Treasury Targets Entities Funding the Conflict in Sudan
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WASHINGTON — Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned three entities for their role in undermining the peace, security, and stability of Sudan. These designations signal the continued commitment of the United States to identify and isolate funding sources for both the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF), the two main belligerent parties responsible for the conflict in Sudan.  

“The conflict in Sudan continues, in part, due to key individuals and entities that help fund the continuation of the violence,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson. “Treasury, in coordination with our allies and partners, will continue to target these networks and disrupt these important funding sources.  

Today’s action is being taken pursuant to Executive Order (E.O.) 14098, which imposes sanctions on certain persons destabilizing Sudan and undermining the goal of a democratic transition. 

FUNDING CONFLICT IN SUDAN 

Alkhaleej Bank Co Ltd (Alkhaleej) is controlled by the RSF and is an essential part of the RSF’s efforts to finance its operations.  The RSF exercises control of Alkhaleej through various individuals and entities controlled by or acting for it.  Alkhaleej reportedly received $50 million from the Central Bank of Sudan immediately prior to the start of the current conflict.   

Alkhaleej is designated for being responsible for, or complicit in, or having directly or indirectly engaged or attempted to engage in, actions or policies that threaten the peace, security, or stability of Sudan. 

Zadna International Co for Development Ltd (Zadna) has been and continues to be one of the most important components of the SAF’s commercial empire. Formerly a subsidiary of the SAF’s Defense Industries System (DIS), which was sanctioned by Treasury in June 2023 for being responsible for, or complicit in, or having directly or indirectly engaged or attempted to engage in actions or policies that threaten the peace, security, or stability of Sudan. According to public media reporting, Zadna was moved under the control of the SAF’s Special Fund for the Social Security of the Armed Forces (SFSSAF) with the express purpose of shielding it from civilian oversight. Called a vehicle for military money-laundering, Zadna had been one of the top-three revenue earners for the DIS, and continues its operations — and its funding of the SAF — to the present.

Zadna is designated for being responsible for, or complicit in, or having directly or indirectly engaged or attempted to engage in, actions or policies that threaten the peace, security, or stability of Sudan. 

Al-Fakher Advanced Works Co. Ltd. (Al-Fakher) was established by RSF senior leadership to be a holding company for conducting RSF’s gold export business. RSF leaders have generated millions of dollars through gold exports, which they have used to purchase weapons, including crew-served weapons and rocket-propelled grenades. 

Al-Fakher is designated for being responsible for, or complicit in, or having directly or indirectly engaged or attempted to engage in, actions or policies that threaten the peace, security, or stability of Sudan. 

SANCTIONS IMPLICATIONS 

As a result of today’s action, all property and interests in property of the designated persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, 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.  

In addition, the prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated person, or the receipt of any contribution or provision of funds, goods, or services from any such person.  

The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the SDN List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897 here. For detailed information on the process to submit a request for removal from an OFAC sanctions list, please click here.

Click here for more information on the individuals and entities designated today

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Official news published at https://home.treasury.gov/news/press-releases/jy2066