Banks that back maritime shipments of oil with letters of credit and other finance must contend with a potential minefield of due-diligence requirements after an unprecedented, partial embargo on Russian petroleum comes into force, sources told ACAMS moneylaundering.com. On Tuesday, two months after France, Canada, Japan, Germany, Italy, Australia, the EU, U.S. and U.K. unveiled plans to outlaw the provision of finance and other services for Russian crude above a certain price, U.S. officials confirmed in guidance that in the context of the restriction, "financing" does not include the "processing or clearing of payments by intermediary banks." Banks and other...
Banks involved in financing seaborne shipments of Russian oil will play a major role in enforcing a price cap on seaborne shipments of petroleum products from Russia set to take effect Dec. 5, U.S. officials have advised.
The Office of Foreign Assets Control issued guidance on implementing the price cap policy with respect to crude oil of Russian origin, including detailed information on the covered services and the safe harbor afforded to service providers that comply with the recordkeeping and attestation process.
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