Financial Crime World

US Sanctions Three Entities for Undermining Peace in Sudan

The US Department of Treasury’s Office of Foreign Assets Control (OFAC) has taken a significant step to promote peace and stability in Sudan by sanctioning three entities that have been actively undermining the country’s democratic transition.

Background

The ongoing conflict in Sudan is fueled by two main belligerent parties: the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF). The US Department of Treasury has designated these forces as responsible for destabilizing the country, and has imposed sanctions on key funding sources to disrupt their operations.

Sanctions

The three entities sanctioned are:

  • Alkhaleej Bank Co Ltd: Controlled by the RSF, Alkhaleej was given $50 million from the Central Bank of Sudan before the start of the conflict. The bank is accused of being responsible for or complicit in actions that threaten Sudan’s stability.
  • Zadna International Co for Development Ltd: A key component of the SAF’s commercial empire, Zadna has continued to fund its operations. The entity was previously controlled by the Defense Industries System, which was sanctioned by Treasury in June 2023.
  • Al-Fakher Advanced Works Co. Ltd: Established by RSF senior leadership to manage its gold export business, Al-Fakher generates millions of dollars used to purchase weapons. The company is accused of being responsible for or complicit in actions that threaten Sudan’s stability.

Consequences

As a result of the sanctions:

  • All property and interests in property owned by the designated entities are blocked and must be reported to OFAC.
  • US persons are prohibited from conducting transactions with these entities unless authorized by a general or specific license issued by OFAC.

Goal of Sanctions

The ultimate goal of the sanctions is not punishment, but rather to bring about positive change in behavior. The Treasury Department emphasizes its willingness to remove individuals and entities from the sanctions list consistent with the law, should they cease their destabilizing activities.

By taking this action, the US aims to promote peace and stability in Sudan, and to support the country’s democratic transition.