Authorizing Sanctions Under the Countering America's Adversaries Act

Sep 21, 2018

Summary

Gives power to top officials to use financial and travel punishments against people and groups listed in the Countering America's Adversaries Through Sanctions Act.

What problem does this solve?

The U.S. government needed a clear process to apply punishments against foreign adversaries as required by law. This order details the exact financial, trade, and travel restrictions that government agencies must use to enforce those punishments.

What does this order do?

Freezing assets of sanctioned persons

Blocks all property and interests in property of a sanctioned person that are in the U.S. or controlled by a U.S. person. These assets cannot be transferred, paid, or otherwise used.

Restricting access to U.S. financial systems

Prohibits U.S. financial institutions from making large loans, and bans foreign exchange transactions or credit transfers involving sanctioned persons within U.S. jurisdiction.

Banning entry into the United States

Denies visas to and excludes from the U.S. any corporate officers, principals, or major shareholders of a sanctioned company.

Prohibiting government business

Forbids U.S. government agencies from buying any goods or services from a sanctioned person or company.

Restricting exports

Prevents the export or reexport of goods and technology to a sanctioned person by denying government licenses and permissions.

Applying sanctions to corporate leaders

Allows for the same financial and travel sanctions to be placed on the main executive officers of a sanctioned company.

Who does this affect?

Foreign individuals and companies
U.S. financial institutions
U.S. government agencies

What is the real world impact?

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Enforcing Congressional sanctions

Puts into action the punishments that Congress created in the Countering America's Adversaries Through Sanctions Act (CAATSA). This ensures the U.S. can respond to threats from other countries.

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Broad executive power over foreign entities

Grants the President and top officials wide authority to financially cripple foreign individuals and companies. Critics might argue this power could be used for political leverage or could harm international relations without enough oversight.

When does this start?

This order takes effect immediately as of September 20, 2018.