Sanctions Primer: How the United States Uses Restrictive Mechanisms to Advance Foreign Policy or National Security Objectives, CRS, Nov. 6, 2023.
Edward J. Collins-Chase, Analyst in Foreign Policy
SUMMARY
Congress and the executive branch may impose coercive measures—largely using economic restrictions—against a foreign government or specific individuals and entities to deter or altogether change objectionable behavior of that government, individual, or entity. Such measures are commonly referred to as sanctions. The power to impose economic sanctions is derived through legislation, including the laws establishing emergency authorities given to the President, as well as legislation authorizing or requiring
sanctions related to specific U.S. foreign policy or national security objectives.
Analysts disagree on whether the term sanctions should include certain restrictions; however, for the purposes of this report, the term sanctions broadly includes the following coercive economic and political restrictions used by the United States to achieve foreign policy objectives:
• Economic and Financial Restrictions: blocking/freezing property under U.S. jurisdiction of designated persons; prohibiting transactions between U.S. persons and designated persons or countries; blocking access by designated persons or countries to the U.S. financial system; restricting terms and duration of investments and loans with designated persons, governments, or within certain countries; or designating a foreign central bank or a country’s banking system as a money laundering concern.
• Restrictions on Entry into the United States: denying or revoking visas of foreign nationals seeking entry into the United States.
• Import/Export Restrictions: regulating the export of goods and technology, particularly those with defense applications; regulating the export of foreign-made goods and technology manufactured using U.S.
goods, technology, or software; prohibiting most exports altogether; or imposing financial restrictions that effectively block most exports. Imports into the United States may also be blocked or taxed.
• Foreign Assistance Restrictions: restricting foreign assistance, Peace Corps programs, or support in the international financial institutions.
• Restrictions on Diplomatic Relations: withdrawing U.S. diplomats or expelling foreign diplomats as part of the United States’ response to objectionable behavior or perceived threats to national security; or
recognizing or refusing to recognize governments of foreign countries.
In the executive branch, the responsibility to implement or administer sanctions resides throughout agencies and departments, but primarily with the Departments of State, the Treasury, and Commerce:
• the State Department manages arms sales, diplomatic relations, visa issuance, military aid, and foreign aid;
• the Department of the Treasury regulates transactions, access to U.S.-based assets, use of the U.S. dollar and U.S. banking system, and the U.S. voice and vote in the international financial institutions; and
• the Commerce Department oversees export licensing and implements controls coordinated with partner countries.
Other agencies involved in the implementation of U.S. sanctions include the Department of Justice, which oversees functions such as the prosecution of sanctions violations; the Department of Homeland security, which oversees restrictions on importation through the Bureau of Customs and Border Protection; and the Department of Energy, which oversees obligations under international nuclear agreements.
Congress may exercise its role in the application of U.S. sanctions by authorizing or requiring sanctions through legislation, by engaging in oversight over the executive agencies implementing and enforcing sanctions, and by appropriating funds to the agencies implementing U.S. sanctions.
