The Treasury has warned foreign banks not to help Russia escape sanctions

Referring to his message to foreign banks, he said: “You must not only make sure that you are looking at the financial institutions that are flowing into you, but also that you are looking at them. Businesses. You also need help to remember that you are being supported. You don’t even want to. They also provide physical support to Russian oligarchs or Russian companies. “

Banks and financial institutions around the world are grappling with how to impose new sanctions on Russia.

Citigroup, Russia’s largest US bank with nearly 3,000 employees, is in “active negotiations” to sell its Russian consumer and commercial banking business, chief executive Jane Fraser told Bloomberg this month.

According to a filing, Citigroup cut its investment in Russia to $ 7.9 billion in March, up from $ 9.8 billion at the end of last year. “This armament of financial services is a very, very big thing,” Ms Fraser told a conference this month. He said he hopes global capital flows will be recognized as countries develop new economies to avoid over-reliance on Western companies.

Foreign banks doing business in the US may be caught up in conflicting demands. In some cases, US sanctions have had to sever ties with long-term customers. Those who refuse to do so, realize how serious the authorities are in taking action against violators and imposing heavy fines.

For example, in 2019, the United Kingdom’s Standard Chartered Bank paid $ 1.1 million to settle lawsuits brought by the Department of Justice, the Treasury, New York State Banking Regulators and State Prosecutors over transactions in Cuba, Syria, Iran and Sudan. Billion, the transaction violated U.S. sanctions. Two years ago, Deutsche Bank paid $ 630 million after helping Russian investors invest $ 10 billion in Western financial centers. International giants HSBC and BNP Paribas have also paid billions over the past decade to address sanctions violations.

Nguyen Lawn Namo Contribution Report.

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