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Sanctions - Coggle Diagram
Sanctions
Types of Sanctions at the disposal of governments
economic sanctions
financial+commercial penalties ban customary trade and financial relations.
country-level
diplomatic sanctions
political measures that aim to demonstrate displeasure with or disapproval on certain actions stopping taking economic/military steps.
military sanctions
intervention of armed forces
sport sanctions
preventing country's athletes from competing in international events
environmental santions
involves international environmental protection, cooperation and efforts to assist endangered species, environmental laws and ozone depleting chemicals.
Types of Sanctions
OFAC = office foreign assets control
holds responsibility for administering and enforcing economic and trade sanctions on behalf of the US gov.
country-specific sanctions
non-proliferation sanctions
involves individuals, organizations, countries
rough diamond trade controls
to control the sale and distribution of diamonds which are used to fund war and terrorism globally.
PURPOSE
limit the adverse consequences in a situation of international concern.
modify the behavior to remove the concern
penalize parties
How do Banks apply sanctions?
GOAL - to ensure that no customers+transactions associated with sanctions requirements in jurisdictions they operate in occur.
US sanctions are applicable outside of the US, as soon as there is any connection to the US in a transaction
a bank can't have customers or process transactions associated with sanctions obligations>bank are obligated to freeze the accounts and assets of these customers.
Types of Sanction Regimes
UNSC - international obligations that member nations of the UN are expected to apply.
Autonomous Sanctions - sanctions Regimes that are imposed at an individual national government level
definition: measures not involving the use of "armed force" including a complete or partial interruption of economic relations.
charter of the UN - article 41
repression of human rights
proliferation of weapons of mass destruction
internal/international armed conflict