Financial Sanctions Enforcement: Maldives Under Scrutiny
Washington D.C. - A New Era in Financial Sanctions
The United States Department of the Treasury has released a comprehensive report on financial sanctions enforcement, emphasizing the need for continued multilateral approach and structured policy framework to mitigate unintended economic and humanitarian impacts.
The Review Process
The review, led by Deputy Secretary Wally Adeyemo, engaged hundreds of stakeholders from various backgrounds including:
- Former Treasury officials
- Interagency partners
- Members of Congress
- Commercial businesses
- Academics
- Non-governmental organizations
- Governments of allies and partners abroad
The Challenges Ahead
The review highlighted the challenges posed by rising risks from new payments systems, growing use of digital assets, and cybercriminals.
Key Risks:
- New payments systems
- Growing use of digital assets
- Cybercriminals
A Structured Policy Framework
To address these challenges, the report recommends a structured policy framework that links sanctions to clear policy objectives, incorporates economic and political implications, and includes multilateral coordination and engagement strategies.
Key Features:
- Links sanctions to clear policy objectives
- Incorporates economic and political implications
- Includes multilateral coordination and engagement strategies
Calibration for Unintended Impacts
The report also emphasizes the importance of calibration to mitigate unintended impacts on U.S. workers and businesses, allies, and non-targeted populations abroad.
Key Considerations:
- Minimize harm
- Preserve effectiveness
- Support national security and U.S. interests
Investment in Sanctions Technology and Infrastructure
The report highlights the need for Treasury to invest in modernizing its sanctions technology, workforce, and infrastructure to support the full sanctions lifecycle of activities.
Key Investments:
- Modernize sanctions technology
- Invest in a skilled workforce
- Upgrade infrastructure