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For Global Banks, Unprecedented US Sanctions Strategy Means High-Stakes Gauntlet

By Chelsea Carrick

Foreign banks are contending with unprecedented levels of exposure to potential U.S. secondary sanctions after the Office of Foreign Assets Control dramatically expanded existing restrictions to further isolate the Russian military, former officials told ACAMS moneylaundering.com.  OFAC broadened the potential impact of U.S. secondary sanctions in a June 12 advisory by redefining Russia's "military-industrial base" to cover thousands of additional parties—including dozens of Russian banks and banking subsidiaries—already blacklisted for their alleged links to interference in foreign elections or other "harmful" overseas activities for the Kremlin. Put another way, the number of entities that could now trigger secondary sanctions has...

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