Global Sanctions Flashcards
What is the main goal and purpose of a sanction?
The main goal of a sanction is for international peace & security, and the purpose of a sanction is for restrictive measures, punishments or deterrents a country puts on other countries or entities
Sanctions can be either ___ or ___
Comprehensive ( targets a whole country & ANY trade is prohibited) or Selective, specific industries, individuals or entities are
What do sanctions aim to do?
Prevent escalation of or settle conflicts
Curtail nuclear proliferation
counter terrorism and human rights violations
What are some types of sanctions?
Economic trade, , military/arms embargos, travel ban,
Who imposes sanctions?
OFAC, OFSI, ASO, UN, EU,
What is OFAC?
Office of Foreign Assets Control
- Part of the US Department of Treasury
-Administers and enforces economic and trade sanctions based on US foreign policy and national security goals
OFAC Programs?
Sectoral, Targeted, SDN List, Comprehensive
Comprehensive Sanction ?
- Also called Embargo, prohibit trade with a specific country or region. Impacts a whole country, individuals/business, economy/investments, criminal acts
Comprehensive Sanctioned Countries:
Crimea, Syria, North Korea, Cuba, Russia, Belarus, Iran
Specially Designated Nationals List?
SDN: Sanctions on entities that are not country specific, are enacted by adding individuals to this list. Assets are blocked and US is prohibited from dealing with them
Sectoral Sanctions?
Applied against sectors of the economy, restrictions against certain types of transactions, citizens of the US are prohibited from engaging with those entities in sectoral-specific transactions
What is the EU?
European Union- political and economic union between 27 European countries. EU either imposes its own sanctions or implements punitive measures by the UN.
True or False: Sanctioned Screening is one of the mandatory steps in the Know Your Customer process
True. Every Financial Institution needs to ensure that they do not transact with any sanctioned
entity
