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.

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