In light of the recent events in Libya, the UN Security Council and various governments including the United States, the European Union (EU) and the United Kingdom have imposed new sanctions. The following advisory describes the new U.S., UK/EU and UN sanctions. A number of these provisions are very broad in scope.
Effective Friday, 25 February at 8:00 p.m., President Obama issued an Executive Order (EO) imposing sanctions on the Government of Libya and five members of the Gaddafi family who have been designated as Specially Designated Nationals and Blocked Persons (SDNs) (below are the names of all five SDNs and a link to the new EO). The new EO does not prohibit exports of goods or services to Libya, or other transactions with or involving Libyan companies, provided that the transaction does not involve the Government of Libya or entities owned or controlled by the Libyan Government, or any of the SDNs (in essence, this is not a territorial sanctions program at this stage).
- U.S. persons (including U.S. companies and their foreign branches, but not independent foreign subsidiaries) are prohibited from dealing with these SDNs of Libya and are required to block (freeze) any property or interests in property of these SDNs that are within the United States or within the possession or control of a U.S. person.
- The new sanctions also require U.S. persons to block the property and interests in property of the Government of Libya, its agencies, instrumentalities, and controlled entities, as well as the Central Bank of Libya (U.S. persons are prohibited from engaging in any transactions or dealings with respect to such property and interests in property).
- The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) has simultaneously issued a General License 1, authorizing transactions with Libyan-owned or controlled banks that are organized in third countries. As a result, U.S. persons are not prohibited from dealing with such banks outside Libya (below is a link to the new general license).
- The new EO does not prohibit transactions for the conduct of the official business of the U.S. Government by its employees, grantees, or contractors.
- Pursuant to the authority set forth in the EO, OFAC could designate additional senior officials of the Libyan Government (and/or additional children of Colonel Gaddafi) who are responsible for, or complicit in, the human rights abuses related to the current political repression in Libya.
- The EO also authorizes the Secretary of the Treasury, in consultation with the Secretary of State, to determine that circumstances in Libya no longer warrant the blocking of property pursuant to these new sanctions.
Treasury's FinCEN also issued an Advisory, reminding U.S. financial institutions of the requirement to apply enhanced scrutiny for private banking accounts held by or on behalf of senior foreign political figures (below is a link to FinCEN's Advisory).
GADDAFI, Ayesha (a.k.a. AL-GADDAFI, Ayesha; a.k.a. AL-QADHAFI, Aisha; a.k.a. ELKADDAFI, Aisha; a.k.a. EL-QADDAFI, Aisha; a.k.a. GADDAFI, Ayesha; a.k.a. GADHAFI, Aisha; a.k.a. GHADAFFI, Aisha; a.k.a. GHATHAFI, Aisha; a.k.a. GHATHAFI, Aisha Muammer; a.k.a. QADDAFI, Aisha; a.k.a. QADHAFI, Aisha); DOB 1977; alt. DOB 1976 (individual) [LIBYA2]
GADDAFI, Mutassim (a.k.a. AL-GADDAFI, Mutassim; a.k.a. AL-QADHAFI, Mutassim; a.k.a. ELKADDAFI, Mutassim; a.k.a. EL-QADDAFI, Mutassim; a.k.a. GADDAFI, Mutassim; a.k.a. GADHAFI, Mutassim Billah; a.k.a. GHADAFFI, Mutassim; a.k.a. GHATHAFI, Mutassim; a.k.a. QADDAFI, Mutassim; a.k.a. QADHAFI, Mutassim); DOB 1975 (individual) [LIBYA2]
QADHAFI, Khamis (a.k.a. AL-GADDAFI, Khamis; a.k.a. AL-QADHAFI; a.k.a. AL-QADHAFI, Khamis; a.k.a. ELKADDAFI, Khamis; a.k.a. EL-QADDAFI, Khamis; a.k.a. GADDAFI, Khamis; a.k.a. GADHAFI, Khamis; a.k.a. GHADAFFI, Khamis; a.k.a. GHATHAFI, Khamis; a.k.a. QADDAFI, Khamis); DOB 1980 (individual) [LIBYA2]
QADHAFI, Muammar (a.k.a. AL-GADDAFI, Muammar; a.k.a. AL-QADHAFI, Muammar; a.k.a. AL-QADHAFI, Muammar Abu Minyar; a.k.a. ELKADDAFI, Muammar; a.k.a. EL-QADDAFI, Muammar; a.k.a. GADDAFI, Mu'ammar; a.k.a. GADDAFI, Muammar; a.k.a. GADHAFI, Muammar; a.k.a. GHADAFFI, Muammar Muhammad; a.k.a. GHATHAFI, Muammar; a.k.a. QADDAFI, Muammar); DOB 1942; POB Sirte, Libya (individual) [LIBYA2]
QADHAFI, Saif al-Islam (a.k.a. AL-GADDAFI, Saif al-Islam; a.k.a. AL-QADHAFI, Saif al-Islam; a.k.a. ELKADDAFI, Saif al-Islam; a.k.a. EL-QADDAFI, Seif al-Islam; a.k.a. GADDAFI, Saif al-Islam; a.k.a. GADHAFI, Saif al-Islam; a.k.a. GHADAFFI, Saif al-Islam; a.k.a. GHATHAFI, Saif al-Islam; a.k.a. QADDAFI, Saif al-Islam); DOB 25 Jun 1972; POB Tripoli, Libya (individual) [LIBYA2]
In accordance with the UN Security Council Resolution passed on Saturday, 26 February the UK Government has imposed sanctions on Colonel Gaddafi (aka Qadhafi) and his sons and daughter. The sanctions prohibit:
- Dealing with funds or economic resources owned or controlled (directly or indirectly) by a sanctions target, such as Colonel Gaddafi, or a person acting on behalf of or at the direction of a sanctions target, or an entity owned or controlled by a sanctions target.
- Making funds or economic resources available to or for the benefit of a sanctions target.
The notice announcing the sanctions warns that, because the asset freeze is not limited to the Gaddafi family's personal assets but also covers assets controlled by them, financial institutions should "bear in mind" that Colonel Gaddafi and his family control the Libyan state and state enterprises "in deciding how to conduct proper due diligence over any transactions involving Libyan state assets." It is also important to be alert for attempts to circumvent the sanctions.
Any person or company in the UK and any person elsewhere who is a British citizen or a company incorporated in the UK is required to comply with the sanctions.
In addition, the Council of the EU adopted on Monday, 28 February a decision implementing the UN Security Council resolution and imposing additional restrictive measures. In addition to the arms embargo, asset freeze, and travel ban that implement the UN Security Council Resolution, the EU Council also:
- Prohibited trade with Libya in equipment which might be used for internal repression.
- Imposed a visa ban on an additional 10 individuals and an asset freeze on an additional 20 individuals responsible for the violent crackdown on the civilian population in Libya.
The EU Council's decision is expected to be implemented by the end of this week.
On Saturday, 26 February the UN Security Council adopted Resolution 1970 to address the evolving situation in Libya. Specifically, the new resolution requires UN Member States to impose:
- An arms embargo against Libya, preventing the direct or indirect supply, sale, or transfer of arms and related materiel to and/or from Libya, as well as technical assistance, training, financial, or other assistance related to military activities (including the provision of armed mercenary personnel) in Libya.
- A travel ban, preventing the entry into or transit through their territories, of individuals listed in Annex I of the resolution or designated by a new Sanctions Committee established by the UN Security Council (at present, a total of 16 individuals are included on the list).
- An asset freeze of funds, other financial assets, and economic resources which are on their territories, which are owned or controlled (directly or indirectly) by the individuals or entities listed in Annex II of the resolution or designated by the new Sanctions Committee (at present, Colonel Gaddafi and five other members of his family are included on the list for such asset freeze).