An insurance company canceled the contract insuring the storage vault in Triesen operated by Diegelmann with OZL, a non-sanctioned company. «Without this insurance, hundreds of millions of dollars in precious metals and other valuables stored in the vault run the risk of theft and/or destruction without any coverage.»

OZL points out that this representation does not reflect the current situation and that there is still full insurance coverage of the vault. The current management emphasizes a change in ownership; the Diegelmann family is not longer in control of OZL.

2,500 Cattle in Imminent Risk of Death of Starvation

The consequences are also dire for the agricultural estate owned by Axel Diegelmann in Paraguay: The farm is «unable to procure feed for the cattle because providers are concerned that supplying the farm will result in their own designation to the SDN List.» As a result, «over 2,500 cattle are in imminent risk of death by starvation,» according to the legal complaint.

The sanctioned gold dealers emphasize their previously impeccable legal reputation. Until their appearance on the SDN line, they «were never subject to any regulatory or disciplinary action.»

Venezuela

This claim appears debatable. In 2020, finews.com, among other sources, reported that Claudia Patricia Díaz Guillén, who served as finance minister of Venezuela and was formerly a nurse to Venezuelan dictator Hugo Rafael Chávez Frías (Hugo Chávez), had stored large amounts of gold worth nearly 10 million dollars in the Diegelmanns' vault shortly after his death in 2014.

The case was a ramification of the major PDVSA scandal. At the time, the Liechtenstein public prosecutor's office confirmed «investigations against Liechtenstein suspects.» However, the precious metals business was not subject to Liechtenstein’s Anti-Money-Laundering Act, until 2021.

Iran?

In 2022, a major gold sale from Liechtenstein to Iran caused controversy, uncovered by «Vaterland» (article behind paywall): Two years earlier, at the end of 2019, 2.5 tons of gold were sold and physically exported to Iran for 100 million dollars. The payment was processed through an account at a Russian bank opened exclusively for this purpose.

The Financial Intelligence Unit, a Liechtenstein authority, published this as an anonymous case study, describing it as involving a «significantly involved Liechtenstein precious metals dealer and custodian.» Industry insiders believe it is likely that this is a reference to Rheingold Edelmetall and its network, due to the transaction volume.

Legally, the deal would only have been problematic if the buyer had been an already sanctioned customer from Iran by the end of 2019.

Risk-Friendly Player

Research around Rheingold Edelmetall suggests it is a rather risk-taking player in the precious metals business, operating close to the edge.

What’s next regarding OFAC sanctions? Axel Diegelmann told «Vaterland» in Liechtenstein on June 6: «We are in constructive and confidential discussions.»

New Yorker Anwälte angeheuert

On Monday June 17, the plaintiff and defendants agreed that Janet Yellen and the other defendants would be given a one-month extension to respond. The latest date for the response is now July 18. The court document states: «The parties have been discussing a variety of issues involving the instant litigation and the ongoing administrative reconsideration process. The parties concur that a modest extension of Defendants’ current deadline will be the most efficient way to proceed, at this time.»

The plaintiffs are represented in the proceedings by the New York law firm Akrivis Law Group. Nearly a year ago, this firm successfully removed former Goldman Sachs banker Elena Titova and a former manager of Russia's Otkritie Bank named Andrey Golikov from the list, as reported by Bloomberg (article behind paywall).

In these cases, the Akrivis lawyers also filed a lawsuit in the United States District Court for the District of Columbia and simultaneously initiated a reconsideration process with OFAC.