Banking and Finance Law Daily Wrap Up, OVERSIGHT AND INVESTIGATION—Lawmakers urge Treasury, State Departments to implement REPO Act, (Jun 4, 2024)
The REPO Act authorizes the seizure of Russian sovereign assets held in the United States to assist Ukraine in its reconstruction following Russia’s invasion.
Representatives Maxine Waters (D-Calif.), French Hill (R-Ark.), and Gregory Meeks (D-N.Y.), have written to Treasury Secretary Janet Yellen and Secretary of State Antony Blinken urging “the swift and full implementation of the Rebuilding Prosperity and Opportunity (REPO) for Ukrainians Act” (the REPO Act). Enacted earlier this year, the REPO Act allows the confiscation of Russian sovereign assets that are subject to the United States’ jurisdiction and transfer them to Ukraine to support and assist its reconstruction.
In their letter, the lawmakers noted their “Constitutional duty to oversee the Executive Branch of [the] government” and, in that regard, they “intend to maximize [their] authority … to maximize the chances of success in Ukraine.” The letter urged Yellen and Blinken “to work promptly and directly with the President to launch the first required reporting requirements required under the law through an Executive Order or other means under the new law.”
The letter further emphasized that assets subject to confiscation under the REPO Act “includes all Russian sovereign assets held in U.S. financial institutions and other financial institutions … including all correspondent banking accounts and offshore partnerships maintained by U.S. financial institutions.” In addition, upon the REPO Act’s full implementation, “all covered financial institutions [must] report to the Treasury Department any Russian sovereign asset in their accounts that are subject to sanctions,” the letter said. “Any action by U.S. or foreign banks to conceal Russian sovereign assets covered by this law could be a form of criminal sanctions evasion,” the legislators cautioned. The letter urged Yellen and Blinken “to ensure that the reporting requirements issued by the Administration cover all possible Russian sovereign assets subject to our jurisdiction.”
The lawmakers solicited the receipt of the reports, notifications, and Presidential certifications prior to July 23, 2024, the date required under the REPO Act.
LegislativeActivity: BankingOperations CrimesOffenses FinancialStability OversightInvestigations