The payment of interest to Libyan sovereign wealth funds is a violation of the regime of freezing the assets of the former Libyan leader on the part of Belgium, say the experts of the UN. According to them, such violations can have serious consequences.
The UN group of experts on Libya on Tuesday found the violation of international sanctions imposed on the assets of Muammar Gaddafi on the part of Belgium, informs Politico.
The media had previously said that Euroclear, a Brussels-based financial institution, continued to pay interest on these frozen assets to the Libyan Investment Authority and Libyan Foreign Investment Company.
“The committee considers that these interest and other income payments are not consistent with the freezing of assets,” says the report of UN experts.
According to them, given the lack of a control mechanism, the payment of money to the Libyan Investment Authority can lead to “abuse and misappropriation”.
The Belgian Finance Ministry reacted on Wednesday to accusations of the UN. According to the spokesman of the ministry, quoted by Politico, the payment of interest is currently blocked in accordance with the decision of the Belgian justice of 23 October. The country’s authorities intend to consult their European partners who apply these sanctions “in the same way”.
The assets of the former Libyan leader were frozen in September 2011 by decision of the UN. In March, the Belgian weekly Le Vif said that more than 10 of the 16 billion euros belonging to the entourage of former Libyan leader Muammar Gaddafi had mysteriously disappeared from the accounts of the Euroclear Bank in Belgium between 2013 and 2017.