Prohibiting Transactions With Terrorists Who Threaten To Disrupt the Middle East Peace Process

This executive order amends Executive Order 12947 by adding Usama bin Ladin, Al-Qaida, and two associated individuals to the list of terrorists whose assets are blocked and with whom U.S. persons are prohibited from transacting. The order took effect immediately on August 21, 1998, following the August 7, 1998 U.S. embassy bombings in East Africa.

Federal Register Open PDF 63 FR 45167

Impact dates

Aug 21, 1998
Order effective at 12:01 a.m. eastern daylight time

Key directives

Revise Annex title to Executive Order 12947 to 'TERRORISTS WHO THREATEN TO DISRUPT THE MIDDLE EAST PEACE PROCESS'
Add Usama bin Ladin to sanctions list
Add Islamic Army/Al-Qaida to sanctions list
Add Abu Hafs al-Masri to sanctions list
Add Rifa'i Ahmad Taha Musa to sanctions list
Transmit order to Congress
Publish in Federal Register

Timeline

Immediate

Order effective 12:01 a.m. EDT August 21, 1998
Asset blocking and transaction prohibitions take effect against four newly listed persons/entities

Near term (90d)

Treasury/OFAC implementation of blocking requirements
Financial sector compliance adjustments

Long term

Precedent for expanding terrorism sanctions lists
Foundation for post-9/11 financial counterterrorism architecture

Risks & tensions

Jurisdictional tension: EO cites Middle East peace process as basis, but targets were primarily associated with East Africa attacks—geographic scope of 'national emergency' potentially stretched
Limited due process: No explicit procedural mechanism for challenging designation before effective date
Precedent for rapid expansion of sanctions lists without legislative action
Vague: 'Appropriate alphabetical order' leaves technical implementation to agency discretion