U.S. Senator Elizabeth Warren Drafts Bill To Prevent Russians From Evading Its Sanctions

Elizabeth Warren, senior United States senator from Massachusetts, is creating a bill in response to the anxiety regarding the evasion of U.S. sanctions put on Russians.

Warren, along with other senators, demand the Treasury Department reveal methods in which they will ensure that the targeted individuals do not evade Russian sanctions.

While the bill’s text is not revealed yet, according to the NBC reports, the one provision is similar to a proposed Treasury Department rule, making Banks regularly look into suspicious transactions linked to sanctions evasion.

U.S. Senator Elizabeth Warren is drafting a bill amidst the concerns that the nationalists of Russia might be using cryptocurrency to evade sanctions. The bill would require financial institutes such as banks to identify both customers and transfers to private wallets and regularly provide updated information to the Treasury Department. Meanwhile, crypto firms claim they haven’t found any evidence of sanctions evasions on their exchanges.

In a tweet published on a Tuesday afternoon, Warren warns that there is a possibility that criminals can leverage cryptocurrencies to transfer money and hence providing an opportunity for Putin and his allies to evade sanctions. Further, she demands answers from the U.S. Treasury Department to tell us how it will ensure that their response to the Russian invasion of Ukraine doesn’t get undermined by crypto.

Although the bill’s text hasn’t been revealed yet, the NBC reports show that one of the provisions is similar to a proposed Treasury Department rule that makes it mandatory for the Banks to do a regular check on suspicious transactions linked to sanctions evasion. The legalization will reduce the rule if the bill is passed.

Lawmakers do not think the Treasury Department’s Office of Foreign Assets is capable of searching for crypto criminals. A group of Senate including Warren has asked the Treasury Department to list various ways it has drafted to counter sanctions evasions via crypto, including how it plans to deal with foreign governments. The senators also listed the different suspected methods that Russians could be used to evade sanctions, including using the dark web to move funds, the Bank of Russia’s new ruble, and ransomware attacks.

In the wake of 9/11, the passage of the PATRIOT Act required banks and financial institutions to adopt customer identification programs. Requiring banks to disclose suspicious transactions into private crypto wallets is not without precedent, even if it’s disagreeable to some parties.

The PATRIOT ACT implemented after 9/11 made it mandatory for all banks and financial institutions to conduct customer identification programs even if some parties do not agree, requiring banks to reveal suspicious transactions into private crypto wallets.

The cryptocurrency industry that considers anonymity as their biggest USP does not seem much interested. Coinbase, Binance, and Kraken are working together with government officials to ensure that the individuals targeted by sanctions do not use their platforms; they have, however, declined to ban Russian accounts altogether. Crypto platforms have denied that such widespread Russian sanctions evasion are even happening.

Chainalysis, a blockchain data platform, pointed out the spike in crypto transactions using the Ukrainian hryvnia and the Russian Ruble in the last week of February. The surge could be because of the average Russians and Ukrainians purchasing digital assets to secure their savings while fiat money in both currencies is losing value.

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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing