The Treasury warns foreign banks against helping Russia evade sanctions

Referring to his message to foreign banks, he added: “You need to make sure you not only control the flows in your financial institution, but you also need to help by reminding companies you claim that. Russian “.

Banks and financial institutions around the world have been grappling with how to keep pace with the waves of new sanctions against Russia.

Citigroup, the largest US bank in Russia, with approximately 3,000 employees, which was in “active dialogue” to sell its Russian commercial and consumer banking business, Jane Fraser, its chief executive, he told Bloomberg this month.

Citigroup reduced its exposure in Russia to $ 7.9 billion in March, down from $ 9.8 billion at the end of last year. according to a deposit. “This financial services weapon is a big deal,” said Mrs. Fraser at a conference this month. He said he expected global capital flows to shatter as nations developed new financial systems to avoid being too dependent on Western companies.

Foreign banks with US operations can find themselves trapped between conflicting demands. In some cases, US sanctions have forced them to cut long-term customers. Those who opposed this have learned how serious the authorities could be in tracking down offenders and hitting them with hefty fines.

In 2019, for example, the British bank Standard Chartered paid $ 1.1 billion to resolve lawsuits brought by the Department of Justice, the Treasury, the New York State Banking Regulator and state prosecutors over the transactions it had made for Cuba, Syria, Iran and Sudan in violation of US sanctions. Two years earlier, Deutsche Bank paid $ 630 million after it was captured help Russian investors steal $ 10 billion in western financial centers. International giants HSBC and BNP Paribas have also paid billions over the past 10 years to resolve sanctions violations.

Lananh Nguyen contributed reportage.