FX.co ★ US threatens penalties on foreign banks helping Russia evade sanctions

According to the Financial Times, citing reliable sources, the White House administration may sever American and European banks from the US financial system if they fail to comply with sanctions against Russia. This dramatic development raises serious questions about the future of these financial institutions. Under pressure to find loopholes, banks face additional challenges imposed by the US government. This Friday, December 29, US President Joe Biden is expected to sign an executive order that will place foreign financial institutions supporting the Russian military complex on the US blacklist. Amendments will be made to the documents enforcing this initiative, enabling US authorities to impose secondary sanctions. Analysts believe these measures will compel financial institutions to be more cautious with their operations and transactions. According to US Treasury Secretary Janet Yellen, "financial institutions will need to demonstrate their diligence. Banks must prove they are not knowingly or unwittingly aiding Russia in circumventing sanctions.” The list of restricted goods includes semiconductors, machine tools, chemical precursors, ball bearings, and optical systems, which are now off-limits for transactions. This move by the US government marks a significant escalation in financial restrictions and could have far-reaching implications for global banking operations.