May 27, 2014: New Executive Order on US Iraq-related sanctions

On Tuesday, President Barack Obama issued a new Executive Order modifying the Iraq-related sanctions that OFAC enforces:

I, BARACK OBAMA, President of the United States of America,

have determined that the situation that gave rise to the actions

taken in Executive Order 13303 of May 22, 2003, to protect the

Development Fund for Iraq and certain other property in which

the Government of Iraq has an interest has been significantly

altered.  Recognizing the changed circumstances in Iraq,

including the Government of Iraq's progress in resolving and

managing the risk associated with outstanding debts and claims

arising from actions of the previous regime, I hereby terminate

the prohibitions contained in section 1 of Executive Order 13303

of May 22, 2003, as amended by Executive Order 13364 of

November 29, 2004, on any attachment, judgment, decree, lien,

execution, garnishment, or other judicial process with respect

to the Development Fund for Iraq and Iraqi petroleum, petroleum

products, and interests therein, and the accounts, assets,

investments, and other property owned by, belonging to, or held

by, in the name of, on behalf of, or otherwise for, the Central

Bank of Iraq.

So, basically, previously, the assets of the Central Bank of Iraq and Development Fund of Iraq were judgment-proof, in order to promote further stabilization of the Iraqi government. Now, as times have changed, claims against these institutions can now proceed.

As the OFAC notice notes, “The E.O. does not otherwise affect the national emergency declared in Executive Order 13303, as expanded in scope by Executive Order 13315 of August 28, 2003, which remains in place and continues as the basis for certain sanctions on the former Iraqi regime, its senior officials and their family members, and designated persons who threaten stabilization efforts in Iraq.”

Links:

OFAC Notice

Executive Order