Financial Crime World

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OFAC Compliance Requirements in Serbia and Montenegro Imposed Amid Sanctions

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced on June 10, 1998, that new sanctions have been imposed against the governments of Serbia, Montenegro, and the Federal Republic of Yugoslavia (FRY S&M). The sanctions aim to prohibit all property in which these governments have an interest from being used or traded, except for transactions conducted exclusively within FRY S&M using its domestic banking system.

Definition of Government

The definition of government includes all financial institutions, state and socially owned entities, subsidiaries, and branches located in Serbia, Montenegro, or FRY S&M. This means that any transaction involving these entities is prohibited, unless specifically exempted by OFAC.

Specially Designated Nationals and Blocked Persons

OFAC has released a list of Specially Designated Nationals and Blocked Persons, which includes the governments of Serbia, Montenegro, and FRY S&M. The list can be accessed online at https://home.treasury.gov/policy-issues/office-of-foreign-assets-control-sanctions-programs-and-information.

Compliance Requirements for Financial Institutions

Financial institutions are advised to:

  • Distribute this information to relevant personnel
  • Contact OFAC’s Compliance Programs Division for further guidance on blocking accounts
  • Review the summary of sanctions available online

Purpose of Sanctions

The imposition of these sanctions aims to restrict the flow of funds to these governments, which have been accused of supporting international terrorism and human rights violations. The sanctions are part of a broader effort by the US government to promote stability and democracy in the region.

Additional Resources

For more information on OFAC rules and procedures, financial institutions can:

  • Visit the Treasury Department’s website
  • Contact OFAC directly

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