Financial Crime World

US Treasury Slaps Financial Sanctions on Libyan Regime’s Assets in Bid to Halt Bloodshed

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has taken a bold step to cut off the financial lifeline of the Libyan regime and prevent further violence. In a move aimed at halting the bloodshed, OFAC has identified three companies owned by the Government of Libya as subject to sanctions under Executive Order 13566.

Blocking of Assets

The order blocks all property and interests in property of the Libyan government and its agencies, instrumentalities, and controlled entities within US jurisdiction. This includes both specifically identified entities and those not explicitly listed by OFAC. The goal is to prevent the Qaddhafi regime from using its assets to sponsor further violence.

Prohibition on Business with State-Owned Entities

US persons are prohibited from engaging in business with any Libyan state-owned entity. According to a statement released by OFAC, this move aims to aid US persons and others in meeting their obligations under the executive order.

“The United Nations and countries around the world are locking down the Government of Libya’s assets to prevent the Qaddhafi regime from sponsoring further bloodshed.”

— OFAC Director Adam J. Szubin

Entities Identified as Subject to Sanctions

Today’s identifications name additional agencies of the Qaddhafi regime, with all their assets to be frozen. The following entities have been identified as subject to sanctions under Executive Order 13566:

  • Libyan Jamahiriya Broadcasting Corporation: Libya’s state broadcasting company, which owns several radio and television stations in Libya.
  • Dalia Advisory Ltd.: A London-based investment firm that is 100 percent owned by the Libyan Investment Authority (LIA). The LIA was previously identified by OFAC as a Government of Libya entity on March 15, 2011.
  • Lafico Algeria Holdings: An Algeria-based subsidiary of the Libyan Arab Foreign Investment Company (LAFICO). LAFICO was also previously identified by OFAC as a Government of Libya entity on March 15, 2011.