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The Libya (Sanctions) (EU Exit) Regulations 2020 ensure that financial sanctions relating to Libya are implemented effectively after the UK leaves the EU.

Context

This sanctions regime gives effect to the UKs obligations under United Nations Security Council Resolutions (UNSCRs) including UNSCR 1970 (2011) as well as additional autonomous measures the aims of which are to promote:

• respect for human rights in Libya;

• the peace, stability and security of Libya;

• the successful completion of Libyas political transition to a democratic, independent and united country; and

• the prevention of migrant smuggling and human trafficking taking place from Libya.

The Libya regime permits the designation of persons (both individuals and entities) for the purpose of imposing an asset freeze as well as various financial prohibitions if those persons are involved in serious human rights abuses or breaches of international humanitarian law in Libya (including attacks on civilians and facilities), an activity carried out on behalf of the former regime of Muammar Qadhafi and any other activity which threatens the peace, stability or security of Libya (including attacking infrastructure and misappropriating Libyan state funds).

Asset freezing activity also helps protect Libyan state funds (misappropriated during the former regime of Muammar Qadhafi) which could be used to threaten the peace, stability or political transition of Libya.

A full asset freeze is imposed on various persons. Separately a partial asset freeze is imposed on two UN designated persons, the Libyan Investment Authority and the Libyan Africa Investment Portfolio. That partial asset freeze applies to funds and economic resources owned, held or controlled by those two designated persons located outside Libya immediately before 17 September 2011, funds transferred on or after 17 September 2011 to the designated persons to meet a prior obligation, as well as interest and other earnings that have accrued on either of the aforementioned on or after 17 September 2011.

More information on the requirements for freezing interest and other earnings under the partial asset freeze can be found in the accompanying Libya financial sanctions guidance.

Prohibitions are in place on persons (both individuals and entities) entering into any financial transactions relating to Libyan oil aboard a UN-designated ship. This includes the purchase, or sale, or use as credit and the taking out of transport insurance in respect of it.

UN regulations

The UN Resolution,?UNSCR 1970 (2011), is available online along with other relevant UN Resolutions.

UK regulations

• The Libya (Sanctions) (EU Exit) Regulations 2020
• The Libya (European Union Financial Sanctions) Regulations 2016 (S.I. 2016/45) (applicable prior to 31 December 2020)
• Libya (Financial Sanctions) Order 2011 (applicable prior to 31 December 2020)

EU regulations (applicable prior to 31 December 2020)

• Council Regulation (EU) No 2016/44

Find out more about UK sanctions on Libya