Another local bank cutting ties with candidates from Azruddin Mohamed’s party

A second local bank is moving to cut ties with candidates affiliated with Azruddin Mohamed’s political party, in a clear testimony that banks are not willing to put their business and that of other customers at risk by continuing to do business with those linked to Mohamed, who is sanctioned by the United States.

This follows revelation by Azruddin’s party itself that Demerara Bank is closing the accounts of at least five of its candidates.

Now, more candidates are expected to receive letters from another bank informing them that their accounts will be closed and services discontinued.

What is now known is that two candidates—Natasha Singh-Lewis and Duarte Hetsberger—are having their accounts shut down by Demerara Bank.

Azruddin Mohamed, a prominent businessman turned political leader, was sanctioned by OFAC for bribery and corruption.

Legal experts say that while local banks are not directly bound by OFAC’s jurisdiction, they often comply to safeguard their correspondent banking relationships with U.S. institutions.

The Office of Foreign Assets Control (OFAC) of the US Department of the Treasury, on June 11, 2024 announced the imposition of sanctions against the Mohamed’s family, specifically targeting Nazar Mohamed, his son Azruddin Mohamed, and their businesses, namely Mohamed’s Enterprise, Hadi’s World and Team Mohamed’s Racing. These sanctions were connected to gold smuggling and corruption.

Because of these sanctions from the US body, business licences the Mohameds had were rescinded and their bank accounts were closed.

If an individual is sanctioned by OFAC, local banks face significant operational and legal consequences.

Banks must immediately block any assets or property belonging to the sanctioned individual that are within the bank’s possession or control, and they must also block transactions involving the sanctioned individual or entity.

This means freezing accounts, preventing transfers, and ceasing any dealings with the sanctioned party.