Sudanese Banks take steps to end isolation

Banks in Sudanese have started moves to re-establish relations with foreign banks as the United States (US) prepares to remove Sudan from its state sponsor of terrorism (SSOT) list. Bankers and analysts say the process will likely be slow.

Restoring international banking links could provide a vital boost to an economy still in crisis more than 18 months into a political transition following the overthrow of former president Omar al-Bashir.

Banks in Sudan have been blocked from correspondent banking relationships involving US dollars and have had difficulty dealing in other major currencies for nearly two decades, forcing them to rely mainly on the United Arab Emirates dirham for transactions.

Importers have depended on expensive brokers, mainly in Dubai, to source foreign currency, passing on the extra cost to local consumers and helping to exacerbate inflation, now running at 220%.

Washington formally lifted economic sanctions against Sudan in 2017, but continued to classify the country as a state sponsor of terrorism.

Source: Reuters & Kemman

Published by Kemman

Regulatory and Independent Consulting Professional with expertise in Financial Crime Risk Compliance encompassing Anti-Money Laundering (AML), Countering Terrorism Financing (CTF), Anti-Bribery & Corruption (ABC – FCPA & UKAB), Global Trade & Sanctions, Bank Secrecy Act (BSA), Know Your Customer (KYC) and Customer Due Diligence (CDD), Internal Audit Testing, Reviews, Validation, Risk Assessment. Worked in Asia, Africa, Europe, the Middle East, North America (USA). Banking & FinTech, Anti-Sex & Human Trafficking Advocate, FOREX & Cryptocurrency trading, Travel & Tours, Telecommunications & Energy.

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