UN Security Council Sanctions
The non-military measures the Security Council imposes under Article 41 of the Charter, managed by sanctions committees and carried into EU and national law by implementing acts.
UN Security Council sanctions are the measures not involving the use of armed force, asset freezes or the complete or partial interruption of economic relations, that the Council decides on under Article 41 of the UN Charter, in Chapter VII. Once a threat to the peace has been determined under Article 39, the decision binds all members (Article 25), and Article 103 gives it priority over their other treaty obligations. Each regime has its committee, made up of the fifteen members and acting by consensus, which keeps the list and handles exemptions and delistings. The 1267 regime, created on October 15, 1999 against the Taliban and later extended to Al-Qaida and the Islamic State, is the only one with an Ombudsperson, set up by resolution 1904 of December 17, 2009. A listing in New York does not apply by itself in the EU. The Council of the EU carries it over through a CFSP (Common Foreign and Security Policy) decision and a regulation based on Article 215 TFEU (Treaty on the Functioning of the European Union). For 1267, that was Regulation (EC) No 881/2002 of May 27, 2002, the one the Court of Justice reviewed in its Kadi judgment of September 3, 2008, requiring judicial review of listings. In France, article L. 562-3 of the Monetary and Financial Code also lets the Economy minister freeze, for six months renewable, the assets of persons targeted by Chapter VII resolutions. For an insurer, the lag is counted in days: between the committee listing and publication in the EU Official Journal, a claim payment or a premium refund can go out to someone already designated. Market sanctions clauses, LMA 3100 from the Lloyd's Market Association first among them, expressly refer to United Nations resolutions.
Textbook case: a property insurer settles a warehouse fire in Marseille. Indemnity of EUR 850,000, less the contractual deductible of EUR 15,000, so EUR 835,000 due to a company 70 percent owned by a trader. On Monday, the 1267 committee lists the trader; the EU implementing regulation is published on Friday. The transfer is scheduled for Wednesday. The compliance team, which tracks the Security Council list and not only the Official Journal, stops the order. With 70 percent of the capital in the trader's hands, the company is owned by a designated person under EU guidance, and the EUR 835,000 goes to a frozen account, with a report to the French Treasury.
UN sanctions, UNSC sanctions, Article 41 measures, Chapter VII sanctions, sanctions committee, UN consolidated list, 1267 regime
Follow the research
One letter a week. First, the week's underwriting note, when one is published: a dated, argued decision, signed by Paul Bernardski. Then what the observatory published on cyber risk, political risk and insurance. No account, no tracking.
No spam, one-click unsubscribe, no data ever sold.