Categories: Stories

US lifts sanctions on two State banks

The United States yesterday lifted sanctions on the Agricultural Development Bank of Zimbabwe and the Infrastructure Development Bank of Zimbabwe but said sanctions on all entities and individuals effected by the executive order of 25 July 2008 remained in force.

The United States imposed sanctions on Zimbabwe in 2003 but expanded this in 2005 to include family members of the individuals that were on its list.

The sanctions also prohibit international financial institutions from transacting with the government of Zimbabwe.

An explanatory note from the Office of Foreign Assets Control, the department tasked with enforcing sanctions, says:

“The new Executive Order prohibits US persons, wherever located, or anyone in the United States from engaging in any transactions with any person, entity or organization found to:

  1. be undermining democratic institutions and processes in Zimbabwe;
  2. have materially assisted, sponsored, or provided financial, material, or technological support to these entities;
  3. be or have been an immediate family member of a sanctions target; or
  4. be owned, controlled or acting on behalf of a sanctions target.

“Persons, entities and organizations referenced in Annex A of the Executive Order are all incorporated into OFAC’s list of Specially Designated Nationals (SDNs). Prohibited transactions include, but are not limited to, exports (direct and indirect), imports (direct and indirect), trade brokering, financing and facilitation, as well as most financial transactions. Attempts to evade or avoid these sanctions are also prohibited. These prohibitions also extend to any person, organization or entity found to be owned, controlled or acting on behalf of any Zimbabwe entity included on the SDN list.

“ Under the Executive Order, U.S. persons are also required to block any property of any Zimbabwe Specially Designated Nationals that is in the United States, that comes into the United States, or that comes under the control of a U.S. person wherever located. The term property includes, but is not limited to, money, checks, drafts, bank accounts, securities and other financial instruments, letters of credit, bills of sales, bills of lading and other evidences of title, wire transfers, merchandise and goods.

“Blockable property also includes any property in which there is any interest of a Zimbabwe SDN, including direct, indirect, future or contingent, and tangible or intangible interests.

“Foreign branches and representative offices of U.S. companies, as well as U.S. branches and representative offices of foreign companies are considered U.S. persons for purposes of these prohibitions.”

The European Union lifted sanctions on Zimbabwe last month leaving only 10 individuals including President Robert Mugabe and his wife Grace and Didymus Mutasa.

Only two entities the Zimbabwe Mining Development Corporation and the Zimbabwe Defence Industries remain on the EU list.

(19 VIEWS)

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

ZiG loses steam, falls against US dollar for five consecutive days

The Zimbabwe Gold fell against the United States dollar for five consecutive days from Monday…

November 22, 2024

Indian think tank says Starlink is a wolf in sheep’s clothing

An Indian think tank has described Starlink, a satellite internet service provider which recently entered…

November 18, 2024

ZiG firms against US dollar for 10 days running but people still do not have confidence in the currency

Zimbabwe’s new currency, the Zimbabwe Gold (ZiG), firmed against the United States dollars for 10…

November 16, 2024

Zimbabwe among the top countries with the widest gap between the rich and poor

Zimbabwe is among the top 30 countries in the world with the widest gap between…

November 14, 2024

Can the ZiG sustain its rally against the US dollar?

Zimbabwe’s battered currency, the Zimbabwe Gold, which was under attack until the central bank devalued…

November 10, 2024

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024