Financial Crime World

Eritrea’s Financial Sanctions: A Growing Humanitarian Crisis

Background

The US Department of the Treasury has imposed financial sanctions on four entities and two individuals in Eritrea, in response to the growing humanitarian crisis and expanding military conflict in Ethiopia. The designations aim to target Eritrean actors contributing to the crisis, which have undermined the stability and integrity of the Ethiopian state.

Key Players

Eritrean Defense Force (EDF)

  • Designation: The EDF has been operating in northern Ethiopia, with reports of looting, sexual assault, killing civilians, and blocking humanitarian aid. It was designated for being a government entity that has engaged in or obstructed activities contributing to the crisis.

People’s Front for Democracy and Justice (PFDJ)

  • Designation: The PFDJ is the sole legal political party in Eritrea, led by President Isaias Afwerki. It was designated for engaging in or obstructing activities contributing to the crisis.

Abraha Kassa Nemariam

  • Designation: Abraha Kassa Nemariam, head of the Eritrean National Security Office, was designated for being a leader responsible for or complicit in activities contributing to the crisis.

Business Enterprises Linked to the PFDJ

  • Hidri Trust: This is the holding company of all PFDJ business enterprises.
  • Red Sea Trading Corporation: It manages property and financial interests of the PFDJ. Both entities were designated for being owned or controlled by the PFDJ.

Humanitarian Assistance Remains a Priority

The US Treasury remains committed to ensuring that sanctions do not limit humanitarian support from the international community to civilians in Ethiopia, Eritrea, and the region. The department has issued general licenses to authorize official activities of certain international organizations and transactions related to humanitarian aid.

Sanctions Implications

As a result of today’s action, all property and interests in property of the designated entities and individuals are blocked in the United States or in the possession or control of US persons. No entity shall be blocked solely because it is owned by one or more sanctioned persons.