ZB Financial Holdings has finally been taken off the United States sanctions list, the US Treasury announced on Tuesday through its Office of Foreign Assets Control (OFAC). The Zimbabwe targeted sanctions program began on March 7, 2003 when the President of the United States issued Executive Order .The U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) implements the targeted sanctions policy.
The removal of sanctions will unlock ZB’s potential to attract lines of credit and forge partnerships with global players. Under sanctions ZB Financial Holdings experienced serious problems in obtaining offshore financing or credit guarantees.
Every sanctions reconsideration is unique, Treasury says. Those under sanctions have to demonstrate there is insufficient basis for the designation, or that circumstances, such as behavior, no longer apply, they say. OFAC may require additional information from the person or entity seeking removal, and it typically sends one or more questionnaires seeking information, Treasury said.
Individuals and entities are generally cut off from the U.S. financial system when targeted with U.S. sanctions, and foreign financial institutions often shun them too. Even after removal, sanctions lawyers said it’s sometimes hard for former members of the blacklist to get banking services across the world, citing claims of reputation risk from the banking community.
The United States government forced financial sanctions on President Robert Mugabe, his family and senior officials as well as government-related businesses in March 2003, over charges of undermining democratic institutions and processes in Zimbabwe.
The Zimbabwe Government has a 24 percent stake in ZB Financial Holdings making them the second shareholder.