Aiming For Moscow And Budapest, Biden Administration Hits Havana: Made Cuba's International Banking A Bit More Challenging.

UPDATE: Politico (4/13/2023)- SANCTIONS WORK: Hungary is withdrawing from the Russia-linked International Investment Bank, a day after the U.S. sanctioned it, Lili Bayer reports.

“The Hungarian government has decided to terminate Hungary’s membership with the International Investment Bank (IIB). A day after the United States imposed sanctions on the Budapest-based bank and three of its senior executives resident in Hungary, the economic ministry said in a statement that whereas the Russia-backed IIB had played an important development role in central and eastern Europe, there was no sense in carrying on with its operations following the US sanctions. Hungary is withdrawing its officials from the IIB, it added. David Pressman, the US ambassador to Hungary, told journalists on Wednesday that sanctions applied to the “Budapest-based, Russia-controlled” bank and three of its senior executives resident in Hungary, including one Hungarian national.” LINK To Government Of Hungary Media Release

“INTERNATIONAL INVESTMENT BANK (a.k.a. MEZHDUNARODNY INVESTITSIONNY BANK; a.k.a. "IIB"), Vaci ut, 188, Budapest H-1138, Hungary; Fo utca 1, Budapest H-1011, Hungary; 7 Mashi Poryvaevoy Street, Moscow 107078, Russia; SWIFT/BIC IIBMHU22; Website www.iib.int; Organization Established Date 10 Jul 1970; Target Type Financial Institution; Tax ID No. 30479900-1-51 (Hungary); alt. Tax ID No. 9909152110 (Russia); Legal Entity Number 2534000PHLD27VN98Y03 [RUSSIA-EO14024].”  

“The Bank’s member states are the Republic of Bulgaria, the Republic of Cuba, Hungary, Mongolia, Romania, the Russian Federation and the Socialist Republic of Vietnam.” 

LINK: Cuba Has 1.42% Shareholding In Hungary-Based International Investment Bank January 24, 2021

“Specially Designated Nationals And Blocked Persons List (SDN) Human Readable Lists: As part of its enforcement efforts, OFAC [Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury] publishes a list of individuals and companies owned or controlled by, or acting for or on behalf of, targeted countries. It also lists individuals, groups, and entities, such as terrorists and narcotics traffickers designated under programs that are not country-specific. Collectively, such individuals and companies are called "Specially Designated Nationals" or "SDNs." Their assets are blocked and U.S. persons are generally prohibited from dealing with them.  View more information on Treasury's Sanctions Programs.”  

International Investment Bank 

“International Investment Bank is a multilateral development institution that aims to facilitate connectivity and integration between the economies of the Bank’s member states in order to ensure sustainable and inclusive growth and the competitiveness of national economies, backed by the existing historical ties.  The Bank was established and operates as an international organisation based on the intergovernmental Agreement Establishing the International Investment Bank dated 10 July 1970, registered with the United Nations Secretariat on 1 December 1971 under number 11417, as amended and restated from time to time, together with the Bank’s Charter, which is an integral part of the Agreement. The Agreement Establishing the IIB is an international treaty. 

The IIB’s authorised capital amounts to EUR 2 billion.  The Bank’s member states are the Republic of Bulgaria, the Republic of Cuba, Hungary, Mongolia, Romania, the Russian Federation and the Socialist Republic of Vietnam.  The Bank’s headquarters are located in Budapest, Hungary.  IIB specialises in medium- and long-term financing of projects aimed at supporting the economic development of its member states and that would have a significant positive social, economic and environmental impact. The Bank offers direct financing and provides loans in partnership with other financial institutions as well as through partner banks.  IIB securities are currently traded on the Bratislava, Bucharest, Budapest, Moscow, Prague and Vienna stock exchanges.

The Board of Governors is the Bank’s supreme governing body, consisting of representatives from the IIB’s member states. The Board of Directors is responsible for the general management of the Bank’s operations. The Bank’s executive body is the Management Board, whose members are appointed by the Board of Governors. The Bank’s activities are controlled by the Audit Committee, which is made up of representatives from the IIB’s member states appointed by the Board of Governors. The Bank’s financial statements are confirmed by a semi-annual compliance audit review and an annual audit.  As an international organisation, the Bank is not subject to national banking and other regulations; it enjoys immunities and privileges determined by the Agreement Establishing the IIB and corresponding agreements with its member states.” 

LINK: Patriot Act Certification Regarding Correspontant Accounts For Foreign Banks
LINK: Wolfsberg Group Correspondent Banking Due Diligence Questionaire
LINK: W-8BEN-E Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities)

Politico
Brussels, Belgium
13 April 2023

AS US INCREASES PRESSURE ON HUNGARY: The United States on Wednesday imposed sanctions on Hungary-based International Investment Bank, which has links to Russia, as well as three individuals living in Hungary, marking a new low point in Budapest’s relationship with Washington. 

Background: The IIB is a controversial institution located in Budapest with ties to the Russian state, which Western officials fear may be used for Russian intelligence operations inside Europe. U.S. Ambassador to Hungary David Pressman said Washington had repeatedly shared information with Hungarian counterparts about the threat the bank posed to NATO, but said Budapest had “dismissed” those concerns. Lili Bayer has more.