Financial Crime World

Financial Sanctions and Embargoes in Somalia: A Complex Web of Restrictions

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The United Nations has imposed a comprehensive sanctions regime on Somalia since 1992, in response to the country’s deteriorating security and humanitarian situation following the downfall of President Said Barre. The current sanctions regime is the oldest of all UN regimes, comprising an arms embargo with exceptions for certain government entities, asset freezes, travel bans, a charcoal ban, and a prohibition on supplying improvised explosive device (IED) components.

History of Sanctions

In 2008, the Security Council imposed a far-reaching set of sanctions, including:

  • An arms embargo
  • Travel bans on individuals
  • Asset freezes on those designated by the Committee

Since then, additional restrictions have been added to the regime. In 2012, the UN banned the direct or indirect import of charcoal from Somalia, while in 2019, it prohibited the supply of IED components.

Current Sanctions Regime

The current sanctions regime is established under United Nations Security Council Resolution 2713, which is enforced by:

  • The European Union
  • The United Kingdom
  • The United States

The US has also designated Al-Shabaab as a terrorist organization, along with several other groups.

US Sanctions and Restrictions

In addition to UN sanctions, the US has imposed its own set of restrictions on Somalia through legislation and executive orders. The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) maintains a list of individuals and entities subject to sanctions, which can be searched online. The US has also issued guidance for businesses and individuals operating in or with Somalia.

Implications of Sanctions

The complex web of financial sanctions and embargoes in Somalia has significant implications for the country’s economy and its people. While intended to promote stability and security, these measures can have unintended consequences, including:

  • Limiting access to essential goods and services
  • Exacerbating poverty and humanitarian crises

Conclusion

It is crucial that all stakeholders understand the scope and implications of these sanctions, as well as work together to mitigate their negative effects on the Somali population.