US Treasury to Examine Loopholes Allowing Russians to Evade Sanctions

US Deputy Treasury Secretary Brian Nelson, who oversees financial intelligence and combating the financing of terrorism, stated that the expanding list of sanctions against Russia highlights the "risks of money laundering for investment advisers." This was reported by The Wall Street Journal.

According to him, the US views illicit financing as one of the major national security challenges. In this context, the Treasury intends to investigate and eliminate loopholes in US legislation that allegedly allow Russians to use hedge funds and private capital to evade sanctions.

"We know that many Russian oligarchs and elites are trying to evade sanctions, and we are tirelessly working to prevent them from using financial loopholes to hide and move their wealth," Nelson said.

He noted that US authorities are "coordinating with law enforcement, the US Securities and Exchange Commission, and the Financial Industry Regulatory Authority, as well as industry representatives to determine the scope of possible risks."