Types Of Sanctions Flashcards
What are the different types of sanctions?
- trade sanctions
- financial sanctions
- comprehensive sanctions
- targeted sanctions
- sectoral sanctions
- travel bans
How are economic sanctions intended to impact targets?
- imposing trade sanctions that limit target country’s exports or restrict its imports
- imposes financial sanctions that impede finance (including reducing aid)
What is the Wassenaar Arrangement?
The Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies includes 42 states that have committed to greater responsibility and transparency in the exports of weapons and dual use goods. The core objective is to provide info to members on those entities on whose application for export licenses for providing certain goods were denied.
What are the reporting arrangements under the Wassenaar Arrangement?
Conventional weapons- every 6 mths
Dual use goods and sensitive items - 1. Tier 1 basic items - twice per yr. 2. Tier 2 - notify the Wassenaar Secretariat when an export license is denied to non Wassenaar members on proposed transfers.
What are sectoral sanctions?
Sectoral sanctions are even narrower than targeted sanctions. Sectoral sanctions target key entities as well as sectors of a country’s economy. Sectoral sanctions prohibit certain typws of transactions with certain people or entities in the targeted country within a targeted sector of the economy.
When were sectoral sanctions first used?
Russia- when it illegally annexed Crimea and Sevastopol. These sanctions blocked the issuance of new long term debt and equity against state-owned Russian banks, Russian energy companies, and Russian defense companies, among others.
Is the Sectoral Sanctions Identification (SSI) list part of the Specially Designated Nationals (SDN) list?
The SSI list is not part of the SDN list. However; individuals and companies on the SSI list may also appear on the SDN list.
Why is a late bill a possible sanctions offence?
Financint of debt may also include invoicing for payment at a later date.
What factors does OFAC use to determine whether to initiate a civil enforcement proceeding?
- whether the violation involved wilful or reckless conduct
- the harm the violation caused to the sanctions program objectives
- individual characteristics of the violator
What are comprehensive sanctions?
Sanctions that prohibit all transactions and activity with a sanctioned country by the sanctioning country except in rare, specific instances.
Which of the following is the most common type of sanctions imposed by one nation upon another?
Trade sanctions
What is the difference btw AML and sanctions restrictions?
Unlike AML requirements, which are limited to customers of the business, sanctions restrictions apply to all business activities and therefore to third parties.
