Not at all. US already holds most of financial world hostage. Financial firms all over the world are invited to opt in to provide information on assets held by US citizens. Many a non-US citizen have been baffled when opening accounts away from the US, yet being asked if they are, by the by, a US citizen.
You don’t want to opt in? No problem. In return the US will apply a punitive fee of, can’t quite remember, 30-50% to all USD transactions you touch. No sanctions, no extraterritorial laws needed. No serious financial institution outside of North Korea can really afford this.
I’d imagine that’s what happened here. The consequences of not complying with the US sanctions would likely be terminal for the bank, and no European court can really contest it. The US’s stranglehold on the global financial ecosystem is incredibly powerful.
You can bring attention all you like. The point is that the US has so much raw power in this kind of food fight that they will just cover you with burger buns and walk past, hardly noticing you were there.
This is why building serious financial infrastructure alternatives should be n.1 on the EU agenda. From payment processors to clearing, Europe must wrangle control of their own money from the US.
Comments
Not at all. US already holds most of financial world hostage. Financial firms all over the world are invited to opt in to provide information on assets held by US citizens. Many a non-US citizen have been baffled when opening accounts away from the US, yet being asked if they are, by the by, a US citizen.
You don’t want to opt in? No problem. In return the US will apply a punitive fee of, can’t quite remember, 30-50% to all USD transactions you touch. No sanctions, no extraterritorial laws needed. No serious financial institution outside of North Korea can really afford this.
I’d imagine that’s what happened here. The consequences of not complying with the US sanctions would likely be terminal for the bank, and no European court can really contest it. The US’s stranglehold on the global financial ecosystem is incredibly powerful.
You can bring attention all you like. The point is that the US has so much raw power in this kind of food fight that they will just cover you with burger buns and walk past, hardly noticing you were there.
This is why building serious financial infrastructure alternatives should be n.1 on the EU agenda. From payment processors to clearing, Europe must wrangle control of their own money from the US.
We need decentralisation of financial system to avoid current design weakness.