CGSS FLASH CARDS REVISED AND
SIMPLIFIED QUESTIONS WITH VERIFIED
ANSWERS
What is the purpose of sanctions? - Correct Answers -Sanctions are measures or actions taken
against a target to influence its behavior, policies, and/or actions. Sanctions can restrict trade,
financial transactions, diplomatic relations, and movement. Also referred to as restrictive
measures, sanctions can be specific or general in their implementation and enforcement.
What is sanctions compliance? - Correct Answers -Sanctions compliance is the act of adhering
to the sanctions-related legislation, regulations, rules, and norms that make up the complex
sanctions landscape.
Define embargo. - Correct Answers -An embargo is an official government action to ban trade or
commercial activity with a specific country, sometimes involving a specific trade product (e.g., a
grain embargo or an oil embargo).
How do blockades differ from sanctions? - Correct Answers -Blockades involve the deployment
of military resources by land, air, or sea, by a country or coalition to prevent the movement of
goods or people into or out of a targeted country. Sanctions, on the other hand, involve legal
actions that are punitive or restrictive.
What is the intended impact of economic sanctions on targets? - Correct Answers -Economic
sanctions, which can include trade sanctions and financial sanctions, are intended to impact
targets by limiting the target country's exports, restricting its imports, or impeding finance
(including reducing aid). Economic sanctions apply to property, a term that is very broadly
defined to include much more than money and trade goods. In the US, the terms "property"
and "property interest" include checks, merchandise, trademarks, annuities, and a broad array
of other interests, as defined in US law. This broad definition includes virtually all financial or
commercial activity. Although there are sanctions, such as travel bans, that do not involve
property, economic sanctions have by far the most implications for sanctions compliance
programs.
,How do thematic sanctions differ from economic sanctions? - Correct Answers -Sanctions can
target activities or geography. Thematic sanctions focus on particular issues or concerns that
may cut across geographic boundaries, such as counter-narcotics sanctions. In contrast,
geographic sanctions target specific countries or regions, such as North Korea and Crimea.
Examples of thematic sanctions include the strengthening of human or labor rights, freeing of
captured citizens, and reversal of land captures. Although the EU has historically imposed
geographic sanctions, in recent years, it has also adopted thematic sanctions, including those
promoting human rights.
What is a sanctions regime? - Correct Answers -A sanctions regime is a set of sanctions that
have a common nexus or theme. Sanctions regimes are either referred to by the issuer of the
set of sanctions or by the intended purpose of the set of sanctions. For example, the "OFAC
sanctions regime" or the "North Korea sanctions regime." Depending on the context, a
sanctions regime may be limited to unilateral sanctions or may include multilateral sanctions.
What is the role of the International Atomic Energy Agency (IAEA)? - Correct Answers -The UN's
Treaty on the Non-Proliferation of Nuclear Weapons (NPT) established the International Atomic
Energy Agency (IAEA) to monitor compliance with the terms of the treaty. The IAEA periodically
inspects the facilities and operations of member nations that have concluded nuclear
safeguards agreements with the Agency. It seeks to build confidence and trust among member
nations, which helps to prevent the development of fissile material for military use.
What is the Non-Proliferation Treaty (NPT)? - Correct Answers -The UN's Treaty on the Non-
Proliferation of Nuclear Weapons, commonly known as the Non-Proliferation Treaty (NPT), was
signed in 1968 and went into effect in March 1970. The NPT solidified the commitment of
signing countries to prevent the spread of nuclear weapons. Its goal was to minimize the risk of
the use of nuclear weapons in conflict, which could result in significant destruction. Likewise,
the NPT sought to keep the weapons out of the hands of rogue nations and terrorists.
What is the goal of the Kimberley Process Certification Scheme? - Correct Answers -The
Kimberley Process Certification Scheme was established by the UN in 2003 to establish trade
controls over conflict diamonds (i.e., uncut diamonds mined in an area of armed conflict and
traded illicitly to finance the fighting). Within the process, governments are required to
,implement controls on the import and export of diamonds to certify and control the trade, as
well as create a documentary trail as to the extraction and refinement processes.
What precipitated passage of the Magnitsky Act in the US? - Correct Answers -In the US, the
Magnitsky Act allows for unilateral, global sanctions to be imposed on human rights offenders
and corrupt actors. Assets can be frozen and offenders can be barred from entering the US. The
act originated from the mistreatment of attorney and auditor Sergei Magnitsky by Russian
officials while he was in a Moscow prison for investigating fraud related to Russian tax officials.
The law allows the US to sanction foreign government officials involved in human rights abuses
anywhere in the world, including those found involved with the assassination of the Washington
Post reporter Jamal Khashoggi in 2018.
Define the concept of money laundering. - Correct Answers -Money laundering is the process of
concealing or disguising the existence, source, movement, destination, or illegal application of
illicitly derived property or funds to make them appear legitimate. Money laundering typically
involves a three-part system: placement of funds into a financial system; layering of transactions
to disguise the source, ownership, and location of the funds; and integration of the funds into
society in the form of holdings that appear legitimate. The definition of money laundering varies
in each country where it is recognized as a crime.
What is the significance of the USA PATRIOT Act to the field of anti-money laundering? - Correct
Answers -The Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act) was enacted on October 26,
2001. This historic US law brought about momentous changes in the anti-money laundering
field, including more than 50 amendments to the Bank Secrecy Act. Title III of the act, the
International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001, contains
most, but not all, of its anti-money laundering-related provisions.
How do sanctions relate to terrorist activities? - Correct Answers -One of the purposes of
sanctions is to freeze and return resources that have been misappropriated by kleptocrats (i.e.,
corrupt leaders who exploit the people and resources of a state for personal gain). As such,
sanctions can aim to prevent corrupt officials from embezzling and from accessing financial
services in order to illegally launder money taken while they were ruling their countries.
, Are autonomous sanctions only implemented by single governments? If yes, give an example of
a single government that has autonomous sanctions. If not, give an example of a different entity
that has autonomous sanctions. - Correct Answers -No. Autonomous sanctions can be
employed by a single entity or government, such as Australia, or a coalition of governments,
such as the EU, acting to enforce a sanctions regime. Most countries have their own version of
autonomous, unilateral sanctions. However, the EU also has autonomous sanctions. These occur
when its Council decides to impose sanctions on its own initiative. Although most countries in
the EU do not rely on autonomous sanctions, choosing instead to rely on the EU framework, EU
member countries, in turn, can have their own autonomous sanctions, such as when Latvia
passed a version of the US's Magnitsky Act in 2018, imposing travel restrictions on 49 Russian
citizens.
Define the concept of globalization. - Correct Answers -Globalization refers to the integration of
national economic, trade, and communication operations by businesses engaging in
international trade. Globalization generally includes the enlarging of national perspectives to
international and interdependent perspectives of society. It advocates a freer transfer of goods,
services, and assets across national and international boundaries. It is believed that
globalization may limit the effectiveness of sanctions because a globalized market makes it
easier to replace and reroute trade channels.
What are multilateral sanctions? - Correct Answers -Multilateral sanctions are restrictions
supported by more than one country or entity. These can be imposed by allies against a
common enemy or for the purpose of realizing a greater economic and punitive impact.
Multilateral sanctions, such as those imposed by the UN, are generally more effective than
unilateral sanctions in achieving a foreign policy objective.
Define unilateral sanctions. - Correct Answers -Unilateral sanctions are sanctions imposed by a
single country against a targeted entity. These types of sanctions are generally considered less
effective than multilateral sanctions, although they do serve to target specific offensive
practices on behalf of imposing nations. For example, the Magnitsky Act in the US allows for
unilateral, global sanctions to be imposed on human rights offenders. Assets can be frozen, and
offenders may be barred from entering the US. In the 1980s, Australia autonomously banned
shipments of uranium to France. With few exceptions (for example, the EU), unilateral sanctions
are typically referred to as autonomous sanctions.
SIMPLIFIED QUESTIONS WITH VERIFIED
ANSWERS
What is the purpose of sanctions? - Correct Answers -Sanctions are measures or actions taken
against a target to influence its behavior, policies, and/or actions. Sanctions can restrict trade,
financial transactions, diplomatic relations, and movement. Also referred to as restrictive
measures, sanctions can be specific or general in their implementation and enforcement.
What is sanctions compliance? - Correct Answers -Sanctions compliance is the act of adhering
to the sanctions-related legislation, regulations, rules, and norms that make up the complex
sanctions landscape.
Define embargo. - Correct Answers -An embargo is an official government action to ban trade or
commercial activity with a specific country, sometimes involving a specific trade product (e.g., a
grain embargo or an oil embargo).
How do blockades differ from sanctions? - Correct Answers -Blockades involve the deployment
of military resources by land, air, or sea, by a country or coalition to prevent the movement of
goods or people into or out of a targeted country. Sanctions, on the other hand, involve legal
actions that are punitive or restrictive.
What is the intended impact of economic sanctions on targets? - Correct Answers -Economic
sanctions, which can include trade sanctions and financial sanctions, are intended to impact
targets by limiting the target country's exports, restricting its imports, or impeding finance
(including reducing aid). Economic sanctions apply to property, a term that is very broadly
defined to include much more than money and trade goods. In the US, the terms "property"
and "property interest" include checks, merchandise, trademarks, annuities, and a broad array
of other interests, as defined in US law. This broad definition includes virtually all financial or
commercial activity. Although there are sanctions, such as travel bans, that do not involve
property, economic sanctions have by far the most implications for sanctions compliance
programs.
,How do thematic sanctions differ from economic sanctions? - Correct Answers -Sanctions can
target activities or geography. Thematic sanctions focus on particular issues or concerns that
may cut across geographic boundaries, such as counter-narcotics sanctions. In contrast,
geographic sanctions target specific countries or regions, such as North Korea and Crimea.
Examples of thematic sanctions include the strengthening of human or labor rights, freeing of
captured citizens, and reversal of land captures. Although the EU has historically imposed
geographic sanctions, in recent years, it has also adopted thematic sanctions, including those
promoting human rights.
What is a sanctions regime? - Correct Answers -A sanctions regime is a set of sanctions that
have a common nexus or theme. Sanctions regimes are either referred to by the issuer of the
set of sanctions or by the intended purpose of the set of sanctions. For example, the "OFAC
sanctions regime" or the "North Korea sanctions regime." Depending on the context, a
sanctions regime may be limited to unilateral sanctions or may include multilateral sanctions.
What is the role of the International Atomic Energy Agency (IAEA)? - Correct Answers -The UN's
Treaty on the Non-Proliferation of Nuclear Weapons (NPT) established the International Atomic
Energy Agency (IAEA) to monitor compliance with the terms of the treaty. The IAEA periodically
inspects the facilities and operations of member nations that have concluded nuclear
safeguards agreements with the Agency. It seeks to build confidence and trust among member
nations, which helps to prevent the development of fissile material for military use.
What is the Non-Proliferation Treaty (NPT)? - Correct Answers -The UN's Treaty on the Non-
Proliferation of Nuclear Weapons, commonly known as the Non-Proliferation Treaty (NPT), was
signed in 1968 and went into effect in March 1970. The NPT solidified the commitment of
signing countries to prevent the spread of nuclear weapons. Its goal was to minimize the risk of
the use of nuclear weapons in conflict, which could result in significant destruction. Likewise,
the NPT sought to keep the weapons out of the hands of rogue nations and terrorists.
What is the goal of the Kimberley Process Certification Scheme? - Correct Answers -The
Kimberley Process Certification Scheme was established by the UN in 2003 to establish trade
controls over conflict diamonds (i.e., uncut diamonds mined in an area of armed conflict and
traded illicitly to finance the fighting). Within the process, governments are required to
,implement controls on the import and export of diamonds to certify and control the trade, as
well as create a documentary trail as to the extraction and refinement processes.
What precipitated passage of the Magnitsky Act in the US? - Correct Answers -In the US, the
Magnitsky Act allows for unilateral, global sanctions to be imposed on human rights offenders
and corrupt actors. Assets can be frozen and offenders can be barred from entering the US. The
act originated from the mistreatment of attorney and auditor Sergei Magnitsky by Russian
officials while he was in a Moscow prison for investigating fraud related to Russian tax officials.
The law allows the US to sanction foreign government officials involved in human rights abuses
anywhere in the world, including those found involved with the assassination of the Washington
Post reporter Jamal Khashoggi in 2018.
Define the concept of money laundering. - Correct Answers -Money laundering is the process of
concealing or disguising the existence, source, movement, destination, or illegal application of
illicitly derived property or funds to make them appear legitimate. Money laundering typically
involves a three-part system: placement of funds into a financial system; layering of transactions
to disguise the source, ownership, and location of the funds; and integration of the funds into
society in the form of holdings that appear legitimate. The definition of money laundering varies
in each country where it is recognized as a crime.
What is the significance of the USA PATRIOT Act to the field of anti-money laundering? - Correct
Answers -The Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act) was enacted on October 26,
2001. This historic US law brought about momentous changes in the anti-money laundering
field, including more than 50 amendments to the Bank Secrecy Act. Title III of the act, the
International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001, contains
most, but not all, of its anti-money laundering-related provisions.
How do sanctions relate to terrorist activities? - Correct Answers -One of the purposes of
sanctions is to freeze and return resources that have been misappropriated by kleptocrats (i.e.,
corrupt leaders who exploit the people and resources of a state for personal gain). As such,
sanctions can aim to prevent corrupt officials from embezzling and from accessing financial
services in order to illegally launder money taken while they were ruling their countries.
, Are autonomous sanctions only implemented by single governments? If yes, give an example of
a single government that has autonomous sanctions. If not, give an example of a different entity
that has autonomous sanctions. - Correct Answers -No. Autonomous sanctions can be
employed by a single entity or government, such as Australia, or a coalition of governments,
such as the EU, acting to enforce a sanctions regime. Most countries have their own version of
autonomous, unilateral sanctions. However, the EU also has autonomous sanctions. These occur
when its Council decides to impose sanctions on its own initiative. Although most countries in
the EU do not rely on autonomous sanctions, choosing instead to rely on the EU framework, EU
member countries, in turn, can have their own autonomous sanctions, such as when Latvia
passed a version of the US's Magnitsky Act in 2018, imposing travel restrictions on 49 Russian
citizens.
Define the concept of globalization. - Correct Answers -Globalization refers to the integration of
national economic, trade, and communication operations by businesses engaging in
international trade. Globalization generally includes the enlarging of national perspectives to
international and interdependent perspectives of society. It advocates a freer transfer of goods,
services, and assets across national and international boundaries. It is believed that
globalization may limit the effectiveness of sanctions because a globalized market makes it
easier to replace and reroute trade channels.
What are multilateral sanctions? - Correct Answers -Multilateral sanctions are restrictions
supported by more than one country or entity. These can be imposed by allies against a
common enemy or for the purpose of realizing a greater economic and punitive impact.
Multilateral sanctions, such as those imposed by the UN, are generally more effective than
unilateral sanctions in achieving a foreign policy objective.
Define unilateral sanctions. - Correct Answers -Unilateral sanctions are sanctions imposed by a
single country against a targeted entity. These types of sanctions are generally considered less
effective than multilateral sanctions, although they do serve to target specific offensive
practices on behalf of imposing nations. For example, the Magnitsky Act in the US allows for
unilateral, global sanctions to be imposed on human rights offenders. Assets can be frozen, and
offenders may be barred from entering the US. In the 1980s, Australia autonomously banned
shipments of uranium to France. With few exceptions (for example, the EU), unilateral sanctions
are typically referred to as autonomous sanctions.
