US Treasury Warns Banks Against Excessive Enforcement of Sanctions

The US Treasury Department has warned banks against over-enforcing sanctions. As writes Bloomberg, some financial institutions are disconnecting entire categories of customers from the financial infrastructure in order to reduce risks.

Ordinary Americans may suffer from the actions of banks, said Deputy Treasury Secretary Brian Nelson. Due to the restrictions of banks, people are forced to turn to unregulated and potentially dangerous financial activities.

According to the agency, this indicates a problem faced in the United States, where sanctions were imposed quickly and often without much clarity, with the expectation that financial institutions would comply with them. As a result of such actions by the US authorities, banks have to be extremely careful with those who may be a potential object of sanctions risk. After all, the authorities can fine banks that violate sanctions.