America issues warning to German banks of sanctions
Date
5/23/2024 8:15:53 AM
(MENAFN) During a meeting with German bank executives in Frankfurt, United States Treasury Secretary Janet Yellen delivered a stern warning regarding the need for heightened compliance with sanctions on Russia. Yellen emphasized the importance of preventing Russia from obtaining "sensitive goods" to support its military operations in Ukraine and underscored Washington's authority to impose secondary sanctions on foreign banks facilitating Russian military-related transactions.
Yellen urged German financial institutions to bolster their compliance measures and intensify efforts to thwart Russian evasion attempts. She cautioned that failure to do so could result in sanctions, potentially restricting access to the United States dollar for non-compliant banks. Additionally, Yellen advised executives to monitor sanctions compliance at their foreign branches and subsidiaries, as well as engage with foreign correspondent banking clients to ensure adherence, particularly in high-risk jurisdictions.
Highlighting Russia's purported desperation to acquire critical goods from Germany and the United States, Yellen underscored the importance of vigilance in preventing Kremlin access to defense-related resources and financial systems. The warning comes amidst ongoing tensions between Western nations and Russia over its military actions in Ukraine, with heightened scrutiny on financial transactions involving Russian entities.
The United States Treasury's recent threat to cut off Raiffeisen Bank International's access to the American financial system due to its activities in Russia further underscores the seriousness of the situation. As geopolitical tensions persist, Yellen's admonition serves as a reminder of the potential consequences for financial institutions involved in transactions that undermine international sanctions regimes targeting Russia.
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