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WASHINGTON – Today, during the Native Community Development Financial Institution (CDFI) Network’s 5th Annual Policy and Capacity Building Summit, the U.S. Department of the Treasury (Treasury) announced an additional $8.6 million in State Small Business Credit Initiative (SSBCI) Capital and Technical Assistance (TA) approvals for Tribal governments. Treasury’s SSBCI Capital Program includes over $500 million in allocations to support Tribal small business financing programs and is the largest federal investment in Indian Country small businesses in history. Additionally, the SSBCI TA Grant Program supports programs that provide legal, accounting, and financial advisory services to qualifying small businesses.  

The approvals involve an additional $7.4 million in Capital Program allocations to 11 Tribal governments, including the Penobscot consortium, which represents five Tribal governments. The Penobscot consortium, approved for up to $3.2 million, will operate a one loan participation program targeted at businesses in the hospitality and social services sectors, including funding start-up businesses with 10 or fewer employees. The group of five Tribal governments expects the program to support entrepreneurism, generate good-paying jobs, and increase tourism by financing small businesses in hospitality. Additionally, these approvals include TA Grant Program awards totaling $1.2 million. With these announcements, Treasury has now approved Capital Program applications for over $530 million in allocations and corresponding to 246 Tribal governments, as well as $5.3 million in TA Grant Program awards to 20 Tribal governments. 

In addition to the SSBCI approvals, during the Summit, Treasury also announced the publication of a policy brief on “Financial Products and Services for Native Communities: Landscape and Policy Recommendations.” This policy brief arises out of the roundtable hosted by Treasury on Native communities’ access to financial services and the role of financial institutions in providing these services. The policy brief provides four recommendations, including sustaining and increasing investments in federal programs that support Tribal access to capital; pursuing relevant recommendations included in the Treasury’s National Financial Inclusion Strategy, expanding responsible financial services on Native lands, and increasing technical assistance to Native-owned small businesses. 

These announcements are part of Treasury’s continuing support for Tribal economic development which has included the creation of Treasury’s first Office of Tribal and Native Affairs, $30 billion in economic development funding for Tribal governments, and advancing proposed tax guidance for long-standing Tribal tax questions to provide clarity and certainty to Tribal Nations and businesses.  

Read the full list of Tribes supported by the SSBCI Capital Program and SSBCI TA Grant Program. 

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WASHINGTON – The U.S. Department of the Treasury is pleased to announce the next round of awards from the Social Impact Partnerships to Pay for Results Act (SIPPRA) program. Six awardees from across the nation are eligible to receive $46.9 million in payments if they successfully achieve their expected results.

The SIPPRA program is a pay for results program under which the federal government will make a payment only if the project meets predefined goals. The awards support projects that demonstrate measurable outcomes in areas such as reduced homelessness and improved children’s health while reducing governmental costs. By leveraging data and evidence-based practices, the SIPPRA program seeks to empower communities and improve the quality of life for those in need.

“Through the SIPPRA program, we are committed to driving meaningful change by funding initiatives that deliver results for our communities,” said U.S. Deputy Secretary of the Treasury Wally Adeyemo. “With financial backing from Treasury, these new projects will address critical challenges and create lasting impacts while encouraging efficiency and accountability.”

The six awardees are:

• The City of Boise, Idaho was awarded $7.5 million to provide permanent supportive housing and services using an intensive case management model including wrap-around services to households who are experiencing long-term homelessness and have high service needs. Boise is eligible for up to $6.6 million if it successfully reduces healthcare and judicial system costs to the federal, state, and local government.
• The City of Jacksonville, Florida was awarded $5.8 million to implement a universal nurse home visit for new parents to reduce infant emergency medical care visits. In addition, Jacksonville plans to offer a universal early literacy initiative through which health care providers coach parents on reading to their children. Jacksonville is eligible to receive up to $5 million if it successfully reduces emergency medical care visits.
• The School Board of Leon County, Florida was awarded $4.6 million to implement a universal nurse home visit for new parents to reduce infant emergency medical care visits. In addition, it plans to offer a universal early literacy initiative through which health care providers coach parents on reading to their children. Leon County is eligible to receive up to $4 million for successfully reducing emergency medical care visits.
• The County of New Castle, Delaware was awarded $11 million to implement a program that will provide up to 90 days of temporary housing, two years of rental assistance, and two years of case management and supportive services. New Castle is eligible to receive up to $9.6 million if it successfully increases permanent housing and decrease shelter stays.
• The City of New York, New York was awarded $6.3 million to serve some of the hardest-to-reach New Yorkers experiencing long-term unsheltered homelessness. In the Coordinated Behavioral Health Task Force Initiative, multiple stakeholders collaborate on the intensive engagement and care coordination. New York City is eligible to receive up to $5.5 million if it successfully increases stable housing for participants.
• The County of Spartanburg, South Carolina was awarded $11.5 million to implement a project enhancing pre-natal care, providing parenting classes, and sending nurses on home visits post-partum. Spartanburg is eligible to receive $10 million if it successfully reduces ER visits and decreases maternal depression.

A portion of each award is reserved for evaluating the results of the program by an independent evaluator. If the independent evaluator shows that the awardee was successful, Treasury will make a payment to the awardee.

SIPPRA funding is awarded through a competitive process. Treasury selected these projects based on the strength of their application, input from the Commission on Social Impact Partnerships, and consultation with the Federal Interagency Council on Social Impact Partnerships.

In total, the SIPPRA program will have awarded more than $74 million to ten awardees across the nation since 2019. For more information about the SIPPRA program and the upcoming awards, please visit https://home.treasury.gov/services/social-impact-partnerships/sippra-pay-for-results.

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WASHINGTON — Today, the United States Department of the Treasury is announcing the disbursement of $20 billion for the benefit of Ukraine, as part of the $50 billion G7 Extraordinary Revenue Acceleration (ERA) Loans initiative. 

“These funds – paid for by the windfall proceeds earned from Russia’s own immobilized assets – will provide Ukraine a critical infusion of support as it defends its country against an unprovoked war of aggression,” said Secretary of the Treasury Janet L. Yellen. “The $50 billion collectively being provided by the G7 through this initiative will help ensure Ukraine has the resources it needs to sustain emergency services, hospitals, and other foundations of its brave resistance. Together with America’s security assistance to Ukraine and the steps we will continue to take to decisively tighten sanctions on Russia, this action will further position Ukraine to defend its sovereignty and achieve a just peace. Right now, Putin is engaging our coalition in a contest of wills, counting on us to tire and ultimately retreat. But, through creative policymaking and the unity of the G7, we are sending an unmistakable message of resolve by making Russia increasingly bear the costs of its illegal war, instead of taxpayers in our coalition.”

Following Russia’s brutal invasion of Ukraine, G7 members took bold action to immobilize Russia’s sovereign assets in their jurisdictions and committed that these assets will remain immobilized until Russia ends its aggression and pays for the damage it has caused to Ukraine—paving the way for G7 ERA loans. Today, the United States followed through on its October commitment to provide Ukraine with $20 billion under this initiative, by transferring these funds to the World Bank’s Facilitation of Resources to Invest in Strengthening Ukraine Financial Intermediary Fund (F.O.R.T.I.S. Ukraine FIF), through which they will be made available to Ukraine. Through the ERA initiative, the G7 has drawn forward the windfall proceeds from immobilized Russian sovereign assets, using those proceeds to support Ukraine.

Ongoing support for Ukraine in the face of Russian aggression demonstrates the resolve of the United States and our partners to defend democracy against belligerent authoritarian regimes, to protect the global economy, and to reinforce our collective security. Supporting Ukraine is also vital for the national interest of the United States. Letting Ukraine fall would invite further aggression by Putin and jeopardize the safety of our NATO allies in Europe, who we are committed by treaty to defend.  A successful Ukraine will demonstrate the resolve of the United States and our partners to defend democracy against aggression, protect the global economy, and reinforce our collective security.

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WASHINGTON — Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) is sanctioning cybersecurity company Sichuan Silence Information Technology Company, Limited (Sichuan Silence), and one of its employees, Guan Tianfeng (Guan), both based in People’s Republic of China (PRC), for their roles in the April 2020 compromise of tens of thousands of firewalls worldwide. Many of the victims were U.S. critical infrastructure companies. 

Malicious cyber actors, including those operating in China, continue to be one of the greatest and most persistent threats to U.S. national security, as highlighted in the 2024 Annual Threat Assessment released by the Office of the Director of National Intelligence.

“Today’s action underscores our commitment to exposing these malicious cyber activities—many of which pose significant risk to our communities and our citizens—and to holding the actors behind them accountable for their schemes,” said Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence Bradley T. Smith. “Treasury, as part of the U.S. government’s coordinated approach to addressing cyber threats, will continue to leverage our tools to disrupt attempts by malicious cyber actors to undermine our critical infrastructure.”

Today, the Department of Justice (DOJ) unsealed an indictment on Guan for the same activity. Additionally, the U.S. Department of State announced a Rewards for Justice reward offer of up to $10 million for information about Sichuan Silence or Guan.

April 2020 Firewall compromise

Guan Tianfeng discovered a zero-day exploit in a firewall product. A zero-day exploit is a previously unknown vulnerability in a computer software or hardware product that can be used in a cyberattack. Between April 22 and 25, 2020, Guan Tianfeng used this zero-day exploit to deploy malware to approximately 81,000 firewalls owned by thousands of businesses worldwide. The purpose of the exploit was to use the compromised firewalls to steal data, including usernames and passwords. However, Guan also attempted to infect the victims’ systems with the Ragnarok ransomware variant. This ransomware disables anti-virus software and encrypts the computers on a victim’s network if they attempt to remedy the compromise. 

More than 23,000 of the compromised firewalls were in the United States. Of these firewalls, 36 were protecting U.S. critical infrastructure companies’ systems. If any of these victims had failed to patch their systems to mitigate the exploit, or cybersecurity measures had not identified and quickly remedied the intrusion, the potential impact of the Ragnarok ransomware attack could have resulted in serious injury or the loss of human life. One victim was a U.S. energy company that was actively involved in drilling operations at the time of the compromise. If this compromise had not been detected, and the ransomware attack not been thwarted, it could have caused oil rigs to malfunction potentially causing a significant loss in human life.

Guan Tianfeng and sichuan silence

Guan is a Chinese national and was a security researcher at Sichuan Silence at the time of the compromise. Guan competed on behalf of Sichuan Silence in cybersecurity tournaments and posted recently discovered zero-day exploits on vulnerability and exploit forums, including under his moniker GbigMao. Guan was responsible for the April 2020 firewall compromise.

Sichuan Silence is a Chengdu-based cybersecurity government contractor whose core clients are PRC intelligence services. Sichuan Silence provides these clients with computer network exploitation, email monitoring, brute-force password cracking, and public sentiment suppression products and services. Additionally, Sichuan Silence provides these clients with equipment designed to probe and exploit target network routers. A pre-positioning device used by Guan in the April 2020 firewall compromise was in fact owned by his employer, Sichuan Silence.

OFAC is designating Sichuan Silence and Guan pursuant to Executive Order (E.O.) 13694, as amended by E.O. 13757, for being responsible for or complicit in, or having engaged in, directly or indirectly cyber-enabled activities originating from, or directed by persons located, in whole or in substantial part, outside the United States that are reasonably likely to result in, or have materially contributed to, a significant threat to the national security, foreign policy, or economic health or financial stability of the United States and that have the purpose or effect of harming, or otherwise significantly compromising the provision of services by, a computer or network of computers that support one or more entities in a critical infrastructure sector. 

SANCTIONS IMPLICATIONS

As a result of today’s action, all property and interests in property of the designated persons described above that are in the United States or in the possession or the control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons. 

In addition, financial institutions and other persons that engage in certain transactions or activities with the sanctioned entities and individuals may expose themselves to sanctions or be subject to an enforcement action. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated person, or the receipt of any contribution or provision of funds, goods, or services from any such person. 

The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the Specially Designated Nationals and Blocked Persons (SDN) List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897 here. For detailed information on the process to submit a request for removal from an OFAC sanctions list, please click here.

Click here for more information on the individuals and entities designated today.

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Washington, D.C. — The EU-U.S. Joint Financial Regulatory Forum took place on December 4-5, 2024, with participants exchanging views on topics of mutual interest as part of their regular financial regulatory dialogue.  The dialogue was co-chaired by the U.S. Department of the Treasury and the European Commission.

EU participants included representatives of the European Commission, European Banking Authority (EBA), European Securities and Markets Authority (ESMA), European Insurance and Occupational Pensions Authority (EIOPA), European Central Bank (ECB), and Single Resolution Board (SRB).

U.S. participants included representatives from the U.S. Department of the Treasury and staff from independent regulatory agencies, including the Federal Reserve Board (FRB), Commodity Futures Trading Commission (CFTC), Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), Securities and Exchange Commission (SEC), and Consumer Financial Protection Bureau (CFPB).

The Forum emphasized close, ongoing U.S. and EU cooperation in a range of areas and focused on seven themes: (1) market developments and financial stability; (2) operational resilience and digital finance; (3) the sharing and financial reporting of financial data; (4) anti-money laundering and countering the financing of terrorism (AML/CFT); (5) sustainable finance; (6) banking and insurance; and (7) capital markets.  Agency participation varied across themes, with representatives expressing views on issues in their respective areas of responsibility.

Participants started the conversation by focusing on financial stability and market developments.  Globally, while inflation has continued to moderate, downside risks to the economic outlook continue to persist amid increased geopolitical tensions.  Participants discussed financial stability vulnerabilities. Concerns remain around asset valuations, which remain elevated relative to fundamentals across several asset classes.  Participants highlighted the importance of implementing robust prudential regulatory frameworks and supervisory practices as well as effective macroprudential policies.  Participants discussed the importance of strong and consistent regulatory standards in particular for internationally active banks.  International cooperation and continued dialogue, including in international fora, remain important for discussing appropriate and comparable regulatory standards, monitoring vulnerabilities, and enhancing the resilience of the financial system and its ability to withstand shocks, and preserving the level playing field.

Participants continued their exchange of views on the use of artificial intelligence in financial services, looking at opportunities and challenges, but also implications for regulation, supervision, and financial stability.  Both sides expressed interest in continuing the conversation on the topic, including in international fora.  EU participants provided an update on the current implementation work under the Digital Operational Resilience Act (DORA).  U.S. participants shared updates on the Treasury-FRB Critical Providers Dialogue, and the CFTC provided an update on its approach to operational resilience, including its proposed Operational Resilience Framework for Futures Commission Merchants, Swap Dealers, and Major Swap Participants.  EU participants provided an update on the Markets in Crypto-Assets (MiCA) Regulation and shared considerations for the ongoing development of the Digital Euro, as well as underscoring the importance of the Financial Stability Board’s work on issues related to crypto-assets, including stablecoins.  U.S. Treasury shared considerations about a possible federal payments framework to include non-bank payment service providers.  Participants discussed the importance of international cooperation to harness the benefits of digital financial innovation, while mitigating its risks. Both sides also emphasized the importance of continued coordination of international payments matters, including under the G20 Roadmap for Enhancing Cross-Border Payments.

Participants also touched upon regulatory proposals and recent developments relating to managing consumer financial data within each jurisdiction, specifically the CFPB’s final rule on Personal Financial Data Rights and the European Commission’s proposal for a Regulation on Financial Data Access (FIDA).  U.S. participants provided an update regarding ongoing work on the Financial Data Transparency Act.

Both sides exchanged notes on the recent developments in the field of anti-money laundering and combatting the financing of terrorism.  U.S. participants provided an update on the ongoing implementation of the Anti-Money Laundering Act of 2020, including the Corporate Transparency Act, as well as the issuance of two final rules to help safeguard the residential real estate, and investment adviser sectors from illicit finance. Participants also discussed the potential illicit finance risk related to stablecoins.  EU participants provided an update on work to implement the recently adopted Anti-Money Laundering Package including the establishment of the new Anti-Money Laundering Authority.

Participants discussed their respective work in the area of sustainable finance, including on climate disclosures and other corporate sustainability-related topics. An exchange also took place on recent developments on sustainable finance at international level, including the work of the G20’s Sustainable Finance Working Group, while the EU provided an update on work of the International Platform for Sustainable Finance.

An exchange followed to provide updates on U.S. and EU bank regulatory proposals and developments.  Both sides gave an overview on the state of play of their respective rulemakings and regulatory frameworks which would implement the final set of Basel III reforms. Participants highlighted the importance of implementing Basel-based standards to enhance the stability of the financial system. Participants also informed each other of the latest developments in banking resolution matters. EU participants updated about the state of negotiations of the crisis management and deposit insurance framework. This was followed by an exchange on the interactions between U.S. securities laws and open bank bail-in operationalization, where participants took stock of continued engagement since the last Forum and in light of ongoing discussions in relevant international fora, emphasizing the importance of effective resolution frameworks in a cross-border context.  Participants continued with an exchange on insurance-related matters, including on insurance recovery and resolution, and macroprudential developments.  Participants also exchanged views on recent developments concerning climate-related financial risks assessment and related tools, during which the ECB presented recent developments in climate-related financial risks and their supervision and highlighted the importance of banks taking decisive steps to integrate climate and environmental risks into their strategy, governance and risk management.

On capital markets, EU provided an update on work on the shortening of the settlement cycle in the European Union.  The SEC shared observations on the lessons that could be learned and provided an update six months from the U.S. migration to T+1.  The SEC provided also an update on their rules on clearing U.S. Treasuries.  Discussions continued with an exchange on fund reforms.  EU participants provided an update on their macroprudential review in the Non-Bank Financial Institution space.  EU participants also touched upon the proposed Savings and Investment Union. 

The Forum closed with an update from U.S. participants on the Foreign Account Tax Compliance Act (FATCA).

Participants acknowledged the importance of the Forum in fostering ongoing financial regulatory dialogue between the United States and the European Union and will continue to discuss the scope of the potential implications of respective policies and laws in each other’s jurisdictions.  They further acknowledged that regular communication on regulatory and supervisory issues of mutual concern is important to support financial stability, investor protection, market integrity, and a level playing field.

Participants will continue to engage on these topics, as well as on other topics of mutual interest, ahead of the next Forum meeting anticipated in summer 2025.

On International Anti-Corruption Day, OFAC takes action in coordination with domestic and foreign partners

WASHINGTON — Today, on International Anti-Corruption Day, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is sanctioning 28 individuals and businesses involved in a global gold smuggling and money laundering network based in Zimbabwe, pursuant to Executive Order (E.O.) 13818, which targets perpetrators of serious human rights abuse and corruption around the world.

The global network led by Kamlesh Pattni (Pattni) has facilitated illicit activities by bribing officials, deploying trusted supporters to mask ownership, and weaving a global web of businesses to hide the illicit activities. This fraudulent scheme has robbed Zimbabwe’s citizens of the benefit of those natural resources while enriching corrupt government officials and criminal actors. 

“Across the globe, when corrupt actors like Pattni choose to exploit openings in governance structures to benefit themselves and their cronies, communities suffer and public trust is undermined,” said Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence Bradley T. Smith. “Corruption respects no borders and its consequences are felt worldwide. As we mark International Anti-Corruption Day, the United States reaffirms our commitment to use all available tools to hold these individuals to account for their schemes.” 

International Anti-Corruption Day has been observed annually on December 9 since the passage of the United Nations Convention against Corruption (UNCAC) in 2003 to raise public awareness of the importance of anti-corruption initiatives in preventing corruption from undermining democratic institutions, eroding governmental stability, and slowing economic development. There are currently 189 parties to the UNCAC. 

Pattni’s network illustrates the globalized nature of corruption and this action demonstrates a way to counter it: a whole-of-government approach and collaboration with allies and partners. 

Today’s action was coordinated with the Federal Bureau of Investigations (FBI) and the United Kingdom (UK), reflecting the principles of The United States Strategy on Countering Corruption, released in December 2021, which has been pivotal to the fight against corruption. In coordination with Treasury’s action, today, the UK designated Pattni, a UK citizen, and additional individuals. 

The FBI collaborates with the Treasury Department and other domestic partners to hold accountable corrupt actors trying to take advantage of the stability of the U.S. financial market. Corrupt officials and their associates negatively affect their citizens by stealing natural resources and diverting funds for personal use that otherwise would provide infrastructure, enhance education, and improve their economies. These sanctions, on International Anti-Corruption Day, exemplify that we will not allow borders to impede justice and ensure we prevent these criminals from accessing their stolen wealth.

ACTION CAPS YEAR OF ANTI-CORRUPTION ACTIONS AND REFORMS

Over the course of 2024, Treasury has taken a series of steps to prevent corrupt and criminal actors from laundering their illicit proceeds across the U.S. financial system. Over the past year, OFAC designated over 100 individuals and entities across more than a dozen countries for these activities, leveraging several Treasury tools and authorities—including E.O. 13818. This year’s actions reinforce the Treasury’s long-standing commitment to accountability for those who steal from the public or abuse their positions of power or public trust. Since 2021, Treasury has designated more than 500 individuals and entities for corruption and related activities. 

Beyond sanctions, Treasury has advanced historic efforts this year to strengthen the United States’ anti-money laundering/countering the financing of terrorism (AML/CFT) regime to safeguard the U.S. financial system from corruption and crime.

Treasury finalized two rules that aim to bring transparency and new safeguards to the residential real estate and investment adviser sectors—both of which have been misused by corrupt actors to hide ill-gotten gains in the United States. This year’s actions represent among the most significant updates to the United States’ AML/CFT regime in decades. These reforms aim to bolster the integrity of our financial system and root out corruption and crime, all while advancing fairness and transparency for law-abiding Americans and businesses. 

KAMLESH PATTNI’S COMPLEX WEB OF CORRUPTION

The designation of the Pattni’s web of supporters and companies illustrates how illicit activity based in Zimbabwe spread across multiple countries, using a web of trusted supporters, and bribing government officials to concoct a complex corruption scheme.

Kamlesh Mansukhlal Damji Pattni (Pattni) first came to global attention as a result of the infamous Goldenberg scandal in Kenya in the 1990s, wherein he was accused of manipulating Kenyan export incentives and corrupting senior Kenyan government officials. Although Pattni denied any wrongdoing, he fled Kenya and soon shifted his attention to Zimbabwe.

In Zimbabwe, Pattni befriended then-President Robert Mugabe and reestablished a scheme similar to the one he ran in Kenya. Pattni, as featured in public reporting and elsewhere, has enlisted a range of couriers and supporters to engage in export incentive fraud and bribery to enable his illicit profiting from the exportation of gold and diamonds from Zimbabwe. 

Pattni and members of his network engaged in a scheme wherein they would generate cash via the sale of Zimbabwean natural resources in foreign jurisdictions. When Pattni and his network would return to Zimbabwe with the cash from the sale of the natural resources, they would overreport the amount of cash being brought back into the country, receive compensation on the overreported cash, and bribe government officials in Zimbabwe to receive protection for their illicit activity. Pattni then hid the profits behind a global network of companies often controlled by members of the network, including frontmen, facilitators, couriers, and other supporters.

GLOBAL NATURE OF CRIMINAL NETWORK

Pattni’s network has spread across multiple countries, reflecting the global nature of corruption. More recently, Pattni and several of his supporters have looked to establish new operations in other resource-rich countries, further compounding the threat his illicit network poses to the U.S. and global financial systems.

WIDESPRED USE OF SUPPORTERS TO MASK INTERESTS

Pattni is a prolific user of frontmen, facilitators, couriers, and other supporters to hide his interest in businesses. These supporters are individuals he trusts to not steal from him, including close friends and family members. As featured in public reporting and as pictured below, Pattni controls a complex web of companies designed to enable his illicit activity while obscuring his interests in these same companies.

 

 

Primary among the network of companies Pattni oversees is Sun Multinational DMCC (Sun Multinational), an ostensibly legitimate company ultimately wholly owned by Marwa Investments Limited, which in turn is owned by one of Pattni’s long-time supporters and brother-in-law, Mukesh Manuskhlal Vaya (Mukesh). Pattni, who has been identified as Sun Multinational’s “Group Chairman” by its CEO, Swetang Sinha (Sinha), has put forward numerous Sun Multinational subsidiaries as potential avenues for the laundering of funds. Sinha has been identified as a main supporter for Pattni, as well as having been involved in corruption involving Zimbabwean President Emmerson Mnangagwa, who was sanctioned pursuant to 

E.O. 13818 for corruption and serious human rights abuse on March 4, 2024. 

Rahul Sood (Sood), Sun Multinational’s “Managing Director,” has also been key to Pattni’s network, acting as a manager and in other roles for numerous companies in the network. Mishaal Hitesh Pattni (Mishaal), Pattni’s nephew, has also been identified as a key figure in Pattni’s extended network of companies, often facilitating Pattni’s activities and being featured as a manager or employee within the network of companies. 

Furthermore, included in the Sun Multinational group of companies are Fiza Gold and Bullion Trading L.L.C, which features Sood as its Manager; Golden Luxury Jewellery Trading L.L.C, which features Mishaal as its Managing Director; Memories Golden Jewellery L.L.C, which features Sood as its Manager; Ruhmeer Diamonds DMCC, which features Sood as a Manager; and Sun Star Travel & Tourism L.L.C. Although not part of the Sun Multinational group of companies, Sood also owns Singapore-based Sahara Petroleum PTE. LTD. and manages the United Arab Emirates-based Precious Bullion DMCC, where Mukesh is also an authorized signatory.

Pattni has relied on a global network of individuals and companies to enable his illicit activities. British Virgin Island-based Rubini Investment Group Limited at one time controlled Pattni’s investments in real estate. Pattni also controls UAE-based Samaria Holdings Limited, UAE-based Suzan General Trading JLT, and Kenya-based Manurama Limited. Pattni has long controlled the trading firm Suzan General Trading (PVT) LTD, located in Zimbabwe. 

Sanjay Keshavji Vaya (Sanjay) is considered Pattni’s “right hand man” as relates to his Zimbabwe-based activities, and his son Raj Vaya Sanjay (Raj) has been identified as supporting Pattni by providing him gold and acting as a director on the Pattni-controlled Skorus Investments (PVT) LTD. Another director of Skorus Investments Limited is David Paul Crosby (Crosby), who also provides gold for Pattni and acted as a courier in the network. Crosby controls several companies based in Kyrgyzstan, including Sakhara Petroleum OSOO, Mirdk Fyuels OSOO, Royal Sona OSOO, and Suprim Ef Iks OSOO. Finally, Dmytro Abakumov (Abakumov) has been a courier for Pattni and was at one time his personal trader.   

For more information on the bases of designations, please see Annex 1 below.    

SANCTIONS IMPLICATIONS 

As a result of today’s action, all property and interests in property of these targets that are in the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked. OFAC’s regulations generally prohibit all dealings by U.S. persons or within the United States (including transactions transiting the United States) that involve any property or interests in property of blocked or designated persons.

In addition, persons that engage in certain transactions with the individuals and entities designated today may themselves be exposed to sanctions or subject to an enforcement action. Furthermore, unless an exception applies, any foreign financial institution that knowingly facilitates a significant transaction for any of the individuals or entities designated today could be subject to U.S. sanctions.

The power and integrity of OFAC sanctions derive not only from its ability to designate and add persons to the SDN List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897 here. For detailed information on the process to submit a request for removal from an OFAC sanctions list, please click here.

Click here for identifying information on the individuals and entities designated today.

 

 

ANNEX 1: Full List of Today’s Designations

Pattni is being designated pursuant to E.O. 13818 for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of corruption, including the misappropriation of state assets, the expropriation of private assets for personal gain, corruption related to government contracts or the extraction of natural resources, or bribery.

Mukesh, Sinha, Sood, Mishaal, Sanjay, Raj, Crosby, and Abakumov are being designated pursuant to E.O. 13818 for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of Pattni.

Sun Multinational, Marwa Investments Limited, Fiza Gold and Bullion Trading L.L.C, Golden Luxury Jewellery Trading L.L.C, Ruhmeer Diamonds DMCC, Precious Bullion DMCC, Star Travel & Tourism L.L.C, Rubini Investment Group Limited, Samaria Holdings Limited, Suzan General Trading JLT, Manurama Limited, Suzan General Trading (PVT) LTD, and Skorus Investments (PVT) LTD are being designated pursuant to E.O. 13818 for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, Pattni.

Memories Golden Jewellery L.L.C is being designated pursuant to E.O. 13818 for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, Sun Multinational.

Sahara Petroleum PTE. LTD. is being designated pursuant to E.O. 13818 for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, Sood.

Sakhara Petroleum OSOO, Mirdk Fyuels OSOO, Royal Sona OSOO, and Suprim Ef Iks OSOO are being designated pursuant to E.O. 13818 for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, Crosby.

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WASHINGTON — In recognition of International Human Rights Day (IHRD), the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is announcing new designations and highlighting other human rights-related sanctions actions taken over the last year. IHRD is observed annually on December 10 in commemoration of the United Nations’ adoption of the Universal Declaration of Human Rights on that day in 1948. 

Today’s actions sanction one individual and one entity involved in abuses against prisoners held in Houthi-run prisons in Yemen and one individual providing support to Bashar al-Assad. State also announced steps to impose visa restrictions on dozens of individuals pursuant to Section 212(a)(3)(C) of the Immigration and Nationality Act, and designated one official under Section 7031(c) of the annual Appropriations Act for involvement in a gross violation of human rights. For more information about State’s actions, please see their fact sheet.

“The United States is strongly committed to promoting respect for human rights, and Treasury is proud of its longstanding use of our tools for this purpose,” said Secretary of the Treasury Janet L. Yellen. “The Office of Foreign Funds Control, as OFAC was formerly known, was established during World War II to prevent the Nazi regime from leveraging the assets of occupied countries to expand the war and further its systematic campaign of atrocities. We are proud to continue to build on this important legacy of shining a light on instances of serious human rights abuse.”

Treasury’s 2024 Human rights-related actions

Since January 2024, OFAC has leveraged multiple sanctions programs to designate more than 100 individuals and entities associated with human rights abuse across more than 20 jurisdictions. These actions have targeted an array of activities, including national and transnational repression, forced disappearances and hostage taking, gender-based violence, human trafficking, including forced labor, and human rights abuse perpetrated by terrorist and criminal organizations. Since 2021, Treasury has designated more than 500 individuals and entities for human rights abuse and related activities, drawing on numerous Treasury tools and authorities, including Executive Order (E.O.) 13818, which builds upon and implements the Global Magnitsky Human Rights Accountability Act. 

Targeting political repression was a key theme for OFAC in 2024, with related actions in Burma, the country of Georgia, Iran, Nicaragua, Venezuela, and Zimbabwe. OFAC began the year with the designations of an international assassination network led by a narcotrafficker operating at the direction of the Iranian government in January and, in March, the designation of a commercial spyware consortium that distributed spyware technology that was used to target Americans. This latter action aligned with President Biden’s issuance of an Executive Order in March in part to ensure that technology is developed, deployed, and governed in accordance with universal human rights, the rule of law, and appropriate legal authorization, safeguards, and oversight, such that it supports, and does not undermine, democracy, civil rights and civil liberties, and public safety. 

Promoting accountability for gender-based violence is another priority. President Biden issued a Memorandum on Promoting Accountability for Conflict-Related Sexual Violence in November 2022 that directs the U.S. government to strengthen our exercise of financial, diplomatic, and legal tools against these types of abuses. This year OFAC fulfilled the intent of this memorandum with designations of: armed groups and their leaders in the Democratic Republic of the Congo implicated in conflict-related sexual violence (CRSV); a gang leader in Haiti responsible for horrific gang violence including gender-based attacks; and a Rapid Support Forces commander in Sudan who was responsible for attacks resulting in CRSV. Last week, OFAC also designated three former government of Uzbekistan officials who engaged in the sex trafficking and sexual abuse of minors at a state-run orphanage. 

OFAC also focused on actions to disrupt human trafficking, including forced labor. Throughout 2024, OFAC designated: Venezuela-based criminal organization Tren de Aragua, which kidnapped and trafficked victims across borders for sex trafficking and debt bondage; a Syria-based narco-trafficker also under legal prosecution for human trafficking; and the Uzbekistan action mentioned above. In September, OFAC designated a Cambodian businessman and his four companies for their role in a major scheme to lure workers with promises of employment, only to capture and subject them to forced labor in online virtual currency investment scam centers that have defrauded thousands of victims, including Americans.

GLOBAL MAGNITSKY

Building upon the Global Magnitsky Human Rights Accountability Act, E.O. 13818 was issued on December 20, 2017, in recognition that the prevalence of human rights abuse and corruption that have their source, in whole or in substantial part, outside the United States, had reached such scope and gravity as to threaten the stability of international political and economic systems. Human rights abuse and corruption undermine the values that form an essential foundation of stable, secure, and functioning societies; have devastating impacts on individuals; weaken democratic institutions; degrade the rule of law; perpetuate violent conflicts; facilitate the activities of dangerous persons; and undermine economic markets. The United States seeks to impose tangible and significant consequences on those who commit serious human rights abuse or engage in corruption, as well as to protect the financial system of the United States from abuse by these same persons.

YEMEN

Today, OFAC designated the Houthi National Committee for Prisoners’ Affairs (HNCPA) and its leader, Abdulqader Al-Murtadha,pursuant to E.O. 13818 for being foreign persons who are responsible for or complicit in, or have directly or indirectly engaged in, serious human rights abuse. Al-Murtadha was also designated for being a foreign person who is a leader or official of an entity, including any government entity, that has engaged in, or whose members have engaged in serious human rights abuse relating to the leader’s or official’s tenure. 

The HNCPA operates Houthi prisons in Yemen. According to the United Nations (UN), at one of the prisons, known as the Exchange House in Sana’a, prisoners are systematically subjected to torture and other forms of cruel, inhuman, or degrading treatment or punishment by the prison’s staff. Additionally, multiple reports indicate members of the prison’s management personally participate in crimes against prisoners, including Al-Murtadha. Detainees include former locally employed U.S. Embassy staff, UN staff, humanitarian workers, and journalists; many are reported to be arbitrarily detained, and some of the prisoners are minors. Prison officials engage in systematic psychological and physical cruelty and punishment, including mock executions, beatings, and electrocution, among other abuses. Prison officials have denied prisoners adequate medical care; as a result, some prisoners have permanent disabilities, and some have reportedly died. 

SYRIA

Fawaz al-Akhras is being designated pursuant to E.O. 13894 for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Bashar al-Assad. Fawaz al-Akhras has provided support and facilitation to Bashar al-Assad related to financial matters, sanctions evasion, and attempts by Bashar al-Assad to achieve international political engagement. The United States designated Bashar al-Assad pursuant to E.O.s 13572 and 13894 in 2011 and 2020, respectively, in relation to the Government of Syria’s perpetration of serious human rights abuses against the Syrian people and Bashar al-Assad’s actions obstructing, disrupting, or preventing a ceasefire or a political solution to the Syrian conflict. As has been documented by the U.S. Department of State and non-governmental organizations throughout the duration of the Syrian conflict, Bashar al-Assad’s government continued to perpetrate serious human rights abuses in Syria, including failing to investigate extrajudicial killings by regime security forces, use of torture and sexual violence in detention facilities, use of enforced disappearances and arbitrary arrest of political dissidents, withholding of medical attention in detention facilities, denying international monitors access to detention facilities, denying detainees access to a fair or timely trial, seizure of land or property, disrupting humanitarian access to opposition areas, and transnational repression of political activists abroad.

SANCTIONS IMPLICATIONS

As a result of today’s action, all property and interests in property of the designated persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons. U.S. persons may face civil or criminal penalties for violations of E.O. 13818. Non-U.S. persons are also prohibited from causing or conspiring to cause U.S. persons to wittingly or unwittingly violate U.S. sanctions, as well as engaging in conduct that evades U.S. sanctions. OFAC’s Economic Sanctions Enforcement Guidelines provide more information regarding OFAC’s enforcement of U.S. sanctions, including the factors that OFAC generally considers when determining an appropriate response to an apparent violation.

In addition, financial institutions and other persons that engage in certain transactions or activities with the sanctioned entities and individuals may expose themselves to sanctions or be subject to an enforcement action. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated person, or the receipt of any contribution or provision of funds, goods, or services from any such person. 

The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the Specially Designated Nationals and Blocked Persons (SDN) List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. 

For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897 here. For detailed information on the process to submit a request for removal from an OFAC sanctions list, please click here.

Click here for more information on the individuals and entities designated today.

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WASHINGTON – The Financial Stability Oversight Council (Council) today unanimously approved its 2024 annual report. The annual report reviews developments in financial markets, identifies vulnerabilities and emerging threats to U.S. financial stability, and makes recommendations to mitigate those vulnerabilities and threats. The report also details the activities of the Council and summarizes significant regulatory developments. The report was developed collaboratively by Council members and their agencies and staffs. Overall, the Council finds that the U.S. financial system remains resilient, though vulnerabilities warrant ongoing vigilance. 

“The prosperity of the U.S. economy and the American people depend on the stability of the U.S. financial system,” Secretary of the Treasury Janet L. Yellen said. “This year, the financial system has continued to support a strong economy, marked by declining inflation, solid economic growth, and a healthy labor market. But we must remain focused on ensuring the financial system remains resilient and addressing emerging vulnerabilities. The annual report demonstrates the Council’s commitment to monitoring and responding to current and emerging risks to enhance market resilience, efficiency, and stability.”

The Council’s recommendations in the annual report include the following:

• Cybersecurity: Cyber incidents have become increasingly frequent over the past two decades, posing risks to financial stability. Significant incidents at major financial institutions have the potential to disrupt critical operations and services more broadly. Financial institutions and systems are highly interconnected, so it is important for all financial sector participants to stay updated on cybersecurity developments within the financial sector and work to reduce cybersecurity risk. The Council supports ongoing partnerships between state and federal agencies and private firms and recommends continued information sharing related to cyber risk and additional work to assess and mitigate cyber-related financial stability risks. The Council also supports the G7 Cyber Expert Group’s international efforts to help financial institutions better understand cybersecurity risks and improve the resilience of the financial system to cyber incidents through preparedness, a consensus un­derstanding of the threat landscape, and a shared approach to mitigating risk. 
• Depository Institutions: Depository institutions play a central role in the U.S. economy and the global financial system by providing credit to retail and commercial borrowers, helping firms raise capital or hedge risk, providing asset management and custody services, and facilitating payments. Overall, the U.S. banking system remains resilient, supported by sound levels of regulatory capital, adequate liquidity buffers, and healthy levels of profitability. However, some potential vulnerabilities warrant continued mon­itoring, including the weakening credit conditions in commercial real estate (CRE) and the strong reliance of some banks on non-deposit funding and uninsured deposit funding. The Council recommends that banks continue to ensure they have sound risk management practices, including contingency planning for funding and liquidity events. The Council also encourages efforts to complete the Basel III reforms to further enhance the resilience of the banking system.
• Third-Party Service Providers: Financial institutions are increasingly using third parties to provide a range of products and services. While third-party service providers can offer benefits, they may also introduce or amplify risks, in part by limiting a financial institution’s access to, control over, and oversight of its data or systems. Additionally, the authority to supervise third-party service providers varies among financial regulators. To enhance information security within third-party service providers and address other critical regulatory challenges, the Council recommends that Congress pass legislation ensuring the Federal Housing Finance Agency, National Credit Union Administration, and other relevant agencies have adequate examination and enforcement powers to oversee third-party service providers that interact with their regulated entities. The Council also recommends that federal banking regulators continue to coordinate third-party service provider examinations, work collaboratively with states, and identify additional ways to support information sharing among state and federal regulators.   
• Commercial Real Estate: Signs of CRE credit risk have been evident in 2024. Increasing vacancies, slower rent growth, and higher borrowing costs were particularly notable in the office sector and to a lesser degree in the multifamily sector. These pressures on borrowers have led to increasing delinquencies, loan losses, and provision expenses for banks. The Council recommends regulators continue to focus on the financial industry’s ability to withstand CRE stress from declines in property prices and loan quality. CRE exposure among bank and nonbank industry participants can also be interconnected. Therefore, the Council recommends that member agencies ensure financial institutions continue to monitor these correlated risks in their risk management and contingency planning.
• Digital Assets: The Council continues to monitor risks related to crypto assets. Though the market value of the crypto-asset ecosystem remains small compared with traditional financial markets, it has continued to grow. Absent appropriate risk management standards, stablecoins represent a potential risk to financial stability because of their vulnerability to runs. The Council reiterates its prior recommendation that Congress pass legislation to create a comprehensive federal prudential framework for stablecoin issuers. The Council also recommends that Congress pass legislation providing federal financial regulators with explicit rulemaking authority over the spot market for crypto assets that are not securities. 
• Investment Funds: The Council and its member agencies have made progress addressing financial vulnerabilities stemming from investment funds, including the SEC’s reforms to make money market funds more resilient, liquid, and transparent. Nevertheless, open-end funds with significant liquidity mismatches may face challenges meeting large redemption requests during times of market stress, potentially disrupting market functioning. Collective investment funds (CIFs) and other short-term investment vehicles share similar features that can contribute to financial stability risk. The Council supports the SEC’s continued engagement on open-end funds, including the SEC’s adoption of amendments to require more frequent and timely reporting of funds’ portfolio information. The Council and state and federal regulators should consider what steps are needed to address financial stability risks from open-end funds and CIFs. Lastly, the Council has continued working to support better data collection and monitoring to identify risks from highly leveraged hedge funds and the growth in private credit.

 

The full report can be viewed here.

Secretary Yellen’s remarks on the report during the open session can be viewed here.

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