US Treasury says economic sanctions need to be modernized

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The economic and financial sanctions that the United States has adopted over the past two decades to combat global terrorism, nuclear proliferation, drug cartels and other threats need to adapt to a rapidly changing financial world, the Treasury said. where did it go.

The agency released a report on Monday saying it needs to update its technology and upgrade its staff to address new technologies and tools such as digital currencies.

FILE – On February 23, 2021, Wally Ademo testifies in a confirmation hearing before the Senate Finance Committee in file photo that he was the deputy secretary of finance for Washington.

“A review of Treasury sanctions shows that this powerful tool not only continues to deliver results, but it also faces new challenges,” Treasury Deputy Secretary Wally Ademo said in a report. I have mentioned in

The report found that the use of sanctions by the Treasury has increased by 933%, from the 912 designation of sanctions in 2001 to 9,421 since the 9/11 terrorist attacks this year.

The sanctions program is handled by the Treasury in relation to the recommendations of the White House and the State Department. The report said it was successful in preventing Iran from using the international financial system and commercial markets to generate revenue from oil sales to support its nuclear program, pushing Iran to the negotiating table in 2015. Gave. where did it go.

The report also said the sanctions have led to the seizure of billions of dollars in assets from front companies used by the black drug cartel, the world’s largest drug trafficking organization. According to the report, more than 1,600 terrorist organizations and individuals have also been sanctioned since the terrorist attacks in 2001.

However, a review of Treasury sanctions ordered by Treasury Secretary Janet Yellen found that efforts needed updating.

According to the report, new technologies adopted by cybercriminals and changes in the financial system are needed to respond to sanctions, where products such as cryptocurrencies are already starting to reduce the use of the US dollar, the world’s reserve currency. I have.

“Technological innovations such as digital currencies, alternative payment platforms and new ways to hide cross-border transactions could all undermine the effectiveness of US sanctions,” the report said. “These technologies provide an opportunity for malicious attackers to hold and transfer funds outside the traditional dollar-based financial system.”

The report did not give details of what the Treasury had planned. But last week, the United States pledged to work with more than 30 countries to coordinate action against ransomware attacks through steps such as tightening data sharing between countries and tightening regulations on the crypto market.

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