Updated Sanctions Against Libya

This alert updates our 1 March alert describing new sanctions against Libya, reflecting recent developments with respect to expanded measures imposed by the European Union (EU) and additional general licenses and new designations issued by the U.S. Government. Specifically, on 11 March the EU has extended the asset freeze provisions of its sanctions regime to five Libyan entities, including the Libyan Investment Authority and the Central Bank of Libya, and one individual. This follows EU-wide freezing of assets "owned or controlled" by certain key persons associated with the Libyan regime only one week earlier.

In light of the recent events in Libya, the UN Security Council and various governments including the United States, and the EU have imposed new sanctions on Libya. The following advisory describes the current EU, U.S. and UN sanctions. A number of these provisions are very broad in scope.

EU Sanctions

The EU has adopted a sanctions regime on Libya. The measures consist of (1) an arms embargo and a ban on import and export of items used for internal repression, including a ban on related financial and technical assistance, (2) a freeze of assets, and a visa ban, on 27 individuals designated at the UN and EU level, as well as 5 entities, and (3) certain transportation restrictions, such as extended pre-arrival and pre-departure notice requirements for goods shipped to and from Libya, and a EU Member State duty to inspect all cargo travelling to or from Libya, if reasonable grounds exist to suspect that sanctions are being violated.

The freezing of assets (funds and economic resources) of Libyan nationals and entities (specifically, (1) Libyan Investment Authority a.k.a. Libyan Arab Foreign Investment Company, (2) Central Bank of Libya, (3) Libya Africa Investment Portfolio, (4) Libyan Foreign Bank, and (5) Libyan Housing and Infrastructure Board will prevent anyone, including these entities, as well as any persons subject to EU jurisdiction, from any use or dealing in such assets. Business with listed entities and nationals is practically impossible (as no funds or economic resources may be made available to them). Major practical problems may arise for entities subject to EU jurisdiction in which such Libyan entities or nationals have interests, as such interests should be frozen. In certain limited circumstances, EU Member States may authorize release of, or addition to, frozen assets.

The measures, although immediately directly applicable in all 27 EU Member States, will most likely be accompanied by local regulations. There may be some differences in local implementation of these rules, in particular with respect to how assets belonging to entities "owned or controlled" by natural persons or entities that are listed should be treated. For example, the notice announcing earlier UK sanctions warned that, because the asset freeze was not limited to the Gaddafi family's personal assets but also covered 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". Partially to resolve the private parties' concerns over how the asset freeze provisions should be implemented in practice, the regulations protect from any liability natural and legal persons, their employees and directors, for freezing of assets carried out in good faith as authorized by the regulations.

Council Implementing Decision 2011/156/CFSP - 11 March 2011.pdf - 700.82 KB

Council Implementing Regulation 233/2011 - 11 March 2011.pdf - 701.55 KB

U.S. Sanctions

Effective Friday, 25 February at 8:00 pm 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). 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). However, because the U.S. sanctions apply to any entity owned or controlled by the Government of Libya, these new measures impose significant restrictions on dealings with Libyan entities. On 11 March the U.S. Government designated nine additional individuals as Libyan SDNs (below is a complete list of all individuals currently designated under the Libya EO and a link to the EO).

In summary:

• 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 (which was subsequently amended and replaced by General License 1a), 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, provided that the transaction does not otherwise involve the Government of Libya or any SDN of Libya.
• 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.
• OFAC has issued two additional General Licenses, authorizing the provision of goods and services in the United States to the diplomatic missions of the Libyan Government in the United States and the United Nations, as well as the provision of certain legal services to or on behalf of the Government of Libya, or its agencies, instrumentalities and controlled entities.

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).

FinCEN Advisory 2.24.11.pdf - 28.42 KB

White House Executive Order 2.25.11.pdf - 13.4 KB

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] AL-SENUSSI, Abdullah (a.k.a. SENUSSI, Abdullah); DOB 1949; POB Sudan; Director of Military Intelligence; Colonel (individual) [LIBYA2]

DORDA, Abu Zaid (a.k.a. DORDA, Abouzid Omar; a.k.a. DORDA, Abu Zayd Umar; a.k.a. DORDA, Bu Zaid; a.k.a. DOURDA, Abu Zaid Omar; a.k.a. DURDA, Abu Zeid Omar); DOB 4 Apr 1944; Director of the External Security Organization (individual) [LIBYA2]

FARKASH, Safia (a.k.a. FARKASH AL-BARASSI, Safia); DOB 1952; POB Al Bayda, Libya (individual) [LIBYA2]

GADDAFI, Hannibal (a.k.a. AL-GADDAFI, Hannibal; a.k.a. AL-QADHAFI, Hannibal; a.k.a. ELKADDAFI, Hannibal; a.k.a. EL-QADDAFI, Hannibal; a.k.a. GADDAFI, Hannibal Muammar; a.k.a. GHADAFFI, Hannibal; a.k.a. GHATHAFI, Hannibal; a.k.a. QADDAFI, Hannibal; a.k.a. QADHAFI, Hannibal Muammar); DOB 20 Sep 1975; alt. DOB 1977; POB Tripoli, Libya; Passport B/002210 (Libya) (individual) [LIBYA2]

GADDAFI, Muhammad (a.k.a. AL-GADDAFI, Muhammad; a.k.a. AL-QADHAFI, Mohammed; a.k.a. ELKADDAFI, Muhammad; a.k.a. EL-QADDAFI, Muhammad; a.k.a. GADHAFFI, Mohammad Moammar; a.k.a. GADHAFI, Mohammed; a.k.a. GHATHAFI, Muhammad; a.k.a. QADDAFI, Muhammad; a.k.a. QADHAFI, Mohammed Muammar); DOB 1970; POB Tripoli, Libya (individual) [LIBYA2]

GADDAFI, Saadi (a.k.a. AL-GADDAFI, Saadi; a.k.a. AL-QADHAFI, Sa'adi Mu'ammar; a.k.a. ELKADDAFI, Saadi; a.k.a. EL-QADDAFI, Saadi; a.k.a. GADHAFI, Saadi; a.k.a. GHATHAFI, Saadi; a.k.a. QADDAFI, Saadi; a.k.a. QADHAFI, Saadi); DOB 27 May 1973; alt. DOB 25 May 1973; POB Tripoli, Libya; Passport 010433 (Libya); alt. Passport 014797 (Libya) (individual) [LIBYA2]

GADDAFI, Saif Al-Arab (a.k.a. AL-GADDAFI, Saif Al-Arab; a.k.a. AL-QADHAFI, Saif Al-Arab; a.k.a. ELKADDAFI, Saif Al-Arab; a.k.a. EL-QADDAFI, Saif Al-Arab; a.k.a. GADDAFI, Seif Al-Arab; a.k.a. GADHAFI, Saif Al-Arab; a.k.a. GHATHAFI, Saif Al-Arab; a.k.a. QADDAFI, Saif Al-Arab; a.k.a. QADHAFI, Saif Al-Arab); DOB 1979; alt. DOB 1982; alt. DOB 1983; POB Tripoli, Libya (individual) [LIBYA2]

JABIR, Abu Bakr Yunis (a.k.a. JABER, Abu Bakr Yunis); DOB 1952; POB Jalo, Libya; Defense Minister; Major General (individual) [LIBYA2]

MATUQ, Matuq Mohammed (a.k.a. MATOUK, Matouk Mohamed; a.k.a. MATUQ, Matuq Muhammad); DOB 1956; POB Khoms, Libya; Secretary of the General People's Committee for Public Works (individual) [LIBYA2]

UN Sanctions

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).

UN Security Council Resolution 2.26.11.pdf - 52.96 KB

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.