Recently OFAC has sanctioned two former afghan government officials involved in corruption and misappropriation of funds. These corrupt officials used an elaborate company of networks, using foreign citizenships to conduct business around the world.
“While many CBI applicants may engage with these programs for legitimate reasons, corrupt actors often abuse CBI programs and their benefits”
U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC)
In a press statement, Treasury said, Citizenship by investment (CBI) programs are intended to attract foreign investment by granting foreign investors citizenship rights, and the associated identification documents, in the country concerned—without requiring prior residency by the applicant. While many CBI applicants may engage with these programs for legitimate reasons, corrupt actors often abuse CBI programs and their benefits (such as passports) to hide assets, facilitate illicit cross-border activity, and access previously inaccessible areas of the international financial system. These actions can undercut anti-money laundering and countering the financing of terrorism (AML/CFT) regimes.
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. 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.
