CSS Sanctions Laws & Regulatory Frameworks 2

Question 1

Which statutory authority grants OFAC the power to administer and enforce US economic sanctions programs?

Accepted Answer

The International Emergency Economic Powers Act (IEEPA)

Answer

IEEPA is the primary statutory authority enabling the President to declare a national emergency and delegate authority to OFAC to impose economic sanctions.

Question 2

Under the Cuba Assets Control Regulations (CACR), which category of transactions is generally licensed for US persons?

Accepted Answer

Travel-related transactions for educational people-to-people exchanges

Answer

OFAC's CACR includes general licenses for certain travel categories, including educational people-to-people exchanges conducted under the auspices of a US organization.

Question 3

What is the legal standard for 'knowledge' that triggers liability under most US sanctions programs?

Accepted Answer

'Knew or should have known' (constructive knowledge standard)

Answer

US sanctions regulations generally apply a 'knew or should have known' standard, meaning constructive knowledge can trigger liability even without actual awareness.

Question 4

Which UN body is responsible for establishing UN sanctions regimes that member states are obligated to implement?

Accepted Answer

The UN Security Council

Answer

UN sanctions are established by the UN Security Council under Chapter VII of the UN Charter, and are legally binding on all UN member states.

Question 5

What distinguishes a 'sectoral sanction' from a 'comprehensive sanction' in OFAC's framework?

Accepted Answer

Sectoral sanctions prohibit specific transaction types with targeted entities, while comprehensive sanctions broadly prohibit nearly all dealings with a jurisdiction

Answer

Sectoral sanctions (e.g., Ukraine/Russia-related directives) restrict specific transaction types such as debt or equity financing with listed entities, unlike comprehensive bans on entire jurisdictions.

(CSS) Certified Sanctions Specialist Practice Test

(CSS) Certified Sanctions Specialist Practice Test

CSS Sanctions Laws & Regulatory Frameworks 2