Clifford Chance
Don't Hit Snooze On This Wake Up Call: FinCen And BIS Warn Financial Institutions To Be Alert For Potential Russian Export Control And Sanctions Evaders
July 27, 2022
On 28 June 2022, the Financial Crime Enforcement Network and the Department of Commerce's Bureau of Industry and Security issued a joint alert (the "joint alert") urging financial institutions to increase vigilance for Russian and Belarusian export control evasion attempts. Although it does not establish new legal requirements, the joint alert indicates further cross-government coordination in the collection of information from the financial sector to pursue evaders of trade controls targeting Russia and Belarus. While FinCEN has always expected financial institutions to identify and report suspicious activity connected to possible export control violations, the joint alert provides new information and instructions. The action, as summarized in a joint press release, demonstrates the US Government's reliance on the financial sector to help identify export control violators and potentially increased expectations with respect to such. Bank examiners may refer to this guidance when asking how financial institutions are meeting these expectations. Financial institutions should ensure that their risk management systems and controls and transaction monitoring for suspicious activities are updated to address these new risks and threats.
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