Modernizing Sanctions To Combat Terrorism

Sep 12, 2019

Summary

Expands the government's power to block the money and property of foreign persons and groups involved in terrorism to cut off their funding.

What problem does this solve?

Existing anti-terrorism rules were spread across different orders and needed updating to counter new threats. This order combines and strengthens these rules, making it easier to block the money of terrorists and those who help them.

What does this order do?

Expands reasons for sanctions

Allows blocking property of people who pose a 'significant risk' of committing terrorism, not just those who have already acted.

Targets leaders and supporters

Blocks the assets of leaders of terrorist groups and anyone who provides material, financial, or technological support to them.

Restricts foreign banks

Authorizes banning or limiting U.S. accounts for foreign banks that knowingly handle large transactions for sanctioned terrorists.

Combines previous orders

Revokes Executive Order 12947 to consolidate and strengthen the government's anti-terrorism sanction powers into one main order.

Who does this affect?

Foreign individuals and groups designated as terrorists
Foreign financial institutions
U.S. persons and companies

What is the real world impact?

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Strengthens anti-terrorism efforts

Cuts off money and resources to terrorist groups and their supporters, making it harder for them to operate and plan attacks.

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Pressures foreign banks

Forces foreign banks to stop doing business with sanctioned individuals or groups, or risk losing access to the U.S. financial system.

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Expands executive power

Gives the Secretaries of State and Treasury broad authority to sanction individuals and groups based on a 'significant risk' of terrorism, which could face criticism for a lack of oversight.

When does this start?

The rules in this order went into effect at 12:01 a.m. eastern daylight time on September 10, 2019.