Security News > 2022 > March > US Treasury: Russia may bypass sanctions using ransomware payments

The Treasury Department's Financial Crimes Enforcement Network warned U.S. financial institutions this week to keep an eye out for attempts to evade sanctions and US-imposed restrictions following Russia's invasion of Ukraine.

FinCEN said [PDF] that it's critical to "Identify and quickly report suspicious activity associated with potential sanctions evasion, and conduct appropriate risk-based customer due diligence or, where required, enhanced due diligence."

President Joe Biden also issued an Executive Order on Wednesday regarding the use of digital assets to bypass sanctions imposed by the United States and foreign governments.

"In the face of mounting economic pressure on Russia, it is vitally important for U.S. financial institutions to be vigilant about potential Russian sanctions evasion, including by both state actors and oligarchs," said FinCEN Acting Director Him Das.

"Although we have not seen widespread evasion of our sanctions using methods such as cryptocurrency, prompt reporting of suspicious activity contributes to our national security and our efforts to support Ukraine and its people."

In September, the U.S. Treasury announced its first-ever sanctions against a cryptocurrency exchange for facilitating ransom transactions linked to ransomware gangs and helping them evade sanctions.

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https://www.bleepingcomputer.com/news/security/us-treasury-russia-may-bypass-sanctions-using-ransomware-payments/