In Zambia, significant steps have been taken to implement targeted financial sanctions through the designation of the relevant authorities and the introduction of a regulatory framework that guides both the public and private sector stakeholders.

 

IMPLEMENTATION OF TARGETED FINANCIAL SANCTIONS IN ZAMBIA


1.0 INTRODUCTION

Sanctions are an important tool in the hands of the international community to promote international peace and security. However, because not all sanctions have succeeded in preventing certain individuals, entities and UN Member States from undertaking activities prohibited by the UN Security Council, such as the proliferation of weapons of mass destruction (WMD), international organizations have introduced targeted financial sanctions. To prevent and suppress terrorist and proliferation financing activities, countries are required to implement targeted financial sanctions in accordance with the United Nations Security Council resolutions (UNSCRs or resolutions). These requirements are contained in the Financial Action Task Force (FATF) standards.  In particular, FATF Recommendations 6 and 7 require countries to have the legal authority and to identify domestic competent authorities responsible for implementing and enforcing targeted financial sanctions.

In Zambia, significant steps have been taken to implement these standards through the designation of the relevant authorities and the introduction of a regulatory framework that guides both the public and private sector stakeholders. 

2.0 TARGETED FINANCIAL SANCTIONS

The UNSC is one of the six principal organs of the UN, charged with ensuring international peace and security. One of the functions of the UNSC is to enact international sanctions against targeted entities. These sanctions are designed to focus on groups of people responsible for breaches of peace or threats to international peace and security .

Some sanctions have been criticized as causing excessive suffering to civilian populations or inflicting economic damage on other states which are neighbors of target states . To address such concerns, the concept of targeted sanctions was developed.

The Thomas J. Watson Jr Institute of International Studies defines targeted financial sanctions as the use of financial instruments and institutions to apply coercive pressure on transgressing parties such as government officials and the elites that support them in an effort to restrict their behavior. 

Accordingly, countries are required to freeze immediately the funds, other financial assets and economic resources which are on their territories or under their jurisdiction at the date of adoption of the resolution or at any time thereafter that are owned or controlled, directly or indirectly by the sanctioned persons/entities; and further ensure that no funds or other assets and economic resources are made available to such persons and entities, except in specific situations, and under conditions specified in the UNSC resolutions. 

 

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