Nine Countries Where U.S. Banks Have to Be Extra Cautious
April 13, 2015 7:34 PM
Even small U.S. banks can end up doing business with institutions all across the world, but here are some jurisdictions were doing so is either outright forbidden or requires additional scrutiny.
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Somalia
While bank regulators have said that sending remittances to Somalia is allowed, recent enforcement actions have spooked institutions into dropping the country as a place to send funds. The last bank that made such transfers, Merchants Bank of California, ceased sending Somali remittances on Feb. 6, to satisfy a regulatory consent order about its Bank Secrecy Act compliance. Now some in Congress are calling on the agencies to clarify acceptable ways to send money to the country. Many have warned the failure to do so is creating a humanitarian crisis given Somalis' dependence on contributions from relatives and friends abroad.
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Iran
The U.S. government is close to striking a deal with Iran to lift some of its economic sanctions, but it's still doubtful U.S. banks will be doing business there anytime soon. Iran is currently considered a "state sponsor of terrorism" and sending money into or through the area would result in a hefty enforcement action if it is detected.
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Cuba
Unlike most on this list, the U.S. government's relationship with Cuba is changing. President Obama announced in December that the U.S. would ease up on restrictions with Cuba, including raising the limits on remittances from $500 per quarter to $2,000. Travelers can also now use credit cards in Cuba, which was not permitted previous.
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Sudan
Like Iran, Sudan is also considered a state sponsor of terrorism by the U.S. and is subject to severe sanctions. As a result, U.S. institutions are not allowed to do business with anyone in Sudan or Sudanese officials.
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Russia
The U.S. imposed sanctions on a number of people and businesses after Russia's annexation of Crimea in 2014. Russia is considered a haven for organized crime, drug trafficking, corruption as well as cybercrime, according to knowyourcountry.com , making it a very tricky place for U.S. institutions to do business.
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Syria
Like Iran and Sudan, Syria is considered a terrorist haven and its current government is subject to economic sanctions due to its many humanitarian abuses.
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North Korea
U.S. institutions haven't been able to do business with North Korea during the country's history, but economic sanctions were expanded this year after the U.S. government said the country was responsible for the cyberattack against Sony Entertainment.
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Venezuela
The U.S imposed sanctions blocking property and suspending entry of certain politically-connected persons in Venezuela , according to knowyourcountry.com .
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Greece
In addition to its own economic troubles, Greece continues to be seen as a place with rampant corruption. It is not subject to sanctions, but U.S. institutions would be wise to keep a close eye on transactions here.
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