Sanctions

Sanctions is a tool used against targeted entity with the aim of maintaining and restoring peace and stability.

So, how does this aims to maintaining and restoring peace? Who imposes it? What are the types of sanctions? Who is sanctioned? Let us know more on this.

Who is sanctioned?

Any Individual, Organization or Country can be sanctioned.

What are the types?
  • Region based: Non-Global and International
  • Based on Nature: Financial and Embargoes
  • Levels based: Primary and Secondary
Results of sanctions:
  •  Asset freezing
  • Penalties
  • Imprisonment
  • Military/Arms trade restrictions [Also, ban on exporting equipment that might be used for internal repression]
  • Import and/or Export restrictions on one or more goods
  • Travel bans
  • Cancellation of licenses
  • Unable to make financial transactions
Based on the types of sanctions and it’s result, you might have already realized how a sanction aims in maintaining and restoring peace and stability at a targeted region?. A hold on trade and financial activity can bring an individual or an organization or a country on track as it imposes restrictions. This might restrain targeted entity from creating internal repression. The targeted entities and their activities will be under constant monitoring, thus sanctions can be tightened or reduced or lifted based on change.
 
Now let us know about “Who imposes this?”
  •  UN Security Council
  • US [Treasury]
  • EU Council
  • UK
These are the major players in imposing International Sanctions, which R.o.W (Rest of the World) is forced to follow, however any country can impose sanctions and on other country/individual/organization. These are not followed by R.o.W. That’s the difference between a Global Sanction and Non-Global one.
 
There are many other things to know about this topic like: Violation of sanctions and it’s consequences, Level of sanctions namely secondary, Duration of restrictions and leverages, Global Examples, etc.
 
BTW before we end this blog, here is an important note:
  • The major cause to get sanctioned is because the targeted entity is deemed disrupting or supports disruption of internal peace, political stability. It can happen either there are direct/indirect support to terrorist or to their organization, ill-legal activities like: drug trafficking, human trafficking, amassing weapons of distruction, smuggling and involvement in violence, etc.
  • Embargoes are nothing but trade restrictions. Restrictions on import and/or export of listed goods and services.
  • Sanction checks happens even if it is a Book TransferGlobal PaymentsDomestic Payments and even union specific payments like SEPAP27, etc.
Some References:

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