In the last week, we have seen an increased effort in the US Treasury Department’s attempt to combat Russia’s evasion of sanctions imposed on them. Sanctions were announced during a meeting of 20 nations which included representatives from both the United States and Russia. When Russian officials took the podium, many people got up and walked out including US Treasury Secretary Janet Yellen.
Aside from walking out in protest, the Treasury Department announced new sanctions that will target a cryptocurrency mining company and a Russian bank (more specifically, Transkapitalbank). They also have their eyes on a group of individuals who are believed to be facilitating illicit transactions.
Oligarch-Led Networking
According to the Treasury Department, the group of 40 individuals that they are targeting is led by Russian Oligarch Konstantin Molofeyev. In a quote from the department, this network of people and associated companies “pursues deals around the world to facilitate business opportunities for sanctioned Russian companies and to enrich Malofeyev himself,” The Treasury Department plans to take action against this group by imposing harsh sanctions on individual members and the leader himself.
Russian Bank Looks For Loopholes
Part of these new sanctions also targets Trasnkapitalbank, which is a privately owned commercial bank in Russia. It is believed by the Treasury Department that this bank offered its clients an alternative banking system to SWIFT, the reason being that the United States cut off Russian access to SWIFT for almost every Russian financial institution. The bank gave its clients the ability to conduct transactions through a “proprietary internet-based banking system.” It is also suspected that the same bank started a settlement center in Asia without clearing it with United States or European banks. The Treasury Department ensures that it will take the necessary steps to prevent any further happenings.
Using Crypto To Evade Sanctions
America has been closely watching to see if Russia may be using cryptocurrencies to get around the imposed sanctions. The Treasury Department has just recently leveled sanctions on a crypto mining company known as Bitriver. It is believed by the United States that Russia is inadequately using the world’s resources and it is giving the company an unfair advantage in mining cryptocurrency.
Wrap Up
The Treasury Department is assuring they will keep lobbing sanctions at these corrupt companies and their allies. In today’s economy and political climate, it can be hard to gauge whether or not someone is doing unethical business. If you are unsure about a certain business venture, give our experts a call so they can help you better analyze the situation.