Cyprus-Based Company Sanctioned by US

According to the Cyprus News Agency on Monday OFAC imposed sanctions on thirteen legal entities and two individuals, including the Cyprus-based company, with links to financial services and technology sectors of the Russian economy. The sanctions cover individuals who develop or offer services in virtual assets, that enable evasion of US sanctions.

According to a statement from the US department, five entities were included because they are owned or controlled by persons designated by OFAC.

Many of the entities and individuals facilitated transactions or offered services that helped OFAC-designated entities avoid sanctions, the statement adds. OFAC on February 23 moved to target companies that serve the basic financial infrastructure of Russia and to limit Russia’s use of the international financial system to advance its war against Ukraine.

The list includes Tokentrust Holdings Ltd., based in Cyprus, which is the majority shareholder of Atomaiz and designated under Decree 14024 for operation or past activity in the financial services sector of the economy of the Russian Federation.

“Russia is increasingly turning to alternative payment mechanisms to circumvent U.S. sanctions and continue to fund its war against Ukraine,” Treasury Undersecretary Brian Nelson said, adding that the Treasury Department would continue to expose and disrupt companies seeking to help sanctioned Russian financial institutions reconnect with the global financial system.

It is noted that on February 24, the leaders of the G7 Group reaffirmed their commitment against the circumvention of the sanctions and export control measures.

The companies named by OFAC on Monday have either helped create or operate blockchain-based services or have enabled virtual currency payments in the Russian financial sector.

Source: Cyprus Mail/CNA