Statement by the Acting Comptroller of the Currency Regarding FSOC’s Consideration of Secondary Mortgage Market Activities

News Release 2020-128 | September 25, 2020

WASHINGTON, D.C. – Acting Comptroller of the Currency Brian P. Brooks made the following statement today at the meeting of the Financial Stability Oversight Council (FSOC) with respect to the FSOC’s activities-based review of secondary mortgage market activities and issuance of a public statement on the subject:

I support the FSOC’s activities-based review of the secondary mortgage market and the thoughtful analysis of the Government Sponsored Enterprises’ contribution to financial stability risks as well as of the efforts to address them, including the FSOC’s review of the Federal Housing Finance Agency’s (FHFA) capital rule re-proposal. I thank the FSOC staff and staff of the other agencies for their hard work on this review. I also support FHFA Director Calabria’s efforts and believe that the FSOC’s recommendations strengthen the efforts already underway to enhance risk management and prudential controls in the housing finance system.

Of course, the OCC is also focused on the role of national banks and federal savings associations in that system. Consistent with the FSOC’s statement issued today, we look to avoid market distortions and different approaches to regulation of similar risks across the system and seek thereby to ensure that banks can continue playing a meaningful role in the provision of housing finance. I note that competition is itself an excellent form of risk management. One area in particular that we are looking at closely is the provision of capital relief for credit risk transfer transactions, an area also addressed in the FHFA’s re-proposal. I look forward to working with my counterparts on this council as we move forward.

Media Contact

Bryan Hubbard
(202) 649-6870

Financial Stability Oversight Council Issues Statement on Activities-Based Review of Secondary Mortgage Market Activities

WASHINGTON – The Financial Stability Oversight Council (Council) today voted unanimously to approve a statement summarizing its review of the secondary mortgage market.  The Council’s review focused in particular on the activities of Fannie Mae and Freddie Mac (the Enterprises).  In conducting the review, the Council applied the framework for an activities-based approach described in the interpretive guidance on nonbank financial company determinations issued by the Council in December 2019.

The Council’s review noted the central role the Enterprises continue to play in the national housing finance markets, and found any distress at the Enterprises that affected their secondary mortgage market activities, including their ability to perform their guarantee and other obligations on their mortgage-backed securities (MBS) and other liabilities, could pose a risk to financial stability, if risks are not properly mitigated.  The Council’s review also considered whether the regulatory framework of the Federal Housing Finance Agency (FHFA) would adequately mitigate this potential risk posed by the Enterprises. 

The FHFA’s recent capital proposal was central to the Council’s analysis; the Council considered whether the proposed capital rule is appropriately sized and structured, given the Enterprises’ risks and their key role in the housing finance system, and also whether the proposed capital rule promotes stability in the broader housing finance system.  The Council presents the following key findings:

The Council encourages FHFA and other regulatory agencies to coordinate and take other appropriate action to avoid market distortions that could increase risks to financial stability by generally taking consistent approaches to the capital requirements and other regulation of similar risks across market participants, consistent with the business models and missions of their regulated entities.  

The Council also encourages FHFA to consider the relative merits of alternative approaches for more dynamically calibrating the capital buffers.  The capital buffers should be tailored to mitigate the potential risks to financial stability and otherwise ensure that the Enterprises have sufficient capital to absorb losses during periods of severe stress and remain viable going concerns, while balancing other policy objectives.

Finally, the Council encourages FHFA to ensure high-quality capital by implementing regulatory capital definitions that are similar to those in the U.S. banking framework.  The Council also encourages FHFA to require the Enterprises to be sufficiently capitalized to remain viable as going concerns during and after a severe economic downturn. 

Read the Council’s full statement

####

G7 Finance Ministers’ Statement on the Debt Service Suspension Initiative and Debt Relief for Vulnerable Countries

Washington – We remain committed to working together to support the poorest and most vulnerable countries as they address health and economic challenges associated with COVID-19.  The pandemic has significantly disrupted global growth and necessitated extraordinary fiscal policy efforts, exacerbating existing debt vulnerabilities in many low-income countries.  We commend the efforts of the international financial institutions (IFIs) to rapidly scale up financial and technical assistance to these countries.  We ask the IMF and World Bank to update regularly assessments of the financing needs of low-income countries in response to evolving circumstances with the impact of the pandemic and propose ways for countries to cover expected financing gaps, including through instruments to leverage access to private finance.

To support our efforts to help the most vulnerable countries, we are implementing the G20-Paris Club Debt Service Suspension Initiative (DSSI) to suspend official bilateral debt payments for the poorest countries through end-2020.  The DSSI has been fundamental in supporting the 43 countries that have requested the benefits of the initiative by freeing up $5 billion in fiscal space to fund social, health, and economic measures to respond to the pandemic.

G20 and Paris Club official bilateral creditors are continuing to coordinate closely to provide full and transparent relief under the DSSI.  Nonetheless, DSSI implementation has faced shortcomings that have prevented the initiative from delivering its full potential. In particular, we strongly regret the decision by some countries to classify large state-owned, government-controlled financial institutions as commercial lenders and not as official bilateral creditors, without providing comparable treatment nor transparency, thus significantly reducing the magnitude of the initiative and the benefits of the DSSI for developing countries. Claims considered as commercial for the purpose of the DSSI will be treated as commercial claims as well in future debt treatments, and for the implementation of IMF policies. We call on non-Paris Club lenders to commit to full and transparent implementation of the DSSI through all government entities going forward.  Additionally, voluntary private sector participation has been absent, which has limited the potential benefits for several countries. We reiterate our call for private creditors to implement the DSSI on a voluntary basis when requested by eligible borrowers.

Recognizing the ongoing financial needs of low-income countries, we support extending the DSSI in the context of a request for IMF financing.  The modalities of the extension should reflect the G20’s commitment to transparency and creditor coordination, including an understanding on key features for debt treatment beyond the DSSI, as well as reflecting the need for fair burden sharing among all creditors.  To this end, we strongly urge full and transparent participation by official bilateral creditors, including all state-owned lending institutions, based on an enhanced term sheet and, ideally, a common Memorandum of Understanding that clarifies DSSI implementation.    

Going forward, we recognize that some countries will need further debt treatment in addition to the DSSI’s liquidity relief to restore debt sustainability.  In this context, we support the development of a Common Framework for future debt treatments beyond the DSSI, to be agreed by the G20 and Paris Club by the time of the October G20 Finance Ministers and Central Bank Governors’ meeting.  The Framework should set out provisions for the scope of creditor participation and transparency, and call for coordinated debt relief on a case-by-case basis in the context of a full-fledged IMF program.  The Framework should ensure fair burden sharing among all official bilateral creditors, and debt relief by private creditors at least as favorable as that provided by official bilateral creditors.  It should also lay the foundation for sound and robust financing practices in the future, including on transparency and governance.  We strongly urge all official bilateral creditors to support and adhere to such a G20-Paris Club Framework to set clear expectations for all.  Additionally, G20 and Paris Club creditors should jointly agree on specific terms for country-by-country debt restructurings.

Addressing debt vulnerabilities also requires full transparency by both creditor and borrower countries.  We commend the World Bank Group’s efforts to compile and publicly disclose creditor-by-creditor information.  All creditors should provide complete information to maximize the benefits of the DSSI.  We call on the G20 to endorse the full and timely publication of the World Bank and IMF updates on the implementation of the DSSI.  We also call on G20 members to endorse the World Bank and IMF’s debt data reconciliation and the publication of the results.  This exercise is crucial to inform any future debt treatments.  More broadly, we strongly support efforts of the IFIs to help their member countries strengthen debt sustainability and transparency practices, including through technical assistance, lending policies, and enhanced public reporting of debt data.  We welcome ongoing work by the Institute of International Finance to finalize rapidly a data host for their Voluntary Principles on Debt Transparency.

Statement of Secretary Steven T. Mnuchin Department of the Treasury Before the Banking, Housing, and Urban Affairs Committee U.S. Senate

Chairman Crapo, Ranking Member Brown, and members of the Committee, I am pleased to join you today to discuss the critical steps the Department of the Treasury and the Federal Reserve have taken over the last six months to provide economic relief for the American people, as well as to provide liquidity to credit markets, businesses, and households. We are fully committed to getting every American back to work as quickly as possible.  

Economic Recovery

America is in the midst of the fastest economic recovery from any crisis in U.S. history. The August jobs report showed that the economy has gained back 10.6 million jobs since April—nearly 50% of all jobs lost due to the pandemic. The unemployment rate has also decreased to 8.4%, a notable achievement considering some people were expecting up to 25% unemployment at the height of the pandemic. Thanks to the programs provided through the CARES Act, we never got close to that figure.

I believe we will see tremendous third-quarter growth, fueled by strong retail sales, housing starts and existing home sales, manufacturing growth, and increased business activity. The September Blue Chip survey increased its projection for third-quarter GDP growth by 5.3 percentage points to 24%.

The recovery has been strong because the Administration and Congress worked together on a bipartisan basis to deliver the largest economic relief package in American history. The Federal Reserve has also been instrumental to the recovery by implementing 13 unique 13(3) lending facilities. 

Economic reopenings, combined with the CARES Act, have enabled a remarkable economic rebound, but some industries particularly hard hit by the pandemic require additional relief.

Phase IV Relief

The President and I remain committed to providing support for American workers and businesses. We continue to try to work with Congress on a bipartisan basis to pass a Phase IV relief package. I believe a targeted package is still needed, and the Administration is ready to reach a bipartisan agreement.

Transparency

Treasury has been working hard to implement the CARES Act with transparency and accountability. We have released a significant amount of information to the public on our website, Treasury.gov, and on USAspending.gov. In many instances, we have released more information than what is required by the statute. The Federal Reserve has also posted information on its website regarding its lending facilities.

We have provided regular updates to Congress, with this marking my seventh appearance before Congress for a CARES Act hearing. Additionally, we are cooperating with various oversight bodies, including the new Special Inspector General for Pandemic Relief, the Treasury Inspector General, the Treasury Inspector General for Tax Administration, the new Congressional Oversight Commission, and the Government Accountability Office (GAO).

We appreciate Congress’s interest in these issues and have devoted significant resources to responding to inquiries from numerous congressional committees and individual Members of Congress on both sides of the aisle.  We remain committed to working with you to accommodate Congress’s legislative needs and to further our whole-of-government approach to defeating COVID-19.

Conclusion

I would like to thank the members of the Committee for working with us to provide critical economic support to the American people. I am pleased to answer any questions you may have.

 

IRS highlights employer credits for businesses during Small Business Week

IR-2020-221, September 24, 2020

WASHINGTON — During Small Business Week, the Internal Revenue Service reminds business owners and self-employed individuals of the employer credits available to them during COVID-19. 

These credits were specially created to help small business owners during this unprecedented time. During Small Business Week, the IRS wants to ensure all eligible people know about the relief these credits provide.

Employee Retention Credit

The Employee Retention Credit is designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19.

The credit is available to all employers regardless of size, including tax-exempt organizations. There are only two exceptions: State and local governments and their instrumentalities and small businesses who take small business loans.

Qualifying employers must fall into one of two categories

  1. The employer’s business is fully or partially suspended by government order due to COVID-19 during the calendar quarter.
     
  2. The employer’s gross receipts are below 50% of the comparable quarter in 2019. Once the employer’s gross receipts go above 80% of a comparable quarter in 2019, they no longer qualify after the end of that quarter.

Employers will calculate these measures each calendar quarter.

Paid Sick Leave Credit and Family Leave Credit

The Paid Sick Leave Credit is designed to allow business to get a credit for an employee who is unable to work (including telework) because of Coronavirus quarantine, self-quarantine or has Coronavirus symptoms and is seeking a medical diagnosis. Those employees are entitled to paid sick leave for up to 10 days (up to 80 hours) at the employee’s regular rate of pay up to $511 per day and $5,110 in total.

The employer can also receive the credit for employees who are unable to work due to caring for someone with Coronavirus or caring for a child because the child’s school or place of care is closed, or the paid childcare provider is unavailable due to the Coronavirus. Those employees are entitled to paid sick leave for up to two weeks (up to 80 hours) at 2/3 the employee’s regular rate of pay or, up to $200 per day and $2,000 in total.

Employees are also entitled to paid family and medical leave equal to 2/3 of the employee’s regular pay, up to $200 per day and $10,000 in total. Up to 10 weeks of qualifying leave can be counted towards the Family Leave Credit.

Employers can be immediately reimbursed for the credit by reducing their required deposits of payroll taxes that have been withheld from employees’ wages by the amount of the credit.

Eligible employers are entitled to immediately receive a credit in the full amount of the required sick leave and family leave, plus related health plan expenses and the employer’s share of Medicare tax on the leave, for the period of April 1, 2020, through December 31, 2020. The refundable credit is applied against certain employment taxes on wages paid to all employees.

How will employers receive the credit?

Employers can be immediately reimbursed for the credit by reducing their required deposits of payroll taxes that have been withheld from employees’ wages by the amount of the credit.

Eligible employers will report their total qualified wages and the related health insurance costs for each quarter on their quarterly employment tax returns or Form 941 beginning with the second quarter. If the employer’s employment tax deposits are not sufficient to cover the credit, the employer may receive an advance payment from the IRS by submitting Form 7200, Advance Payment of Employer Credits Due to COVID-19.

Eligible employers can also request an advance of the Employee Retention Credit by submitting Form 7200.

The IRS has also posted Employee Retention Credit FAQs and Paid Family Leave and Sick Leave FAQs that will help answer questions.

Updates on the implementation of the Employee Retention Credit and other information can be found on the Coronavirus page of IRS.gov.

Statement on the Passing of the 23rd Comptroller of the Currency James E. Smith

News Release 2020-127 | September 23, 2020

WASHINGTON, D.C. – Acting Comptroller of the Currency Brian P. Brooks issued the following statement upon learning of the passing of James E. Smith, the 23rd Comptroller of the Currency.

Today, the OCC family and banking industry lost a giant with the passing of the 23rd Comptroller of the Currency James E. Smith.

Comptroller Smith had a distinguished career that included serving as Deputy Under Secretary of the Treasury before being named Comptroller by President Richard Nixon.

Comptroller Smith led the agency during a period of great change, adjusting to the explosive growth of the banking industry during the 1960s and 1970s. He worked to transform and modernize the agency’s approach to supervision. The new approach he pioneered continues in our existing practices that emphasize the assessment of a bank’s policies, procedures, decision making, risk management, and management information system. Even more importantly, he was a champion of the agency’s employees and their training and career development.

Comptroller Smith remained an active part of the OCC alumni community for decades following his tenure.

He will be missed but not forgotten.

Media Contact

Bryan Hubbard
(202) 649-6870

OCC Reports Decline in Mortgage Performance

News Release 2020-126 | September 23, 2020

WASHINGTON—The Office of the Comptroller of the Currency (OCC) reported the performance of first-lien mortgages in the federal banking system declined during the second quarter of 2020.

The OCC Mortgage Metrics Report, Second Quarter 2020 showed 91.1 percent of mortgages included in the report were current and performing at the end of the quarter, compared to 96.1 percent a year earlier.

The percentage of seriously delinquent mortgages—mortgages that are 60 or more days past due and all mortgages held by bankrupt borrowers whose payments are 30 or more days past due— increased 5.4 percent from the previous quarter and 5.3 percent from a year ago.

Servicers initiated 249 new foreclosures during the second quarter of 2020, a 98.7 percent decrease from the previous quarter and a 98.8 percent decrease from a year ago. Events associated with COVID-19, including foreclosure moratoriums during the second quarter of 2020, caused significant decreases in these metrics.

Servicers completed 10,984 mortgage modifications in the second quarter of 2020, and 89.0 percent of the modifications reduced borrowers’ monthly payments.

The first-lien mortgages included in the OCC’s quarterly report comprise 28 percent of all residential mortgages outstanding in the United States or approximately 15 million loans totaling $2.97 trillion in principal balances. This report provides information on mortgage performance through June 30, 2020, and it can be downloaded from the OCC’s website, www.occ.gov.

Media Contact

Stephanie Collins
(202) 649-6870

Related Link

Readout from a Treasury Spokesperson on Secretary Mnuchin’s Meeting with Egyptian Ambassador to the United States Motaz Zahran

WASHINGTON – Today U.S. Treasury Secretary Steven T. Mnuchin met with Egyptian Ambassador to the United States Motaz Zahran.  Secretary Mnuchin and Ambassador Zahran reaffirmed the strong bilateral economic relationship between the United States and Egypt and discussed the negotiations on the Grand Ethiopian Renaissance Dam and opportunities for continued collaboration on economic and security issues of mutual concern.

 

Statement by a Treasury Spokesperson on the Funding of the Social Security Trust Funds and Payroll Tax Deferral

WASHINGTON – An August 8, 2020, Presidential Memorandum directed the Secretary of the Treasury to use his authority to allow employers to defer the withholding, deposit, and payment of certain payroll taxes for employees who are paid less than $4,000 on a bi-weekly basis. The payroll taxes eligible for deferral are those imposed on wages paid between September 1, 2020 and December 31, 2020.  Under guidance issued by the Treasury Department and the Internal Revenue Service, any deferred payroll taxes must be repaid no later than April 30, 2021. 

The Treasury Department will continue to make regular transfers to the Social Security Trust Funds based on an annual schedule developed by Treasury and the Social Security Administration earlier this year.  Treasury does not have reliable information to revise that transfer schedule because employers’ regular tax payments to Treasury are not differentiated between income taxes and payroll taxes, and the payroll tax deferral is elective.  We do not expect deferral to impact the Social Security Trust Funds because the deferral is temporary and all deferred taxes must be repaid.  Repayment of the deferred taxes must start no later than January 1, 2021, and all deferred taxes must be fully repaid by April 30, 2021.

The deferral will have no impact whatsoever on current or future payments received by Social Security recipients, and the Trump Administration remains fully committed to the integrity of the Social Security Trust Funds.

Treasury Increases Pressure on Russian Financier

WASHINGTON – Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) took further action against the network of Kremlin-connected Russian operative Yevgeniy Prigozhin (Prigozhin), by targeting entities and individuals working on behalf of Prigozhin to advance Russia’s influence in the Central African Republic (CAR). Concurrently, OFAC is targeting those that have supported the Russian Federal Security Service directly, as well as those that assist persons helping designated Russian actors to evade U.S. sanctions.

“Yevgeniy Prigozhin has an international network of supporters to spread his malign political and economic influence around the globe,” said Secretary Steven T. Mnuchin. “The United States will continue to target the ability of Prigozhin to conduct operations globally.”

Prigozhin is the leader and financier of the Internet Research Agency (IRA), the Russian troll farm that was first designated by OFAC in 2018. The IRA conducts operations to exacerbate political tensions and divisions in foreign countries, including the United States. Prigozhin is also believed to be the manager and financier of the Russian private military company (PMC) Wagner, an OFAC-designated Russian Ministry of Defense proxy force, which conducts or has conducted dangerous and destabilizing operations in foreign countries, such as Ukraine, Syria, Sudan, Libya, and Mozambique. Because of his involvement in these activities and his connections to the Russian government, Prigozhin is already designated pursuant to Executive Order (E.O.) 13848 (election interference); E.O. 13694, as amended by E.O. 13757 (cyber activity); and E.O. 13661 (activity in Ukraine).

Building on the July 15, 2020 designation of Prigozhin’s mining interests in Sudan, Treasury is exposing Prigozhin’s exploitation of African countries’ natural resources and highlighting the role of the Russian government in coordinating Prigozhin’s operations. Prigozhin has ties to mining, security, and logistics companies in CAR, and his operations in CAR are reported to be coordinated with the Russian Federation’s Ministry of Foreign Affairs and the Ministry of Defense.

Today’s action also builds on the U.S. government’s efforts to promote accountability for the Russian government’s intelligence organizations, including the Federal Security Service (FSB), for perpetrating an array of destabilizing activities such as conducting malicious cyber activities and interfering in elections, by further targeting networks supporting their activities. OFAC previously designated the FSB on March 15, 2018 pursuant to Section 224 of the Countering America’s Adversaries Through Sanctions Act for engaging in activities that undermine the cybersecurity of individuals and entities on behalf of the Russian government, including targeting U.S. officials. The FSB was also previously designated on December 28, 2016 pursuant to E.O. 13694, as amended, following the Russian government’s attempted interference in U.S. elections and processes.

SANCTIONS TARGETS

Today’s action targets eight individuals and seven entities directly involved in furthering Prigozhin’s operations in CAR, assisting the activities of the FSB, or engaging in sanctions evasion activities. These designations are being taken pursuant to a variety of authorities, including E.O. 13848; E.O. 13694, as amended; and E.O. 13661.

Treasury Continues to Hold Prigozhin Accountable

Prigozhin owns or controls two companies that conduct mining operations in CAR: the Russia-based M Finans and CAR-based Lobaye Invest. M Finans’s main lines of business are the mining of precious metals and the provision of private security services. M Finans has also been linked to Concord Catering, a Prigozhin-controlled company that OFAC designated in March 2018 for providing material assistance to the IRA and in 2017 for being owned or controlled by Prigozhin. Lobaye Invest was founded in CAR in October 2017 and specializes in the extraction of gold and diamonds, both lucrative exports of CAR. Both M Finans and Lobaye Invest have been linked to PMC Wagner’s operations in CAR. M Finans and Lobaye Invest are being designated for being owned or controlled by Prigozhin pursuant to E.O. 13848; E.O. 13694, as amended; and E.O. 13661.

Dmitry Sergeevich Sytii (Sytii) is Prigozhin’s employee and the founder of Lobaye Invest. Sytii has also worked for the IRA. Yevgeniy Khodotov (Khodotov) has served as the director of Lobaye Invest. Alexander Yuryevich Kuzin (Kuzin) is Prigozhin’s employee operating in CAR. Sytii, Khodotov, and Kuzin have all been involved in Prigozhin’s CAR operations since 2017, and are being designated for their work on behalf of Prigozhin pursuant to E.O. 13848; E.O. 13694, as amended; and E.O. 13661.

Treasury Further Targets the FSB and Sanctions Evasion Activity

Okeanos Targets

Okeanos, a St. Petersburg, Russia-based underwater technology company, has a long history of cooperating with Russian government agencies, including the FSB, in the field of underwater operations. In April 2015, Okeanos provided diving equipment to the FSB and provided support for diving equipment deployed in the Crimea region of Ukraine. As of March 2017, Okeanos’ clientele included the FSB and the Russian Ministry of Defense. In September 2018, Okeanos was added to the Commerce Department’s Entity List for providing equipment and support to the Russian Navy. Treasury is also targeting several of Okeanos’ senior officials who were integral in carrying out the company’s operations. These individuals include: Director General, Elena Nikolaevna Ivanova (Ivanova); Deputy Director General, Boris Aleksandrovich Gaykovich (Gaykovich); Marketing Director, Nadezhda Leonidovna Kuchumova (Kuchumova); and Spokesperson, Vladislav Yuryevich Zanin (Zanin).

Okeanos is being designated for having provided material and technological support to the FSB. Ivanova, Gaykovich, Kuchumova, and Zanin are being designated for having acted for or on behalf of Okeanos. These actions are being taken pursuant to E.O. 13694, as amended.

Optima Freight OY Targets

Following Treasury’s designation of Divetechnoservices in June 2018 for procuring underwater equipment and diving systems for the FSB, Divetechnoservices utilized Optima Freight OY (Optima Freight), a Finland-based freight forwarding company, to acquire underwater equipment in an effort to evade U.S. sanctions. In July 2018, more than a month after its designation, Optima Freight facilitated the shipment of diving equipment on behalf of Divetechnoservices. Optima Freight had also assisted Divetechnoservices’ efforts to acquire underwater technologies prior to its designation. As of mid-January 2018, Optima Freight assisted Divetechnoservices’ efforts to acquire an underwater diving system valued at over $150,000. Optima Freight is being designated pursuant to E.O. 13694, as amended, for having materially assisted Divetechnoservices.

Throughout the course of this activity, Optima Freight was managed and controlled by Nikita Gennadievitch Kovalevskij (Kovalevskij). As of September 2020, Kovalevskij is the owner of Optima Freight and has served as its Managing Director since 2011. Kovalevskij is also the Managing Director of three other Finland-based freight forwarding companies — GCH Finland OY (GCH Finland), Unicum Trade OY (Unicum Trade), and ACEX OY (ACEX). Kovalevskij is being designated pursuant to E.O. 13694, as amended, for having acted for or on behalf of Optima Freight, while GCH Finland, Unicum Trade, and ACEX are being designated pursuant to the same authority for being owned or controlled by Kovalevskij.

“Nikita Kovalevskij, and his company, Optima Freight, through an illicit scheme, violated U.S. export laws in the acquisition of sensitive, controlled U.S. maritime technologies,” said Stacey R. Moy, Special Agent in Charge of the Counterintelligence Division, FBI Washington Field Office. “The FBI remains committed to aggressively investigate and stop Russia from covertly pilfering U.S. innovation.”

Today’s designations represent the collective efforts of Treasury, FBI, Department of Justice, and Commerce to counter those who serve to harm U.S. national security.

As a result of today’s designations, all property and interests in property of these persons that are in or come within the possession of U.S. persons are blocked, and U.S. persons are generally prohibited from engaging in transactions with them. Additionally, any entities 50 percent or more owned by one or more of these designated persons are also blocked. Finally, non-U.S. persons who engage in certain transactions with the persons designated today may themselves be exposed to sanctions.

View identifying information on the individuals and entities designated today.