Financial Sanctions and the Sanction Regimes

Sanctions and the Sanction Regimes
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Definition of Financial Sanctions and Their Nature
Financial sanctions refer to restrictive measures against a country, individual, or organization (McDowell, 2021). In most cases, these restrictive measures are developed by a country or an international organization. The aim of taking a sanction is to restrict access to the international financial system by the sanctioned country. Therefore, financial sanctions are punitive measures. The nature of economic sanctions varies greatly. Sometimes, the sanction could only be extended to an individual or an organization. In such cases, the measures taken may include freezing assets or limiting financial transactions. In other cases, sanctions may be extended toward a whole country. Such a sanction may have far-reaching effects as it may mean restricted trade and access to the international financial system. A trade sanction extended toward a country affects not only government institutions but also business organizations and individuals within the country (McDowell, 2021).
Common Regimes of Financial Sanctions
One of the common regimes of financial sanctions is the freezing of assets. This sanction is often extended to an individual, company, or business organization. In most cases, it means freezing of money held in bank accounts. Another common form of financial sanctions is trade restrictions. These restrictions are often extended to a country. The sanction may have far-reaching impacts and often involves restricting business activity between the two countries. For instance, a trade sanction may limit importation, exportation, or other business dealings between the involved countries (Peksen, 2019). The third common type of financial sanction is a traveling ban. In this form of sanctions, individuals are prohibited from visiting a country. Another common form of financial sanction is energy sanctions. A country is restricted from importing various en...