belonging to "consultancy”. In reality, it did not seem to have a DRC company that he had set up just two any legitimate business activity. months earlier . In opening the company , its bank Niaku, Abihassira and Gertler denied that Niaku account , and depositing this cash , Abihassira was was an agent of the scheme . Gertler described likely playing a key role in Gertler's sanctions him as “ an independent lawyer who has been a busting operation in the weeks that immediately

GLOBALWITNESSJULY 2020 UnderminingSanctions 9 legal advisor and a director and an administrator for some of Gertler’s companies.”

Abihassira’s 6 millioncash paymentto RDHAGD on 8 March2018was the largest ofseveralcash depositsthat he madeintothat accountbetween 23 January and 19 June 2018,accordingto bank statementsreviewed by PPLAAFand Global Witness. In total,Abihassira appearsto havepaid in over $ 19 millionin 17 differentinstalmentsby Shlomo Abihassira (right) with his brother Yitzhak ( left) , a family friend and apparent business associate of Dan Gertler. 19June 2018. ClearlyAbihassira'sinvestorshada Shturem.net preferencefor the anonymityoffered by cash deposits. company , which would introduce Dorta to investors and lenders in Asia , as it has “ a large This $ 19 millionsat in RDHAGD'saccountfor network of high net worth private individuals , about two months 14 August, when particularly in China , who are seeking investment someonewent to Afriland Bank in Kinshasato opportunities ” . collect the entire sum in cash, as well as another $ 2 million directly from Abihassira's personal Of the remaining money in Dorta's account, account, bank records show. around $13 million was collected in cash, about $5 million stayed in the account and around $8 That same day,this person thendeposited $ 21 million was withdrawn by Abihassira . million in cash the exact amountthey hadjust withdrawn into anotheraccount, heldat the Dorta , our investigation suggests, is another samebank,for a companycalled Dorta Invest critical node in a money laundering operation SAS.That millions in cashwould be taken out of and sanctions-dodging scheme . an accountand put into a new one,on the same Abihassira denied all day, raisessignificant money-launderingred allegations of wrongdoing and told PPLAAF and Global Witness that “ the flags. fact that [RDHAGD ] was incorporated a few weeks Dorta received a further 13 cash deposits, some after Gertler was sanctioned is coincidental and ofthem made by the same agent, over the that its business purpose was to raise funds and followingmonths; a total of $49 millionwas invest in real estate for expats in Kinshasa . deposited into account betweenAugust 2018 and March2019. Gertler'slawyerdenied Abihassira’scash transaction,statingthat he was not in DRCat the During this period , Dorta wired at least $22 time of the deposits.Abihassira,for himselfdid million to unknown accounts held abroad . Global notconfirmor deny but explainedthat the Witness and PPLAAF were able to trace almost transactionsdescribedabovewere partof a loan $ 9.3 million of this money . This portion of the $49 agreementbindingRDAGDand Dorta Invest. million was sent to a company called K - Services, When Abihassiracancelledhis realestate project dueto his “ lack of experienceand knowledgeof registered in Hong Kong. The sole shareholder of the laws in the country”, he said he returnedthe this company is a French citizen , who was a $21millionwhich had been loanedto himas part director in 2017 for a company seemingly of this project. Representativesof Dorta provided connected to crypto -currency.46 Representatives a similarexplanation. The loanagreementswere of Dorta said that the payment to K-Services was notshownto GlobalWitness and PPLAAF. part of a framework agreement with the

GLOBALWITNESSJULY 2020 UnderminingSanctions 10 Gertlerdenied havingany businessrelationship does notseem crediblethat a companywith no with ShlomoAbihassira. businesshistoryor assetscould legitimately acquire sumsof cash this largewithinsuch a Conflictingaccounts shorttime frame.47 On the eve of publication Gertler's lawyers sent Corporaterecordsshowthat Dorta'sdirectorand GlobalWitnessand PPLAAFa redactedcopyof sole shareholder is a French national named Elie Abihassira’s bank statement for his account at YohannBerros. LikeAbihassira, Berroshad no AfrilandBankwhichpurportedto showthat known previous direct links to DRC before 2018 , Mukonda and Abihassira had not made cash nor any apparent reason to be operating there . deposits of $ 1m or more into this account in early ButlikeAbihassira, onelikelylinkBerroscould 2018, butthattheywere madeinsteadby an have to DRC is Gertler. 48 agent of Berros. The document contradicted source data shown to Global Witness and PPLAAF On 28 December 2017, precisely one week after in that it did not identify Abihassira and Mukonda the US Treasury Department sanctioned Gertler, as the parties making the cash deposits. Gertler's Berros incorporated an unusually- named lawyers further suggested, that the bank data on company in Hong Kong: Fleurette Mumi Holdings which this investigation is based was falsified and Limited. Fleurette is a company name that has the investigation should not be published. been used by Gertler over the years for several companies , including his Gibraltar holding Global Witness and PPLAAF considered carefully companyat the centreofcontroversiesofthe the conflictingdocuments, includingtheir past decade . The Hong Kong company , in fact , metadata , and discussed them with their had exactly the same name as one of Gertler's confidentialsources, reachingthe conclusion former companies, whichhadbeen thatthedatafromtheirsourcesremained movedto DRC within a week ofthe sanctions.49 reliable. FleuretteMumiHoldingsLimited ( BVI) usedto be Althoughthe differentindividualsreportedon a majormoney-spinnerfor Gertleras it held a and identifiedin the bankdocumentsdefied shareof the rightsto Mutanda, a huge cobaltand explanation,the transactionrecordsoriginally coppermine referredto as MUMI.50Corporate providedwere extremelyextensive, acquired recordsfor FleuretteMumi in HongKongdo not contemporaneouslyfrombanksystems,and disclose its intendedbusinessactivity. The presentedinternallyconsistentdata. Infact, in companyhas no websiteor socialmedia page, severalinstancesothertransactionswere and according to representatives of the company , confirmed as accurate by a number of subjects of the project was abandoned shortly after being this report independently of each other . started .

It is implausiblethat Berros would set up a Dorta : a Company at the heart of companyfor himselfwith the exact same name Gertler's possible sanctions- dodging as Gertler's Fleurette, one week afterthe scheme sanctions, without havingsome connectionto Dorta Invest was set up in DRC in February 2018 , the billionaire. This suggests that Berros has been just after Gertler had been sanctioned and only operatingwith or on behalf of Gertler from at six months before it received the $21 million cash least December 2017. deposit originating from Abihassira and his company RDHAGD. While its corporate records Berros' company Dorta in DRC appears to be the state that Dorta operates in the extractives sister company of a pre -existing European entity sector, it does not appear to hold any assets. It

GLOBALWITNESSJULY 2020 UnderminingSanctions 11 Stashing the cash: Suspicious moneymovements

$ 2 million cash

likelyfrom RDHAGD ShlomoAbihassira- http: // DanGertler ShlomoAbihassira DRC shturem.net/ SimonDawson/ Bloomberg viaGettyImages. ElieYohann $19.2millionpaid Berros- Instagram/ elie berros to hiscompanyin 17cash depositsJan- June 2018 $ millioncash $ 19millioncash 14August2018 14 August2018

SHLOMO DAN INTERMEDIARY ABIHASSIRA GERTLER Familyfriend of Gertler ELIE YOHANN BERROS $ 21 millioncash Gertler's proxy 14 August 2018

owns

$ 28 million cashfrom DORTA INVEST untracable Wires DRC ABROAD sources $ 22 million

with the same name, registeredin Praguein2013 but also display signs, upon closer inspection , of and also owned by Berros. being a front company for other activity .

Czech socialmedia profilesclaim that its Although Global Witness and PPLAAF have not businessfocuseson commoditytrading,yetthe seen any records of transactions between the two companyseemsoutwardlyinactive. Itswebsite Dortas , on its surface , multi- million dollar has beentakendown, and its Facebook,Twitter payments between related commodities andCzech companyregistryaccountshave not companies with the same name , one operating in been updatedforseveral years Old versionsof DRC and the other in Europe , would not appear Dorta'swebsitefrom 2017 redirectedto another unusual . Indeed , this arrangement would companycalled InteractiveFX, offeringcurrency potentially allow millions of dollars to be moved exchange services. 52 A year later, by whichtime between Europe and DRC without raising suspicion . Dorta DRC's account was credited with Berrosseemsto havebeen workingwith orfor $49m in one 12 month period alone , of which $22 Gertler, the website hada completeoverhaul, million was sent abroad . shiftingits apparentfocus from currencyservices to commoditytrading.Accordingto a version of Berrostold Global Witness and PPLAAF that he the websiteaccessedin September2019 , the was not acting on behalf of Gertler and that his companythen claimed to trade copperand companies had no connectionto him. His lawyer ,two of DRC'smostimportantmineral said that PPLAAF and Global Witness'source resources.The additionof these specificminerals materialswere forgeries but offered no more to the website broadlycoincideswith Dorta's detail incorporationin DRC in the wake of Gertler's Berrossaid that he admired and tried to emulate designationunderthe GlobalMagnitskyAct. DanGertler as a businessman, and hadset up a Within a few weeks Berros had set up a Fleurette company called Fleuretteto “ take advantageof company and Dorta in DRC, a Gertler stamping [the Gertler group's reputation” and get into ground. Like the company in Prague , Dorta DRC Asia. However, he said, activitiesceased because supposedly operates in the commodities sector he did not have Gertler'spermission to use the name Fleurette. Berrossaid he did not know that

GLOBALWITNESSJULY 2020 UnderminingSanctions 12 Gertlerwas undersanctionswhen he set up glossy website used to display fake pictures of Fleurettein HongKong. Gertlersaid he had no staff and directors that had been extractedfrom knowledgeof Berros' businessdealings andthat the internet, alongwith fake reviews. Itnow the name“ Fleurette had been used without his claims that “ [ e ]very dayships containing our knowledge. Berrosdid not knowGertler productstravel all over the world but the search personallybut admittedto knowingAbihassira. resultsfor the businessare principallyeasily generated social mediaoutput, a Wikipedia entry Berrosdenied that Dorta in DRC and Dortain and the corporate site. Czech Republicwere shell companies. He said that Dorta in DRC and Dorta in Pragueare two According to evidence seen by PPLAAF and Global distinctlegal entities and haveno connection, Witness , Ruben Katsobashvili , an 87-year-old exceptfor both beingowned by him . Russian, is Interactive Energy's sole owner. However , the content of Ruben Katsobashvili's The billionaire with the second - hand Wikipedia page seems fabricated and its subject car and the nebulous Interactive has almost no other independent online Energy network presence.58 The Wikipedia page, which displays Research by PPLAAF and Global Witness found several Wikipedia warnings about unreliable that the Czech Dorta and Elie-Yohann Berros are sourcing , was written by an employee of part of an even broader network of companies . Interactive Energy , who claims that Katsobashvili Since sanctions against Gertler, this network also is a billionaire who was previously the CEO of set up shop in DRC, and started doing business Nefti Saqartvelo a company [ ] with the with a company previously controlled by a Gerter. turnover [sic] $4 billion as well as the founder of “ RUB oil and Gas consulting Neither of these Czech Dorta may be linked to a Switzerland appear to ever have existed , based on based company called Interactive Energy , which companies searches carried out online and in relevant belongs to a mysterious Russian billionaire ” 53 registers 60 Dorta's website was registered and is corporate administered by Interactive Energy and an Lamantclaimedthat Katsobashvilihad a “ net individual called Johan Shimon Lamant ( also worth of approximately[$]400-500 million) referred to as Johan Simon Lamant ) , who is an whileBerros claimedthat he consults Interactive Energy director . Dorta's website also Katsobashviliregularlyto take advantageof his used to re-direct to a webpage belonging to one “ 40 years ofexperience” Katsobashvili's of Interactive Energy's subsidiaries . representativedeclinedto make any further commentson theWikipedia page(which was InteractiveEnergyAG was incorporatedin written by an employeeof hisown company) , Switzerlandin 2015, and Johan Shimon Lamant statingthat “ he had neitherto confirm or deny was one ofits directors, alongwith a partnerat any informationthat did notoriginatefrom him .” corporate servicescompany.54 Katsobashvili'srepresentativetold Global Thereis littleevidencethat InteractiveEnergy, Witness and PPLAAFthat Katsobashvilihad like Dorta, is a realbusiness. Itclaims on its experiencein DRC and was the owner ofan active websiteto tradeinenergyand commoditiesbut companynamed “ KRM Resources" which had thereare few indicationsthat it is a real been granted, at least since 2012, concessionsof company.55Itsregisteredaddressis that of a gold depositsthat are resold to local corporateservicescompany, andthe identities dealers . Apartfrom the documentssent by of InteractiveEnergy'srealownersare hidden Katsobashvili'slawyer, GlobalWitness and behindnominees. Previousversionsof itsnow PPLAAFhavefound no trace ofthese licenseson

GLOBALWITNESSJULY 2020 UnderminingSanctions 13 the official mining register or of a company Interactive Energy AG in January 2018, but registered under that name at the official continued to be involved in one of the company's companies house in DRC. subsidiaries in the UK.

In fact, evidence from public records in Russia Taken together , Interactive Energy's registered suggests that it is extremely unlikely that Ruben address at a corporate services provider , Katsobashvili is a billionaire , or that he started to apparently fabricated former staff and beneficial heavily invest in DRC between the ages 71 and 85. owner , and the use of a nominee director to Registry information indicates that Katsobashvili disguise its real ownership indicate that it is a owns a 2007 second - hand Peugeot car , which he sham company . In the time following Gertler's bought in 2015 , and a flat in the suburbs of designation as a sanctioned individual , Moscow worth about $360,000 in December 2014 , Interactive Energy's network appears to have according to documents obtained by facilitated the movement of millions of dollars investigative journalists from Bellingcat . There is within and outside DRC - precocious commercial a record of a bailiff visiting the flat in February activity for an apparently inactive network of 2018. These are hardly the trappings of a commodities companies . billionaire's lifestyle , suggesting that the Ruben Katsobashvili living in Russia may just be the Interactive Energy's new subsidiary source of an identity for a fabricated billionaire in DRC following US Sanctions businessman . Katsobashvili's lawyer opted not to While Interactive Energy Switzerland has had two comment on these details . subsidiaries in Hong Kong and the UK since 2015, it was not until January 2018, again just after Furthermore, when GlobalWitnessand PPLAAF Gertler was sanctioned , that the company set up contactedKatsobashvilivia hisemailaddress, it a new Congolese subsidiary called Interactive was openedin Israelfromthe same IP addressas Energy DRC.61 According to its corporate records, the emailsthat had been receivedby Berros.This the Congolese subsidiary operates in oil and stronglysuggeststhat the two messageswere mining but does not hold any assets in DRC. In either receivedby the samepersonon the same fact, on closer inspection , this company too device, or, possibly, byseparatepeople on a appears to be a sham , but is able to provide a shared homeorofficeWi-Fi network. Yet, possible means of rerouting funds from DRC back accordingto Russianmedia partnerswho to Europe. contacted RubenKatsobashvili,the billionaire was in Russia atthe time, notin Israel, wherethe Following its incorporation , Interactive Energy emailwas opened.Giventhatthis was in the DRC opened accounts with Afriland Bank in DRC middleofthe COVID- 19 pandemic, it is unlikely in euros and dollars . Bank statements from this thatthe 87 year old would travelto Israel,let company show that it received almost $ 1million aloneopenan emailon the same network as in cash from Shlomo Abihassira a few days after Berros. the second round of sanctions against Gertler linked companies in June 2018. Another $ 8.5 Lamant, InteractiveEnergy'spreviousdirector, million arrived in its dollar account between 21 has deniedthat InteractiveEnergy is anything and 28 June , bank records show . otherthan a legitimatebusiness. Regulatory licensesfor the SwissandEnglishcompanies The $ 8.5 million, paid in three instalments, could not have been obtainedhadthe business originated from Rulvis Congo, an infrastructure been a sham orthe ownernotwho he appeared company known as “ Rulco short. Rulvis to be, he said. Lamantalsotold PPLAAFand Congo operates a business that provides mining GlobalWitnessthat he stoppedworkingfor

GLOBALWITNESSJULY 2020 UnderminingSanctions 14 servicesto companies in the ex- Katanga without raising alarm bells in the compliance province. departments of the banks involved .

Corporate records from late 2017 show that Rulco Rulco's Cypriot owner and founder said that was for a brief period half-owned by a Gertler Gertler had no control over , and at no stage had linked company Karibu Africa Services SA, which any personal stake in the company . The owner was sanctioned by the US in June 2018 because said he was unaware that Karibu Africa Services of its alleged ongoing connection to Gertler 62 was even linked to Gertler until seeing a US However apparently only two months after press release in June 2018 when it acquiring shares in around November 2017 ( was sanctioned for those to Gertler.65. He after Gertler was sanctioned in December 2017 ) pointed out that Karibu was not sanctioned at the Karibu's shares were sold back to the beneficial time it had shares in Rulco and Karibu's purchase owner of the other half of Rulco, a Cypriot of an interest in the company had come about businessman with a long business history in the from a share sale carried out by his former DRC. That January 2018 sale appears to have business partners . Rulco's owner added that the divested Gertler of any further interest in Rulco. hiring of the directors linked to Gertler was done However , notes from a Rulco AGM dating from based on their experience and merits alone , and March 2018 show that two individuals who strongly denied that their directorships meant previously acted as directors in companies the Israeli billionaire himself retained any affiliated to Gertler were nominated as directors relationship with the services company . for a period of three years , even after Karibu was Representatives of Interactive Energy DRC no longer a shareholder.63 The presence of two of that the company was a legitimate Gertler's business associates raises the possibility explained enterprise that failed to execute its business that the Israeli billionaire retained a relationship objectivesandshutdownin May2019due to with the companythroughthosedirectorsat unfavourableterms ofthe new DRC miningcode. leastuntilJune 201864 and July 2019, when those InteractiveEnergy DRC andAbihassira both two directorsleftthe company. denied a $1 million deposit was made by The funds creditedto InteractiveEnergyDRC's Abihassira in InteractiveEnergy DRC'saccount dollar accountwere wired abroad to Interactive despite documents indicatingthis, seen by Global EnergyAG, inSwitzerland. A representativeof Witnessand PPLAAF. InteractiveEnergytold PPLAAFand Global InteractiveEnergy DRCtold GlobalWitness and Witnessthat the funds had beenadvanced by PPLAAFthatit had enteredintoa loan agreement InteractiveEnergyAG butwerereturnedto the with Rulcothat was later cancelled. Itsaid that parent company after the project was Rulcoadvanced$ 8.5 millionto InteractiveEnergy abandoned. DRC in June 2018 in exchangeforexclusiverights This arrangementis similarto the one used by in operatingthe company'sfuture logisticsand Dorta. On the surface, paymentsbetween supplychainoperations. Rulco also statedthat InteractiveEnergy DRC and InteractiveEnergy in the sumshad been paid by it to Interactive Switzerland two companiesthat appear Energy underbindingloan agreements. In interconnected- would not be unusual. But this August 2020 Rulco elaboratedthe loan had been couldalso be designed as a route and mechanism in return foran option on futureexcavationwork. for moving US dollarsfromthe InteractiveEnergy RepresentativesofInteractiveEnergyrefuted entityin DRCto theentityinEurope, despitethe claims that the group was used to launder funds sanctionsagainst Gertler and his companies, or that is was associated to Gertler.

GLOBALWITNESSJULY 2020 UnderminingSanctions 15 Gertler denied any knowledge of Interactive warrantsfor him68 and his 2018 conviction in Energy or having any involvement or interests in Francecarried a sentence of four years in prison the Congolese company Rulco. for organisedfraud and aggravated money laundering,69which he has avoided facing by Berrosand Lamant'sconnectionsto remaining in Israel. a convictedfraudster Evidenceseen by GlobalWitnessand PPLAAFalso In recent years, Ben Ezra has sought to clean up suggeststhat a convictedmoneylaunderermay his reputation by working in the technology also haveconnectionsto the individualsthat sector . In a 2019 interview he claimed that his started to set up business in DRCjust around or company has “helped calling centres reduce after the sanctionson Gertler. credit card fraud, which has weakened the impact of criminal mafias and restored client InteractiveEnergy'spreviousdirector, Lamant, trust. andDorta'sowner, Berros, are both business Findings by PPLAAF and Global Witness , however , partners of Avi Ben Ezra, who was convicted in Francefor money launderingand has dodgedhis suggest that Ben Ezra has not really gone prisonsentence, livingfreely in Israel. straight . In July 2018 , Ben Ezra set up a company called SnatchApp , which he co owns with Other clues suggestconnectionsbetweenAvi Ben Lamant , Berros and several members of his own Ezra and the Gertler- linked network. When family, some of whom appear in documents contactedby GlobalWitness and PPLAAF, Ben related to the French police investigation into the Ezra also opened his emailfromthe same IP carbon VAT fraud . Berros used to be actively addressas Berrosand Katsobashvili. This engaged in the company's business but told suggests possibleconnectionsbetween Dorta, Global Witness and PPLAAF that he had left the InteractiveEnergyandBen Ezra . company and sold his shares in January 2020 . Lamant still holds shares in the company . Ben Ezra and his associates kept French courts and police busy for nearly nine years throughout their involvement in the country's largest tax fraud scheme . Dubbed the heist of the century by the authorities , the scam resulted in France and the EU losing €1.6 billion and €5 billion in tax revenues, respectively .66

The fraud occurred between2008 and2009 and employedthe tacticsof a VAT scam . Companies in the schemewould buy carbon credits outside the EU'sjurisdictionfree of VAT, pass them throughfront companiesand sellthemon with the VAT added. Insteadofpayingthe VAT to the relevanttax authority,the front companiesinthe chain wouldquicklyshut downand vanish withouttrace . The ill-gottengains would then be laundered.

After this fraud, Ben Ezra escaped to Israel where Avi BenEzrawas convictedin Francefor a CarbonTax Fraud' he lives in the affluent city of Herzliya, just north schemethat cost France€1.6billion. Twitter. of Tel Aviv. 67 France and Belgium issued arrest

GLOBALWITNESSJULY 2020 UnderminingSanctions 16 Alongside Ben Ezra and some of his family people ”, spread across four countries ”. members, SnatchApp is also partly owned by a Certainly , SnatchApp appears to have been mysterious company called Nobi Tech. launched in app stores following Global Witness and PPLAAF's enquiries . Nobi Tech was set up in Gibraltar in September 2018 and acquired shares in Ben Ezra's company Lamant said that “ Mr. Ben Ezra is an honest and SnatchApp a month later, in October 2018. professional person ” with no links to Gertler . Corporate records for Nobi Tech show that it is GERTLER STILL ACTIVE IN DRC'S directed by Elias Samuel Vidal Beniso, a partner at a Gibraltar law firm called Hassans MINING SECTOR

International.71The owner ofNobi Tech is Line In the wake of the sanctions, one might have expected Gertler to put an end to any activity in Group, whichprovides companymanagement” DRC's mining sector and focus on the more servicesfor Hassans law firm, accordingto its website. NobiTech'sreal ownerstherefore pressing question of consolidating or spending his fortune. Yet Global Witness and PPLAAF have appearto be completelyconcealedbehinda uncovered indications that Gertler and his Gibraltarcompanyservicesfirm. proxies have remained active in DRC and the Hassans have been longstanding lawyers to mining sector despite the US sanctions. That his Gertler. Partners and lawyers at Hassans have principal group company became a DRC acted as signatories on contracts involving company after 2018 is perhaps an indicator of Gertler's companies . A subsidiary of Line Group , intention . Hassans company services provider , also used to own Fleurette Properties Limited, Gertler's old Evidencecollectedby GlobalWitness and PPLAAF also suggeststhat two companiesthat could be holding company , which is now sanctioned . tied to Gertleracquirednew miningrightsin DRC The acquisition in late 2018 of five percentof Ben in2018.Our findings also show that it is likely Ezra’s company SnatchApp by an opaque Gertler has remaineda key playerinthe sector on company set up by Gertler's long-time lawyers the servicesside, retainingindirectcontrol over may meanthat Gertler and Ben Ezra have, customsagenciesworkingwith large directly or indirectly, gone into businesstogether multinationalcompanies. Moreover, one of followingGertler'sdesignationbythe US as a Gertler'scompaniescontinuedto receive sanctioned individual. significantcontractualpaymentsfrom multinationalminingandcommoditiescompany Gertlersaidhe hasno knowledgeofSnatchApp, Glencoreafter the sanctions. Avi Ben Ezra, or Nobi Tech.

Ben Ezra told PPLAAFandGlobal Witnessthat he Gertler's frontman acquires new DRC, flips them to hasneverbeen involvedin facilitatingthe mining rights in ERG evasionof US sanctions, nor engagedin any transactionor dealingswith any ofthe entities In 2018, state- owned miner Gécamines quietly mentionedinthis investigation. He also saidthat signed a contract for potentially valuable mining SnatchApp had conductedappropriatedue assets to a company incorporated just a few diligenceon its shareholdersand denied any months before. The company , called Evelyne involvementof Gertlerin NobiTech, either Investissement , belonged to Elie -Yohann Berros, the man behind Dorta in DRC and Fleurette Mumi directlyor indirectly. Ben Ezraalsosaidthat SnatchAppis a legitimatebusiness, providing Holdings Limited in Hong Kong, which was secure messagingservices and employing“ named after Gertler's company . In the months

GLOBALWITNESSJULY 2020 UnderminingSanctions 17 bonus correspondingto Evelyne's$ 10 million wire transfer to Gécamines . MANGEURS.DE CUIVRE

DAC APP TLC The contract gives Evelyne rightsto a set of mining and tailings permits.78These licences GECAMINES neighbouroreven overlap with some of DRC's -FONCTIONPREVENTION= FONCTION most valuableminingassets, including Glencore’s Kamoto Copper Company(KCC) project, and are locatedin one ofthe country's richest copper and cobalt zones . This means that State-owned mining company Gécamines , known as the DRC's the permits could be of significant value , though black box for its disappearing revenues. Simon theirtrueworthwouldrequirea morethorough Dawson/ Bloombergvia GettyImages. assessment of the deposits and tailings. following the acquisition of mining assets from When Global Witness and PPLAAF contacted the Congolese state, an unknown proportion of Glencore to make enquiries about an overlap Evelyneshares were reportedto have been between Evelyne's permit and its own secretlysold to ERG, a large Kazakh multinational concession, the Swiss trader said that it had no miningcompany, previously known as Eurasian knowledge of Berros, but that ERG owned Natural Resource Corporation (ENRC). The company has been embroiled in scandals relating Evelyne and the associated mining licenses . Our to its deals with Gertler in DRC75 and has been investigation therefore places the sale of Evelyne under investigation by the UK's Serious Fraud sharesto ERGsometimebetweenNovember2018 Office (SFO) since2013(see box: ERGfacing and February2019. corruptionprobein the UK).76 Aspects of Evelyne's deal with Gécamines are Berros incorporated Evelyne in September 2018, worryingly reminiscent of some of Gertler's most and was at the time its sole shareholder . On its notorious transactions in DRC's mining sector . corporate records, the company claims to mine, Gécamineshasbeenat the heartof manydeals tradeand exportminerals. There is noevidence Gertlerhasdone in DRC, includingmostof those of Berroshavingworkedin DRCor inthe mining referredto inthe USsanctionsnoticeagainsthim sectorbefore2018.Yet apparently, outof and his companies. Fromaround2010to 2012, nowhere, Evelynebecamethe preferredbuyerof Gertler was able to acquire mininglicences from a valuable DRC state miningasset. Gécamines at heavily reduced prices sometimes The month after it was registered , Evelyne wired as low as five percent of their estimated market $ 10 million to Gécamines . The origins of the funds value sell some of them on to mining for Evelyne's payment to Gécamines is unclear . companies for huge profits . Bank records for Evelyne show that there was no The state minerhasalso beensuspectedof businessactivityon itsaccountwhatsoeveruntil divertingpublic funds. Gécamines has been the 9 October 2018, when an untraced individual, focus of numerouscorruptionscandals and has credited over $ 10.2 million in cash to the account beendescribedby the prominentNGO TheCarter overthreeseparatedeposits. Center as a mining revenues. The The following day, Evelyne paid $10 million to organisation's authoritative 2017 report, A State Gécamines. A month later, Gécamines allocated Affair, calculated that nearly two thirds of the $ 1.1 several mining permits to Evelyne via a contract billion in revenues that Gécamines was that required payment of a $10 million signature contractually entitled to between 2011and 2014,

GLOBALWITNESSJULY 2020 UnderminingSanctions 18 cannot be reliably traced to its accounts.79 Global the company. . He addedthat the origin of the Witness's own 2017 report, RegimeCash Machine, cash usedto pay the signature bonuswas from a estimated that more than $ 750 millionof mining loanthat came from Ruben Katsobashvili, the revenuespaid by companies to Gécaminesand supposed Russian billionaire, in the form of cash tax agencies from 2013 to 2015 had not reached advances” The loan agreementswere not shown the public treasury 80 to GlobalWitness or PPLAAF.

Congolesepublicofficials, includingGécamines Glencoretold GlobalWitnessandPPLAAFthat it chairman, Albert Yuma, haverepeatedly had no involvementinthe transactionsthat defended Gertler and his miningdeals in DRC, 81 occurredbetweenGécamines, Evelyneand ERG. despite research by the Africa ProgressPanel Glencoresaid that it carried out due diligenceon showingthatjust five sales of under-priced assets Evelyne(sinceGlencore was separatelyacquiring from Gécaminesto Gertler led to DRC losingout land from Gécaminesthat overlapswith on an estimated $ 1.4 billion in potential Evelyne'spermits) anddid not identifyany revenues 82 involvementof any sanctionedpersons in the company. Severalof these deals occurred inthe period immediatelypriorto the 2011elections. Press When questionedaboutits ownershipof Evelyne, reportsfrom the time suggestthat the proceeds Kazakh miningcompanyERG said that this ofat least one miningasset sale to Gertlerwere informationwas “ privateand confidential” and designatedby Kabila governmentofficialsfor use providedno further comment. Given as funds forthe election campaign.83 history of buying companies belongingto Gertler, Glencore'sclaimthat ERG is the new owner of In this new 2018 deal, Evelynehas acquireda set Evelyneandthe holderofthese miningpermits of licencesfor what may turn out to be a raises significantconcerns. relativelylow sum, and thetransactiontook place one month beforethe December2018 Gertler denied having any knowledge of the elections. Similar to Gertler'spreviousdeals, the Evelyne deal. Evelyne permitswere awarded secretivelyand the contractsonly made public a year aftertheir allocation. And, as in 2010-2012, the miningasset was quickly sold on to a multinational.

The implicationsof this are serious. The similaritiesbetweenthe Evelynedeal and what happenedin 2010 to 2012 suggeststhat Gertler, via his proxyBerros,could be onceagain handlingDRC miningassets. If correct this would implythat he remains pluggedinto influential networksin DRC, and that he has maintained his privilegedaccessto the country'sminingriches, despite beingsanctioned.

Berros has confirmedto GlobalWitnessand

PPLAAFthat his companyEvelyne received Elie- Yohann Berros received$10million in cash depositsin his miningpermitsonly a month after it was created, Evelynebank account. He used thismoneyto buymining licencesfrom Gécamines, despitehavingnopreviousexperience andhis representativesaid that he is still a in DRCor mining. Instagram. director, legalrepresentativeand shareholderof

GLOBALWITNESSJULY 2020 UnderminingSanctions 19 Secret payments to Gécamines for Specifically , the $15 million paid to Gécamines new mining rights originated from two sources : one untraceable Documents analysed by Global Witness and individual who deposited $9.5 million in cash PPLAAF suggest that another company, again directly into Interactive Energy Russia's account possibly connected to Gertler, also acquired a on 16 August 2018 ; and a further $ 5.7 million from mining permit in 2018 ,just before the elections. Rulco, sent circuitously via a set of euro and dollar accounts held by Interactive Energy Russia Accordingto documentsreviewedby PPLAAFand and its sister company Interactive Energy DRC, GlobalWitness, a companycalled Interactive between July and August 2018 . Energy Russia, also belongingto Katsobashvili, the supposedRussiancommoditiesbillionaire Interactive Energy DRC is the subsidiary of andownerof InteractiveEnergyinSwitzerland, Interactive Energy AG, the Swiss company linked secretlyacquiredCongoleseminingrightsto a to Johan ShimonLamant, which was tailingprojectcalled Kakanda, for $ 75 million. anonymously incorporatedin Switzerland.

Respondentson behalfof Katsobashvili Rulcois the infrastructureand miningservices - linked confirmedthat the deal hadtaken place in 2018 company in which recordsshow a Gertler andthat the company had paid the totalamount entity KaribuAfrica Services SA heldan interest to stateowned miningcompanyGécaminesin for a short periodfrom around November2017 exchangefor exploitationrightsto Kakandafor “ untilJanuary 2018. Bythe point ofthe $5.7 limitedperiodoftime”. There has been nopublic million payment, the Gertler- linked entity had confirmationofthe sale by DRCofficialsandthe sold its interest back to the other shareholder. contracthas not been madepublicdespitethis The $5.7 million originatingfrom Rulco was paid beinga requirementunderCongoleselaw. by InteractiveEnergyRussia Gécamines in three stages over the course ofjust over a month. InteractiveEnergy Russiawas incorporatedin DRC in February2018 by Ruben Katsobashviliand all the transactionsanalysed by GlobalWitness and PPLAAF inthis investigation, these bear some the companyoperates in mining,accordingto its of the clearestsigns corporate records. Katsobashvili'srepresentative that the InteractiveEnergy statedthat it was createdfollowingthe “ failure ” companieswere operatinga moneylaundering scheme. of InteractiveEnergy DRC. Yet, once more, there is littleto suggestthat it is a legitimatebusiness First, Rulcosent €5.1millionto InteractiveEnergy enterprise, and it may instead be a front for Russia'seuro-denominatedaccountatAfriland no moving . InteractiveEnergyRussia has Bank.This moneywas thenwiredto Interactive onlineprofile, and its DRC dollar- denominated Energy DRC'seuro-denominatedaccount, before bank accountshows no activitybetweenAugust beingsent back to InteractiveEnergyRussia on andSeptember2018 otherthan transactions 23 August2018, but this time to the company's related to thetransfer to Gécamines. dollar-denominatedaccount. Dueto the million Ofthe total $75 million paymentmade by exchangerateat the time,this €5.1 InteractiveEnergy Russiato state-owned mining became$5.7 millionvia a simpletransfer andwas combinedwith the $9.5 milliondepositedby the companyGécamines in exchangefor mining untraceableindividualbefore beingtransferred, rights, PPLAAFand Global Witnessonly managed in US dollars,to Gécamines. to track $ 15 million, which appearsto havebeen channelledvia InteractiveEnergy'snetwork of This convoluted series of transfers between companies. different accounts, each belonging to different incarnations of Interactive Energy, serves to

GLOBALWITNESSJULY 2020 UnderminingSanctions 20 concealthe originalsourceofthe money.This suggesting that Rulco was aware of the mining method, alsocalled layering', is one ofthe investment Interactive Energy was making . hallmarksof money laundering, and makes it InteractiveEnergy Russia'srepresentative extremelydifficultfor banks, companiesand confirmedthatthe funds for the contractcame investigatorsto tracethe origin and destination from Rulcoalongwith a personalcontributionby ofthe funds. A bank processingthe $ 15million Katsobashviliof dividendsfrom hispurported transferto Gécamineswould haveto digback companyin DRC. InteractiveEnergyRussia throughseveral wire transfersto discover Rulco denied havingany linksto Gertlerand said as the originatorof partof the funds, andthen dig Gertlerdid nothaveany involvementinthe furtherstillto discoverthe company'shistoric KakandadealwithGécamines.Gertlerdeniedany linksto Gertler. Rulco and its current owners knowledgeof InteractiveEnergyRussia's emphaticallydeny any knowledgeof this or businessdealings in DRC . intentionthat its loanshould be paid on to Gécamines RepresentativesofInteractive EnergyAG said that the money transferredfrom Interactive This process, account recordsshow, has also Energy Russia to Interactive Energy DRC was also allowed Interactive Energy to convert huge sums part a loan agreementthat was quickly cancelled. ofeuros into dollars, seemingly without alerting the banks and correspondent banks involved. Mining giants could expose themselves to US sanctions for their In summary, it appearsthat two entities holding accounts atAfriland Evelyne and Interactive business dealings with Gertler or Energy Russia- made significantopaque Gertler - linked companies paymentsto Gécaminesinexchangefor mining When the US Treasury imposed sanctions on rights in the lead up to the 2018 election . Both Gertler it sent shockwaves through DRC's mining these entitiesseem to have at least sector , as one of its most prominent figures had circumstantialconnectionsto Gertler. been cut out of the international financial system , making business with him much more extremely Rulcotold GlobalWitnessand PPLAAF that the €5 difficult. However , evidence suggests Gertler and millionpaymentmadeto InteractiveEnergy his associates used Afriland Bank, a DRC Russiawas also partof a loanagreement commercial bank offering transactions in both betweenthe companies,and that Rulco had no U.S. Dollars and E.U. Euros, to try and obscure knowledgeofthe ways inwhich thesefundshad potentially sanctioned activities . Evidence been allocated or movedacrossdifferent suggests that this was done to continue the part accountsbelongingto InteractiveEnergy. of his business that operated as a customs and Representativesofthe companysaidthey had no logistics agent for large mining companies in knowledgeofthe relationshipbetween DRC. InteractiveEnergyandGécamines. InAugust it addedthat the loanswere to finance a Central Africa's rich seam of copper - the miningprojectand secure an optionfor future Copperbelt covers vast swathes of DRC's work on that projectfor Rulco. southern provinces , formerly known collectively as Katanga . In the years after the end of the Interactive Energy told GlobalWitness and Second Congo War , as DRC's economy was PPLAAF that Rulco's loan was an “ advance on liberalised , large mining companies began to future operations” to be carried out by Interactive descend on Katanga in pursuit of the region's Energy Russia relatedto the Kakandacontract, incredibly pure copper deposits . Although prices have fluctuated , the green technology revolution

GLOBAL WITNESS JULY 2020 UnderminingSanctions 21 led to skyrocketingdemandfor cobalt, a by product of copper that is vital in the manufacture of batteries.

DRCis hometo nearly half of the world's identifiedreservesofcobalt, and becamea profitableinvestmentfor multinational companiesthat were willingto take on the technologicalchallengesand politicalrisksof investingin the country. Over the years, some very largecompanieshavecometo DRC's

Copperbelt, includingthe Swiss commodity A conveyorbeltcarrieschunksof cobalt at a plantin traderGlencore, KazakhminingcompanyERG, Lubumbashi . DRC is home to nearly 50 % of the world's cobalt . Samir Tounsi/ AFP via Getty Images. and the Chinese consortiumSicomines. Each of these companiesacquired, and still owns, copper Gertler had ceased to be involvedin the company and cobalt mines in the former . from September2017, when it was sold to Bazola, GlobalWitness and PPLAAFhavefoundthat Palankoyand Petralia. A year later, they said, the Sicominesand ERG, two ofthe region'stop sale was cancelled due to the sanctions and producers of copper and cobalt , continued to do returned to a Gertler company , before being put business with companies either controlled , or into liquidation at the end of 2018. They stated likely to be controlled by Dan Gertler . This that the company then stopped trading “ in business continued until at least the first few dollars or any currency : it did not trade at all” . months of 2019 - over a year after he was first Bank recordsfor KaribuAfrica Servicesshowthat sanctioned. Bothminingcompaniescouldhave it had several clients until it was sanctioned , exposed themselves to US sanctions if they includingSicomines and ERG’s subsidiary providedfinancial or materialsupport to any of Frontier. ERGis the Kazakhminingcompanythat Gertler'scompanies, as our researchsuggests GlobalWitnessand PPLAAFweretold had bought have. 84 they may Evelyne and which is under investigation by the Karibu Africa Services is a customs and logistics SFO for alleged bribery . Sicomines is a joint agency , which was sanctioned in June 2018 for Chinese -Congolese mining venture , which being “ owned or controlled by [ Dan] Gertler or his involves a huge resources - for -infrastructure companies ”, according to the US Treasury . The agreement.85 The Sicomines deal was first agreed company's owners were Didier Bazola Phola and in 2007 , around the time Gertler was beginning to Médard Palankoy Lakwas , former directors of strike mining deals with major multinationals , Gertler -affiliated companies , and Gino Petralia , though the present report is the first public director of multiple companies in the Fleurette record of businessbetweenSicomines and group, accordingto Africa Intelligence. These Gertler individuals appearto haveacted as Gertler's Accordingto bank recordsseen by PPLAAFand proxies. KaribuAfrica Services' directorswere GlobalWitness, Karibu could have been making Alain Mukonda, Simon Niaku and Erick payments on behalfof Sicomines and ERG's Tshimanga, all individuals who helped Gertler or subsidiary , Frontier , between February and June his accomplices set up Gertler's new network of 2018. Karibu paid hundreds of thousands of companies following the sanctions . dollarson behalfofeach companyto export Representativesof KaribuAfricaServicesand control and tax collection agencies . According to Gertler told Global Witnessand PPLAAF that a source in the sector, companieslike Karibu

GLOBALWITNESSJULY 2020 UnderminingSanctions 22 usuallytake large upfrontpaymentsfrom miners althoughthe natureofthesetransactionsis andwillthen proceedto pay the respective unclear. However,evidencecollectedby PPLAAF customsfees to stateentitieson their clients' and Global Witnesssuggeststhat Copperlinewas behalf, while retaininga fee fortheir services. also likelyto be controlledby Gertler,andthat it Mostminingcompaniesuseagentsto outsource was specificallycreated to replaceKaribu andsimplifya convolutedimport-export process, followingthe latter'sdesignationas a which can be especiallycomplicatedand costly in sanctionedentity . DRCif notmanagedproperly.86 Copperline SAS was incorporatedon 21June Bank documents show that paymentswere made 2018, six days after Karibu was sanctioned. to and from Karibu in US dollarsthrough a dollar- Corporate records show that its shareholdersare denominatedaccount at Afriland Bank in DRC . Zephyrin Bazola and Joseph Bazola, brothersof The Bank held a dollaraccountfor Karibu untilat Didier Bazola, a co-ownerof Karibu and associate leastApril 2019. By providinga sanctionedentity of Gertler. Somestaff workingat Karibu moved to with a dollar account, Afriland could be Copperlinearoundthe time of the sanctions, sanctionedunderUS Global Magnitskysanctions accordingto their socialmedia profiles. One of in the future.87 them even says on their LinkedIn page that they

are workingfor “ CopperLineex KaribuSARLU”. A While Karibuwas notmentionedinthefirst round well-placed source in the sector further referred of US sanctions in December 2017, its to Copperline as the new version of Karibu. Gino shareholdersDidier Bazola and Médard Palankoy Petralia, a shareholderin KaribuAfrica Services, were both associatesof Gertler and had directed became an employee of Copperline and received a number of companies for him . From December paymentsfromthat companyin late2018. Bank 2017onwards, thoroughduediligencecarriedout records show Copperline makingpayments to on Karibu Africa Services would have found a multiple individuals who were previously high risk that the company was affiliated to receiving payments from Karibu . Gertler, a US-sanctioned individual. 89 In fact , other large mining companies such as Glencore Copperline representatives denied any halted their business relationship with Karibu connectionsbetweenthe company and Gertler or Africa Services as soon as Gertler was sanctioned, Karibu, and said thatit was in no way involvedin accordingto bank records, and a sourcecloseto the circumventionof US sanctions. The company the matter admittedthat somestaff had comefrom Karibu, Yet it was only after KaribuAfrica Serviceswas but said that other former Karibu workers had explicitly sanctioned in June 2018 that both ERG joined Copperline's competitors . Gertler denied and Sicomines seem to have definitively cut ties having any involvement in setting up Copperline with the company.90 records show that or in its operations . Karibu ceased making payments on behalf of ERG Bankrecordsfor Copperlineshowthatthe daysbeforethesecondroundofsanctions companypaid hundredsof thousandsofdollars againstGertler'svehicles, and on behalfof on behalf of Sicomines from August 2018 until at Sicomines a month later. least March2019. Otherdocumentsseen by Havingcut ties with Karibu, Sicominesthen PPLAAFand GlobalWitnessalsoshowthat, started usinga companycalled CopperlineSAS through an accountheld at DRC-based Standard for customsservices, accordingto bank records. Bank,Sicominespaid Copperlineover half a Around the sametime, Copperlinebegan million dollars in February 2019. Copperline also transferring money to or on behalf of ERG, made payments to or on behalf of subsidiary , Frontier, in April 2019 .

GLOBALWITNESSJULY 2020 UnderminingSanctions 23 Overall, the bank records indicate that Sicomines either directly from Gertler's companies or by and subsidiary continued to do business buying out one of Gertler's companies. 93 Gertler with Gertler -linked customs and logistics had previously picked up these shares in mining agencies after he was sanctioned, switchingfrom assets from the state-owned miningcompany Kaributo its apparent replacementCopperline Gécamines at knock-down prices. In one when Karibu itselfwas directly sanctioned. The instance, his acquisitionwas financed by a loan similaritiesbetweenthe staff, clients and from ENRC , which then purchased the shares shareholders of Karibu and Copperline indicate from Gertler at full price, making him an instant that the latter may be under the indirect control multi- million-dollar profit , risk -free. 94 of Gertler. Courtdocumentsfrom a related2018 case inthe Certainly, these factorsshould have prompted UK HighCourtshow that ERG'sown lawyers had Sicominesand ERG to carry out enhanceddue concernsthat a $ 35 million paymentfromthe diligenceon the ultimateownershipof company to Gertler , made at the time of the key Copperline . If Copperline is indeed a Gertler- deals between 2010 and 2012 , was for the controlled company , ERG and Sicomines could be purpose of distributing bribes to senior DRC added to the US sanctions list in the future . government officials. 95

ERG’s representativessaid that the companyis Glencore ignores sanctions against committed to upholding and complying with all Gertler sanctions applicable to their business and Glencore, which has tiesto Gertler stretching transactions, and that it had conducted back to 2007 , has continuedto make highly appropriate due diligencefollowing controversial contractual payments to him, designation as a sanctioned company .Sicomines despite US sanctions. Glencore is an Anglo-Swiss also statedthatithad halted its businessdealings multinational with Karibu following US sanctions, and that it commoditytrader listed onthe LondonStockExchange, whichwas rankedin had no information’indicatingthatCopperline 2018 as the largest metalsand miningcompany was controlledby a sanctionedentity. inthe world by revenue.96Itproducesandtrades GlobalWitnessand PPLAAFdo not allegethat raw materialssuchas metals, minerals, oil, coal Karibu or Copperlinewere shell companies. and cotton, andwas once describedby Reuters Evidenceshowsthey had a significant customs- as “ the biggestcompanyyou'veneverheard related agencybusinesson behalfof large ”.97 multinationalcompanies. Around 2007 , Glencore focused its attention on ERG Facing Corruption Probe in UK DRC. 98 Havingrecentlyentered a period of relativepeaceafteryearsof civilwar, thecountry ERG has beenunderformalinvestigationby the offered enticing investment opportunities in Serious Fraud Office (SFO ) in the UK since April copper, the price of which had exploded since the 2013 for possible violations of the Bribery early 2000s. Glencoresecured some of DRC's Act. Sources and media reportsindicatethat largestcopperassetsbetween2007and 2012.99 the SFO'scasefocusesat leastin parton how These mineswouldbe evenmorevaluableover ERGacquiredminingassetsin DRC. Thiswas time as the cobalt price soared. 100 confirmed by an SFO lawyer in a 2020 trial related

92 to the ERG case . Glencore acquired stakes in two of the most

valuable miningprojectsin DRC, KCC and Between 2010 and 2012, ERG ( known as ENR at Mutanda, by teaming up with Gertler who held the time) acquiredstakes in various miningassets the keys to DRC's powerful elite. Glencore's

GLOBALWITNESSJULY 2020 UnderminingSanctions 24 CEO Ivan Glasenberg reportedly acknowledged in kept hold of these rights even after the February an interview led by Bloomberg that his 2017 buyout of his shares in the mine. company's ability to work in DRC depended As soon as Gertler was in possession of the rights almost entirely on Gertler 103 to KCC's royaltiesin early2015,Glencore madea Since at least2011,Glencore has faced tough generous upfrontroyalty payment to him, questions from GlobalWitnessand othersover its accordingto Bloomberg. 113 Had Glencore made linksto Gertler 104 105 The pressure mountedin the sameearly paymentto Gécamines, it late2016 whenthe US DepartmentofJustice wouldn't have defaultedon the loanto Gertler ( DOJ) and the Securitiesand Exchange and the royalties would still be flowing, as Commission (SEC) released a statement of intended, to Congolese coffers,” Bloomberg related to a foreign bribery case against wrote. the hedge fund Och- Ziff, another of Gertler's Gertler has also owned rights to royalties from partners in DRC.107 The DOJ and SEC documents the other Glencore mine, Mutanda, ever since he described how an infamous Israeli bought Gécamines stake in that project in 2011 businessman 108 widely understood to be he held onto these rights , too , after Glencore Gertler, had paid multimillion dollar bribes to bought out his Mutanda shares in 2017.114 DRC officials on behalf of his international clients .109 Gertler was not a party to the case . Consequently , Glencore has continued to pay In the ensuing media scrutiny , Glencore's long Gertler these hugely lucrative revenue streams even since 2017. Brussels- based organisation, standingpartnershipswith Gertler became Resource Matters, which specialises in untenable, and the company bought Gertler out transparency in the Congolese natural resource oftheir two jointly-owned mines in a dealworth sector , estimated that Glencore owed Gertler almost $ 1billion in February 2017.110 affiliated companies $ 110 millionin royaltiesfor But the relationshipdidn't end there. Gertler was, 2018. This is equivalent to Gertler receiving and still is, party to contracts that give him rights $ 300,000 per day for that year 115 to multimillion-dollar royalty paymentsfrom Royalty payments had always been made by both Mutandaand KCC.111A royalty is the right to receive a payment based on a percentage of Glencore’s Congolese subsidiaries in US dollars . Gertler'sdesignationas a sanctioned individualin revenuesgeneratedfrom producinga mineral. December2017 was a huge challengefor He obtainedthe rightsto the KCC royalties Glencore : would it cease paymentsto its most throughan opaque and secretive loan deal that was struck in late 2012, when one of Gertler's companiessigned an agreementto lend almost $ 200 millionto Gécamines.112The loan was securedin part against Gécamines' rightsto receive royalty paymentsfrom the Glencore owned KCC project- which meant that if Gécamineswere to default, it would have to give upthose royalty rightsto one ofGertler's companies . Gécamines defaulted on that loan in early 2015. Since then, Gertler has ownedthe rightsto royalty paymentsfrom Glencore'sKCC Gertlercontinuesto earn huge royaltiesfrom Glencore’s project, calculatedat 2.5% of KCC's turnover. He Mutanda copper and cobalt minein DRC, despite being sanctioned. Simon Dawson/ Bloomberg via Getty Images

GLOBALWITNESSJULY 2020 UnderminingSanctions 25 After a couple of monthsof negotiations, on 15 June 2018 GlencorechoseGertleroverthe US and resumedits royaltypayments, butthistime ineurosratherthandollars.119 Glencore announcedthe agreementin a press releaseand stated that this arrangement appropriatelyaddressall applicable[ US] sanctionsobligations. GLENCORE Whilethe US sanctioningbody OFACdid not GLENCORE publiclystatewhethereuropaymentswould in fact respectthe terms of Global Magnitsky CommoditygiantGlencorecontinuesto linethepocketsof Gertler. iStock/ thamerpic. sanctions, it designatedanother14 companies linked to Gertlerwithin hoursof Glencoremaking important business partner in , or would it the announcementthat it would resumethe risk the wrath of the US administration and payments. The newlysanctionedentities continue to pay Gertler ? 116 includedVentora DevelopmentSASU,one of the After a period of considering its options , Glencore Congolesecompaniesset up by Mukonda,which halted royalty payments to Gertler in the first was due to begin receivingGlencore's euro quarter of 2018. Gertler's response was denominated royalty payments.121 immediate . In April 2018 he took Glencore to According to Executive Order 13818 under which court in the UK, Hong Kong and DRC threatening Gertler is sanctioned , anyone that either does to freeze the company's operations in DRC while attempts to materially assist , sponsor or claiming over $ 3 billion in damages . 117 Gertler's provide financial , material or technological influence in DRC remained considerable , and support for goods and services to ” a person Glencore was forced to contemplate the under US sanction could themselves see their possibility that its KCC and Mutanda mines could property and interests be blocked by the US. 122 be seized by the Congolese state . Ifthat These payments raise the possibility that happened , Glencore faced losing its prized Glencore could be added to the US sanctions list mining assets and the possibility of a protracted at some point in the future . legal dispute with the Congolese government , with no guarantee of a satisfactory resolution . Just a few weeks later, in July 2018, the US DOJ This was not a far -fetched scenario ; in 2010 , subpoenaedGlencorefor documents regarding another large mining company saw its mines its businessin DRC (as well as Nigeriaand seized by the Congolese government and Venezuela) as part of a probe relatingto the subsequently sold at a low price to Gertler 118 company'scompliancewith the US Foreign CorruptPracticesActand US moneylaundering The theoretical choice that Glencore had to laws.123 Morerecently,the UK and Switzerland consider followingthe sanctions had now also opened criminal probes intoGlencore's becomevery real. The company could either businessdealings. resume payingroyaltiesand risk provokingthe ire of US authorities, or keep the US happy but And yet , the royalty payments from Glencore to risk losingits hugely valuable copper and cobalt Gertler's companies continue . Bank records for assets in DRC the sanctioned Ventora Development indicate that it received €13.3 ( $ 15.5) million in euro denominated royalty payments from Mutanda

GLOBAL WITNESS JULY 2020 UnderminingSanctions 26 between 27 and30 July 2018. On 22 June 2018, has established a university in Yaoundé Fokam bank recordsshow a €4.6 ($5.3) milliontransfer has written a number of books on the challenges sent one week afterthe June agreementsettling of development in Africa 127 the dispute between Gertlerand Glencore.124This Afriland DRC is directed by Patrick Kafindo , who paymentcorrespondswith a €4.6 ( $5.3 ) million directly oversaw Gertler's account , as a one-off paymentfrom Mutanda mentionedin client of the bank, and those of Glencore'sannouncementabout the settlement. longstanding several of his associates . He personally managed Glencorerespondedthat it had “ carefully the bulk of the suspicious accounts and, under consideredits legaland commercialoptionsin his leadership , Afriland DRC held at least 20 bank connectionwith its disputewithVentora and accounts connected to Gertler's network .A determinedthat the only viableoptionto avoid glaring example is Karibu Africa Services , a the materialrisk of seizureof its assetsin DRC ” sanctioned entity from June 2018, which wouldbe to pay the relevantroyaltiesin non- US continued to have a dollar account and dollars,withoutinvolvingUS persons” . performed transactions in dollars . Afriland also permitted huge sums to be deposited with the THE BANKSLOOKINGTHE OTHER bank in cash on numerous occasions , seemingly WAY without checking the legitimacy of the origins of Any ability on the part of Gertler to use the new these monies . Documents show that accounts network of DRC companies to move millions of that Global Witness and PPLAAF have associated dollars in DRC and abroad relies heavily on the with Gertler, were active until at least May 2019, weaknesses of Congolese banking regulations meaning the bank was likely to have been doing and the carelessness of financial institutions with business with sanctioned entities , sometimes in poor compliance . Once again, the movement of dollars , for at least a year , and likely longer . millions of dollars in cash from unverified sources In a press interview in Belgiumin September . appears to have gone unnoticed or ignored 2019,CongolesePresidentFélix Tshisekedisaid Afriland First Bank: the Enabler that the DRC governmenthadthe supportof Afrilandandthat he had recently metits CEO,128 Afriland First Bank in DRC is the most egregious showinghow powerfulthe bank had becomein example of the weaknesses of banking DRC in recentyears. PPLAAFand GlobalWitness' regulations in this case. According to documents investigationshowsthat Dan Gertlerand his and source testimony collected by PPLAAF and apparent proxies may be amongthe reasonswhy Global Witness , Afriland DRC's senior this bank, previouslymid-rangeandvery much management knew not only that the bank was unknown, has becomeone bigenough to be offering services companies that were acting mentioned by DRC's President. as a network of proxies for Gertler, but also seem to have actively assisted in putting it in place. In the year that Gertler and entities mentioned in this report started using Afriland DRC, the bank's Afriland, headquarteredin Cameroon, openeda revenues skyrocketed . According to Afriland's branch in DRC in 2006. It is one ofthe largest annual accounts , in 2017 the bank's total commercialbanksin FrancophoneAfrica, with corporate deposits were just over $31 million . subsidiariesacross the continent.125The bank's The following year , new accounts for companies founder Paul Fokam Kammogneis one ofthe likely controlled by Gertler and his apparent mostprominentbusinessmenin Cameroon.126 He proxies accounted for an extraordinary $77 is alsothe founder ofVoxAfrica, a well- known million - a sum that alone accounts for more than African media broadcasterbased in London, and double the total deposits for the previous year .

GLOBAL WITNESS JULY 2020 UnderminingSanctions 27 Afriland DRC denied any allegations of wrongdoing by the bank , stating that “ The bank has not violated any OFAC provisions and has not assisted any of its customer in circumventing US sanctions. While non - U.S. banks are not bound Afriland First Bank CD by U.S. sanctions , Resource Matters suggested that “ [ e ]ven non-American banks will most likely decline to process dollar transactions involving sanctioned entities . And indeed , Afriland has represented that itdoes exactly that : it said that

all accounts in connection with a sanctioned A branch of Afriland First Bank in Kinshasa . After Gertler's designation under US sanctions , Afriland DRC's profit increased entity are frozen and monitored However, the by 350 %. GlobalWitness bank also said itcould not comment any further on confidentialinformationof its clients' As a result, 2018was a very good year forAfriland. accounts . Itfurther stated that the bank The bank's profitsincreasednearly350% in a year . complies with all FAFT and KYC procedures and that its management was not aware of providing The bank's financial statements also show that it services to any Gertler representatives at the made generous loans Gécamines . In 2018, the bank, nordidthe bankcontributeinsupervising bankprovideda loan of $20 millionto the state or creating any suspicious accounts . miner . The loan is also recorded in Gécamines ' 2018 annual report but unlike most other loans, At the very least, Global Witnessand PPLAAF the companydoes not providedetailsabout its believeAfriland DRCshould investigatewhether terms or purpose. it has failed to comply with Customer Due Diligence(CDD) standardsto ensurethat it is not Paul , Fokam the bank's founder, sits on the board facilitatingmoney laundering, as required by the ofAfriland DRC alongsideseveral executivesof InternationalStandardson CombatingMoney AfrilandCameroon. Giventhe increaseinAfriland Laundering Financial Action Task Force DRC's revenue, it seems likely that the bank's ( FATF ) Afriland either appears not to have had headquarters had knowledge of the scheme put adequateCDDproceduresin place, or to have in place in Kinshasa. ignored them

CDD isthe processused by banksin order to take reasonablemeasurestoverify the identityoftheir clients, understandthe natureof their business TV5MONDE and checkthattransactionsmatchthe bank's understandingofthe client at the startof doing businesswith them and on an ongoingbasis. 131 Inthe case of individualssuch as Gertler,who is knownto be a closefriend of ex-presidentKabila that is, a politicallyexposedperson (PEP) – financialinstitutionsshould carry out enhanced customerdue diligence.None ofthe evidence collectedby GlobalWitnessand PPLAAFsuggests that this has been done. President Felix Tshisekedi mentions Afriland First Bank in a TV interview in September 2019. TV5 Monde.

GLOBAL WITNESS JULY 2020 UnderminingSanctions 28 On its website, Afriland claims that it has been BMCE. It also holds euro accounts at Afriland working “ to restoredignity to the african [sic] Cameroon for over €10 million, at BMCE for €7 people." Our report shows that it has instead million and at another Moroccan bank called successfully preserved Gertler's influenceand Attijariwafa for €1.4 million. access tothe internationalfinancial system in Accordingto FATF, banks that establish spite of US sanctions . correspondent banking relationships must " Global Witness and PPLAAF's perform due diligence on the correspondent revelations about Afriland's role in bank (in this case, Afriland ) . This means gathering sufficient information about that bank to helping Dan Gertler sanctions understand its business , reputation and the is an important reminder of how correspondent DRC's banking sector is at the heart quality of its supervision.133 The bank must assess the respondent of the country's systemic controls and take into accountwhether the and the lootingof its corruption institution has been subject to money laundering natural resources . " investigations or regulatory actions. must Jean Jacques Lumumba, Congolese then monitor the relationship and ensure that who exposed transactions risk levels remain the same and mitigation of dozens of millions of dollars between measures are implemented , where necessary.1135 BGFI Bank in DRC and companies The findings of our investigation raise questions controlled by members of President as to whether banks clearing euro or dollar Kabila's inner circle. transactionsfor Afriland DRCcompliedwith proper due diligence procedures and with US The role of correspondent banks sanctions obligations . Banks clearing dollar In order to process dollar or euro-denominated transactions for Afriland DRC could have transactions , Afriland has relationships with processed transfers connected to Gertler and his correspondent banks in relevant jurisdictions . A associates , therefore breaching Global Magnitsky correspondent bank is a partner bank that Act sanctions . Banks processing euro provides services on behalf of another financial transactions should have ensured that the bank institution . Correspondent banking typically they were doing business with was complying involves both banks establishing reciprocal with international banking standards , such as accounts with each other . These accounts are know your client (KYC) and anti-money established to enable the domestic bank to make laundering (AML ) procedures . payments or money transfers on behalf of the THE PROBLEM...AND HOWTO FIX foreign bank . IT This meansthatfor Afriland DRC to be able to US sanctions act both as a punitive measureand process US dollars or send dollar transfers as a meansto encourage behaviouralchange. abroad, it needs a correspondent bank in the US, or a bank able to trade in dollars.Accordingto Most immediately, thefindings in this report not have changed DRC's 2018 annual report, the bank holds suggest Dan Gertler may Afriland than accounts with a number of foreign banks, which his ways . Once sanctioned, rather leave DRC, he appearsto have turned could be acting as correspondent banks. Afriland straight to a pliable DRC has an account holding $22 million with bank, a network of apparent proxies, and a complex Afriland Cameroon, and an account holding clandestinecorporateand $ 387,000 with the Paris branch of Moroccan bank banking network . This network may have allowed

GLOBALWITNESSJULY 2020 UnderminingSanctions 29 him to evade US sanctions , while possibly reputationfor trustworthinessuponwhich acquiringfurther miningassets in DRC under financial transactions depend. Such activitiescan questionablecircumstances somethingthe also lead to " inexplicablechanges in money sanctionswere intendedto put an end to. demand, prudentialrisksto bank soundness, Sanctionedindividualscan be removedfrom contaminationeffectson legalfinancial designationlists if they reformtheir ways . transactions, andincreasedvolatility of However, there ought to be no questionof any internationalcapitalflows and exchange rates changeto Gertler'sstatus as a designated due to unanticipatedcross- border asset individualunderthe US Global MagnitskyAct transfers. Also, as it rewardscorruptionand untilthe mattersraised inthis report have been crime, successfulmoney launderingdamagesthe subjectto further investigationby the relevant US integrityof the entiresociety and undermines or otherauthorities. democracy and the rule of the law. ” 136

Morebroadly,though,this investigationhas The US shouldbe credited for taking a step to exposed the potentialfor the machineryofthe constrainthe negativeeffectsof Gertler's deal globalfinancial system to be employed by menin makingin DRC by sanctioninghim and his suits to circumventaccountabilitymeasures companies, aswell as leadinginvestigationsinto taken by eventhe most powerfulcountry inthe two of his corporatebusinesspartners,Och-Ziff world. Lax banking regulation,corporatesecrecy and Glencore. It is similarlyencouragingthat the and legal artifice lookto havecombined in this SFO has takenstepsto investigatethe case to allow a sanctionedindividualto handle proprietyof Gertler'sdealswith anothermajor US dollarsandcontinuedoing business despite mining company, ERG. US effortsto lock Gertlerout ofthe US dollar Competentauthoritiesin other relevant economy. jurisdictions, includingbut not restrictedto DRC, The damage done to DRC by someof Gertler's Israeland Switzerland, musttake stepsto deals has been madeplain bythe likesof the investigateand whereevidenceofwrongdoing Africa ProgressPanel, whichfoundthatthe DRC is found prosecutethe individualsand lost $1.4 billionin revenuesfrom the under- companiesinvolvedinthe suspectnatural pricingof miningassetsthatwere sold to resource deals involving Dan Gertler in DRC. offshore companies linked to Gertler . The US Sanctions regimes that have not already done so imposed sanctions specifically seeking to prevent the deleterious impacts of Gertler's business model in DRC . Any individuals and institutions that have enabled and abetted any continued activities in DRC must be held accountable for the continued harm they are indirectly doing to DRC, where the vast majority of the population still does not fairly benefit from the mineral riches of the country .

Sanctions evasion and money launderingin general also do greatdamageto the integrityof the internationalfinancialsystem. The FAFT explainsthat criminalactivities like money Dan Gertler tours a mining site in DRC in 2012. Despite being launderingunderminethe credibilityofthe sanctioned since 2017 , the Israeli billionaire has not changed his financial institutionsinvolved, ruiningthe ways . Simon Dawson / Bloomberg via Getty Images

GLOBALWITNESSJULY 2020 UnderminingSanctions 30 should consideraddingGertlerand his belonging to Gertler, including and without companiestotheir listof sanctionedentities. delay , the freezing of any bank accounts belonging to Gertler and his affiliated The EU in particularmust review the adequacyof companies . its sanctionsregime. WhenGertlerwas sanctionedby the US, Glencoresimplyswitched > The DRC government must order all state owned companies to suspend any possible the denominationof massive royalty paymentsto transactions or agreement under himfrom US dollarsto euros. The Eurozone negotiation with Gertler and his affiliated companies . cannot idly stand by whileits currencyis usedto undermineUS sanctionsthat are seekingto > The DRCgovernmentmustcommissionan protectthe integrityofthe financialsystem.An independentauditofallcontractsand EU equivalentofthe US GlobalMagnitskyAct has transactionsinvolvingGertler. All findingsof this auditshould be published. beenconsideredbutis advancingwithoutany clear focuson corruption. This needsto be > The DRC governmentshould launch an reviewed; corruptionhas a real and immediate investigationintohow Afriland in particular, impacton the livesofpeoplearoundthe world, and its bankingsystem ingeneral, has allowed andperpetratorsof corruptionmustbe heldto for such a schemeto take place. accountjust as humanrightsabusers mustbe. > The DRC government must set up a fully independent anti -corruption body and instruct Finally,sanctionsregimesincludingthe US must an independent external audit of all state investigatethe individualsand companies owned companies , including Gécamines . inthis reportthat may have aidedand abetted DanGertler'sevasionofsanctions, andconsider > State-owned miningcompanyGécamines designatingthemas sanctionedpersons.The lax mustpublish all contracts, withinsixty days of enforcementof regulationby banks,company their signature, as stipulated by Congolese mining law. Itshould also regularlyupdatethe service providersand lawyersis what allows miningcadastreand releaseits financial financialcrimeto take place, underminingthe statements in due time. ruleof law . Those institutionsthat fail to properly enforcesanctionsor anti-money laundering > The newNationalCommissionon the fight regulationsmustbe heldto account. against corruptionmustremainfinancially and politicallyindependent. RECOMMENDATIONS 2. The US 1. DemocraticRepublicof Congo > The US authorities should investigate those > The DRC parliament must strengthen its who have facilitated or colluded with Gertler to banking regulations and the enforcement of evade US sanctions , and those who continue anti- money laundering policies . to do business with him , whether in euros or dollars including individuals , entities , > The DRC must government approve the companies and financial institutions . Where 2018 decree regarding the creation of a wrongdoing or a violation of US law is found, beneficial ownership register for natural the US authorities should take action against , and endeavour to set up resource companies these entities , including via visa bans , , public and accessible beneficial a centralised designations , fines , the freezing of assets or ownership register of all Congolese criminal indictments . companies . > US banks with a correspondent relationship > The DRC governmentshould adopt with Afriland First Bank should reassess provisionalmeasuresagainst DanGertler, and Afriland's anti- money laundering and anti instructthe seizure and freezing of property

GLOBALWITNESSJULY 2020 UnderminingSanctions 31 corruption controls, includingby carrying out > Glencoreshould halt all royaltypaymentsto enhanced due diligence . Gertler, includingeuro-dominatedpayments.

3. The EU > Sicominesshould carry out enhanced due > The EU mustaddressthe loopholesthat diligence on Copperline, and halt business haveallowedthe EU to becomea safe haven with all Gertler-affiliatedor controlled for taintedmoneylinkedto Gertlerby ensuring companies. its Magnitsky' sanctionsregimeincludes > ERG should carry out enhanced due . corruptionas a criterion diligence on Copperline, and halt business > The EU must fully enforce its 5th anti -money with all Gertler-affiliatedor controlled laundering directive , which requires all companies. member states to set up a centralised register 6. International financial institutions of the ultimate beneficial owners of > The International Monetary Fund (IMF ) companies , and make this information should insist that the DRC available to the public . government lead an audit on all Gertler - related deals as a condition > Beneficialownership informationheld in EU for any future loans . corporateregistersmust be checkedfor > The IMF loan under discussion with the DRC accuracyand policedfor suspiciousbehaviour, government should be conditional on a sanctioningnon-compliancewith fines and strengthening of DRC's governance in the prosecutionsfor companiesor individuals, where relevant. natural resources and banking sectors .

> The IMF must ensure that Congolese banks > All EU memberstatecorporateregisters uphold ethical banking standards , comply with mustallocate a uniqueidentifierfor individuals. anti- money laundering frameworks and respect US sanctions . > Law enforcement in the relevant EU states should investigate the EU companies and > Multilateral development banks and the individuals who have facilitated or colluded financing institutions such as with Gertler to evade US sanctions , and those should adopt policies that allow them to debar companies that are implicated in acts of individuals or companies who continue doing , including as defined in Executive business with him , whether in euros or dollars corruption Order 13818: “ the misappropriation of state - including individuals , entities , companies assets , the expropriation of private assets for and financial institutions . Where wrongdoing gain, corruption related to or violation of the law is found , law personal government contracts or the extraction of enforcement in the relevant EU jurisdictions natural resources , or bribery . should take action against the violators , including via visa bans, the freezing of assets 7. Israeliauthorities or criminal indictments . > The Israeli authorities should investigate 4. The UK Gertler -related funds coming into Israel, and whether they have been subject to > The new sanctions regime should not appropriate money laundering and compliance rules. only focus on individuals accused of gross human rights violations , but also on > The Israeli authorities should investigate . perpetrators of corruption individuals and companies paid by Gertler and his companies , and the > The SFO should investigatenew evidencein whether payments were made in line with banking . relationto (previouslyENRC) business regulations withGertler. dealings 8. Correspondent banks 5. Internationalmining companies

GLOBALWITNESSJULY 2020 UnderminingSanctions 32 > Banks with a correspondent relationship with Afriland First Bank should halt their business relationship with Afriland until an enhanced due diligence process shows that money laundering risks are minimal .

This reportis basedon informationprovidedby whistleblowers. At theirrequest, theiranonymityis preserved. A whistlebloweris a person who disclosesinformationregardingactions thatare unlawful, illicitoragainstthepublicinterest, that theyhavewitnessed, especiallyinthe contextof their work.

The Platformto ProtectWhistleblowersinAfrica (PPLAAF) seeks to defendwhistleblowers, as well as strategicallylitigateandadvocateon their behalfwhere theirdisclosuresspeak to thepublic interestofAfricancitizens.

GlobalWitnesscampaignstoendenvironmental andhuman rightsabusesdriven by the exploitationofnaturalresourcesandcorruptionin the globalpoliticalandeconomicsystem .

GLOBALWITNESSJULY 2020 UnderminingSanctions 33 ENDNOTES

Philip Podolsky, The Timesof Israel, Meet Israel's richest Resources , African Trans InternationalHoldings B.V., rabbis, 10June 2012 , accessible here: FleuretteAfrican Transport B.V., Oriental Iron Company https://www.timesofisrael.com/forbes-ranks-israels SPRL, Iron MountainEnterprises Limited, Sanzetta richest-rabbis InvestmentsLimited, Almerina Properties Limited, InterlogDRC, Kitoko Food Farm, KaribuAfrica Services SA, 2 Global Witness, Glencore and the Gatekeeper, 16 May and Ventora DevelopmentSasu. 2015, accessible here: https://www.globalwitness.org/en/archive/glencore-and 6 Andy Hoffman, The Globe and Mail, The Murky Battle for gatekeeper/; and Global Witness, Outof Africa 4 May Katanga, 7 January2009, accessible here: 2016, accessible here: https://www.theglobeandmail.com/report-on https://www.globalwitness.org/en/campaigns/democrati business/ the-murky-battle-for-katanga/ article1145986/ C -republic-congo / out-of-africa /. 7 Tom Wilson and David Philling, The FinancialTimes , 3 ENRC is underinvestigation by the Serious Fraud Office How Joseph Kabila lostthen won DRC's election, 30 in the UK : Serious Fraud Office, Case information: ENRC January 2019 , accessible here: , 25 April ,accessible here: https://www.ft.com/content/2587564c-22fd-11e9-b329 https://www.sfo.gov.uk/cases/enrc/. Glencore is under investigation by the UK and theUS: 8 Transparency International,Why do DRC citizens report Julia Kollewe and Simon Goodley, , Serious such high levels of corruption? 11July, accessible here: Fraud Office investigatesGlencoreover suspected https://voices.transparency.org/why-do-drc-citizens bribery, 5 December2019, accessible here: report-such-high-levels-of-corruption -554fae0d2213 https://www.theguardian.com/business/2019/dec/05/seri 9 ITIE RDC, Contrats Miniers, Gécamines et Evelyne ous-fraud office-investigates- glencore-over-suspected Contratd'amodiationrelatifaux droits miniers attachés bribery; aux périmètres des rejets de MUNIPE NORD et SUDetc, Neil Humeand KadhimShubber, FinancialTimes, November2018, accessible here : Glencore underinvestigation by US commodities https://www.itierdc.net/carte-de-la-rdc regulator, 25 April 2019, accessiblehere: cliquable/ contrats-miniers/. ft.com/content/f73b3906-6781-11e9-9adc-98bf1d35a056; Glencore, Update on subpoenafrom United States 10 US Departmentof Treasury, Press Release , Treasury sanctions Human Rights abusers and corruptactors Departmentof Justice, 11July 2018 , accessible here: acrossthe globe, 21 December 2017,accessible https://www.glencore.com/media-and insights/news/Update-on -subpoena-from -United States here:https://home.treasury.gov/news/press releases/ sm0243. Departmentof- , last accessed 15 May 2020; Och Ziff entered a deferred prosecution agreementwith the 11Tom Wilson and David Philling, The FinancialTimes, US Departmentof Justice in September2016 : Ben How Joseph Kabila lostthen won DRC's election, 30th Doherty, The Guardian, The insidestory of Glencore's January2019.Accessiblehere: hidden dealings in DRC, 5th November 2017, accessible https://www.ft.com/content/2587564C-22fd-11e9-b329 here : https://www.theguardian.com/business/2017/nov/05/the -inside-story -of-glencore-hidden-dealings- in - drc. 12 BBC News, Felix Tshisekedi steps out of his father's shadow to lead DR Congo, 24 January 2019, accessible 4 US Departmentof Treasury, Press Release,Treasury here: https://www.bbc.co.uk/news/world-africa sanctions Human Rights abusersand corrupt actors 46507814 acrossthe globe, 21December 2017, accessible here: https://home.treasury.gov/news/press-releases/sm0243; 13 Tom Wilson, David Blood and David Pilling, The NationalDefenseAuthorizationAct for the Fiscal Year , Congo voting data reveal huge fraud in 2017, Global Magnitsky HumanRightsandAccountability poll to replace Kabila, 15 January 2019 , accessible here: Act, Public Law 114-328 , 23 December 2016 Subtitle F, https://www.ft.com/content/2b97f6e6-189d-11e9-b93e Sections 1261-1265, accessible here: f4351a53f1c3; Tom Wilson and David Philling, The https://www.govinfo.gov/content/pkg/CRPT Financial Times , How Joseph Kabila lost then won DRC's 114hrpt840/pdf/CRPT- 114hrpt840.pdf. Listof sanctioned election , 30 January 2019 , accessible here: entities: Dan Gertler, PieterAlbert Deboutte, Fleurette https://www.ft.com/content/2587564C-22fd-11e9-b329 PropertiesLimited, FleuretteHoldingsNetherlandsB.V., c7e6ceb5ffdf Gertler Family Foundation, Oil of DR Congo SPRL, Jarvis 14Tom Wilson and DavidPhilling, The Congo SARL, InternationalDiamondIndustries, D.G.D. FinancialTimes, How Joseph Kabila lostthen won DRC's election, Ibid. InvestmentsLtd., D.G.I. IsraelLtd, ProglanCapital Ltd, EmaxonFinance International Inc., Africa Horizons 15TheWorld Bank, The World Bank in DRC : Overview , InvestmentLimited, Caprikat Limited, Foxwhelp Limited, Lastaccessed6 May2020, accessiblehere: Caprikatand FoxwhelpSARL, Lora EnterprisesLimited, https://www.worldbank.org/en/country/drc/overview Zuppa HoldingsLimited, Orama PropertiesLtd, DGI MiningLtd, and Rozaro DevelopmentLimited. 16 US Departmentof Treasury, Press Release , Treasury sanctions Human Rights abusers and corruptactors 5 US Departmentof the Treasury, Press Release, Treasury acrossthe globe, 21December2017, accessiblehere: Sanctions Fourteen EntitiesAffiliated with Corrupt https://home.treasury.gov/news/press-releases/sm0243. BusinessmanDan Gertler Under Global Magnitsky, 15th June2018, accessible here: 17 HumanRightsFirst, The Global MagnitskyAct: https://home.treasury.gov/news/press-releases/sm0417. Frequentlyasked questions,April 2019, accessiblehere: List of sanctionedentities: Moku Mines D'orSA, Moku GoldminesAG, FleuretteEnergy B.V., FleuretteAfrica

GLOBALWITNESSJULY 2020 UnderminingSanctions 34 could also be known by: INTERLOG S.P.R.L .; BSD GROUP , https://www.humanrightsfirst.org/sites/default/files/hrf BSD S.P.R.L. global-magnitsky-faq.pdf. 29 US Departmentof Treasury , Press Releases, Treasury 18 . sanctions Human Rights abusers and corrupt actors across the globe, 21 December 2017,accessible here: 19 US Department of Treasury , Press Release, Treasury https://home.treasury.gov/news/press-releases/sm0243 sanctions Human Rights abusers and corrupt actors " Today, the United States is taking a strongstand against across the globe , 21 December 2017 , accessible here: humanrights abuse and corruption globally by shutting https://home.treasury.gov/news/press-releases/sm0243 . these bad actors out of the U.S.financial system ” Kelly 20 Africa Progress Panel, Equity in extractives , 2013 , Swanson, Global Investigative Review, NGOs welcome accessible here: impactofGlobalMagnitsky Act, 19 February 2019, https://static1.squarespace.com/static/5728c7b18259b5e accessible here: https://enoughproject.org/wp 0087689a6 / t/ 57ab29519de4bb90f53f9fff / 1470835029000 / content/uploads/ welcome-impact-of-Global 2013_African + Progress + Panel+ APR_Equity_in_Extractives Magnitsky -Act- % E2% 80 % 93-Global-investigations _25062013_ENG_HR.pdf . See pp. 55-57 : total losses from Review-% E2 % 80 % 93 -GIR.pdf; the five deals reviewed were equivalent to almost double Resource Matters, The Global the combined annual budget for health and education in Magnitsky Effect, February 2012. 2018, accessible here: https://resourcematters.org/wp content/uploads/2018 /02/Resource-Matters-Magnitsky 21 Executive Order 13818, ( Dec. 20, 2017), Section 4. in -Congo-Impact-of-Gertler-sanctions- -Feb -2018 Accessible here: FINAL.pdf. https://www.govinfo.gov/content/pkg/FR-2017-12 30 The Balance, the US dollar is the GlobalCurrency, 26 /pdf/ 2017-27925.pdf 22 April 2020, accessible here: 22 U.S. Department of the Treasury , FAQ : Global https://www.thebalance.com/world-currency-3305931. Magnitsky Sanctions (Dec. 21, 2017) . Accessible here: 31 Wolfsberg Group , Guidance on Sanctions Screening, https://www.treasury.gov/resource 2019 accessible here: https: //www.wolfsberg center /sanctions/Programs/Documents / 12212017_gloma principles.com/sites/default/files/wb/pdfs/Wolfsberg%20 g_faqs.pdf Guidance % % 20Sanctions% 20Screening.pdf 23 FY17 National Defense Authorization Act, Global 32ResourceMatters, The Global Magnitsky Effect, Magnitsky Human Rights and Accountability Act ,Sections February2018. Accessible here: 1261-1265 Subtitle F , Public Law 114-328, 23 December 2016. Accessible here : https://resourcematters.org/wp content/uploads/2018 /02/Resource-MattersMagnitsky https://www.govinfo.gov/content/pkg/CRPT in -Congo- -Gertler-sanctions-16 -Feb - 2018 114hrpt840/pdf/CRPT -114hrpt840.pdf. FINAL.pdf, at 4. , Questions and Answers, The Global Magnitsky Act, 13 September 2017. Accessible here: 33 Marketplace, Why the DRC is still dependent onthe US https://www.hrw.org/news/2017/09/13/us-global dollar, 10 December 2014, accessible here: magnitsky -act https://www.marketplace.org/2014/12/10/why-DRC-SO Department of the Treasury , Revised guidance on entities dependent-us-dollar/ owned by persons whose property and interests in property are blocked , 13 August 2014. Accessible here: 34 Gertler's deals were done in US dollars: Reuters, https://www.treasury.gov/resource Glencoresettles with Gertler over DRC royalties, 15 June center / sanctions/ Documents / licensing_guidance.pdf 2018, accessible here: https://uk.reuters.com/article/uk glencore-DRC/ glencore-settles-with -gertler-over-DRC 24 Executive Order 13818 ( Dec. 20, 2017 ) , Section 5 . royalties-idUKKBN1JBOJQ; Accessible here: https://www.govinfo.gov/content/pkg/FR-2017-12 Rupert Neate,The Guardian, ENRC ends Congo mining deal with controversial billionaire Dan Gertler, 9 26 / pdf/ 2017-27925.pdf December 2012. Accessible here : 25 Executive Order 13818 ( Dec. 20, 2017 ) , Section 1( a ) ( iii ) . https://www.theguardian.com/business/2012/dec/09/enr Accessible here: congo- mining- billionaire; Franz Wild , Jesse https://www.govinfo.gov/content/pkg/FR-2017-12 Riseborough and Thomas Wilson , Bloomberg, Glencore 26 /pdf/2017-27925.pdf Buys Out BillionaireWith $ Billion Congo Mining Deal, 13 February 2017, accessible here: 26 US Department of the Treasury , Press Release, Treasury Sanctions Fourteen Entities Affiliated with https://www.bloomberg.com/news/articles/2017-02 13/ glencore -said -to -agree-on - gertler-buyout in-960 Corrupt Businessman Dan Gertler Under Global million-deal Magnitsky , 15th June 2018, accessible here: https://home.treasury.gov/news/press-releases/sm0417 . 35 United States Senate, disclosure act database 27 Ibid. ( accessed on 22 June 2020) , accessible here: https://soprweb.senate.gov/index.cfm?event=processSea 28 US Departmentof the Treasury, Office of Foreign rchCriteria. The database can be search by adding Assets Control, Syria-related Designation; Syria ' as a in the section search lobbying DesignationsRemovals; Global MagnitskyDesignation database Removal; ForeignSanctionsEvaders Determination 36 Tom Wilson, FinancialTimes, DRC President Joseph Removal, 17 March 2020, accessiblehere: Kabila defends Glencore and former partner Gertler, 10 https://www.treasury.gov/resource December 2018, accessible here: center / sanctions/OFAC https://www.ft.com/content/8c9a416a-fc6e-11e8-aebf Enforcement/Pages/ 20200317.aspx. 99e208d3e521. The company was called INTERLOG DRC, though the US TreasuryDepartmentlisted three other namesthat it

GLOBAL WITNESS JULY 2020 UnderminingSanctions 35 the 2 February 2018 ,when he incorporates Dorta Invest in 37 Linkedin, Alain Mukonda (accessed on 18 May2020) , DRC accessiblehere: https://www.linkedin.com/in/alain mukonda- mayandu-4030a555/ Inhisprofile, Mukonda 49 Fleurette Mumi Holdings Limited was originally statesthat he workedfor DenovoCongo', which has been registered in the BVI and was redomiciled to the DRC on publiclyassociatedwith Mr Gertler in the past. See also, 15 December 2017 under the name of Ventora Scott Pattersonand Rebecca DavisO'Brien, WallStreet Development SASU. Pr Ties Journal, U.S. etweenGlencore, Diamond 50 Glencore , Prospectus, Glencore Funding LLC, 21March MerchantUnderSanction, 5July 2018, accessible here : 2017 accessible from : https://www.wsj.com/articles/u-s-probes-ties-between glencore- diamond-merchant-under-sanction https://www.glencore.com/dam/jcr:65c76839-b1d2-4f36 1530827597. 87ca -57bfd0b5dc1b / FINAL -Glencore-2017-144A -Bond Prospectus.pdf. 38 US Department of the Treasury , Press Release , 51 Dorta's website was accessed at https:// dorta with Treasury Sanctions Fourteen Entities Affiliated invest.com/home on 19 September 2019, and is now Corrupt Businessman Dan Gertler Under Global down. Dorta's Facebook page, accessible from : here: Magnitsky , 15th June 2018 , accessible https://www.facebook.com/pages/category/Investing https://home.treasury.gov/news/press-releases/sm0417 . Service /Dorta -Invest-as- 1672045529699425 has been 39 RFI, RDC:la polémique enfle sur un prêt accordé par inactive since 2015. Dorta's Twitter page, accessible from: Dan à la Gécamines , 30 December 2019 , accessible https://twitter.com/dortainvest, has also been inactive from : http://www.rfi.fr/fr/afrique/20191230-rdc since 2015. Dorta has not submitted any filing or annual polemique-pret-societe -miniere -gecamines -dan - gertler. results at the Czech registry since September 2016, accessible from: https: // rejstrik 40 Fleurette Group , Fleurette Group Responds to Third firem.kurzy.cz/01517279/dorta-invest-as/zmeny/ . Global Witness Statement on KCC Royalties ,3 March 2017 , accessible from : https://www.prnewswire.co.uk/news 52 See wayback machine versions of the Dorta site, which releases/ fleurette- group -press -statement-fleurette redirected to Interactive FX in March 2017, accessible from: group -responds-to -third -global -witness -statement on royalties-615306693.html. https://web.archive.org/web/20170326164748/http://dort a-invest.com/ 41 Chaim Levinson , Haaretz , nun 29 December 2013 , 53 Information about the registrant of the website on accessible from : database is accessible from: https://www.haaretz.co.il/news/law/1.2202668 . https://community.riskiq.com/search/dorta invest.com/whois. 42 54 Kanton Luzern, Commercial Register, Interactive 43 Philip Podolsky,The Times of Israel, Meet Israel's Energy AG CHE - 279 636 742 ( accessed 19 May 2020 ) , richest rabbis, 10June 2012, accessible from : accessible here: https://www.timesofisrael.com/forbes-ranks-israels https://www.shab.ch/shabforms/servlet/Search?EID=7&D richest-rabbis/ OCID=2668887 . 44 Uri Blau and Daniel Dolev, Haaretz, Israeli Diamond 55 Interactive Energy's website (accessed 19 May 2020 ) , Tycoons Listed in Leaked , 7 April 2016, accessible from: https://inte-energy.com/. accessible from: https://www.haaretz.com/israel news/israeli-diamond -tycoons-listed-in-leaked- panama 56 Finova Partners' website (accessed 19 May 2020 ) , papers- 1.5428075. accessible from: https://www.finova.ch/en/contact us/ lucerne/ 45 Naftali Trabelsi Haredi News, 57 Companies House, Openax Limited ( previously 29 January 2018, accessible from : Interactive Energy ) , Company number 09836141, http://actualic.co.il/%D7%A6%D7%A4%D7%95 Persons with significant control, last accessed 20 May %D7%94%D7%9E%D7%99% D7%9C%D7%99% D7%90 %D 2020, accessible from : 7 % A8 % D7 % 93 % D7 % A8- % D7% 93 % D7 % 9F https://beta.companieshouse.gov.uk/company/09836141 % D7% 92 % D7 % A8 % D7 % 98 % D7 % 9C % D7 % A8 / persons-with -significant-control. % D7% 91% D7 % A8 % D7 % 99 % D7 % A7 % D7 % 95 % D7 % 93 % D7 % A1% D7 % 95 % D7 % 97 % D7 % A3- % D7 % A2 % D7 % 9D 58 Wikipedia , Ruben Katsobashvili, accessible here: % D7 % A8 https://en.wikipedia.org/wiki/Ruben_Katsobashvili 46 The director of Services is also a director in AGR BV 59 Google searches for Ruben Katsobashvili and the two companies named on the Wikipedia page provided no and Dasela Company S.R.O. See respective company other . The companies also did not come up inthe registry entries here: https://drimble.nl/bedrijf/breda/38484072/agr-group Georgian or Russian corporate registries. bv.htmland https:// rejstrik 60 Georgian corporate registry , accessible from: firem.kurzy.cz/osoba/2983488 . Association des https://enreg.reestri.gov.ge/main.php?m=new_index&l=e consommateurs de France, www.euro-crypto.net, 1 n; Russian corporate registry, accessible September 2018, accessible from: from http ://www.spark-interfax.ru/#_top . https://www.adcfrance.fr/cryptomonnaies/le-site-www euro -crypto net-les-recherches-de-ladc -lorraine 61 Interactive Energy AG had two subsidiaries: Openax Limited ( previously known as Interactive Energy ) 47 Based on online research, Dorta Invest does not based in the UK, accessible here: appear to hold any assets in DRC. The company also does https://www.google.com/search?q=openax+limited&oq= not appear in the DRC Gazette , called the Journal Officiel. 48 Berros' name does not come up in connection with DRC in any online research or in the Journal Officiel until

GLOBAL WITNESS JULY 2020 UnderminingSanctions 36 72 GBC , GBC Investigative Report- Sanctionned openax + limited & aqs =chrome.0.35i39j69i57.2673j0j7 & sou billionaire Dan Gertler and the Gibraltar links ,20 June rceid=chrome& ie= UTF-8 2018, accessible here: https://www.gbc.gi/news/gbc investigative-report-dan -gertler- and- gibraltar-links; And Interactive Data Limited ( previously known as Hassans , Company Management, accessible here: Interactive Energy limited ) , registered in Hong Kong, https://www.gibraltarlaw.com/expertise/company accessible through the corporate registry database : management/. See list of Our People at Hassans , https://www.icris.cr.gov.hk/csci/cns_basic_comp.do accessible here https://www.gibraltarlaw.com/our 62 Partsof the reporthave beenamendedon 14 October people 2020 to reflectfurther informationprovidedby Rulvis 73 Hassans, Company Management,accessible here: CongoSAS https://www.gibraltarlaw.com/expertise/company 63 management On 20 November2017, KaribuAfrica Servicesbought50% 74 Glencore, Press Release, Settlement of dispute with of RulvisCongo . On 24 November2017, two newdirectors Ventora and Africa Horizons, 15 June 2018, accessible were broughtin as newdirectorsfollowingKaribu's here: https://www.glencore.com/media-and acquisitionof shares. One was previouslya directorof insights/news/Settlement-of-dispute-with - Ventora and MokuGoldminesAG in 2015, which wassanctionedby the Africa horizons. US for its linksto Gertler in 2018. Accessiblehere : https://home.treasury.gov/news/press-releases/sm0417. 75 Barney Thompson and Caroline Binham, Financial The other was a directorof Comide in 2011, a joint Times, Law firm accuses ENRC of bribes, sanctions venturevehicle betweenGertler and Gécamines. busting and overpayment,5 July 2018, accessible here : In January 2018, KaribuAfrica Serviceswas boughtout of https://www.ft.com/content/9b5ebe14-8069-11e8-bc55 Rulco butthe two connecteddirectorswere 50daf11b720d. nominatedin March2018. 76 ENRC is under investigation by the Serious Fraud Office in the UK: Serious Fraud Office, Case information: ENRC 64 US DepartmentoftheTreasury, PressRelease, Treasury 25 April 2013 , accessible here: Sanctions FourteenEntitiesAffiliatedwith Corrupt https://www.sfo.gov.uk/cases/enrc/. BusinessmanDanGertlerUnderGlobalMagnitsky, 15th here: 77 ITIE RDC Contrats Miniers, Gécamines et Evelyne June2018, accessible Contrat d'amodiation relatif aux droits miniers attachés https://home.treasury.gov/news/press-releases/sm0417. aux périmètres des rejets de MUNIPE NORD et SUD etc, November 2018 ( accessed 15 May 2020) , accessible here: https://www.itierdc.net/carte-de-la-rdc 66 France24 Multi- billioneuro carbon-tradingfraud trial cliquable/contrats-miniers/ . opens in Paris, 3 May 2016, accissible here: https://www.france24.com/en/20160503-france-trial 78 multi-billion-carbon -emissions-trading-fraud-opens paris. 79The CarterCentre, A stateaffair: privatizingCongo's coppersector, November2017, accessiblehere : 67 StéphaneSellami, Le Point, ImbroglioJudiciaire après https://www.cartercenter.org/resources/pdfs/news/peac l'Interpellationd'un de l'Arnaqueau Co2, 6 June e_publications/democracy/ congo-report-carter-center 2018, accessiblefrom:https://www.lepoint.fr/faits nov-2017.pdf divers/ info-le-point imbroglio-judiciaire-apres- interpellation-d -un-ponte-de-l-arnaque-au-co2--06-06 80 GlobalWitness, Regimecash machine, 21July 2017, 2018-2224660_2627.php accessiblehere: https://www.globalwitness.org/en/campaigns/democrati 68 Ibid; Agence Belga, RTL Info, Carbone connexion: la C-republic-congo/ regime-cash-machine/ justice belge recheche un hommed'affaire franco israélien, 28 April2015, accessiblehere: 81ThomasWilson, Bloomberg, CongoBriberyProbe Puts https://www.rtl.be/info/belgique/faits-divers/carbone IsraeliBillionaire'sFutureon Hold, 23 February2018, connexion-la-justice-belge-recherche-un-homme-d accessiblehere: affaires- franco- - israelien 719356.aspx. https://www.bloomberg.com/news/articles/2018-02 69 Jugement correctionel, Appelssur Jugements du 22 23/he-got- rich -on-DRC-mines until-bribe-probeput Février 2018, 32eChambre du Tribunal de Grande future-on -hold. Accordingto article, chairmanof Instancede Paris, ParquetN. 11038092085 Extraitdes GécaminesAlbertYuma said the sanctionswere unjust . minutes du Greffe du Trubnalde Grande Instancede 82Tom Wilson, Biz News, CorruptionScandal: Gertler, Paris, 22 February2018. Accordingto thejugement,Avi Glencore’s Gupta' in the DRC, remainsdefiant, 23 Ben Ezra was found guilty of the following: escroquerie February2018, accessiblehere: réaliséeen bande organise,blanchimentaggravé: https://www.biznews.com/global concours en bande organiséeà une opérationde citizen/ 2018/02/ 23/ corruption-dan -gertler-glencore drc. placement, dissimulation ou conversiondu produitd'un délit» and « condamné à un emprisonnementdélictuel de 83 Reuters, UPDATE1-Congosells miningassetstofund quatre ans et au paiementd'une amende d'un million polls, 18August2011, accessiblehere: d'euros” https://af.reuters.com/article/commoditiesNews/idAFL5E ; MichaelJ. Kavanaghand FranzWild, 70 La Tribune, Avi Ben Ezra nous parle des avantages de la Bloomberg, CongoleseState MinerSells Stakein Former RPAet des chatbots, 24 June 2019, accessible from: FirstQuantumMines, 17 August2011, accessiblehere : https://www.latribune.fr/supplement/la-tribune-now/avi https://www.bloomberg.com/news/articles/2011-08 ben -ezra -nous-parle-des-avantages-de-la-rpa- et-des 17/congolese-state-miner-sodimico-sells-stake-in chatbots- 821482.html. former-first-quantum -mines 71Hassans, Eli Beniso, Partner, accessible here: https://www.gibraltarlaw.com/eli-beniso

GLOBALWITNESSJULY 2020 UnderminingSanctions 37 88 US Department of the Treasury , Global Magnitsky GlobalWitness, Out of Africa, 4 2016, accessiblehere: Sanctions , Frequently Asked questions , 1 December 2017 , https://www.globalwitness.org/en/campaigns/democrati accessible here: https://www.treasury.gov/resource C -republic- congo/out-of-africa/ See end note20: In center /sanctions /Programs/ Documents / 12212017_gloma August 2011Reutersand Bloombergreportedthat g_faqs.pdf. Sodimico, a state-owned miningcompany, had sold its share intwo copper projectsfor $30 million– per 89 While corporate records show that Karibu Africa centof the nated value of the stakes,accordingto Services was not owned directly by Dan Gertler, Karibu analysts two companiesassociatedwith Gertlerin Africa Services was sanctioned in June 2018 for being March2011, and that the proceedsofthe salewere used owned or controlled by Gertler or his companies ”. US in part tocontributeto an electionfund . Sodimico's Department of the Treasury , Press Release , Treasury per cent stake in the two mines, Frontierand Lonshi, was Sanctions Fourteen Entities Affiliated with Corrupt sold to two Gertler-linked BVI companiescalled Sandro Businessman Dan Gertler Under Global Magnitsky , 15th June 2018, accessible here: ResourcesLimitedand GarettoHoldingsLimited, bothof which were registeredby the same offshoreagentsthat https://home.treasury.gov/news/press-releases/sm0417 . registeredtwoothercompaniesassociatedwith Gertler.A 90 . letterdated 19 May 2011fromSodimicodetails instructionsgiven by theCongolesegovernmentto the 91 Serious Fraud Office, ENRC Ltd , Investigation companyto pay $ 10millionto theGeneralAccount for announced on 25th April 2013. , accessible here : theTreasuryfor the financingof2011elections. Reuters https://www.sfo.gov.uk/cases/enrc/ . reportsthat Modeste BahatiLukwebo, thethen- headof 92 Simon Goodley , Mark Hollingworth and Rupert Neate, theauditboardof the NationalAssembly'seconomicand financialcommittee, said thatMinesMinisterMartin The Guardian , ENRC : Serious Fraud Office launches Kabweluluhad orderedthe sale of the two stakes by criminal investigation , 25 April 2013, accessible here : https://www.theguardian.com/business/2013/apr/25/seri Sodimico, adding Sodimico sold itfor a priceof $30 ous- fraud -office -enrc-documents. million,which was imposedon the CEOofSodimico...the order wasgiven bythe Ministerof Mines...It's not Franz Wild, Bloomberg , U.K. Prosecutors Demand [Sodimico'sjob to pay for elections . Bloomberg Billionaire's Diary, 8 January 2020, accessible here : reportedSodimicoCEO LaurentLambertTshisola Kangoa https://www.bloomberg.com/news/articles/2020-01 as saying Sodimicois a state-ownedcompanyand itwas 08 /billionaire -s-letters-to -congo -s-kabila-were-sought a politicaldecisionto resolvecertain problemsand re by-u-k launchproductionat Frontier... It was not an economic sfo # :- text U.K. 20fraud % 20prosecutors % 20demanded decision by Sodimico. ' See Reuters, UPDATE1Congosells %20an,said %20at %20a %20London 20trial . miningassetsto fund polls MPs, docs', 18August2011 [http://af.reuters.com/article/commoditiesNews/idAFL5E 93 Global Witness , Out of Africa, 4 May 2016, accessible here: ] and Bloomberg, CongoleseState Miner Sells Stake in FormerFirstQuantumMines', 17August https://www.globalwitness.org/en/campaigns/democrati 2011 http://www.bloomberg.com/news/articles/2011 -republic -congo / out-of-africa / 08-17/ congolese-stateminer-sodimico-sells-stake-in 94 . former- firstquantum-mines ]. See also Africa Progress Panel's2013(p.101) reportfor details of the stakes held 95 Global Witness , Gertler received and distributed and sold on by Sandro resourcesand GarettoHoldings: millions in bribes in connection to drc mining deals , court http://app-cdn.acwupload.co.uk/wp papers allege , 10 August 2018 , accessible here: content/uploads/ 2013 / 08 / 2013_APR_Equity_in_Extractiv https://www.globalwitness.org/en/blog/gertler-received es_25062013_ENG_HR.pdf" and -distributed -millions-bribes-connection -drc -mining deals -court -papers - allege /. 84 See ExecutiveOrder 13818 ( Dec.20, 2017) atSec. 1 a ) ( iii) (A) (2) individualsor entitiesthat provide 96 Vasanthi Vara , Mining Technology , The top ten metals " , material, or technologicalsupport” to persons and mining companies by revenue in 2018 , 18 March 2019 , designatedin the ExecutiveOrder., includingDan Gertler, accessible here https://www.mining can be subjectedto sanctions. Accessiblehere : technology.com/features/the-top-ten-metals-and https://www.govinfo.gov/content/pkg/FR-2017-12 mining companies /. 26 pdf/ 2017-27925.pdfee also 31C.F.R. 583.304 (defining “ financial, material, or technologicalsupport” ) . 97 Eric Onstad , Laura and Quentin Webb , Reuters , Special Report - the biggest company you never 85 AndoniMaiza Larrarteand Gloria Claudio- Quiroga, heard of, 25 February 2011, accessible here : Quartz Africa, How to avoidflawedminerals-for https://uk.reuters.com/article/uk-glencore/special infrastructuredeals like DR Congo and China'sSicomines report- the-biggest-company -you-never-heard -of pact,3 April 2019, accessiblehere: idUKTRE7101AX20110225 . https://qz.com/africa/1586753/china-and-dr-congo sicomines-cobalt- mine- deal- is-flawed/ . 98 Franz Wild ,Vernon Silver and William Clowes , Bloomberg , Trouble in the DRC: the Misadventure of 86 GlobalWitness, RegimeCash Machine, 21July2017, Glencore , 16 November 2018 ,accessible here: accessiblehere: https://www.bloomberg.com/news/features/2018-11 https://www.globalwitness.org/en/campaigns/democrati 16 / glencore-s-misadventure -in -the -DRC -threatens -its C-republic-congo/ regime-cash -machine cobalt dreams . 87 ResourceMatters, The Global MagnitskyEffect, 99 Ibid Glencore, Press Release , Glencore purchases February2018, accessiblehere: stakes in Mutanda and Katanga , 13 February 2017 , https://resourcematters.org/wp accessible here: https://www.glencore.com/en/media content/uploads/ 2018/02/Resource-Matters- Magnitsky and-insights/ news /glencore purchases -stakes-in in - Congo-Impact-of-Gertler-sanctions- 16-Feb-2018 mutanda -and - katanga . FINAL.pdf.

GLOBALWITNESSJULY 2020 UnderminingSanctions 38 LLC, OZ Management, DanielS. Och and Joel M. FrankVS. 100 Franz Wild ,Vernon Silver and William Clowes, Securitiesand ExchangeCommission, 29 September Bloomberg, Trouble in the DRC : The misadventures of 2016, accessiblehere: Glencore. 16 November 2018, accessible here: https://www.sec.gov/litigation/admin/2016/34-78989.pdf. https://www.bloomberg.com/news/features/2018-11 16/ glencore- misadventure- in - the-DRC -threatens-its 110 Henry Sanderson,NeilHumeand DavidSheppard, cobalt dreams. the FinancialTimes, Glencore to buy out IsraeliBillionaire Dan Gertler's miningstakes, 13 February 2017, accessible 101 Fleurette Properties Limited, Press Release, Merger of here: https://www.ft.com/content/e599c789-458d-3674 Mutanda and Kansuki Mining operations,25 July 2013, be07-bd8e7d3a18db; Glencore, Press Release, Glencore accessible here: https://www.prnewswire.com/news PurchasesStakes in Mutandaand Katanga, 13 February releases/ fleurette -and-glencore-complete -merger-of 2017, accessiblehere: mutanda- and-kansuki-mining-operations https://www.glencore.com/en/media-and 216882021.html . insights/news/ glencore purchases-stakesin-mutanda GlobalWitness, Glencoreand the Gatekeeper, May2014, and - katanga accessiblehere: https://site 111Global Witness, Congo Signsoverpotential$880 media.globalwitness.org/archive/files/library/glencore%2million of royaltiesin Glencoreprojectto offshore 20the% 20gatekeeper 20may 202014.pdf. company belongingto Friendof Congolesepresident, 15 November2016, accessible here: 102 GlobalWitness, Glencoreand the Gatekeeper, May 2014, accessiblehere: https://www.globalwitness.org/sv/press-releases/congo https://site signs-over-potential-880m -royalties- glencore project media.globalwitness.org/archive/files/library/glencore%2offshore-company-belonging- friend-congolese % 20the 20gatekeeper% 20may 202014.pdf. president/ 103FranzWild,Vernon Silverand William Clowes, 112 Peter Jones, Reuters, Gertler Group loanedCongo's Bloomberg, Troublein the DRC: The misadventuresof Gécamnes $ 196 ml for mine buyout 29 April 2014, Glencore, 16 November2018, accessiblehere: accessiblehere: https://www.bloomberg.com/news/features/2018-11 https://www.reuters.com/article/congodemocratic 16/ glencore-s-misadventure- in -the-DRC-threatens-its mining-loan/ gertler-group-loaned-congos-gecamine-196 cobalt dreams. -for-mine-buyout-idUSL6NONL67P20140429. 104 Glencorefloated on the LondonStockExchangein 113 FranzWild, Vernon Silver and William Clowes, 2011: https://www.glencore.com/dam/jcr:0a37358d Bloomberg, Trouble in the DRC : The misadventuresof 8528-4389-a12a- /Final-Prospectus- 3 -May Glencore. 16th November2018. Accessible here: 201-low -res.pdf. Its publicofferingprospectusrevealed https://www.bloomberg.com/news/features/2018-11 that it hadboughtstakesin two minesin which Gertler 16 / glencore- -misadventure-in- the-DRC-threatens-its had stakes: Mutandaand Kansuki. GlobalWitnessraised cobalt-dreams. concernsin front ofParliamenton the 13 September 2011, accessiblehere : 114 The Carter Center, A Congolese State Affair : https://publications.parliament.uk/pa/cm201012/cmsele Privatizing Congo's Copper Sector, November 2017 , ct/ cmintdev/c1133- ii/ c113301.htm accessible here: https://www.cartercenter.org/resources/pdfs/news/peac 105William MacNamaraand ChristopherThompson, The e_publications /democracy / congo -report -carter -center FinancialTimes, CongoseizesFirstQuantumMinerals nov-2017.pdf , p.23 assets, 31 August 2010 ,accessible here:https://www.ft.com/content/27d6e104-b530-11df has preferred to negotiate a one -off final 9af8-00144feabdco payment instead of retaining the long - term royalties , 106 The United StatesDepartmentofJustice, Officeof signing bonus instalments , and dividends it had fought for in the contract renegotiations. This trade -off was most PublicAffairs, PressRelease, Och-Ziff Capital striking in the sale of Gécamines percent stake in ManagementAdmitsto RoleinAfrica BriberyConspiracies and Agreesto 213 MillionCriminalFine 29 Mutanda to a Gertler -associated company in March 2011 ; 2016, accessiblehere: Thomas Wilson , Bloomberg , Glencore tests US sanctions September resolve with Gertler payments, 15 June 2018 , accessible https://www.justice.gov/opa/pr/och-ziff-capital here:https://www.bloomberg.com/news/articles/2018 management-admits-role-africa-bribery-conspiracies 06-15 / glencore -to -restart -payments -to -sanctioned offact accessibleatthe and-agrees-pay-213. Statement billionaire - . bottomof thispage. gertler 115 Resource Matters, The Global Magnitsky Effect: How 107 Och -ZiffCapitalManagementGroup LLC OZ and Joel M. Frank will US sanctions against Israeli billionaire Dan Gertler Management, DanielS. Och affect the DR DRC's extractive sector ? February 2018 , Securitiesand ExchangeCommission, 29 September 2016, accessiblehere : accessible here: https://resourcematters.org/wp content/uploads/ 2018 /02/Resource -Matters -Magnitsky https://www.sec.gov/litigation/admin/2016/34-78989.pdf. in DRC -Impact -of-Gertler-sanctions- 16 -Feb - 2018 108 FINAL.pdf . 116 Global Witness, A bad year for Glencore , 3 July 2018 , 109The United StatesDepartmentofJustice, Officeof here: PublicAffairs, PressRelease,Och -ZiffCapital accessible ManagementAdmitsto Rolein Africa BriberyConspiracies https://www.globalwitness.org/sv/blog/bad-year and Agreesto Pay 213 Million Criminal Fine, 29 glencore / 2016, accessiblehere: September 117 Henry Sanderson and Neil Hume, Financial Times , https://www.justice.gov/opa/pr/och-ziff-capital Gertler seeks $3bn damages from former partner management-admits-role- africa-bribery-conspiracies Glencore , 27 April 2018 , accessible here : and agrees-pay-213. Statementoffact accessibleatthe bottomof this page; Och- Ziff CapitalManagementGroup

GLOBALWITNESSJULY 2020 UnderminingSanctions 39 https://www.afrilandfirstbankcd.com/index.php/fr/afrilan https://www.ft.com/content/a29b7ce6-4a39-11e8-8ae9 d -first - group -en-bref. 4b5ddcca99b3; Cynthia O'Murchu and Henry Sanderson , Financial Times, Glencore wins injunction against Gertler 126 Mfonobong Nsehe , Forbes , 7 Multi-Millionaires From royalty claim , 1May 2018, accessible here: Cameroon You Should Know , 22 May 2017 ,accessible following : https://www.ft.com/content/14f3d51c-4d5b-11e8-97e4 here 13afc22d86d4. https://www.forbes.com/sites/mfonobongnsehe/2017/05 / 22 /7-multi-millionaires -from -cameroon -you-should 118 William MacNamara and Christopher Thompson, The know FinancialTimes, Congo seizes ' assets, 31 August 2010, accessible here: 127 See list of Fokam’s books at Decitre , accessible here : https://www.ft.com/content/27d6e104-b530-11df-9af8 https://www.decitre.fr/auteur/182493/Paul+K+Fokam . 00144feabdco . 128 Francoise Joly , TV5 Monde , Interview du Président 119 Glencore, Press Release, Settlement of dispute with Felix Tshiskedi , "Les droits de l'Homme c'est ma priorité ", Ventora and Africa Horizons, 15June 2018, accessible Félix Tshisekedi , président de la RDC , 30 April 2020 , see here: https://www.glencore.com/media-and 19:48, accessible here: insights/news/Settlement-of-dispute-with -Ventora-and https://www.youtube.com/watch?v=mliq Africa -horizons. 129 Resource Matters , The Global Magnitsky Effect, 120 . February 2018. Accessible here: https://resourcematters.org/wp 121US Departmentof theTreasury, Press Release, content/uploads/ 2018 /02 /Resource -Matters -Magnitsky Treasury SanctionsFourteenEntitiesAffiliated with in - Congo -Impact -of-Gertler - sanctions- 16 -Feb - 2018 Corrupt BusinessmanDan Gertler UnderGlobal FINAL.pdf Magnitsky, 15thJune 2018, accessiblehere: https://home.treasury.gov/news/press-releases/sm0417. 130 Financial Action Taskforce , FAFT recommendations , International standards on combating money laundering 122 ExecutiveOrder 13818of December20,2017, and the financing of terrorism & proliferation, Updated Presidentialdocuments, FederalRegister, Blockingthe June 2019 , accessible here : http: //www.fatf Propertyof Personsinvolvedin SeriousHuman Rights gafi.org/media/fatf/documents/recommendations/pdfs/F Abuse or Corruption, 26 December2017, accessible ATF % 20Recommendations % 202012.pdf here:https: //www.govinfo.gov/content/pkg/FR-2017-12 26 /pdf/ 2017-27925.pdf. 131 , p.12. 123 Neil Hume, DavidSheppard Henry Sanderson, 132 Afriland First Bank , Philosophy ( accessed on 20 May FinancialTimes, Glencoresubpoenaed by US Justice 2020 ) , accessible here: Department,3 July2018, accessiblehere: https://www.afrilandfirstbank.com/index.php/en/aboutu https://www.ft.com/content/b18205f4-7e91-11e8-8e67 s/our -philosophy of-action . 133 Financial Action Taskforce , FAFT Guidance , 124 Glencore, Press Release, Settlementof disputewith Correspondent banking services, October 2016 , Ventora and Africa Horizons, 15th June 2018. Accessible accessible here: http: //www.fatf here : https://www.glencore.com/media-and gafi.org/media/fatf/documents/reports/Guidance insights/news/Settlementof-dispute-with-Ventora-and Correspondent -Banking -Services.pdf Africa-horizons 134

125Afrilandfirst Bank'swebsite, AboutUs (accessed20 135 May 2020), accessiblehere: https://www.afrilandfirstbank.com/index.php/en/about 136 FAFT, Money laundering FAQ, accessible at: us; AfrilandFirst Bank CD, AfrilandFirst Bank CD en Bref, https://www.fatf-gafi.org/faq/moneylaundering/ . (accessed 20May2020), accessiblehere :

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