International Law Advisory - Iraq Sanctions, Property Blocked

Executive Order Blocking Property of the Former Iraqi Regime
On August 28, 2003, President Bush issued Executive Order number 13315 (published at 68 Fed. Reg. 52315 (Sept. 3, 2003)), blocking the property of the former Iraqi regime, its senior officials and their family members, and taking certain other actions.  The order was issued under the authority of the International Emergency Economic Powers Act (50 U.S.C. 1701 et. seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et. seq.), section 5 of the United Nations Participation Act, (22 U.S.C. 278c) (UNPA), and section 301 of Title 3 of the United States Code.

According to the Executive Order, it is in the interest of the United States to confiscate certain property of the former Iraqi regime, certain senior officials of the former regime, immediate family members of those officials, and controlled entities.  The confiscated funds will be transferred to the Development Fund for Iraq and, according to the order, "shall be used to meet the humanitarian needs of the Iraqi people, for the economic reconstruction and repair of Iraq’s infrastructure, for the continued disarmament of Iraq, for the costs of Iraqi civilian administration, and for other purposes benefiting the Iraqi people."

Effective immediately, Section 1 states that notwithstanding any contract entered into or license granted prior to the effective date of the order, "all property and interests in property of the former Iraqi regime or its state bodies, corporations, or agencies" or persons named in the order that are now or in the future come within the United States or within the possession of a U.S. person are blocked.  They may not be "transferred, paid, exported, withdrawn, or otherwise dealt in." Persons listed in the annex to the order include senior officials of the former Iraqi regime and their immediate family members, as well as persons and entities determined to be owned or controlled by, or acting or purporting to act on behalf of the persons listed in the annex.

Section 2 states that the U.S. government is authorized to confiscate property "that is blocked pursuant to section 1 of this order and that [is determined to] belong to a person, organization, or country that has planned, authorized, aided, or engaged in armed hostilities against the United States.

US persons or persons within the United States may not take any action that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate any of the prohibitions set forth in the order.  The order does not apply to property that has or will come under the control of the Iraqi Coalition Provisional Authority.

The order indicated that the making of donations as described in section 203(b)(2) of IEEPA by or to persons subject to the sanctions imposed by the order, including persons who may have a constitutional presence in the United States, will not be exempt from the scope of the order.