The amount of countries sanctioned by Europe includes a range so wide that it spans from Croatia to Haiti and from Syria to Zimbabwe. The same variety also exists regarding the reasons behind such bans: bribery, money laundering, terrorist financing, narcotics and diamond trading, and more.
One of the most efficient ways to put an end to a country's undesirable activities is by drying them financially and the European Union continuously creates guidelines for protecting itself from unwelcomed, external activities.
The European External Action Service EEAS, the European Union's diplomatic service, "helps the EU's foreign affairs chief – the High Representative for Foreign Affairs and Security Policy – carry out the Union's Common Foreign and Security Policy."
The EEAS, which must collect data, create rules and care for all EU members states that:
The correct application of financial sanctions is crucial in order to meet the objectives of the Common Foreign and Security Policy and especially to help prevent the financing of terrorism. The application of financial sanctions constitutes an obligation for both the public and private sector. In this regard, the EU assigns particular responsibility to credit and financial institutions, since they are involved in the bulk of financial transfers and transactions affected by the relevant Regulations.
A prime example occurred on March 2012, when the General Court of the European Union made a decision to include the Central Bank of Iran on the EU's sanction list. Iran, which backs terrorist organisations like the Hezbollah, the Hamas and the Islamic Jihad, is responsible for the deaths of Europeans the world over.
However, just two and a half years later, in the case entitled Central Bank of Iran v Council of the EU (18 September 2014), the General Court stated that the reasons for the sanctions were too vague and that: "No details of the names of persons, entities or bodies, listed on a list imposing restrictive measures, whom the applicant assisted in circumventing sanctions or of when, where and how that assistance took place. The Council does not refer to any identifiable transaction, or to any particular assistance”. Europe's lackadaisical approach led the sanctions to be lifted from the Iranian bank.
On the flipside, the United States, has no sanctions or embargoes on Jordan and even so, chose to file a lawsuit again a Jordanian bank for assisting, whether directly or indirectly, to fund lethal terror. On September 22, 2014 in a case called Linde Vs. the Arab Bank," an 11-member Brooklyn, New York jury found Arab Bank liable for facilitating terrorist acts in Israel and the Occupied Territories, handing plaintiff lawyers a big victory in their campaign to win damages over terrorist attacks — and presenting big headaches to international banks and the U.S. State Department, which sees such lawsuits as potential complications to its foreign relations."
It must be reiterated that Jordan is a US ally and even so, the latter took responsibility for its citizens, on an international level and won the case.
Europe must catch up fast with this war on terror because matters are only getting worse. Terror-related activities which have occurred on Spanish, British, French, Belgium, Danish and Bulgarian soil are proof that terrorism continues to threaten European nationals. In addition, the European Union itself is being used as a playground to harbour terror organisations under the guise of philanthropic institutions.
One such foundation, Aksahum which operates out of Brussels, Belgium with bank accounts in the city's Triodos Bank, markets itself as a charity fund. Its site includes heartfelt pictures used to persuade its visitors that the work of saints is being done. But behind the scenes, Aksahum is the new name for the infamous and black-listed al-Aqsa Foundation.
Again, the Arab Bank case is a great reference because here too the Jordanian financial institution "presented experts who said most of the charities were legitimate organizations…"
But, the NY court did not rescind and did not annul and the Arab Bank is expected to pay millions upon millions of dollars in damages. This case is a precedent and should serve as a warning to banks across Europe who may be forced to pay millions in damages for directly or indirectly facilitating terror attacks.
One of the most efficient ways to put an end to a country's undesirable activities is by drying them financially and the European Union continuously creates guidelines for protecting itself from unwelcomed, external activities.
The European External Action Service EEAS, the European Union's diplomatic service, "helps the EU's foreign affairs chief – the High Representative for Foreign Affairs and Security Policy – carry out the Union's Common Foreign and Security Policy."
The EEAS, which must collect data, create rules and care for all EU members states that:
The correct application of financial sanctions is crucial in order to meet the objectives of the Common Foreign and Security Policy and especially to help prevent the financing of terrorism. The application of financial sanctions constitutes an obligation for both the public and private sector. In this regard, the EU assigns particular responsibility to credit and financial institutions, since they are involved in the bulk of financial transfers and transactions affected by the relevant Regulations.
A prime example occurred on March 2012, when the General Court of the European Union made a decision to include the Central Bank of Iran on the EU's sanction list. Iran, which backs terrorist organisations like the Hezbollah, the Hamas and the Islamic Jihad, is responsible for the deaths of Europeans the world over.
However, just two and a half years later, in the case entitled Central Bank of Iran v Council of the EU (18 September 2014), the General Court stated that the reasons for the sanctions were too vague and that: "No details of the names of persons, entities or bodies, listed on a list imposing restrictive measures, whom the applicant assisted in circumventing sanctions or of when, where and how that assistance took place. The Council does not refer to any identifiable transaction, or to any particular assistance”. Europe's lackadaisical approach led the sanctions to be lifted from the Iranian bank.
On the flipside, the United States, has no sanctions or embargoes on Jordan and even so, chose to file a lawsuit again a Jordanian bank for assisting, whether directly or indirectly, to fund lethal terror. On September 22, 2014 in a case called Linde Vs. the Arab Bank," an 11-member Brooklyn, New York jury found Arab Bank liable for facilitating terrorist acts in Israel and the Occupied Territories, handing plaintiff lawyers a big victory in their campaign to win damages over terrorist attacks — and presenting big headaches to international banks and the U.S. State Department, which sees such lawsuits as potential complications to its foreign relations."
It must be reiterated that Jordan is a US ally and even so, the latter took responsibility for its citizens, on an international level and won the case.
Europe must catch up fast with this war on terror because matters are only getting worse. Terror-related activities which have occurred on Spanish, British, French, Belgium, Danish and Bulgarian soil are proof that terrorism continues to threaten European nationals. In addition, the European Union itself is being used as a playground to harbour terror organisations under the guise of philanthropic institutions.
One such foundation, Aksahum which operates out of Brussels, Belgium with bank accounts in the city's Triodos Bank, markets itself as a charity fund. Its site includes heartfelt pictures used to persuade its visitors that the work of saints is being done. But behind the scenes, Aksahum is the new name for the infamous and black-listed al-Aqsa Foundation.
Again, the Arab Bank case is a great reference because here too the Jordanian financial institution "presented experts who said most of the charities were legitimate organizations…"
But, the NY court did not rescind and did not annul and the Arab Bank is expected to pay millions upon millions of dollars in damages. This case is a precedent and should serve as a warning to banks across Europe who may be forced to pay millions in damages for directly or indirectly facilitating terror attacks.