Administration of Proliferation Sanctions and Amendment of Executive Order 12851

Aug 5, 2019

Summary

Gives the Secretary of the Treasury the power to block loans to countries that use chemical or biological weapons.

What problem does this solve?

The U.S. needed a clear way to punish countries that use very dangerous chemical or biological weapons. This order gives the Treasury Department specific tools to stop money from flowing to those countries, making the punishment real.

What does this order do?

Gives power to the Secretary of the Treasury

Allows the Secretary of the Treasury to carry out financial punishments against countries when the President or Secretary of State decides they have used chemical or biological weapons.

Blocks loans from U.S. banks

Forbids any U.S. bank from giving loans or credit to the government of a country being punished. An exception is made for loans used to buy food or farm goods.

Opposes international help

Requires the U.S. to vote against any loan or financial help being given to a punished country by big international banks.

Updates a previous executive order

Changes Executive Order 12851 to officially give the Secretary of the Treasury the power to block bank loans and other financial help.

Bans trying to get around the rules

Makes it illegal to try to avoid or break the rules that block loans to a punished country.

Who does this affect?

Foreign governments
U.S. banks
International financial institutions

What is the real world impact?

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Creates a clear process for punishment

Establishes a direct and clear process for the Treasury Department to financially punish countries that use chemical or biological weapons, acting as a strong warning to others.

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Speeds up sanctions

Gives power directly to the Secretary of the Treasury to act, which can make putting sanctions in place faster and more efficient than going through multiple government bodies.

When does this start?

This order went into effect on August 1, 2019.