The Libyan Sanctions Regime - A Review
On 7 June 2011 the Council of the European Union agreed Council Decision 2011/332/CFSP setting out the Council's intention to add six port authorities to the now extensive list of Libyan companies and individuals blacklisted under the UN asset freeze. This Decision, following on from the UN Resolution of 26 February 2011, further tightens the financial sanctions noose around the Gaddafi regime and those associated with it.
UN Resolution 1970 was adopted by the UN Security Council on February 26, 2011, imposing an arms embargo on Libya and a global travel ban on Gaddafi and his family, while freezing the assets of Gaddafi and his 5 family members. A UN committee was formed to monitor its implementation, with member states obliged to report to the committee on the steps taken to implement the Resolution by June 26, 2011.
The UK implemented the Resolution through the Libya (Financial Sanctions) Order 2011 and the Libya (Asset-Freezing) Regulation 2011. Any funds and economic resources belonging to, owned or controlled by individuals or entities on the blacklist are frozen. There are exemptions and derogations from the financial sanctions regime, which require a license from H.M. Treasury.
On June 7, 2011, the EU Council agreed to designate six port authorities in Libya for an asset freeze, and H.M. Treasury has stated that exemptions can be authorized until July 15, 2011, for contracts entered into prior to the Libyan Port Regulation coming into force.
This review is published with thanks to the author, Tom Birch-Reynardson of Birch Reynardson & Co, and is intended to provide information to those interested in this issue. It is not legal advice.
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