FinCEN Advises Financial Institutions to Remain Vigilant Against Sanctions Evasion: Sanctions Update

The U.S. warned financial institutions to be alert for Russian sanctions evasion attempts. According to Reuters:

“The Financial Crimes Enforcement Network (FinCEN) issued an alert on Monday advising all financial institutions to be vigilant and laying out examples of red flags that it said would help identify sanctions evasion activity, including the use of shell companies.”

The FinCEN alert also warned of possible ransomware attacks, and recommended financial institutions report any suspicious activity and conduct risk-based customer due diligence.

Meanwhile, Coinbase, one of the largest cryptocurrency exchanges, announced it has blocked over 25,000 addresses “related to Russian individuals or entities engaged in illicit activity,” according to Business Insider.  According to the company, Coinbase keeps a list of accounts held by people who have been subject to sanctions outside of Coinbase.

Related sanctions news:

• Russia looks to Chinese financial plumbing to keep money flowing (The Economist)
• UniCredit Flags Potential Capital Hit in Extreme Russia Scenario (Bloomberg)
• JPMorgan to Exclude Russian Debt From Bond Indexes (Wall Street Journal)
• Banks Cautious About Cash, Funding-Stress Barometer Shows (Bloomberg)
• Intesa Sanpaolo Bank Continues to Support Ukrainian Customers (Banking Exchange)
• Inter-American Development Bank will Divest Russian Assets (Reuters)
• Russian Billionaires Resign from Board of $22 Billion Investment Firm Letterone (Business Insider)