In a joint effort, the US Departments of State, Labour, and Commerce have issued a Business Advisory addressing the escalating reputational, financial, and legal perils faced by U.S. businesses and American individuals engaging in transactions with entities closely linked to South Sudan’s extended transitional government or under the influence of family members of government officials.
The advisory emphasises that the transitional government has fallen short in implementing essential economic reforms and commitments to public financial management outlined in the 2018 Revitalised Agreement on the Resolution of the Conflict in the Republic of South Sudan (R-ARCSS).
These commitments were scheduled for completion by February 2023.
Given the transitional government’s limited progress in executing these reforms, its failure to demonstrate significant advancement during the original transition period, and its continued non-adherence to transparent oil revenue management in accordance with its own laws, U.S. enterprises, individuals, and others in South Sudan and the region could face adverse consequences.
Additionally, The US urged citizens in Sudan to exercise caution in engaging in any transactions, particularly those routed through the United States, that involve properties or interests belonging to individuals from South Sudan listed on the Department of the Treasury’s Office of Foreign Assets Control’s (OFAC), Specially Designated Nationals and Blocked Persons list.
U.S. financial institutions are expected to be well-informed about their due diligence and suspicious activity reporting (SAR) obligations related to senior South Sudanese political figures, as stipulated by a 2017 advisory from the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN).
Moreover, reference is made to the 2020 joint guidance issued by FinCEN and the Federal Banking Agencies concerning the Bank Secrecy Act (BSA), titled “Due Diligence Requirements for Customers Who May Be Considered Politically Exposed Persons.”
In related news, the U.S. Department of State and its interagency partners are set to support and engage in the forthcoming Kenyan technical assessment trip to Haiti.
Although specific dates remain undisclosed for operational security reasons, this trip aligns with U.S. Secretary of State’s commitment to significant financial contributions towards a multinational force effort. International collaboration to secure funding, equipment, training, and personnel for this endeavor is actively underway, with this trip being a significant step forward.
