The United States will impose new sanctions targeting banks involved in payments made by Russia’s military-industrial complex. This is part of an effort to cut off the flow of funds that lend support to the Putin regime, which continues to invade Ukraine.
US President Biden amended two executive orders on the 22nd, making it the first US country to impose so-called “secondary sanctions” over the war in Ukraine. A senior government official briefed reporters on condition of anonymity.
This will subject banks to severe financial penalties if they do business with companies that are already subject to related sanctions. Business partners are subject to sanctions regardless of whether they are aware of the fact that they are subject to sanctions related to Russia.
U.S. banks are already spending millions on compliance efforts to avoid sanctions violations, and some may see the new sanctions as an additional headache.
Although many international banks no longer do direct business with Russia, they may provide correspondent banking services for financial institutions in third countries that continue to conduct financial activities related to trade with Russia.
Report on disguised fleets involved in transporting illegal Russian crude oil
Source: Bloomberg
Treasury Secretary Janet Yellen said in a statement that she “expects financial institutions to do everything they can to ensure that they do not intentionally or unintentionally assist in the circumvention or evasion” of sanctions, adding that they expect financial institutions to “do everything possible to ensure that they do not intentionally or unintentionally assist in the circumvention or evasion” of sanctions. “We will not hesitate to utilize new means” authorized by the presidential order to take decisive action against financial institutions that have taken advantage of the government, he said.
Over the coming weeks, U.S. authorities will explain the executive order to U.S. and European banks and warn them that they must take action to avoid violating sanctions.
Original title:US Aims Tougher Sanctions at Banks in Latest Bid to Hurt Putin(excerpt)
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2023-12-22 11:01:16
