a few seconds agoUS launches investigation into Raiffeisen Bank for its Russian-related business
Periskopi(3 years ago)
(3 years ago)The United States' sanctions authority has launched an investigation into the Bank “Raiffeisen International” for its business regarding Russia, adding surveillance of the Austrian lender playing a critical role in the Russian economy. Responding to questions from agency “Reuters”, the bank said it has accepted a request from the Office for [...]
Responding to questions from the agency “Reuters”, the bank said it has accepted a request from the US Treasury Department's Foreign Property Control Office “to clarify the business and related processes, which are maintained by RBI, following recent developments associated with Russia and Ukraine”.
This office has asked the Raiffesien Bank for details of its distribution in Russia, in partially occupied Donbas, in Ukraine and Syria, including transactions and activities of certain clients, a source told the agency “Reuters”.
The US agency has demanded that the response be returned in February, one person said, adding that bank lawyers have negotiated deadline extensions, pledging they would answer questions in three sets of information that will be sent in early April, in May and June.
A Treasury Department spokesman refused to comment on the matter.
Raiffesen Bank told the agency “Reuters” in a statement that it is fully co-operating with the Foreign Property Control Office and that it understands that the request has not been prompted by any specific transaction or business. The bank said it has in force processes to guarantee compliance with sanctions.
A bank spokesman said that “is confident that information provided for the Foreign Property Control Office will meet its “requirement, adding that the questions have been of the general “natural”.
Raiffeisen Bank has not been sanctioned in the past, but January's request to provide information is to worry European financial regulators responsible for its supervision due to the potential for this demand leading to immediate penalties against the bank, two people with direct knowledge about the issue said.
The Raiffesien Bank is deeply embedded in Russia's financial system and is one of the only two foreign banks on Russia's Central Bank list of 12 “continued significant credit institutions”, highlighting its importance for the Russian economy, which is facing strong Western sanctions.
A year after Russia's invasion of Ukraine, Raiffeisen Bank is among the few European banks still remaining in Russia.
