Go Austria, Austrian Citizens (Cuban expats) bank accounts closed, link to original story at the bottom of page.
VIENNA, April 27 (Reuters) - Austria is charging BAWAG, being taken over by U.S. investor Cerberus Capital [CBS.UL], with violating European Union rules after the bank cancelled the accounts of around 100 Cubans, foreign minister Ursula Plassnik said late on Thursday.
BAWAG, Austria's fifth-largest bank, told around 100 Cuban clients earlier this month that it had to cancel their accounts because U.S. sanctions against Cuba meant Cerberus could not buy BAWAG if it kept them as clients.
Plassnik told Austria's parliament late last evening that BAWAG had violated EU rules against implementing the U.S. Cuban sanctions on European soil, and that she had therefore launched proceedings against BAWAG.
"U.S. law is not applicable in Austria. We are not the 51st of the United States," Plassnik said. "Neither the EU nor the U.N. have implemented a general economic or contact embargo against Iran or Cuba."
"We have started the necessary steps to launch administrative proceedings (against BAWAG)," Plassnik said
BAWAG executives can be fined as much as 73,000 euros for violating the EU regulation.
U.S. private equity fund Cerberus, whose Chairman is former U.S. Treasury Secretary John Snow, agreed to buy BAWAG for 3.2 billion euros last year from BAWAG's current owner, Austrian trade union federation OeGB.
The deal is expected to close in mid-May, BAWAG Chief Executive Ewald Nowotny said this week.
reuters
Original story at Sandiego something
Bomb, Bomb, Bomb, Bomb Bomb Iran.....that from a presidential candidate.....US humor?
Gee, guess they can't buy BAWAG, then. Pity. Guess they lose a nice deal.
Perhaps the business community might like to start applying a little pressure and complaining about all the deals they can't do because of the embargo. Given the Bush Admin's pro-business leanings, you wonder which will win out-- pursuit of money, or pursuit of votes in South Florida?
US is free to try and impose its laws extra-territorially and does so with a mixed success. The Austrian government is free ro deal with this policy as stated in the article. We will see just what success it has.
I sure would be interested to know if there are any actual Cuban human beings affected by this. I posted to that effect the first time this "issue" was reported here. It is safe to surmise that all the accounts involve Cuban ministries or state enterprises. These are fair targets for the US OFAC, no?
From the original article
<blockquote>Quote
<hr>Although she has lived in Austria since 1978 and has been a citizen for seven years, she still holds her old passport, a document she says she does not want but cannot return because Cuban authorities refuse to revoke her old citizenship. And U.S. law prohibits not only American businesses but also their subsidiaries abroad to conduct any commerce with Cuban nationals.<hr></blockquote>
And what is your point with that excerpt, 2025?
I have a Cuban friend in New York, who is NOT a citizen of the United States, has lived in the United States since 1984, and still holds his old passport. (Same reason.) Is he not a Cuban national? Why can HE possess an US bank account? Why does US law permit US businesses to conduct commerce with Cuban nationals in the USA but not in Austria?
I think this story is ridiculous, missing details (LUDICROUS restrictions and bizarre exceptions), and otherwise failing to elaborate & describe just how petty, inconsistent, byzantine and obscurantist these OFAC regs can be in application. But that's probably NOT what's at issue, here. Does anyone really think that Austria's Foreign Ministry cares about 100 dinky individuals' bank accounts?
Why not background CERBERUS CAPITAL? Cerberus was deeply involved in the Walter Reed Hospital Scandal, made payoffs to key Republicans at the highest levels of govt, was linked to MZM (originator of the FALSE intel about Saddam's WMD program), US District Attorneys investigating Cerberus were purged by Att, Gen. Gonzales, oh it just goes on & on. Do you believe that Austria's Foreign Ministry does NOT know all this (and more)? LOL
As I recall, fmr US Treasury Secretary Snow announced a mini-crackdown on foreign businesses trading with Cuba in 2004, and he associates w/ Miami terrorists. It should be no surprise that his private equity group is considered a CIA front group. I believe it is: check the LINKS.
Just a whiff of scandal, oh yes!
>>Cerberus owns, or had a major interest in, a string of now-bankrupt companies that had contracts with U.S. defense and intelligence agencies that were found to have a common pattern of large-scale fraud, security problems, and financial scandals involving GOP lawmakers and lobbyists.<<
All those Iraq War billion$ that disappeared went somewhere, and that black money WILL come back to haunt whats left of our democracy for decades. Ja, the USA is done. You can stick it with a fork. There is now so much money (untold billion$) in the hands of this NeoCon Cabal that our democracy has already been sold down the river.
You cannot stop these private equity firms from buying the world, their power & resources are limitless. I applaud the Austrian Govt's effort, but resistance is futile, LOL.
As davfitz writes:<blockquote>Quote
<hr>I sure would be interested to know if there are any actual Cuban human beings affected by this. I posted to that effect the first time this "issue" was reported here. It is safe to surmise that all the accounts involve Cuban ministries or state enterprises.<hr></blockquote>
I agree. The Austrian banking system is notoriously secretive, more low-key and less expensive than the Swiss. The "100 accounts" might be much more significant than the corporate media will tell.
But in the end, I predict the Euros will rollover again. UBS (Swiss) paid the USA a $100 MILLION Dollar fine in 2004. BAWAG (Austrai) will pay the EU a $100 THOUSAND Dollar fine. And those Cuban accounts will stay closed.
Interesting article (10/05) on how the US targets Cuban offshore accounts in Europe, here.
Excerpt:
>>
Examining Saddam's loot of US notes, "American investigators traced the banknotes to UBS and the Extended Custodial Inventory Program. The program, run by the Federal Reserve Bank of New York in cooperation with international banks, allowed clients to exchange old banknotes for new ones. One condition of the program was that American currency neither be distributed to nor accepted from nations against which America maintains economic sanctions. It was in violation of those terms that UBS procured $3.9 billion in American banknotes for Cuba [...]
According to congressional staff familiar with discussions between UBS and investigating congressmen, the Swiss bank has yet to indicate that the Cuban account - fed by monthly shipments of American banknotes flown from Havana to Zurich on a jet designated by the Castro regime specifically for that purpose, according to congressional investigators - has been closed. Lawmakers have expressed concern that the account with UBS may still be used to launder money for various illegal activities undertaken by the Castro dictatorship, such as narco-terrorism, using non-American currency.
On October 22, 2004, six months after UBS paid the $100 million fine, the International Financial Action Task Force Against Money Laundering adopted Resolution IX, which, according to a Task Force press release, "calls on countries to stop cross-border movements of currency and monetary instruments related to terrorist financing and money laundering and confiscate such funds."
According to the release, the resolution "also calls for enhanced information-sharing between countries on the movement of illicit cash related to terrorist financing or money laundering."
Three days later, on October 25, Mr. Castro announced that he was ending the use of American dollars as the currency of the Cuban economy, encouraging the use of Euros, Swiss francs, and other foreign banknotes instead.
A congressional staffer said the Swiss bank has pointed out that it is not illegal for Cubans to hold Swiss bank accounts, and that the problem stemmed from the involvement of the Federal Reserve program and American banknotes.
A spokeswoman for UBS, Christine Walton, told the Sun earlier this week, referring to the Federal Reserve program: "UBS has already confirmed it has exited the banknotes business," adding that "UBS has no relationships with Cuban individuals who would classify as 'politically exposed persons,'" such as Mr. Castro. Ms. Walton said that this means no accounts in the names of Cuban "politically exposed persons" are held at UBS, but she said this did not include institutions of the Castro regime such as the Cuban National Bank. Ms. Walton said UBS declined to comment on individual account holders."
<<
So, UBS stopped providing notes to Cuba AND THEN Cuba imposed a 10% tax on US currency transactions. Where did the business go? From Switzerland to Austria? Is the US govt using shadowy private equity firms to go after Cuban hard currency accounts in Austria, now?
Maybe there's alot more to this story, than meets the eye?
The mighty US is still learning that there is new kid on the block, namely that little place called the European Community with about 450 Mio consumers, by far the biggest exporter in the world, whereas the US seems to be reduced to producing (and using, mostly in stupid ways) weapons, some planes and a bit of software (who still wants to drive a US car?) and otherwise run up gigantic debts to be able pay for the consumptive excesses of its citizens.
And as Mr. Welch of found out the EC does have an attitude.
So its not Austria alone in this fight - Cerberus and the honoranble US pols on its payroll will be fighting the EC as a whole.
No. 3 - you really wonder who will win?
Seems to me this a policy that one company has decided to adapt.
Is there any evidence that the US government has pressured them or
is it just a decision of a few executives in that company, who happen to have
strong anti-cuban feelings.
Has anyone noticed a flood of US companies operating outside of the US adapting
similar policies? We haven't noticed it in Canada yet.
So why is this suddenly an anti-US discussion.
#7
And the EU is going to do what to the US? It seems that it to is a little more concerned about Cuba. Try this link for starters!
Methinks you still have a lot to learn.
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