U.S. Banks Concern Complicated Additional Measures Ready for Sanctions Against Russia | Reuters

[Washington, 24th, Archyde.com]-Following Russia’s invasion of Ukraine, the U.S. bank is preparing to respond to the sanctions once morest Russia announced by Western countries, but it is still detailed and new sanctions will be announced in the future. There are concerns that the cost and complexity of implementing sanctions will increase.

Following Russia’s invasion of Ukraine, the U.S. banks are preparing to respond to Western sanctions announced by Western countries, but they are still elaborating, and if new sanctions are announced in the future, the cost of implementing the sanctions will be There are concerns that the complexity will increase. The photo shows ruble coins and dollar bills, October 2018 (2022 Archyde.com / Maxim Shemetov)

Executives from law firms and financial institutions have revealed.

According to the U.S. government’s announcement, sanctions will be applied to two major financial institutions, including Russia’s government-affiliated bank and Development Foreign Economic Bank (VEB), sovereign debt, as well as privileged classes and their relatives.

Financial institutions are the main actors that enforce sanctions.

According to a LexisNexis study, the US bank will invest $ 35.2 billion in financial crime compliance in 2020 alone. The Biden administration has been coordinating with banks for several weeks as the situation in Ukraine becomes tense, according to people familiar with the matter.

“At least for the time being, it won’t be difficult to enforce US sanctions. Banks have had plenty of time to deal with these sanctions since Russia’s annexation of the Crimean Peninsula,” said an executive at law firm Kirkland & Ellis. Stated.

However, financial institution officials said they were inquiring to the Treasury for some details, such as the geographical boundaries of areas effectively controlled by pro-Russian factions.

In addition, if an overseas organization that has transactions with the organization subject to the first sanction is subject to the second sanction, complicated work to identify the business relationship will be required, and it will be difficult to implement the sanction. ..

The removal of Russian banks from the International Interbank Communications Association (SWIFT) will also have a significant impact on the international payment system, making it difficult for creditors to recover funds from Russia. It’s out.

The White House excludes SWIFT from sanctions, but Congress may seek such sanctions.

Isaac Boltanski, policy director at securities firm BTIG, said US lawmakers would soon submit a bill once morest Russia.