Police have confirmed insurance company offices were searched in relation to possible breaches of sanctions against Russia.

A Reuters news article alleges Auckland-headquartered Maritime Mutual Insurance Association (MMIA) has been involved in providing cover for oil-carrying vessels skirting Western sanctions.

In a statement MMIA says it "categorically rejects any suggestion that the company has breached applicable sanctions or engaged in conduct designed to circumvent them".

"MMIA does not provide, and has never knowingly provided, P&I insurance to vessels transporting sanctioned Iranian or Russian energy products in contravention of New Zealand, UK, EU, US, or other applicable sanctions regimes," it says.

New Zealand Police told insuranceNEWS.com.au searches were carried out earlier this month in relation to alleged breaches of the Russia Sanctions Act 2022.

“Inquiries into a New Zealand incorporated company led police officers from the Financial Crime Group to execute ... warrants at company offices in Auckland and Christchurch and at a residential address in Auckland,” a spokesperson said.

Police seized records and documents from the offices. 

“Three people were detained and spoken to during the search warrants. At this point, no criminal charges have been filed.

“As this is an active investigation, NZ Police are not in a position to provide further details. However, we are being assisted by partner agencies, both domestically and internationally.”

The NZ Ministry of Foreign Affairs and Trade declined to comment on “ongoing enforcement activities”.

“New Zealand takes enforcement of the Russia Sanctions Act and its regulations seriously,” a spokesperson told insuranceNEWS.com.au.

MMIA describes itself as a “long established and well-secured [protection and indemnity] club and marine insurer backed by Lloyd’s syndicates and London company market insurers”.

It is not licensed to carry on insurance business in New Zealand and the Insurance Council of New Zealand has distanced itself from the organisation.

“The company is not, nor has it ever been, a member of the ICNZ,” a spokesperson said. “We were made aware of this entity by the media earlier this year.”

In a response posted on its website, MMIA refers to “inaccuracies and misunderstandings” in media coverage and says it complies fully with its legal obligations.

It says that as a third-party liability P&I insurer, it “does not insure vessels or cargo but rather the legal liability of ships to third parties in the event of maritime accidents caused by negligence”. 

It adds: “No payment is made to any party to a claim where such payment would breach international sanctions and would cause MMIA to breach its legal obligations.

“MMIA takes its responsibilities regarding economic sanctions seriously and is committed to maintaining the highest standards of integrity and regulatory compliance.”

In a separate update, MMIA says the board has decided to take “immediate steps”, despite its activities having been “in full compliance with all applicable international sanctions”.

It says: “MMIA will not provide cover to any vessel which appears on any list of vessels which is identified by Lloyd’s List or Windward as being in the ‘shadow fleet’ or ‘dark fleet’. 

“MMIA will not provide cover to any vessel which is carrying Russian-origin oil or refined petroleum products, even if the cargo being carried complies with the international price cap mechanism.”