US Warns American Companies Against Dealing with Corrupt South Sudanese Officials

WASHINGTON, AUGUST 15, 2023 (SUDANS POST) – The United States has warned American companies of the growing risks of doing business with companies that have significant ties to South Sudan’s extended transitional government or that are controlled by family members of government officials.

The warning, issued by the US Department of State, Labor, and Commerce, cited the transitional government’s failure to implement key economic reforms and public financial management commitments made in the 2018 Revitalized Agreement on the Resolution of the Conflict in the Republic of South Sudan (R-ARCSS).

“The transitional government’s lack of progress on these reforms, the absence of significant progress over the original transition period, and the transitional government’s continued failure to adhere to its own laws in the transparent management of its oil revenue could adversely impact U.S. businesses, individuals, other persons and their operations in South Sudan and the region,” the advisory said.

The advisory also warned American companies to undertake robust due diligence on corruption and human rights issues, or abuses that contribute to violence, and to avoid all dealings, including transactions transiting the United States, that involve any property or interests in property of persons, including from South Sudan, listed on the Department of the Treasury Office of Foreign Assets Control’s (OFAC) Specially Designated Nationals and Blocked Persons.

“U.S. financial institutions should have familiarized themselves with their due diligence and suspicious activity report (SAR) filing obligations related to senior South Sudanese political figures, as is already required and as outlined in a 2017 advisory from the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN),” the advisory said. “U.S. financial institutions should also refer to the 2020 joint guidance FinCEN issued with the Federal Banking Agencies on Bank Secrecy Act (BSA), “Due Diligence Requirements for Customers Who May Be Considered Politically Exposed Persons.”

The advisory comes as South Sudan continues to grapple with a number of challenges, including a protracted civil war, widespread corruption, and a lack of economic development. The country is ranked 178th out of 180 countries on Transparency International’s Corruption Perception Index.

The US government has been a major donor to South Sudan since its independence in 2011. However, in recent years, the US has become increasingly critical of the country’s government and has imposed sanctions on a number of South Sudanese officials.

The business advisory is the latest sign of the US government’s frustration with the South Sudanese government. It is a warning to American companies that they could face significant risks if they do business with corrupt or abusive officials in South Sudan.