EU CNCL Lebanon Sanctions Regime

On Jul. 30, EU CNCL adopted framework for targeted sanctions.

  • EU adopted framework for targeted restrictive measures to address Lebanon situation.
  • Framework
  • This framework provides for the possibility of imposing sanctions against persons and entities who are responsible for undermining democracy or the rule of law in Lebanon.
  • For obstructing or undermining democratic political process by persistently hampering formation of government or obstructing or seriously undermining holding of elections.
  • Obstructing/undermining implementation of plans to improve accountability and good governance in public sector or the implementation of critical economic reforms.
  • Including in the banking and financial sectors and legislation on the export of capital.
  • Serious financial misconduct, concerning public funds, insofar as the acts concerned are covered by UN Convention Against Corruption, and unauthorized export of capital.
  • Sanctions consist of a travel ban to EU and an asset freeze for persons and entities.
  • EU persons and entities are forbidden from making funds available to those listed.
  • US Welcomes EU Sanctions Regime
  • On same day, US issued joint statement by Secretary of State Antony J. Blinken and Treasury Secretary Janet L. Yellen welcoming the EU sanctions regime on Lebanon.
  • Critical Lebanese leaders heed people’s repeated calls for end to widespread corruption and government inaction and form a government that can initiate critical reforms.
  • Sanctions are intended, among other things, to compel changes in behavior, promote accountability for corrupt actors and leaders who have engaged in malign behavior.
  • Aug. 2021 Official Journal
  • On Aug. 2, 2021, EU CNCL issued decision (CFSP) 2021/1277, regulation 2021/1275 of Jul. 30, 2021 concerning restrictive measures in view of the situation in Lebanon
  • Both entered into force on the day following publication in OJ, e.g. Aug. 3, 2021.
  • Decision shall apply until 31 July 2022 and shall be kept under constant review.
  • Jul. 2022 Extended Framework
  • On Jul. 26, 2022, EU CNCL adopted a decision extending the framework for targeted sanctions to address the situation in Lebanon; extended for 1 year, until Jul. 31, 2023.
  • Jul. 2023 Extended
  • On Jul. 21, 2023, EU CNCL issued Dec (CFSP) 2023/1519 of Jul. 20, 2023 amending Dec (CFSP) 2021/1277 concerning restrictive measures in view of situation in Lebanon.
  • Decision shall enter into force on the day following publication in the Official Journal of the European Union, on Jul. 22, 2023; based on a review of Dec (CFSP) 2021/1277, the restrictive measures set out therein are renewed until Jul. 31, 2024.

Regulators EU CNCL; US State Dept; US Treasury
Entity Types B/D; Bank; BS; Ins; Inv Co; MSB
Reference OJ L 184/45, 7/21/2023; PR, Dec (CFSP) 2023/1519, 7/20/2023; OJ L198/18, 7/27/2022; Dec (CFSP) 2021/1277, PR 7/26/2022; OJ LI 277/1, LI 277/16, 8/2/2021; PR, Dec (CFSP) 2021/1277, Reg 2021/1275, 7/30/2021; Citation: Dec (CFSP) 2023/1519; Dec (CFSP) 2021/1277;
Functions AML; Anti-Bribery; Compliance; Financial; Legal; Operations; Sanctions
Countries European Union; Lebanon; United States of America
Products Banking; Clearing; Deposits; Fund Mgt; Insurance; Loan
Regions Global
Rule Type Final
Rule Date 7/30/2021
Effective Date 7/31/2024
Rule Id 112449
Linked to N/A
Reg. Last Update 7/21/2023
Report Section AML & Enforcement

Last substantive update on 07/21/2023