Broad New Exec. Order Targets Iraq-Related Finances
By Spencer Ackerman - July 19, 2007, 4:04 PM
In a little-noticed executive order issued on Tuesday, President Bush directed the Treasury Department to block the U.S.-based financial assets of anyone deemed to have threatened "the peace or stability of Iraq or the Government of Iraq" or who "undermin(e) efforts to promote economic reconstruction and political reform in Iraq."
The order empowers Treasury, in consultation with the State and Defense Departments, to target those individuals or organizations that either "have committed, or ... pose a significant risk of committing" acts of violence with the "purpose or effect" of harming the Iraqi government or hindering reconstruction efforts. It applies to "U.S. persons," a category including American citizens. It had not previously been disclosed -- and still hasn't -- that U.S. persons are abetting the Iraqi insurgency, nor that Iraqi insurgents have property in the United States, raising questions about who in fact the order targets.
"The part where they reserve lots of discretion to themselves is the list of conditions that goes beyond determination of acts of violence. 'Threatening the peace or stability of Iraq or the Government of Iraq,' that could be anything," says Ken Mayer, an expert in executive orders and a University of Wisconsin political scientist. "Think of the possibilities: it could be charities that send a small amount of money (to groups linked to) the insurgency, or it could be the government of Iran that has assets in the U.S. and has money that flows through a U.S. bank or something like that."
The order permits the targeting of those who aid someone else whose assets have been blocked under the order -- wittingly or not. And under Section Five, the government does not have to disclose which organizations are subject to having their assets frozen:
For those persons whose property and interests in property are blocked pursuant to this order who might have a constitutional presence in the United States, I find that, because of the ability to transfer funds or other assets instantaneously, prior notice to such persons of measures to be taken pursuant to this order would render these measures ineffectual. I therefore determine that for these measures to be effective in addressing the national emergency declared in Executive Order 13303 and expanded in Executive Order 13315, there need be no prior notice of a listing or determination made pursuant to section 1(a) of this order.
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