Financial Crime World

US Considers Administering Sanctions on Sudan

The US Office of Foreign Assets Control (OFAC) is considering imposing sanctions on Sudan, a move that could have significant economic and diplomatic implications for the country.

Background and Context

According to recent guidance issued by OFAC, sanctions could be authorized through general licenses, which would allow specific activities to continue despite the restrictions. The agency has also released statements on licensing policies related to Sudan, providing clarity on what transactions are permitted or prohibited.

General Licenses

Two general licenses have been issued: Sudan General License Number 1 permits official business between certain international organizations and entities in Sudan, while Sudan General License Number 2 authorizes transactions in support of nongovernmental organizations’ activities in the country.

Purpose of Sanctions

The sanctions, if implemented, would be part of a broader effort to address human rights abuses and humanitarian crises in Sudan. The US has previously designated Sudan as a state sponsor of terrorism and imposed economic sanctions on the country.

The legal framework for Sudan-related sanctions is complex, involving multiple executive orders, public laws, and United Nations Security Council resolutions. Key authorities cited include:

  • Executive Order 14098 (May 2021), which authorized additional sanctions on individuals destabilizing Sudan or undermining its democratic transition
  • The Darfur Peace and Accountability Act of 2006
  • The Antiterrorism and Effective Death Penalty Act of 1996
  • The International Emergency Economic Powers Act
  • The Code of Federal Regulations and the Federal Register

Previous Sanctions

The US has previously lifted some sanctions on Sudan, including those related to the country’s designation as a state sponsor of terrorism. However, if the new sanctions are implemented, they could have significant implications for trade, investment, and diplomatic relations between the US and Sudan.

United Nations Security Council Role

The United Nations Security Council has also played a key role in addressing the humanitarian crisis in Sudan, passing several resolutions condemning human rights abuses and calling for an end to violence in Darfur.