NJDOBI orders compliance with Russian, Belarus sanctions

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The New Jersey Department of Banking and Insurance on March 17 directed insurance companies, financial institutions and other entities it regulates to fully comply with the sanctions imposed on Russia and Belarus by the U.S., according to a statement from the governor’s office.

The directive follows Executive Order No. 291, issued by Gov. Phil Murphy on March 2, instructing the department to take action in response to the Russian invasion of Ukraine.

“Our Administration is committed to using the fullest extent of the law to ensure that Russia is held accountable for its brutal and unprovoked invasion of Ukraine,” Murphy said in the statement. “This bulletin makes clear that we expect all entities regulated and licensed by DOBI to comply with sanctions and restrictions imposed by the Biden Administration on the Russian Federation and Belarus.”

The department directed regulated entities to monitor all communications from the U.S. Department of Treasury’s Office of Foreign Assets Control and other federal agencies to stay up to date and to ensure they are complying with the restrictions imposed on Russia and Belarus. Companies were also advised to evaluate their systems for cyber risk and take action to protect themselves, given that the Russian invasion of Ukraine significantly elevates the cyber risk for the U.S. financial sector, the statement said.

New Jersey stands with Ukraine against the unprovoked aggression that has resulted in devastation, widespread human suffering and unnecessary loss of life.
— Commissioner Marlene Caride

“Under the leadership of Governor Murphy, the state is taking action to hold Russia accountable in the face of this unlawful and immoral invasion. It is also necessary to ensure that financial institutions operating in our state are protected against the increased risks resulting from the invasion,” New Jersey Department of Banking and Insurance Commissioner Marlene Caride added.

Banking, insurance and compliance entities were given specific guidelines for their areas, including having a process in place for reporting suspicious activity, managing risk and revoking licenses. A breakdown of the specific guidelines can be found online.