The Department of Financial Services (DFS) will use blockchain analytics technology to strengthen sanctions enforcement against Russia. Specifically, the effort will be to detect whether Russian individuals attempt to circumvent the imposed sanctions.
Blockchain Technology to Help Monitor Sanctions Enforcement
The Financial Services Department oversees many key monetary sector programs and initiatives. Due to the growing conflict in Ukraine, he will also extend his efforts to Russian citizens.
According to a recent statement, the DFS will use blockchain technology to monitor whether the financial sanctions applied to Russia are correctly executed. It will also observe if some people are looking for a back door to avoid embargoes.
Adrienne Harris – superintendent of the agency – predicted that bad actors will try to evade sanctions through the transmission of digital currencies. As such, “it is imperative that we have the ability to monitor trades and exposure in real time,” she stressed.
Harris also asserted that the DFS will coordinate its operations with federal and other state regulators. Their joint efforts must “ensure that the full weight of our regulatory regime is brought to bear in the fight to protect Ukraine,” the executive concluded.
Kathy Hochul, Governor of New York State, also spoke on the issue. The politician said New Yorkers are following the situation in Ukraine with “fear and panic, and in response we are taking further action.” According to her, the sanctions against Russia are a way to destabilize it, and the United States will continue to apply these sanctions in response to the “unwarranted attack”.
Use of Blockchain technology during the previous crisis
Before the military conflict between Russia and Ukraine, all eyes were on the COVID-19 pandemic. And as the health catastrophe spread rapidly around the world in 2020 and 2021, vaccination campaigns were mitigating its impact. However, bad actors took advantage of this to smuggle medical products and jeopardize the program.
Earlier this year, Asia-based medical services company Zuellig Pharma developed a blockchain platform to improve its vaccine tracking service and prevent vaccine mishaps. Once the technology was integrated, the information became auditable in real time, began to offer instant results and did not require a middleman.
Daniel Laverick – Vice President of Zuellig Pharma – noted that blockchain technology allows users to verify the authenticity and route of vaccines:
“Patients can scan the 2D data matrix on product packaging to verify key product information such as expiration date, temperature and provenance through its blockchain-powered app.”
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