‘Sanctions on Guptas will have ripple effect’

The Mission in South Africa for the United States (US) embassy says America’s decision to impose sanctions on the Gupta family will have a ripple effect, causing other countries to take note of the corruption allegations against them.

The US imposed sanctions on Ajay, Atul and Rajesh Gupta – as well as business associate, Salim Essa. In terms of the Global Magnitsky Human Rights Accountability Act, any property, or interests in property within the United States jurisdiction, is now blocked.

The US says the sanctions, which are linked to corruption in South Africa – demonstrate their commitment to promoting transparency, accountability and the rule of law globally.

The US Embassy Mission in SA’s Acting Chief, David Young, says American subsidiaries across the globe risk sanctions if they deal with the Gupta family.

“When we take an action like this, it has a ripple effect. Other countries notice, it encourages some of our allies and partners who are considering these kind of actions, it makes people realise we can’t hide from this now, it is serious business.”

“They are prohibited from travelling to the US, the US government can seize any properties they might hold in the US. The four are barred from entering into any transactions with banks and companies and US firms or international firms that have American subsidiaries risk violating US sanctions themselves if they deal with them.”

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