Overview and Definition

Overview of Targeted Financial Sanctions

Overview of Targeted Financial Sanctions
Under Article (41) of Chapter 7 of the UN Charter, and in order to maintain or restore international peace and security, the United Nations Security Council (UNSC) holds the capacity to take action by imposing sanctions measures encompassing a broad range of enforcement options that do not involve the use of armed force, and to require members of the UN to implement such. The Security Council’s sanctions regimes focus mainly on supporting political settlement of conflicts, nuclear non-proliferation, and counter-terrorism. These regimes include measures ranging from comprehensive economic and trade sanctions to more targeted measures such as arms embargoes, travel bans, and financial or commodity restrictions. The UNSC, through its United Nations Security Council Resolutions (UNSCRs) and Sanctions Committees, mandates the implementation of freezing measures related to, among others:

1. Terrorism and terrorist financing pursuant to
2. The Financing of Proliferation of Weapons of Mass Destruction to according to:


Definition of TFS

The term ‘targeted financial sanctions’ refers to sanctions that are intended to have a limited, strategic focus on certain individuals, entities, groups, or undertakings.

The term ‘targeted financial sanctions’ means both asset freezing and preventing funds or other assets from being made available, directly or indirectly, for the benefit of individuals, entities, groups, or undertakings who are sanctioned.

There are two main types of financial sanctions:


  • Asset freezing: Freezing is the temporary prohibition of any transfer, conversion, disposition, alteration, use, dealing with or movement of funds or economic resources that would result in a change in their volume, amount, location, ownership, possession, nature or destination or that would in any way enable the use of such funds or economic resources for any purpose.
  • Prohibit making funds available: Prohibit making funds available: Prohibiting to make funds or economic resources available or provide financial or other related services, directly or indirectly, wholly or jointly, to or for the benefit of the designated (listed) person, group or entity.


Definition of Funds and Economic Resources
Funds: Any type of assets or property regardless of its value, nature, or the way it is acquired, whether electronic or digital, whether inside or outside the Sultanate of Oman, including any profits or interests on such property that is due or has been fully or partially distributed. This includes local and foreign currency, financial and commercial instruments, immovable or movable, tangible or intangible, and corporeal or incorporeal assets and all the rights or interests vested therein, deeds and documents evidencing all the above, including bank credits, deposits, postal drafts, bank drafts, and letters of credit or anything that the National Committee for Combating Money Laundering and Terrorism Financing considers as funds for the purposes of the AML/CFT Law No. (30/2016).

Examples of funds are the following:


  1. All types of financial commitments such as: debts, and debt obligations, bank credits, deposits, postal drafts, bank drafts, and letters of credit, cheques, claims on money, drafts, money orders, bearer instruments.
  2. Cash in all currencies, including virtual and electronic currency and other internet-based payment instruments.
  3. Deposits with financial institutions or other entities and balances in accounts including, but not limited to:
    • Fixed or term deposit accounts
    • balances on share trading accounts with banks, brokerage firms or other investment trading accounts.
  4. Debts and debt obligations, including trade debts, other accounts receivable, notes receivable, and other claims of money on others.
  5. Letters of credit, bills of lading, bills of sale; notes receivable and other documents evidencing an interest in funds or financial resources and any other instruments of export-financing.
  6. Equity and other financial interest in a sole trader or partnership.
  7. Insurance and reinsurance.
  8. Shares in the business of an individual trader or a partnership: Publicly and privately traded securities and debt instruments, including stocks and shares, certificates representing securities, bonds, notes, warrants, debentures, and derivatives contracts.
  9. Interest, dividends, or other income on or value accruing from or generated by assets.
  10. Real estate.

Economic resources are: Assets of any kind, whether tangible or intangible, movable or immovable, actual or potential, which may be used to obtain funds, goods or services, including but not limited to:

  1. Equipment, furniture, fittings and fixtures.
  2. Any material of a fixed nature such as vessels, aircraft and motor vehicles.
  3. Inventories of goods.
  4. Arts, jewelry and gold.
  5. Goods including oil, refined products, modular refineries and related material including chemicals, lubricants, minerals or timber or other natural resources and commodities.
  6. Arms and related materials, raw materials and components that can be used to manufacture improvised explosive devices and unconventional weapons.
  7. Patents, trademarks, copyrights and other forms of intellectual property.
  8. Internet hosting and related services.
Lists: Includes the local list where names are designated based on a decision of the TFS Committee, and UN Lists as issued by the UN Security Council or a relevant Sanctions Committee based on a relevant UN Security Council Resolution.