Anti-Money Laundering Newsletter - November 2021 | International sanctions regime

EU Council adopts framework for sanctions to address situation in Lebanon

The EU Council decided, on July 30, 2021, to adopt a framework for the imposition of sanctions to try to defuse the situation in Lebanon. This new framework contemplates the adoption of targeted restrictions and sanctions against individuals and entities who are responsible for undermining democracy in this country.

It allows sanctions to be imposed on either individuals or entities that engage in any of the following activities:

• obstructing the democratic process, by hampering the formation of a government or obstructing the holding of elections;
• obstructing or undermining the implementing of plans approved by Lebanese or international authorities, to improve accountability and good governance in the public sector; as well as structural economic reforms affecting the banking and financial sectors; and,
• serious financial misconduct, which are regarded as such by the United Nations Convention Against Corruption.

The new framework is another step in EU monitoring of the deteriorating political, economic and social situation that is devastating Lebanon. On December 7, 2020, the Council adopted Conclusions in which it noted with “increasing concern”, the climate that is taking root in the country. It also reaffirmed a commitment to “the unity, sovereignty, stability, independence and territorial integrity of Lebanon”.

EU terrorist list renewed for another six months

The EU Council renewed the so-called EU terrorist list on July 19. This document sets out persons, groups and entities subject to restrictive measures with a view to the European Union’s fight against terrorism. There are currently fourteen persons and 21 groups and entities on the list.

The specified restrictive measures include the freezing of assets in the European Union, and a prohibition against any EU operators making funds or economic resources available to them.

The EU has prepared this list since 2001, under a mandate in UN Security Council resolution 1373/2001, adopted after the terrorist attacks of September 11 in New York. It is regularly updated at least every six months.

Additionally, since September 2016, the EU can apply sanctions autonomously to ISIL/Daesh and Al-Qaida, and persons or entities associated with them.

Sanctions on Cuba: US approves new restrictive measures after July demonstrations

On July 22, the U.S. Departments of the Treasury and of Defense approved new sanctions against the Cuban government under the Magnitsky Act. These measures were adopted after condemning the Cuban government's treatment of citizens who took part in the wave of demonstrations that started on July 11.

The sanctions were targeted at the Cuban defense minister Álvaro López Miera, and the special forces unit under the Cuban Ministry of the Interior (also known as the Boinas Negras or Black Berets).

The Office of Foreign Assets Control (OFAC), attached to the U.S. Department of the Treasury’s Office, designated López Miera as the individual responsible for what they described as “repression” of the protests in July, as well as of “serious human rights abuse”.

The sanctions include a blocking of all property and interests in property owned by the sanctioned persons and subject to U.S. control or U.S. jurisdiction, along with a prohibition on any U.S. persons, or within or transiting the United States, against carrying out any transactions with these persons.