New bulletin directs financial institutions to follow Murphy's recent order imposing sanctions on Russia, Belarus

On Thursday, the New Jersey Department of Banking and Insurance (DOBI) directed financial institutions to comply with an executive order from Gov. Phil Murphy (D-N.J.), which imposes sanctions on Russia and Belarus, according to a press release.

The order directs DOBI to take action in response to Russia’s invasion of Ukraine and includes the monitoring of communications from federal agencies in order to remain updated on the situation abroad and make sure that restrictions are followed.

Institutions were also advised to check over their internal systems for cybersecurity risks, especially because the invasion increases such risks for the financial sector of the U.S., according to the release. 

The directive also reminded regulated entities that they should maintain policies to implement internal controls, which includes training, risk assessments and auditing. In addition, any suspicious activities should be reported to the Department of the Treasury and law enforcement agencies. 

Specifically, those who send money to and receive money from correspondent banks or accounts located in Belarus or Russia are required to submit a report to the Department within 30 days that will assess the sanctions’ impacts, according to the release.

In regard to insurance, the invasion could affect market risk, credit risk and cyber risk, among others. Though, these will be addressed by means of a thorough risk management process.

In addition, DOBI may suspend company permits, licenses, registrations and certificates of companies owned or controlled by the governments of Russia or Belarus, as well as businesses that invest in these companies, according to the release.

“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. “This bulletin makes clear that we expect all entities regulated and licensed by DOBI to comply with sanctions and restrictions imposed by (President Jospeh R. Biden Jr.'s administration) on the Russian Federation and Belarus.”