The U.S. Office of Foreign Assets Control (OFAC) has taken action against multiple offshore firms owned by Indian jewellers. Over the past few months, approximately $26 mn worth of fund transfers have been frozen by OFAC, targeting entities allegedly involved in the import of rough diamonds sourced from Russia, The Economic Times reported.
The impact of this move has been felt by the United Arab Emirates (UAE) subsidiaries of Indian diamond houses, whose dollar payments have been stalled due to suspicions of connections with Russian miners and sanctioned entities.
As a result, the intended payments for rough diamond sellers have not been fulfilled, as instructed by US authorities to the banks handling the nostro accounts of the suppliers, the publication reported.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
