Latvian subsidiary of Swedbank to pay US $3.4 million for transfers to Crimea

A division of the Swedish bank Swedbank in Riga will pay $ 3.43 million in connection with the violation of US sanctions, according to the website of the Office of Foreign Assets Control (OFAC) of the US Treasury Department .

The report says that the management has entered into a settlement agreement with Swedbank AS (a subsidiary of Swedish Swedbank, based in Stockholm).

“Swedbank Latvia has agreed to pay $3,430,900 in connection with <...> potential civil liability for 386 apparent violations of OFAC sanctions against Crimea,” the document says.

The agency believes that in 2015-2016, one of Swedbank Latvia's clients used its e-banking platform from an IP address in Crimea to transfer money to individuals on the peninsula via US correspondent banks. The total amount of such transfers reached $3.3 million, according to the Ministry of Finance.

Crimea became part of Russia following a referendum held in March 2014. The United States and other Western countries did not recognize his accession and imposed sanctions against Moscow. Ukraine considers this territory occupied. The Russian authorities have repeatedly stressed that the question of the status of the peninsula is closed.

On December 19, 2014, US President Barack Obama signed an executive order banning the export , re-export, sale, or supply of any goods, services, or technology to Crimea by a person from the United States, "wherever located." The embargo provides for a ban on the supply of American goods to Crimea, providing access to Internet services and widespread programs and applications for the inhabitants of the peninsula. These operations require special permission from OFAC. Later, the American authorities allowed private non-commercial transfers to Crimea.

However, if it is a non-resident of the United States, the agency may fine the person or company for violating sanctions or impose secondary restrictions.