Sanctions

Sanctions are a policy tool that national governments like the US, UK, etc. and multinational organizations such as the UN and European Commission, use to constrain and deter perceived security threats, to prevent or suppress criminal activity, or to encourage a change in or to apply pressure on a target country or regime.

The US Treasury Office of Foreign Assets Control (OFAC) administers and enforces various economic and trade sanctions programs against targeted foreign countries and regimes, terrorists, international narcotics traffickers and those engaged in activities related to the proliferation of weapons of mass destructions, and other threats to national security, foreign policy or economy of the United States.

Sanctions Programmes can either be Comprehensive or Selective in nature.

Comprehensive Sanctions Programmes seek to prohibit most financial and commercial interaction with a specific territory or country or its government. Comprehensive Programmes generally prohibit all direct or indirect activity or facilitation with a territory or country, including imports, exports, and the provision of financial products or services.

Selective Sanctions Programmes seek to prohibit specific activity such as imports of certain goods or dealings in certain financial products with listed individuals and entities in a country or target activity involving certain industry sectors. Current or former government bodies and current or former government officials including individuals and entities closely associated with the government may also be part of Selective Sanctions Programmes.