I. Relevant Security Council resolutions and Committee Guidelines
The exemptions from the assets freeze are provided for by the following:
- Security Council Resolution 1970 (2008): paragraphs 19 and 21
- Security Council Resolution 2009 (2011): paragraph 16
- Committee Guidelines: Section 10
II. Who is entitled to submit exemption notifications to the assets freeze?
Member States who intend to authorize, where appropriate, access to frozen funds or other financial asset or economic resources.
III. What are the exemptions to the assets freeze, and how are they invoked?
There are different types of exemptions to the assets freeze, most of which require notification to the Committee
- For basic expenses: notification to and absence of negative decision by the Committee.
- For extraordinary expenses: notification to and approval by the Committee.
- Judicial, administrative or arbitral lien or judgement: notification to the Committee.
- Payments due to third parties under contracts entered into prior to listing: notification to the Committee.
- Humanitarian needs; fuel, electricity and water for strictly civilian uses; resuming Libyan production and sale of hydrocarbons; establishing, operating, or strengthening institutions of civilian government and civilian public infrastructure; facilitating the resumption of banking sector operations, including to support or facilitate international trade with Libya: notification to and absence of negative decision by the Committee, advance consultation with Libyan authorities, no objection by Libyan authorities.
- Addition to accounts that remain frozen of interests, other earnings, payments under pre-sanction contracts, agreements, obligations: Member States may authorize without notification to the Committee.
1. The basic expenses exemption
Pursuant to paragraph 19 (a) of resolution 1970 (2011) as well as Section 10 (a) of Committee’s Guidelines, notifications for the basic expense are to be submitted to the Committee, and should, as appropriate, include the following information:
- Recipient (name and address)
- Recipient’s bank information (name and address of bank, account number)
- Purpose of payment and justification of the determination of the expenses falling under the basic expenses exemption:
- Basic expenses, including payment for foodstuffs, rent or mortgage, medicines and medical treatment, taxes, insurance premiums, and public utility charges;
- Payment of reasonable professional fees and reimbursement of incurred expenses associated with the provisions of legal services
- Fees or service charges for routine holding or maintenance of frozen funds or other financial asset or economic resources.
2. The extraordinary expenses exemption
Pursuant to paragraph 19 (b) of resolution 1970 (2011), as well as Section 10 (b) of the Committee’s Guidelines, notifications for the extraordinary expenses are to be submitted for the Committee’s consideration and approval.
- Recipient (name and address)
- Recipient’s bank information (name and address of bank, account number)
- Purpose of payment and justification of the determination of the expenses falling under the extraordinary expenses (other categories than the ones mentioned under paragraph 19 of resolution 1970 (2011)).
- Amount of installment
- Number of installments
- Payment starting date
- Bank transfer or direct debit
- Interests
- Specific funds being unfrozen
- Other information.
Please note that Member States are encouraged, when submitting notifications for the extraordinary expenses exemption, to report in a timely way on the use of such funds, with a view to preventing such funds from being used to conduct any of the acts described in the Listing Criteria.
3. The judicial, administrative or arbitral lien or judgment exemption
Pursuant to paragraph 19 (c) of resolution 1970 (2011), notifications for the authorization of unfreezing of funds, other financial assets and economic resources for payment of a judicial, administrative or arbitral lien or judgment, entity are to be submitted for to the Committee, provided that the lien or judgment was entered into prior to the date of the present resolution, is not for the benefit of a designated individual or entity.
The payments due to third parties under contracts entered into prior to listing exemption Pursuant to paragraph 21 of resolution 1970 (2011), as well as Section 10 (f) of the Committee’s Guidelines, a designated individual or entity may make a payment due under a contract entered into prior to the listing of such a person or entity, provided that the relevant States have determined that the payment is not directly or indirectly received by a designated individual or entity, and after notification by the relevant States to the Committee of the intention to make or receive such payments or to authorize, where appropriate, the unfreezing of funds, other financial assets or economic resources for this purpose, 10 working days prior to such authorization.
The humanitarian exemption
Pursuant to paragraph 16 of resolution 2009 (2011), notifications for the authorization of unfreezing of funds, other financial assets and economic resources for payment for below specific purposes, and under the below conditions, are to be submitted to the Committee.
Specific purposes for humanitarian exemptions:
- humanitarian needs;
- fuel, electricity and water for strictly civilian uses;
- resuming Libyan production and sale of hydrocarbons;
- establishing, operating, or strengthening institutions of civilian government and civilian public infrastructure; or
- facilitating the resumption of banking sector operations, including to support or facilitate international trade with Libya.
Conditions for humanitarian exemptions:
- the payment must not directly or indirectly received by a designated individual or entity;
- the Member State needs to consult in advance with the Libyan authorities about the use of such funds, other financial assets, or economic resources; and
- the Member State needs to share with the Libyan authorities the notification submitted pursuant to this paragraph; the Libyan authorities may object within five working days to the release of such funds, other financial assets, or economic resources.
4. The interests, other earnings, payments under pre-sanction contracts, agreements or obligations exemption
Pursuant to paragraph 20 of resolution 1970 (2011), as well as Section 10 (e) of the Committee’s Guidelines, Member States may allow for the addition to accounts subject to the assets freeze of:
- interest or other earnings due on those accounts, or
- payments due under contracts, agreements or obligations that arose prior to the date on which those accounts became subject to the assets freeze, provided that any such interest, other earnings (see i. above) and payments continue to be subject to the assets freeze.
IV. How to make a notification for exemption to the assets freeze?
Please submit exemption requests/notifications to the assets freeze, through your relevant Permanent Mission to the United Nations, addressed to:
- The Chair of the Committee, His Excellency Mr. Kazuyuki Yamazaki, through the Permanent Mission of Japan to the United Nations.
With copy to:
- Senior Committee Secretary, Ms. Sana Khan (SC-1970-Committee@un.org)
V. Decision Making of the Committee
The Committee, through its Chair, will acknowledge receipt of a notification once it has been circulated for the consideration of the Committee. Should no negative decision be taken by the Committee within the requisite five working day period, the Committee, through its Chair, will inform the notifying Member State thereof. The Committee, thorough its Chair, will also inform the notifying Member State if a negative decision has been taken regarding the notification.
The Committee, through its Chair, will inform the Member States notifying extraordinary expenses about its decision.