In the waning days of the previous administration , there were two events that impacted de-risking in the banking industry . First , the U . S . Department of State designated Ansarallah ( also known as the Houthis ) in Yemen as an FTO . This specific terrorist designation is controlled by the Department of State , which does not have the legal authority to license NGO activities as the Department of the Treasury does with the sanctions and designations that it administers . NGOs that must engage with FTO-designated groups to access populations in need are , therefore , at risk of criminal prosecution under the federal prohibition on providing material support to terrorists . While the designation itself caused many NGOs to pause their aid operations in Yemen , leaving aid beneficiaries without lifesaving support , it also offered an opportunity for NGOs to engage U . S . government officials on the difficulties of providing aid in contexts such as Yemen , where an FTO is the de facto governing authority for most or all of the country .
In the first few weeks of the Biden- Harris administration , Secretary of State Anthony Blinken reversed the FTO designation of the Houthis to “ ensure that relevant U . S . policies do not impede assistance to those already suffering what has been called the world ’ s worst humanitarian crisis .” 11
Second , Congress passed the AMLA , a portion of which spoke directly to bank de-de-risking of charities . The law directed the Department of the Treasury to review its existing regulations and guidance to identify the likely drivers of de-risking and to develop a “ de-risking strategy .”
In January 2021 , the White House issued National Security Directive 1 , 12 charging federal agencies to examine how sanctions impeded the response to COVID-19 abroad . Department of the Treasury Secretary Janet Yellen also directed her agency to thoroughly examine all sanctions programs . The Department of the Treasury ’ s 2021 sanctions review outlined a new framework to modernize sanctions and stated , “ Treasury must address more systematically the challenges associated with conducting humanitarian activities through legitimate channels in heavily sanctioned jurisdictions . Where possible and appropriate , Treasury should expand sanctions exceptions to support the flow of legitimate humanitarian goods and assistance and provide clear guidance at the outset when sanctions authorities are created and implemented , particularly related to vulnerable populations .” 13 These events marked the beginning of a sea change in the way the U . S . government engages with the NGO sector , creating a collaborative environment where positive changes can occur .
In December 2022 , the U . S . and Ireland introduced a resolution at the United Nations ( U . N .) Security Council to create a humanitarian carve-out in all U . N . sanctions regimes . UNSCR 2664 14 passed on December 9 , and two weeks later , the U . S . became the first country to implement the resolution when it issued or amended general licenses 15 “ to ease the delivery of
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