The Office of Foreign Assets Control (OFAC), a division of the US Treasury Department located in Washington DC, regularly holds bilateral meetings with Swiss banks to discuss the interpretation of sanctions rules and OFAC’s objectives. These meetings are considered valuable for providing banks with a better understanding of OFAC’s perspective and operational focus, particularly in the context of Russia sanctions.
While Swiss banks must adhere to US sanctions when dealing with US dollars or transactions involving the US, the legal validity of American sanctions on Swiss soil is debatable. OFAC enforces these sanctions and imposes significant fines on any entity that violates them without court judgment.
Despite the controversies surrounding these informal meetings, some view them as necessary for companies to navigate complex sanctions regulations effectively. However, the lack of official oversight from Swiss authorities such as Seco and Finma regarding these interactions has raised concerns about accountability and regulatory compliance in the financial sector. It is not clear if these secretive meetings are held without informing Swiss authorities or if they are held in collaboration with them.
