The United States and the United Kingdom have jointly called out Seychelles and Panama for allegedly facilitating Russia's evasion of international sanctions. In a strongly worded statement, the two nations accused these jurisdictions of failing to enforce adequate financial controls, allowing Russian entities to bypass restrictions imposed after the invasion of Ukraine.
Key Concerns Raised
Officials highlighted several worrying trends:
- Weak due diligence processes in financial institutions
- Inadequate oversight of shell company formations
- Failure to implement proper beneficial ownership registries
Global Implications
The warning comes as part of broader efforts to tighten the sanctions net around Russia. Western nations have increasingly focused on closing loopholes that allow sanctioned individuals and entities to move or hide assets.
"These jurisdictions risk becoming pariahs in the international financial system if they don't address these deficiencies," a senior State Department official warned during a briefing in Geneva.
Response from Accused Nations
Neither Seychelles nor Panama has yet issued an official response to the allegations. However, financial analysts suggest both countries face significant pressure to demonstrate compliance with international standards or risk being grey-listed by global financial watchdogs.
