Persons or entities that are on the United States (U.S.) blacklist, more precisely, that are under sanctions, usually have restrictions on opening or maintaining bank accounts. Banking institutions often avoid doing business with such persons in order to avoid potential legal problems and penalties that could result from cooperation with sanctioned entities.
All accounts of companies owned by Gorica and Igor Dodik, children of the President of Republika Srpska (RS), Milorad Dodik, have been officially closed. The last in the series were closed accounts of the restaurant “Agape” owned by Gorica and Ivana Dodik, daughter and daughter-in-law of the President of RS, as well as the accounts of the company “Fruit eco” owned by Igor Dodik and Mirko Dobric.
Milorad Dodik announced the establishment of a bank for internal payment transactions for sanctioned persons.
The establishment of a new bank was discussed earlier. In June of last year, the Prime Minister of RS, Radovan Viskovic, stated that a bank owned by RS should be formed, in order to avoid “blackmailing of individual banks” on the financial market.
Dodik pointed out that the U.S. “will not be able to do anything there, even though they are powerful and hostile towards the RS“.
American sanctions are not harmless
The rules governing banking transactions with blacklisted persons may differ depending on the jurisdiction and the type of sanctions. In some cases, banks may be required to block or close accounts they associate with blacklisted individuals or entities.
Milorad Dodik is faced with the urgent need to find solutions for individuals and companies whose bank accounts have been closed due to U.S. sanctions. This issue becomes more urgent as time goes on. The President of RS, whose accounts were also closed, pointed out several potential solutions, but each potential solution brings certain challenges.
Dodik’s latest announcement about the establishment of a new bank for internal payment transactions is seen as one of the possible solutions. However, experts warn that although the formation of a new bank is technically feasible, it carries significant costs and potential risks. In addition, there is the question of the long-term sustainability of such a solution, Forbes writes.
E.Dz.