Treasury Official Warns UAE Banks About Russia Sanctions Evasion Attempts
A senior Treasury Department official urged banks in the United Arab Emirates to look out for Russia-related sanctions evasion attempts, warning they could face steep penalties for poor due-diligence. Wally Adeyemo, Treasury’s deputy secretary, said the banks must be “exceedingly cautious in handling any Russia-related businesses.”
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“Failing to do the sufficient due diligence needed to know your customers is not a defense,” Adeyemo said at the UAE Banks Federation Roundtable last week. He warned the banks they could face consequences if they’re involved in an illegal transaction with a U.S. person, or one involving a U.S. nexus, or are providing “material support” to a sanctioned entity.
Adeyemo called the banks “indispensable partners” in the international effort to sanction Russia for its war in Ukraine. He said they need to ensure the “global financial system lives up to our highest commitments -- that it is not a refuge for those who undermine principles like sovereignty and territorial integrity or who endanger the lives of innocent people around the world.”