COUNSELOR’S CORNER The Current State of Russian and Ukrainian Sanctions: Where is the line of contact? Where is your line of risk? Robert (Bob) Kardell, Baird Holm, LLP Although the war in Ukraine is half a world away, the fighting creates a number of issues for local banks. United States sanctions policies have implications for banks not only for transactions such as SWIFT money transfers but also for the types of business and trade in which bank customers engage with Ukrainian businesses. Bank customers conducting wire transfers to Ukraine risk sending money to a region controlled by Russia; bank customers engaged in the import/export business with Ukrainian businesses risk violating import/export restrictions. Banks, in turn, risk violating U.S. sanctions policies in each of these scenarios. Common Financial Transfers to and from Ukraine The banks, individuals, addresses, and regions in which monetary transfers are terminated are important, but it is also important to bear in mind the types of businesses that may be restricted from trading with Ukraine. While a particular financial transaction may terminate in an uncontested area in Ukraine, the underlying items may be subject to additional regulation or prohibition. In fact, the Bureau of Industry and Security (BIS) and the Financial Crimes Enforcement Network (FinCEN) recently 18
RkJQdWJsaXNoZXIy ODQxMjUw