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Clinton, Bill

Tightening Economic Sanctions Against Libya: A Comprehensive Report to Congress

Strategic Insights

— 2 min read

In a report transmitted to Congress, President Bill Clinton outlined the latest developments in the national emergency with respect to Libya, including the tightening of economic sanctions. These measures are a response to the imposition of new sanctions against Libya under United Nations Security Council (UNSC) Resolution 883, which aims to bring to justice the perpetrators of terrorist attacks against Pan Am flight 103 and UTA flight 772. The actions signify that Libya cannot continue to defy justice and flout the will of the international community with impunity.

Key Takeaways:

  • On December 3, 1993, President Clinton announced new measures to tighten economic sanctions against Libya, following the imposition of new sanctions under UNSC Resolution 883.
  • These measures include the freezing of financial assets owned or controlled by the Government of Libya or certain Libyan entities, and the banning of provision of equipment for refining and transporting oil.
  • The national emergency with respect to Libya has been renewed for another year pursuant to the International Emergency Economic Powers Act (IEEPA), extending the current comprehensive financial and trade embargo against Libya.
  • The Office of Foreign Assets Control (FAC) of the Department of the Treasury has continued to emphasize the importance of identifying and blocking payments made by or on behalf of Libya, with over 130 transactions totaling more than $20.7 million being blocked during the reporting period.
  • FAC has collected 39 civil monetary penalties totaling nearly $277,000 for violations of U.S. sanctions against Libya, with most cases involving the failure of banks to block funds transfers to Libyan-owned or -controlled banks.
  • The FAC has also initiated several new investigations of potentially significant violations of the Libyan sanctions, including complex conspiracies to circumvent the various prohibitions of the Libyan sanctions.
  • The expenses incurred by the Federal Government in the 6-month period from July 13, 1993, through January 6, 1994, that are directly attributable to the exercise of powers and authorities conferred by the declaration of the Libyan national emergency are estimated at approximately $1 million.
  • The policies and actions of the Government of Libya continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States, with the U.S. government continuing to support stronger international measures, including a worldwide oil embargo, if Libya continues to defy the international community.

Statistics:

  • Over 130 transactions totaling more than $20.7 million were blocked by the Office of Foreign Assets Control (FAC) during the reporting period.
  • 39 civil monetary penalties totaling nearly $277,000 were collected for violations of U.S. sanctions against Libya.
  • The expenses incurred by the Federal Government in the 6-month period from July 13, 1993, through January 6, 1994, that are directly attributable to the exercise of powers and authorities conferred by the declaration of the Libyan national emergency are estimated at approximately $1 million.

Sources:

  • Presidential Report to Congress, February 10, 1994
  • United Nations Security Council Resolution 883, November 11, 1993
  • International Emergency Economic Powers Act (IEEPA), 50 U.S.C. 1703
  • National Emergencies Act, 50 U.S.C. 1641
  • Executive Order No. 12543, January 7, 1986

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