Financial Crime World

US Imposes Financial Sanctions on Sudanese Entities Over Conflict

The US Department of Treasury’s Office of Foreign Assets Control (OFAC) has taken a significant step in its efforts to promote peace and stability in Sudan by imposing financial sanctions on three entities responsible for undermining the country’s security.

Background

The conflict in Sudan is ongoing, with key individuals and entities playing a crucial role in funding the continuation of violence. The US government, in coordination with its allies and partners, has identified these networks and will continue to target them to disrupt their funding sources.

Sanctions Imposed

Three entities have been designated for their involvement in financing the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF), the two main belligerent parties responsible for the conflict:

  • Alkhaleej Bank Co Ltd: Controlled by the RSF, this bank received $50 million from the Central Bank of Sudan just prior to the start of the current conflict.
  • Zadna International Co for Development Ltd: A key component of the SAF’s commercial empire, this company was formerly a subsidiary of the Defense Industries System (DIS), which was sanctioned by Treasury in June 2023. Zadna is now under the control of the SAF’s Special Fund for the Social Security of the Armed Forces.
  • Al-Fakher Advanced Works Co. Ltd: Established by RSF senior leadership, this company serves as a holding entity for the RSF’s gold export business. It has generated millions of dollars through gold exports, which have been used to purchase weapons.

Consequences

As a result of these sanctions:

  • All property and interests in property of the designated persons are blocked and must be reported to OFAC.
  • Any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked.

The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. Those seeking removal from an OFAC list can refer to the agency’s Frequently Asked Question 897 for guidance on the process.

Commitment to Sudan

The US government remains committed to promoting peace and stability in Sudan. “Treasury will continue to target these networks and disrupt these important funding sources,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson.