Standard Chartered bank has released an official statement to announce a current prohibition in its banking system.
This is following the various sanctions that have been announced by the United States and the United Kingdom concerning the ongoing tension between Russia and Ukraine.
The statement titled ‘SC Group Client Statement: Ukraine and Russia Sanctions,’ is dated Wednesday, 23 February.
In the letter, the bank notified the general public of its plan to carry out the current financial sanctions that involve clients banking with the company.
The statement reads: “The situation in Russia and Ukraine is rapidly evolving; this statement details the current prohibitions as of 23 February 2022. Standard Chartered, including its subsidiaries and affiliates, (the “Group”) may change the prohibitions described here without notice at any time. If you have any queries on the Group’s policy position in relation to sanctions, please contact your relationship manager.
“On 21 February 2022, the U.S. issued an Executive Order (“E.O.”) targeting the Donetsk People’s Republic and Luhansk People’s Republic regions of Ukraine (the “Covered Regions”).
“ The E.O. includes details on restrictions in relation to finance and investments; restrictions on the importation, exportation, and re-exportation of goods, services and technologies to/from the Covered Regions; restrictions on approval, financing, facilitation or guarantee by a U.S. person, wherever located, of transactions by a foreign person where the transaction by that foreign person would be prohibited by the above if performed by a U.S. person or within the U.S.; and certain blocking requirements in relation to the property of certain individual and entities.
“In response, the group does not currently undertake any transaction involving the covered regions, any party in the covered regions, exports to or imports from the covered regions, investments in the covered regions; except in very limited circumstances as determined at the group’s discretion.
“On 22 February 2022, the U.K. designated three individuals and five banks. On the same day, the U.S. designated two financial institutions (along with 42 of their subsidiaries), five vessels, and three oligarchs. These parties are all now subject to an asset freeze and, as such, are considered to be sanctioned parties by the group.
“The group adopts a policy of not entering into any transaction that either directly or indirectly involves, or is for the benefit of, any sanctioned parties, even where this would be legally permitted.
“Where required, the group will look to freeze assets in accordance with relevant restrictions. The group is firmly committed to complying with all applicable economic sanctions laws that are legally binding upon the group and its businesses.
“As a global institution providing financial services that cut across multiple jurisdictions and supported by integrated systems, the group manages sanctions risk comprehensively and applies restrictions imposed by the E.U., U.K., and the U.S. globally across all our markets.
“This helps protect our clients and franchise from inadvertent, but costly, sanctions violations, in addition to broader financial crime, compliance, and reputational risks.
“As such, and given the rapid nature of developments in this space, payments involving Russia and any Russian parties may be subject to additional due diligence at this time. This may result in the group sending additional requests for information in order to validate the permissibility of payments presented to the group and a delay in the processing of such payments.
“The group is committed to keeping abreast of applicable economic sanctions laws and will continue to monitor the situation and update the group policy and standards accordingly. If you have any queries as the situation develops, please contact your relationship manager.
“On 22 February 2022, further to the above, the U.S. published Russia-related Directive 1A under Executive Order 1402 (the directive can be seen here). This extends existing sovereign debt prohibitions to cover participation in the secondary market, for bonds issued after 01 March 2022 by the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, or the Ministry of Finance of the Russian Federation.
“The group is firmly committed to complying with all applicable economic sanctions laws that are legally binding upon the Group and its businesses. As a global institution providing financial services that cut across multiple jurisdictions and supported by integrated systems, the Group manages sanctions risk comprehensively and applies restrictions imposed by the E.U., U.K., and U.S. globally across all our markets.
“This helps protect our clients and franchise from inadvertent, but costly, sanctions violations, in addition to broader financial crime, compliance, and reputational risks.
“As such, and given the rapid nature of developments in this space, payments involving Russia and any Russian parties may be subject to additional due diligence at this time. This may result in the Group sending additional requests for information in order to validate the permissibility of payments presented to the Group and a delay in the processing of such payments.
“The group is committed to keeping abreast of applicable economic sanctions laws and will continue to monitor the situation and update the Group Policy and Standards accordingly. If you have any queries as the situation develops, please contact your Relationship Manager.”
Comments