Worldwide investments in CLUSTER MUNITIONS
report-worldwide_investments_cluster_munitions-2016
report-worldwide_investments_cluster_munitions-2016
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How does the legislation def<strong>in</strong>e ‘<strong>in</strong>vestment’ or ‘f<strong>in</strong>anc<strong>in</strong>g’?<br />
– The text of Law no. 95 does not def<strong>in</strong>e “f<strong>in</strong>ancial assistance.” In that respect the draft proposal of 26<br />
April 2010 def<strong>in</strong>es the scope of f<strong>in</strong>ancial assistance more precisely. The latter prohibits the provision of<br />
any form of f<strong>in</strong>ancial support, <strong>in</strong>clud<strong>in</strong>g grant<strong>in</strong>g any type of credit, issu<strong>in</strong>g f<strong>in</strong>ancial guarantees, equity<br />
participation, acquisition or subscription of securities issued by companies produc<strong>in</strong>g antipersonnel<br />
m<strong>in</strong>es or cluster munitions. It forbids Italian and foreign companies <strong>in</strong> Italy from f<strong>in</strong>anc<strong>in</strong>g companies<br />
perform<strong>in</strong>g a range of activities relat<strong>in</strong>g to antipersonnel m<strong>in</strong>es, cluster munitions and submunitions.<br />
– The reference to the prohibition of “f<strong>in</strong>ancial assistance” <strong>in</strong> the law is due to an approved amendment<br />
to the orig<strong>in</strong>al text. As a consequence, f<strong>in</strong>ancial assistance to the production, development, storage, etc.<br />
of cluster munitions or parts thereof is a national crime. However, the current text seems to leave the<br />
possibility open that it only applies to the Italian level. The Italian Campaign to Ban Landm<strong>in</strong>es warns<br />
that the law still makes it possible to offer f<strong>in</strong>ancial assistance on an <strong>in</strong>ternational level.<br />
To whom does the legislation apply?<br />
– The law stipulates that “Whoever [...] f<strong>in</strong>ancially assists, encourages or <strong>in</strong>duces others to engage <strong>in</strong><br />
such activity, is punished with imprisonment from three to twelve years and a f<strong>in</strong>e of 258,228 Euro to<br />
516,456 Euro.”<br />
How is the legislation enforced?<br />
– The Italian law def<strong>in</strong>es penalties, but does not provide for supervision or monitor<strong>in</strong>g tools. The<br />
implementation order will have to regulate all of these issues and will be decisive for the law’s scope.<br />
The 26 April 2010 draft proposal is more detailed. It wants the Bank of Italy to appo<strong>in</strong>t a third party<br />
to monitor compliance and to publish a list of companies <strong>in</strong>volved <strong>in</strong> the production, use, repair,<br />
promotion, sale, distribution, import, export, storage, possession or transportation of cluster munitions.<br />
2.3.4 Liechtenste<strong>in</strong><br />
BACKGROUND<br />
The Pr<strong>in</strong>cipality of Liechtenste<strong>in</strong> signed the Convention on Cluster Munitions <strong>in</strong> Oslo on 3 December 2008.<br />
Liechtenste<strong>in</strong> ratified the convention on 4 March 2013. 659 At the same time, the Parliament of Liechtenste<strong>in</strong><br />
approved an amendment to the Law on Broker<strong>in</strong>g War Material which entered <strong>in</strong>to force on 1 September<br />
2013. The amended law prohibits broker<strong>in</strong>g and direct and <strong>in</strong>direct f<strong>in</strong>anc<strong>in</strong>g of prohibited war material,<br />
<strong>in</strong>clud<strong>in</strong>g cluster munitions. 660<br />
Due to the Customs Union Treaty between Liechtenste<strong>in</strong> and Switzerland, “the development, manufacture,<br />
purchase, acquisition, transfer, import, export, transport, and stockpil<strong>in</strong>g and possession of cluster<br />
munitions is governed by Swiss legislation <strong>in</strong> Liechtenste<strong>in</strong>.” Therefore, the amendments to Switzerland’s<br />
Federal Law on War Material, which the Swiss parliament passed <strong>in</strong> March 2012, also apply <strong>in</strong><br />
Liechtenste<strong>in</strong>. 661<br />
LEGISLATION<br />
The prohibition is set out <strong>in</strong> Articles 7b and 7c, govern<strong>in</strong>g direct and <strong>in</strong>direct <strong>in</strong>vestment. Their word<strong>in</strong>g<br />
is similar to that of the Swiss legislation. 662<br />
“Art. 7b Prohibition of direct f<strong>in</strong>anc<strong>in</strong>g<br />
1 The direct f<strong>in</strong>anc<strong>in</strong>g of the development, manufacture or acquisition of prohibited war material is<br />
prohibited.<br />
196