Human rights violations due to US sanctions

Individuals and legal entities that have been sanctioned by the US Office of Foreign Assets Control (OFAC) are subject to strict economic and financial restrictions. Banks are no longer allowed to carry out significant transactions for sanctioned persons. US citizens and US companies are prohibited from doing business with the sanctioned persons. In Liechtenstein, several legal entities and individuals are affected by these sanctions.

All Liechtenstein banks have entered into private-law agreements with their US correspondent banks to refrain from servicing the assets of OFAC-sanctioned persons. The Liechtenstein Financial Market Authority FMA also urges the banks to comply with all requirements in order to avoid the risk of secondary sanctions and jeopardizing the financial centre. The banks are therefore no longer allowing any movements on the accounts of those affected: No health insurance, insurance or tax payments can be made. Costs for legal representation are also excluded. At the same time, those affected cannot receive any payments that secure their livelihood, such as unemployment benefits, family allowances or salaries from other work activities. Transactions by family members are also restricted. As a result, those affected are completely excluded from the global financial system and their livelihoods are at risk. The sanctions mean a de facto ban on work and a restriction on freedom of action and movement. The sanctions are not based on national, international or EU laws. The criteria for sanctions are not transparent and there is no legal recourse.

The effects of these sanctions violate various fundamental and human rights under the Liechtenstein Constitution and international conventions, including the right to an adequate standard of living, the right to health, the right to social security, the right to property, the right to a bank account, the right to respect for private and family life and the right to a fair trial. In a broader sense, the sanctions violate the right to life and the protection of human dignity. The Liechtenstein State has a duty to ensure the protection of human rights for its nationals.

 

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