Op-ed: How the U.S. is making sanctions more effective

A multilateral approach to sanctions enhances their efficacy for several reasons. First, when other countries and multilateral institutions stand together with the United States in imposing sanctions, it helps close gaps that could otherwise be exploited by the targets of those sanctions by shutting down their access to financial centers around the world. Ultimately, this makes it harder for our adversaries to find ways to finance illicit activities and for our competitors to take advantage of sanctions at the expense of U.S. companies. 

Second, it gives our allies and partners a greater stake in the continued resiliency and evolution of the U.S.-led international financial system. It offers them greater reason to work with the United States to monitor and regulate new technologies, like cryptocurrencies, and adapt this system to accommodate these critical changes. 

Third, and crucially, working with allies and partners—including through multilateral forums like the United Nations and the G7—heightens sanctions’ diplomatic and political impact by demonstrating both a broad condemnation and commitment to shared values. 

In 2011, for instance, the United States, the European Union, and others acting through the UN Security Council took complementary actions to impose targeted sanctions on the repressive regime of Moammar Gadhafi in Libya. These sanctions protected tens of billions of dollars from misappropriation and helped halt the regime’s violent actions.

It was a powerful, multilateral rebuke that underscored the international community’s commitment to democratic values and protecting human rights. Importantly, as we took this forceful action, we also worked with our partners to continue the flow of humanitarian assistance and are committed to that principle when sanctions are levied around the world.

 Not every country has the capacity to impose sanctions on their own. That’s one reason why it’s so important for the United States to maintain a leading presence in the United Nations. With partners on the UN Security Council, we have worked to designate ISIS affiliates in the Middle East, Africa, and Asia—imposing global consequences, including an arms embargo, travel ban, and asset freezes on listed groups and individuals. These UN designations require all countries without their own sanctions authorities to stop terrorist travel and prevent illicit financial transactions. 

As President Joe Biden says, America’s alliances and partnerships around the world are a source of strength. As the global economy becomes more interconnected—through overlapping and intertwined financial systems, new payments technologies, trading patterns, and supply chains—we are committed to working closely with our partners to modernize our sanctions policy and operations to preserve and strengthen this vital tool for protecting our national security.

 Wally Adeyemo is Deputy Secretary of the Treasury and Wendy Sherman is Deputy Secretary of State.

Article source: https://www.cnbc.com/2021/10/29/op-ed-how-the-us-is-making-sanctions-more-effective.html