US designates fintech firms allegedly helping Russia bypass sanctions
The United States designated 13 entities and two individuals – most in Russia but also in Cyprus, the United Arab Emirates (‘UAE’) and Estonia – for ‘supporting sanctions evasion through virtual asset services and technology procurement.’
The Treasury Department said, 25 March, that five of the entities were designated for being owned or controlled by individuals sanctioned by its Office of Foreign Assets Control (‘OFAC’).
‘Russia is increasingly turning to alternative payment mechanisms to circumvent U.S. sanctions and continue to fund its war against Ukraine,’ said Treasury Under Secretary Brian Nelson. ‘As the Kremlin seeks to leverage entities in the financial technology space, Treasury will continue to expose and disrupt the companies that seek to help sanctioned Russian financial institutions reconnect to the global financial system.’
The designated entities include Moscow-based fintech company Atomaiz, described by Treasury as ‘a registered digital financial asset operator that has worked to tokenize precious metals and diamonds for Russian companies and is partnered with OFAC-designated Rosbank and Sovcombank.’
Also designated were Cyprus-based Tokentrust Holdings Ltd., Bitfingroup in Estonia and AWEX, which operates in Russia and the United Arab Emirates.
