The US Treasury Department’s Office of Foreign Assets Control (Ofac) has given the green light to TradeXBank to resume operations in US dollars. This decision comes after Ofac removed its predecessor bank, Sberbank (Schweiz) AG, from its sanctions list for Russia. The Swiss bank was sanctioned by the US following the Russian attack on Ukraine in February 2022, which had implications for its subsidiary bank in Switzerland.
TradeXBank was eventually sold to the Geneva-based investment company m3 Groupe Holding SA under supervision from the Swiss Financial Market Supervisory Authority (Finma). Following the sale, some US sanctions remained in place, preventing TradeXBank from conducting transactions in US dollars. However, despite these obstacles, TradeXBank managed to stay profitable and retain its loyal clientele.
The process of getting TradeXBank off the sanctions list was a lengthy and complex one that involved cooperation with law firms in Washington to demonstrate the bank’s independence from its Russian parent. With the removal of sanctions, TradeXBank is now able to resume operations in US dollars, which is expected to boost its growth prospects. The bank has retained a significant portion of its staff from its Sberbank days and remains focused on serving clients in the raw materials trading industry.
Overall, this successful transition from Sberbank to TradeXBank marks a significant milestone for the bank, allowing it to operate freely in the international financial landscape once again.
