US Banks to Begin Reporting Russian Assets for Eventual Forfeiture Under New Law
In a significant move aimed at combating Russian aggression and upholding US sanctions, the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued a new rule requiring US banks and financial institutions to report certain Russian assets to the Treasury Department. The rule, which goes into effect on October 1, is part of a broader effort to freeze and eventually forfeit Russian assets held in the United States.
The new law, which was signed into effect by President Joe Biden in August, is a response to Russia’s annexation of Crimea in 2014 and its ongoing aggression in Ukraine. The measure is designed to disrupt Russia’s ability to access the US financial system and to hold Russia accountable for its actions.
Under the new rule, US banks and financial institutions are required to report to FinCEN any Russian assets that are suspected of being related to Russia’s government or military. This includes assets held by Russian individuals, businesses, or organizations that are subject to US sanctions. The reports must include detailed information about the assets, including their value, location, and ownership.
The reports will be used by FinCEN to identify and track Russian assets in the United States, and to determine whether they are subject to seizure and forfeiture. The goal is to ultimately freeze and seize assets that are believed to be held in violation of US sanctions.
The new rule applies to a wide range of financial institutions, including commercial banks, thrifts, credit unions, and money services businesses. It also applies to other types of financial institutions, such as insurance companies and investment firms, that may hold Russian assets.
FinCEN has provided detailed guidance to financial institutions on how to comply with the new rule, including a list of specific requirements and a form that must be used to submit the reports.
The new rule is part of a broader effort by the US government to counter Russian aggression and to hold Russia accountable for its actions. In addition to the new reporting requirement, the US has imposed numerous sanctions on Russian individuals and entities, including senior government officials and major Russian corporations.
The US has also provided significant financial and military aid to Ukraine, and has worked with other countries to impose sanctions on Russia in response to its actions.
The new rule is expected to have a significant impact on the US financial system, and may lead to the seizure and forfeiture of tens of billions of dollars in Russian assets. The measure is also expected to have a significant impact on Russia’s economy, as it will limit the country’s ability to access the US financial system and to conduct international transactions.
In a statement, FinCEN Director Kenneth Blanco said that the new rule is an important step in combating Russian aggression and upholding US sanctions. "The Russian government’s aggression in Ukraine and its efforts to disrupt the global financial system are a significant threat to US national security and the global economy," Blanco said. "This new rule will help to disrupt Russia’s ability to access the US financial system and to hold Russia accountable for its actions."
Overall, the new rule is an important step in the US government’s efforts to combat Russian aggression and to uphold US sanctions. It is likely to have a significant impact on the US financial system and on Russia’s economy, and is a key part of the US government’s efforts to promote stability and security in the global economy.