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1 1 (March 18, 2022)

handle is hein.crs/goveflc0001 and id is 1 raw text is: C o g e s o a R e s a r c S e r v i c S March 18, 2022 Enforcement of Economic Sanctions: An Overview As part of the response to Russia's invasion of Ukraine, the United States and many other international actors have imposed economic restrictive measures (economic sanctions) on individuals and entities financing or otherwise connected with the Russian and Belarusian governments. In the United States, the Office of Foreign Assets Control (OFAC) within the Department of the Treasury (Treasury) often leads sanctions implementation. OFAC and the Department of Justice (DOJ) serve as the primary enforcers of economic sanctions measures, although other federal agencies play a role in enforcement efforts. This In Focus provides a brief overview of the economic sanctions regime and how it is enforced. Imposition of Economic Sanctions Most economic sanctions are imposed using authority delegated to the President in the International Emergency Economic Powers Act (IEEPA) and the National Emergencies Act (NEA). The President may, upon declaring a national emergency, restrict or prohibit a wide range of transactions involving property in which any foreign country or a national thereof has any interest by any person, or with respect to any property, subject to the jurisdiction of the United States. 50 U.S.C. § 1702(a). Person includes natural persons and entities. During periods when the United States is engaged in armed hostilities or has been attacked by a foreign country or foreign nationals, the President's authority to block and prohibit transactions in designated persons' property is expanded to include confiscation of property. 50 U.S.C. § 1702(a)(1)(C). The President may order that the property of any foreign person be confiscated, with title to such property vesting in an agency or person designated by the President. The President may also establish the terms on which the confiscated property may be held or sold, among other things. When exercising authorities under IEEPA, the President generally issues an executive order that (1) declares a national emergency under the NEA; (2) sets out the legal bases upon which the Secretary of the Treasury or other officials (e.g., Secretary of the State Department) may designate specific foreign persons who will be subject to the sanctions; and (3) establishes the types of transactions or other prohibitions that shall apply to designated persons. For example, Executive Order 14024, related to countering harmful foreign activities of the Government of the Russian Federation, blocks and prohibits transactions in property within the United States, or in the possession or control of a U.S. person, of designated foreign persons. The grounds on which the Secretary of the Treasury, in consultation with the Secretary of State, may designate individunk under Executive Order 14024 inchude that the foreign person is a political subdivision, agency, or instrumentality of the Government of the Russian Federation or has engaged in activities that undermine the peace, security, political stability, or territorial integrity of the United States, its allies, or its partners. Based on intelligence and other information, Treasury and/or the State Department identifies specific persons that meet the criteria of these executive orders. These persons are then added to the appropriate list. Persons whose assets are blocked and with whom U.S. persons generally may not deal appear on the Specially Designated Nationals and Blocked Persons List (SDN List). Persons whose assets are not blocked, but with whom certain transactions are prohibited, appear on non-SDN lists, collectively arranged by OFAC in a Consolidated Sanctions List. Violations of IEEPA may expose U.S. and foreign persons to civil and criminal penalties. Respondents face civil penalties of up to $250,000 (or $330,947 once adjusted for inflation as required by the Federal Civil Penalties Inflation Adjustment Act of 1990) or an amount that is twice the amount of the transaction that is the basis of the violation. 50 U.S.C. § 1705; Economic Sanctions Enforcement Guidelines, 31 C.F.R. App'x A to Pt. 501. They may also face criminal fines of up to $1 million or up to 20 years' imprisonment for willful violations. 50 U.S.C. § 1705. For further information on IEEPA, see CRS Report R45618, The International Emergency Economic Powers Act: Origins, Evolution, and Use. For further information on sanctions issued in response to Russia's invasion of Ukraine, see CRS Insight IN11871, Russia 's Invasion of Ukraine: New Financial and Trade Sanctions; and CRS Report R45415, U.S. Sanctions on Russia. Enforcement of Economic Sanctions Individuals who violate economic sanctions may face civil or criminal penalties. Enforcement actions may directly target sanctions violations, while others may also address other illegal conduct involved in or uncovered while investigating the sanctions violations. OFAC If OFAC suspects a person or entity may be acting in violation of economic sanctions, it may open enforcement proceedings. Based on evidence considered in its investigation, OFAC may issue a finding of no violation; a request for further information; a cautionary letter; a finding of a violation; a finding of a violation with civil monetary penalty; or a criminal referral. Should OFAC have reason to believe that the sanctions violation may be ongoing or recur, it may also issue a cease-and-desist order. Where ittps://trsreports.congress.gt

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