OFAC Designates Russian Sanctions Evasion Network, Issues New GLs
The Office of Foreign Assets Control on April 20 sanctioned more than 40 people and entities -- including Russian commercial bank Transkapitalbank -- for operating a sanctions evasion network. The agency also issued two new general licenses authorizing certain transactions with the bank and sanctioned a range of companies for operating in Russia’s virtual currency mining industry.
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OFAC said Public Joint Stock Company Transkapitalbank (TKB) has tried to work with banks in the Middle East and Asia, including China, to evade international sanctions. TKB has offered clients the ability to conduct transactions through its internet-based banking system, known as TKB Business, which OFAC said operates as an alternative channel to the Society for Worldwide Interbank Financial Telecommunication (SWIFT) network. TKB Business is designed to process U.S. dollar payments for sanctioned clients, the agency said.
New General License No. 28 authorizes certain transactions with TKB and its majority-owned subsidiaries through 12:01 a.m. on Oct. 20 if those transactions are destined for or originating from Afghanistan. New General License No. 29 authorizes certain other transactions with TKB and its majority-owned subsidiaries through 12:01 a.m. on May 20.
OFAC also sanctioned people and entities associated with a sanctions evasion network run by Russian oligarch Konstantin Malofeyev. Malofeyev, who was also sanctioned under OFAC’s announcement, was charged earlier this month with violating U.S. sanctions (see 2204060033).
Others designated include Bitriver AG, a Switzerland-based holding company that was initially founded in Russia in 2017 as a virtual currency mining company. OFAC also sanctioned 10 of its Russia-based subsidiaries.