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EO 13438Executive OrderG.W. Bush · R Quiet signal

Executive Order 13438

Blocking Property of Certain Persons Who Threaten Stabilization Efforts in Iraq

This executive order authorizes the Treasury Secretary, in consultation with State and Defense, to block the assets of individuals and entities deemed to threaten Iraq's stability through violence, material support for violence, or association with blocked persons. It expands existing Iraq sanctions and prohibits U.S. persons from transactions with designated parties without prior notice requirements.

Federal Register Open PDF 72 FR 39719

Impact dates

  1. Treasury to take actions including promulgation of rules and regulations as necessary to carry out purposes

Key directives

  • Secretary of Treasury to determine persons meeting criteria in Section 1(a)(i)-(iii)
  • All property and interests in property of designated persons are blocked
  • Prohibition on contributions, provision of funds/goods/services to or from blocked persons
  • Prohibition on evasion, avoidance, or conspiracy to violate order
  • Secretary of Treasury authorized to promulgate rules and regulations
  • All agencies directed to take appropriate measures to carry out provisions

Who is ordered

Timeline

Immediate

  • Asset blocking takes effect upon designation
  • Prohibitions on transfers, payments, exports apply immediately to designated persons
  • No prior notice required for listings

Near term (90d)

  • Treasury promulgation of implementing rules and regulations
  • Interagency coordination procedures established

Long term

  • Ongoing sanctions enforcement and designations
  • Potential expansion of blocked persons network through ownership/control findings

Risks & tensions

  • Vague 'significant risk' standard in 1(a)(i) grants broad discretionary authority to Treasury
  • No prior notice requirement (Sec. 5) raises due process concerns for designated persons
  • Ownership/control nexus in 1(a)(iii) creates compliance uncertainty for U.S. persons
  • Consultation with State and Defense required but decision authority rests with Treasury alone
  • Overlaps with existing Iraq emergency authorities (EO 13303, 13315, 13350, 13364) creating potential regulatory complexity
Executive Order 13438: Blocking Property of Certain Persons Who Threaten Stabilization Efforts in Iraq · Executive Orders