EU Adopts New Sanctions Programs Related to the Situation in Guatemala, Hamas and the Palestinian Islamic Jihad and Imposes First Sanctions under the Sudan Sanctions Program

January 22, 2024 – In January 2024, the European Union (“EU”) adopted two autonomous sanctions programs related to the situation in Guatemala and Hamas and the Palestinian Islamic Jihad (the “PIJ”). On January 22, 2024, the EU also imposed first sanctions against six entities under its autonomous sanctions program against Sudan adopted on October 9, 2023 (the “Sudan Sanctions Program”).

1. New Sanctions Program Against Guatemala

On January 12, 2024, the EU adopted a new sanctions program against Guatemala in “support of democracy and a peaceful and orderly transfer of power” in that country (the “Guatemala Sanctions Program”). These measures aim at holding “accountable those obstructing a democratic transition following the 2023 general elections.” The new restrictive measures are implemented through Council Decision 2024/254 and Council Regulation 2024/287 and apply until January 13, 2025.

Designation Criteria

Under the Guatemala Sanctions Program, the EU can impose restrictive measures against individuals and entities:

• Responsible for actions that undermine democracy, the rule of law or the peaceful transfer of power in Guatemala, including through persecution or intimidation of public officials, democratically elected authorities, civil society, media or judicial operators;
• Undermining democracy or the rule of law in Guatemala through serious financial misconduct concerning public funds or the unauthorized export of capital; or
• Associated with the individuals mentioned above.

The designated individuals are subject to an asset freeze, a prohibition from making funds and economic resources available, as well as a travel ban in the EU. As of January 22, 2024, no individual or entities are designated under the Guatemala Sanctions Program.

Exemptions

The Guatemala Sanctions Program provides for a broad humanitarian exemption allowing, without further authorization, the activities carried out by:

• The United Nations (“UN”), as well as its specialized agencies and related organizations;
• International organizations;
• Humanitarian organizations having observer status with the UN General Assembly;
• Bilaterally or multilaterally funded non-governmental organizations participating in the UN Humanitarian Response Plans, Refugee Response Plans, or other humanitarian clusters coordinated by the UN Office for the Coordination of Humanitarian Affairs;
• Organizations and agencies certified or recognized by the UN or Member States;
• Member States’ specialized agencies; or
• The employees, grantees, or implementing partners of the entities mentioned above.

Derogations

The Guatemala Sanctions Program also provides for derogations allowing the national competent authorities of the Member States (“NCAs”) to authorize the release of certain frozen funds or economic resources, or the making available of such funds or economic resources:

• To satisfy the basic needs of designated persons and their dependent family members;
• For the payment of reasonable professional fees or the reimbursement of incurred expenses associated with the provision of legal services;
• For the payment of fees or service charges for the routine holding of frozen assets;
• For extraordinary expenses;
• To be paid into or from an account of a diplomatic or consular mission or an international organization for their official purposes;
• To ensure the timely delivery of humanitarian assistance or to support other activities that support basic human needs;
• To satisfy claims secured by an arbitral decision rendered prior to the designation or by a judicial or administrative decision rendered in the EU or enforceable in the Member State prior to or after the designation, provided that such decision is not for the benefit of a designated person and contrary to public policy of the Member State concerned; or
• For payments due under a contract concluded before the designation if the funds or economic resources are used for a payment by a designated person and will not be made available to such person.

Reporting Obligations

Finally, under the Guatemala Sanctions Program, EU operators are required to provide information on the accounts and amounts frozen to their competent NCAs and transmit such information, directly or through the Member States, to the European Commission (the “Commission”). 

2. New Sanctions Program Against Hamas and the PIJ

On January 19, 2024, the EU adopted a new sanctions program targeting Hamas and the PIJ in view “of the gravity of the recent attacks against Israel and the need to counter acts that threaten international peace and security” (the “Hamas-PIJ Sanctions Program”).

The Hamas-PIJ Sanctions Program complements the restrictive measures previously adopted by the EU against Hamas and the PIJ under Common Position 2021/931/CFSP (“EU Terrorist List”) and follows sanctions imposed by the U.S. Department of the Treasury’s Office of Foreign Assets Control against Hamas-affiliated individuals and entities since October 2023. While Hamas and the PIJ have already each been designated on the EU Terrorist List since December 27, 2001, along with some of their members, this is the first sanctions program which specifically target these two organizations and those involved in their activities.

The new EU measures are implemented through Council Decision 2024/385 and Council Regulation 2024/386 and apply until January 19, 2025.

Designation Criteria

Under the Hamas-PIJ Sanctions Program, the EU can designate individuals and entities on eight legal grounds, regardless of their location. Accordingly, the EU can impose restrictive measures against those who:

• Support, materially or financially, Hamas or the PIJ;
• Participate in their financing or in the financing of acts or activities by, in conjunction with, under the name of, on behalf of, or in support of them;
• Participate in the planning, preparation or enabling of violent actions by, in conjunction with, under the name of, on behalf of, or in support of Hamas or the PIJ;
• Support, materially or financially, or implement actions which undermine or threaten the stability or security of Israel, in conjunction with, under the name of, on behalf of or in support of Hamas or the PIJ;
• Are involved or complicit in ordering or committing serious violations of international humanitarian law on behalf or in the name of Hamas or the PIJ;
• Incite or publicly provoke acts of serious violence by, in conjunction with, under the name of, on behalf of, or in support of Hamas or the PIJ; or
• Provide support to individuals and/or engaged in the above-mentioned activities.

These criteria give the EU considerable leeway to take future actions by targeting transnational illicit conduct and allow the Council of the EU (“Council”) to impose sanctions against “the sponsors of the sponsors” of Hamas and the PIJ, in line with the U.S. Treasury’s calls made since October 2023 to take broader actions against networks of enablers and facilitators.

Designated Individuals

On January 19, 2024, the EU added six individuals of different nationalities to its restricted parties list under the Hamas-PIJ Sanctions Program for providing financial support to Hamas. These individuals are (i) Abdelbasit Elhassan Mohamed Khair Hamza (Sudan-based Hamas financier), (ii) Nabil Khaled Halil Chouman (owner of Shuman for Currency Exchange SARL, based in Lebanon and used to transfer money to Hamas) and (iii) his son Khaled Chouman, (iv) Rida Ali Khamis (senior Hamas financier), (v) Musa Muhammad Salim Dudin (senior Hamas operative) and (vi) Aiman Ahmad Al Duwaik (Algeria-based Hamas financier).

These designated individuals are subject to an asset freeze, a prohibition from making funds and economic resources available, as well as a travel ban in the EU as of January 19, 2024.

Exemptions, Derogations and Reporting Obligations

The Hamas-PIJ Sanctions Program provides for the same exemptions and derogations as the Guatemala Sanctions Program. It also requires EU operators to provide information on the accounts and amounts frozen to their competent NCAs and transmit such information, directly or through the Member States, to the Commission. 

3. First Sanctions Under the Sudan Sanctions Program

Finally, on January 22, 2024, the EU imposed first sanctions against six entities under the Sudan Sanctions Program adopted by the Council on October 9, 2023 in response to ongoing armed conflict in that country between the Sudanese Armed Forces (“SAF”) and the Rapid Support Forces (“RSF”).

These six entities are designated for providing support to activities undermining the stability and political transition of Sudan through Council Decision 2024/383 and Council Implementing Regulation 2024/384. Among the entities designated are two Sudanese companies involved in the production of weapons and vehicles, as well as in the provision of services to SAF (Defense Industries System and SMT Engineering), one Sudanese company controlled by SAF (Zadna International Company for Investment Limited) and three companies used by RSF to finance the conflict in Sudan (Tradive General Trading Co. (based in the United Arab Emirates), Al Junaid Multi Activities Co Ltd and GSK Advance Company Ltd (based in Sudan)).

These entities are subject to an asset freeze, a prohibition from making funds and economic resources available, as well as a travel ban in the EU as of January 22, 2024.