Sanctions Guide: Guatemala

Overview

In January 2024, in response to efforts to undermine the results of Guatemala’s elections, the U.S., UK, and EU implemented sanctions regimes to hold accountable individuals and entities involved in obstructing the country’s democratic transition. These sanctions target those impeding the electoral process, seeking to promote democratic integrity, uphold human rights, and ensure peaceful power transfer in Guatemala. These international powers have tailored their sanctions based on their legislative framework and foreign policy objectives.

National Competent Authorities

• In the U.S., the Office of Foreign Assets Control (OFAC) under the U.S. Department of the Treasury enforces sanctions on Guatemala. OFAC manages the designation of individuals and entities, monitors compliance, and provides guidance to U.S. businesses.

• In the UK, the Office of Financial Sanctions Implementation (OFSI) within the HM Treasury is responsible for enforcing sanctions against Guatemala. OFSI oversees compliance with the sanctions regime and issues licenses for specific activities where exemptions apply.

• In the EU, national competent authorities within each member state are tasked with enforcing sanctions. These authorities monitor the application of restrictive measures, ensuring that entities and individuals within their jurisdictions comply with EU regulations.

Legislation Concerning Sanctions Against Guatemala

• In the U.S., sanctions on Guatemala are authorized through executive orders issued by the President and acts like the Global Magnitsky Human Rights Accountability Act, which allows sanctions for corruption and human rights abuses. OFAC issues specific guidelines for implementing these sanctions.

  
  

• The Sanctions and Anti-Money Laundering Act (SAMLA) of 2018 governs the UK's sanctions regime on Guatemala. This framework gives the UK government theauthority to impose sanctions independently, including asset freezes and travel bans, for violations of democratic principles.

  
  

• In the EU, the Council of the European Union adopts regulations concerning Guatemala sanctions under the Common Foreign and Security Policy (CFSP). These regulations include restrictive measures targeting individuals and organizations undermining Guatemala’s democratic transition.

  
  

Sanctions Lists Applicable to Guatemala

• The U.S. sanctions list related to Guatemala is maintained by OFAC, which adds individuals and entities to its Specially Designated Nationals (SDN) List. These designations prohibit U.S. persons from conducting business with those listed and block any U.S.-based assets.

  
  

• In the UK, individuals and entities subject to Guatemala-related sanctions are listed on OFSI’s Consolidated List of Financial Sanctions Targets. UK citizens and companies are prohibited from dealing with sanctioned parties, and their assets are frozen.

  
  

• The EU maintains its own list of sanctioned individuals and entities, which is published in the EU’s Official Journal. Those included in the sanctions list face asset freezes, visa bans, and restrictions on trade.

Guidance  Requirements For Exporters To Guatemala

• In the U.S., exporters to Guatemala must comply with OFAC regulations, ensuring that they do not engage in transactions with sanctioned entities. The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) provides additional guidance on export controls.

  
  

• UK exporters must adhere to OFSI guidelines, ensuring they do not engage with sanctioned parties and that they comply with export control regulations overseen by the Export Control Joint Unit (ECJU).

  
  

• EU exporters are required to follow guidance provided by national competent authorities and the European Commission, ensuring compliance with trade and financial restrictions. The EU also issues detailed guidance for exporters concerning trade with Guatemala under the sanctions regime.

Licensing  Requirements For Exporters To Guatemala

• In the U.S., exporters can apply for specific licenses from OFAC to conduct transactions otherwise prohibited under the Guatemala sanctions regime. These licenses allow exceptions for activities such as humanitarian aid or legal services.

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• UK exporters can apply for licenses from OFSI to carry out transactions that the sanctions might otherwise restrict, particularly for humanitarian purposes or legal exceptions.

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• In the EU, licenses for certain restricted activities are issued by national competent authorities. These licenses may cover exemptions for humanitarian goods, medical supplies, or services that comply with international obligations.

Reporting Requirements For Exporters To Guatemala

• In the U.S., exporters must report to OFAC any blocked transactions involving sanctioned entities and provide regular updates on compliance with sanctions regulations. Failure to report can result in penalties.

  
  

• UK exporters are required to report to OFSI any dealings involving frozen assets or transactions with sanctioned entities. OFSI also requires businesses to maintain records of due diligence efforts to ensure compliance.

  
  

• In the EU, reporting obligations vary by member state but generally require businesses to inform national authorities of any transactions involving sanctioned parties or frozen assets. Exporters must maintain detailed records of their transactions for compliance purposes.

  
  

• This summary outlines the roles and requirements in the sanctions regimes enforced by the U.S., UK, and EU concerning Guatemala, focusing on each region's legislation, guidance, licensing, and reporting expectations.