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CGSS QUESTIONS WITH DETAILED
VERIFIED ANSWERS
What is the purpose of sanctions? Ans: 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? Ans: 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. Ans: 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? Ans: 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? Ans:
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.
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How do thematic sanctions differ from economic sanctions? Ans:
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? Ans: 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)? Ans:
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)? Ans: 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? Ans:
The Kimberley Process Certification Scheme was established by the UN in
2003 to establish trade controls over conflict diamonds (i.e., uncut
, Page | 3
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? Ans: 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. Ans: 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? Ans: 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? Ans: 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
, Page | 4
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. Ans: 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. Ans: 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? Ans: 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. Ans: Unilateral sanctions are sanctions
imposed by a single country against a targeted entity. These types of
sanctions are generally considered less effective than multilateral
CGSS QUESTIONS WITH DETAILED
VERIFIED ANSWERS
What is the purpose of sanctions? Ans: 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? Ans: 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. Ans: 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? Ans: 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? Ans:
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.
, Page | 2
How do thematic sanctions differ from economic sanctions? Ans:
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? Ans: 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)? Ans:
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)? Ans: 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? Ans:
The Kimberley Process Certification Scheme was established by the UN in
2003 to establish trade controls over conflict diamonds (i.e., uncut
, Page | 3
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? Ans: 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. Ans: 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? Ans: 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? Ans: 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
, Page | 4
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. Ans: 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. Ans: 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? Ans: 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. Ans: Unilateral sanctions are sanctions
imposed by a single country against a targeted entity. These types of
sanctions are generally considered less effective than multilateral
