Russian-Ukrainian War: Standard Chartered Bank Issues Official Statement and Informs Clients of Current Financial Sanctions

Standard Chartered Bank has released an official statement to announce a current ban in its banking system.

This follows the various sanctions announced by the United States and the United Kingdom regarding the ongoing tension between Russia and Ukraine.

The statement titled “SC Group Client Statement: Ukraine and Russia Sanctions” is dated Wednesday, February 23.

In the letter, the bank informed the general public of its intention to apply the current financial sanctions that implicate banking customers with the company.

The statement reads: “The situation in Russia and Ukraine is evolving rapidly; this statement details the prohibitions in effect as of 23 February 2022. Standard Chartered, including its subsidiaries and affiliates (the “Group”) may change the prohibitions described here without notice at any time. If you have any questions about the Group’s policy position on sanctions, please contact your relationship manager.

“On February 21, 2022, the United States issued an Executive Order (“EO”) targeting the Donetsk People’s Republic and Lugansk People’s Republic regions of Ukraine (the “Covered Regions”).

“The EO includes details on funding and investment restrictions; restrictions on the import, export and re-export of goods, services and technology to/from Covered Regions; restrictions on the approval, financing, facilitation or guarantee by a U.S. person, wherever located, of transactions by a foreign person where the transaction by such foreign person would be prohibited by the foregoing if made by a US person or in the United States; and certain blocking requirements regarding the assets of certain persons and entities.

“In response, the Group is not currently undertaking any transactions involving the Covered Regions, any party in the Covered Regions, exports to or imports from the Covered Regions, investments in the Covered Regions; except in very limited circumstances determined at the discretion of the group.

“On February 22, 2022, the UK designated three individuals and five banks. On the same day, the United States designated two financial institutions (as well as 42 of their subsidiaries), five ships and three oligarchs. These parties are now all subject to an asset freeze and as such are considered sanctioned parties by the group.

“The group adopts a policy of not entering into any transactions directly or indirectly involving, or for the benefit of, sanctioned parties, even where this would be legally permitted.

“If necessary, the group will seek to freeze assets in accordance with applicable restrictions. The group is firmly committed to complying with all applicable economic sanctions laws that legally bind the group and its activities.

“As a global institution providing financial services spanning multiple jurisdictions and supported by integrated systems, the group manages sanctions risk holistically and enforces EU, UK and US restrictions. globally in all our markets.

“This helps protect our customers and our franchise from unintended, but costly, sanctions violations, in addition to broader financial crime, compliance and reputational risks.

“As such, and given the rapid nature of developments in this space, payments involving Russia and all Russian parties may be subject to additional due diligence at this time. This may result in the Group sending requests for additional information to validate the eligibility of payments presented to the Group and a delay in the processing of such payments.

“The group is committed to keeping abreast of applicable economic sanctions laws and will continue to monitor the situation and update the group’s policy and standards accordingly. If you have any questions as the situation evolves, please contact your account manager.

“On February 22, 2022, further to the above, the United States issued Russia Directive 1A under Executive Order 1402 (the directive can be viewed here). This extends existing sovereign debt prohibitions to cover secondary market participation, for bonds issued after March 1, 2022 by the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation or the Ministry of Finance of the Russian Federation.

“The group is firmly committed to complying with all applicable economic sanctions laws that legally bind the Group and its activities. As a global institution providing financial services spanning multiple jurisdictions and supported by integrated systems, the Group manages sanctions risk holistically and applies EU, UK and US restrictions to globally in all our markets.

“This helps protect our customers and our franchise from unintended, but costly, sanctions violations, in addition to broader financial crime, compliance and reputational risks.

“As such, and given the rapid nature of developments in this space, payments involving Russia and all Russian parties may be subject to additional due diligence at this time. This may result in the Group sending requests for additional information in order to validate the legality of the payments presented to the Group and a delay in the processing of these payments.

“The group is committed to keeping abreast of applicable economic sanctions laws and will continue to monitor the situation and update the group’s policy and standards accordingly. If you have any questions as the situation evolves, please contact your account manager. »

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