Priya Patel
TLDR:
– The US imposed sanctions on Russian fintech firms and individuals accused of enabling sanctions evasion.
– Treasury’s Office of Foreign Assets Control sanctioned 13 firms and 2 people for their involvement in enabling potential sanctions evasion.
Summary:
The US has imposed sanctions on a group of mainly Russian fintech firms and individuals for their alleged involvement in enabling sanctions evasion. The Treasury’s Office of Foreign Assets Control placed sanctions on 13 firms, five of which are owned by a previously sanctioned individual, and 2 people who have either helped build or operate blockchain-based services or enabled virtual currency payments in the Russian financial sector. These actions were taken to prevent potential sanctions evasion in the wake of Russia’s invasion of Ukraine in February 2022 and the subsequent sanctions imposed on the country. Despite concerns that Russia may be using cryptocurrency to bypass sanctions, Treasury officials have refuted the claim that cryptocurrency is a significant driver of sanctions evasion.
The State Department and Treasury have reaffirmed their commitment to curtail Russia’s use of the international financial system to support its actions in Ukraine. This move highlights ongoing efforts to disrupt companies that assist sanctioned Russian financial institutions in reconnecting to the global financial system. The sanctions aim to hamper Russia’s ability to fund its war against Ukraine by targeting entities in the financial technology space and limiting their involvement in enabling potential sanctions evasion.
