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Clinton, Bill

Renewal of National Emergency with Respect to Libya: A Presidential Report to Congress

Strategic Insights

— 2 min read

The United States has been under national emergency with respect to Libya since 1986, imposing a comprehensive financial and trade embargo against the country. President Bill Clinton submitted a report to Congress on January 31, 1995, detailing developments since his last report in July 1994. The report highlights the extension of sanctions, investigations into alleged violations, and the blocking of assets owned or controlled by the Libyan government.

Key Takeaways:

  • The national emergency with respect to Libya was renewed for another year on December 22, 1994, extending the current comprehensive financial and trade embargo against Libya.
  • The Office of Foreign Assets Control (FAC) of the Department of the Treasury administered the Libyan Sanctions Regulations, which prohibit all trade with Libya and block assets owned or controlled by the Libyan government in the United States or in the possession or control of U.S. persons.
  • Since the last report, 136 licensing determinations were made by FAC, including 73 approvals and 41 denials, mostly concerning banking transactions.
  • FAC collected 15 civil monetary penalties totaling more than $76,000 for violations of the U.S. sanctions against Libya, including 9 penalties for failure of banks to block funds transfers to Libyan-owned or -controlled banks.
  • A Federal grand jury in Connecticut indicted two U.S. businessmen, two U.S. corporations, and several foreign corporations for violating the Regulations and IEEPA for their roles in the illegal exportation of U.S. origin fuel pumps to Libya.
  • The FAC has continued its efforts under the Operation Roadblock initiative to identify U.S. persons who travel to and/or work in Libya in violation of U.S. law.
  • The expenses incurred by the Federal Government in the 6-month period from July 7, 1994, through January 6, 1995, directly related to the exercise of powers and authorities conferred by the declaration of the Libyan national emergency are estimated at approximately $1.4 million.

Statistics:

  • 73 licensing approvals were issued by FAC for requests by non-Libyan persons or entities to unblock bank accounts initially blocked because of an apparent Government of Libya interest.
  • 41 licensing denials were made by FAC for banking transactions in which a Government of Libya interest was found.
  • More than 210 transactions involving Libya, totaling more than $14.8 million, were blocked during the reporting period.
  • 13 of these transactions were licensed to be released, leaving a net amount of more than $14.5 million blocked.
  • 15 civil monetary penalties were collected, totaling more than $76,000.
  • The expenses incurred by the Federal Government in the 6-month period from July 7, 1994, through January 6, 1995, directly related to the exercise of powers and authorities conferred by the declaration of the Libyan national emergency are estimated at approximately $1.4 million.

Sources:

  • "A Message to the Congress on the Continuation of the National Emergency with Respect to Libya," by President Bill Clinton, January 31, 1995.
  • "Libyan Sanctions Regulations," 31 C.F.R. Part 550.
  • "Executive Order No. 12543 of January 7, 1986," by President Ronald Reagan.
  • "International Emergency Economic Powers Act," 50 U.S.C. 1701-1706.
  • "International Security and Development Cooperation Act of 1985," 22 U.S.C. 2301-2349cc.
  • "National Emergencies Act," 50 U.S.C. 1601-1651.

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