Home | News    Friday 16 December 2016

U.S. officials discourage EU bank de-risking of Sudan’s transactions

separation
increase
decrease
separation
separation

December 15, 2016 (KHARTOUM) - U.S. officials have encouraged the international banks to deal with Sudan in the areas of humanitarian aid and personal transactions pointing that sanctions aim to block the assets of the government and targeted persons.

JPEG - 24.9 kb
U.S. dollar notes (Reuters/Athit Perawongmetha Photo)

During a meeting held on Monday 12 December in London with European and regional banks, officials from the Office of Foreign Assets Control (OFAC) of the U.S. Treasury Department and Department of Commerce discussed with private banks ways to avoid being affected by sanctions pointing that they do not play "Gotcha" with international financial institutions.

Last Wednesday 14 December, London-based Asharq Al-Awsat newspaper said the meeting would be held in the upcoming days, however financial and diplomatic sources told Sudan Tribune that the meeting had been already on Monday 12 December.

Financial sources said OFAC officials spoke about de-risking issue towards Sudan adding they understand that it is motivated by fears of financial fines.

"OFAC official said the fines are imposed only when there is a clear and repeated misuse of U.S. financial system but not cases of honest mistake," said the source, adding that they also underlined that " 90%of OFAC investigations result in no action".

Since 1997 Sudan has been under U.S. trade and financial sanctions. In May 2015, a judge ordered the French BNP Paribas to pay 8.83 billion for violating sanctions on Sudan from 2004 to 2012. As a result many financial international institutions stopped banking transfers fearing punishments to avoid problems with the American courts.

However, to correct the negative impact of the sanctions on ordinary Sudanese, the U.S. Department of State organized a workshop in New York on September 19, 2016 attended by foreign and domestic financial institutions and members of the private sector U.S.-Sudan Business Council in a bid to clarify the situation with regard to Sudan sanctions.

Also, U.S. Undersecretary of Treasury recently held a meeting with Gulf banks to encourage them to perform personal transactions by Sudanese individuals to their families pointing, that the de-risking push people out of the regulated financial system.

In Khartoum, the ruling National Congress Party (NCP) said London meeting was held within the framework of ongoing dialogue between American administration and Sudanese government to normalize bilateral relations.

"The meeting was a positive step towards the lift of ban on bank transfers and transactions with financial institutions in Sudan," said NCP official for Europe and United States Osama Faisal in statements to the semi-official Sudanese Media Center (SMC) on Thursday.

During the meeting of 12 December the U.S. officials repeated that personal transactions, humanitarian aid and some licensed areas of business are authorized through the U.S. financial system .

They also stressed that transactions would not trigger any punishment from the U.S. courts or be under OFAC radar if they do not involve U.S. nationals or do not flow through U.S. banks.

On Monday 31 October, U.S. President Barak Obama extended the 19-year embargo on Sudan for another year, saying Khartoum actions and policies that caused these sanctions continue to pose a threat to the national security and U.S. foreign policy.

However, the Department of State in a separate statement minimized the renewal of sanction saying it is "a technical decision and part of a routine, annual process that does not prejudice the ability of the President to provide sanctions relief at any point in the future".

(ST)

Comments on the Sudan Tribune website must abide by the following rules. Contravention of these rules will lead to the user losing their Sudan Tribune account with immediate effect.

- No inciting violence
- No inappropriate or offensive language
- No racism, tribalism or sectarianism
- No inappropriate or derogatory remarks
- No deviation from the topic of the article
- No advertising, spamming or links
- No incomprehensible comments

Due to the unprecedented amount of racist and offensive language on the site, Sudan Tribune tries to vet all comments on the site.

There is now also a limit of 400 words per comment. If you want to express yourself in more detail than this allows, please e-mail your comment as an article to comment@sudantribune.com

Kind regards,

The Sudan Tribune editorial team.

Comment on this article



The following ads are provided by Google. SudanTribune has no authority on it.


Sudan Tribune

Promote your Page too

Latest Comments & Analysis


National dialogue building nation 2017-05-22 21:10:41 By Amb. Dhano Obongo Initially, I congratulate and commend H.E the President of the Republic of South Sudan, Gen. Salva Kiir Mayardit, for recognising the need for a national dialogue among 64 (...)

The raging just revolution in Darfur will continue burning until victory 2017-05-22 21:04:22 By Mahmoud A. Suleiman Author Mahmoud Yusuf says that we live in a historical stage full of serious events that will affect the future of mankind on this planet, including what is related to (...)

South Sudan: How culture of revenge inhibits development and progress 2017-05-13 08:09:39 By Steve Paterno Admittedly, revenge or the act of it is inherently human in nature. The human beings since biblical times could not dissuade from the proverbial practice of an 'eye for an eye.' (...)


MORE






Latest Press Releases


HRW denounces "collective punishment" in South Sudan’s Wau 2017-04-15 07:06:48 Human Right Watch South Sudan: New Spate of Ethnic Killings Urgent Need for Justice; UN Should Increase Patrols in Wau (Nairobi, April 14, 2017) – Government soldiers and allied militias (...)

Statement by South Sudanese Communist Party on the National Dialoguel 2017-03-22 05:44:42 The Communist Party of South Sudan On the Initiative of the National Dialogue The initiative taken by the President of the Republic of South Sudan declaring a need for a national dialogue is an (...)

An Appeal to President of the Republic of South Sudan 2017-03-15 07:22:45 Dear. Mr. President, I write to appeal to you for the release of political detainees now in the custody of the National Security Service at Jebel and other detention facilities. In doing this, I (...)


MORE

Copyright © 2003-2017 SudanTribune - All rights reserved.