Financial and economic sanctions ‐ from a perspective of international law and human rights

Date01 July 2005
Pages217-220
DOIhttps://doi.org/10.1108/13590790510624837
Published date01 July 2005
AuthorAnders Kruse
Subject MatterAccounting & finance
Financial and Economic Sanctions Ð
From a Perspective of International
Law and Human Rights
Anders Kruse
INTRODUCTION
During the 2004 Cambridge International Sympo-
sium on Economic Crime, the discussions concen-
trated on how to make ®nancial and economic
sanctions more eective. The theme of the whole sym-
posium was the ®nancial war on terror and organised
crime,
1
a war that all our societies are struggling to
®ght together.
There is an increasing need also to pay attention to
the necessity to involve international law and human
rights in this war against terrorism. The thesis of this
paper is that no war, and particularly not the long
war we can expect against terrorism, can be won
without the genuine support of ordinary citizens in
the societies involved. That support will not be
obtained unless ordinary men and women are con-
vinced that the war is waged under the rule of law
and with respect for the human rights Ð the funda-
mental rights for individuals Ð that modern societies
adhere to. Respect for the rule of law establishes legiti-
macy, and legitimacy is needed for a successful ®ght
against terrorism. Legitimacy is a key word not only
for the goals but also for the means and procedures
used in time of war.
Human rights are considered as eternal and univer-
sal and, because of their character, they often seem to
need no other justi®cation. But human rights are
closely linked to the development of democracy and
free market economies. Human rights, such as the
right to life, right to protection of property, right to
due process and fair trial have developed side by side
with the development of the market economies and
the protection of these rights is a crucial factor in
modern international economic life. Investors pay
attention to them when they make their decisions on
where to invest capital. Enterprises are concerned
with the legal systems of protection of property and
of judicial protection when they make business with
counterparts in other countries. No one wants to
risk having assets frozen, seized or con®scated
without trial in a court of law or to become the
target of sanctions without knowing that there is at
least an adequate legal protection for economic trans-
actions.
2
Protection of human rights and rights of indi-
viduals is, as a matter of fact, a prerequisite for a well
functioning international economy and for interna-
tional trade.
Respect for the rule of law and for human rights is
therefore not in contrast to an eective war against
terror and the devastating eects on our economies
that are a result of terrorism. On the contrary, respect
for the rule of law and for fundamental human rights
is in our best interest in that war. Measures against ter-
rorism must also be designed in a way which is sustain-
able Ð simplybecause the war against terrorism seems
inde®nite.
This thesis will be illustrated in this paper by the
most obvious example, ie the international obligation
of states to implement resolutions concerning interna-
tional terrorism adopted by the United Nations Secur-
ity Council. This example is chosen because it well
illustrates the author's thesis but also because he has
some experience from the legal and political dicul-
ties arising from the implementation of Security
Council Resolutions 1267 and 1373.
3
WHAT KIND OF INTERNATIONAL
SANCTION IS THIS ABOUT?
Many dierent international sanctions and regulations
are directed against terrorism. When we discuss eco-
nomic sanctions against terrorism however, we gener-
ally refer to targeted sanctions, mainly the freezing
of assets and the accompanying prohibition against
making funds and other assets available to terrorists.
Other sanctions against individuals can also be
imposed, eg travel bans.
The obligation of states to implement the sanctions
in question follows, inter alia, from UN Security
Council Resolutions 1267(1999), 1333(2000) and
1390(2002), all concerning the Taliban, al-Qaeda and
Usama bin Laden, and 1373(2001), concerning other
terrorists. An obligation to freeze or seize terrorist
funds also follows from Article 8 in the International
Page 217
Journal of Financial Crime Ð Vol. 12 No. 3
Journalof FinancialCrime
Vol.12,No. 3,2005,pp.217 ±220
#HenryStewart Publications
ISSN1359-0790

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