Confiscating and Vesting Certain Iraqi Property

This executive order, signed on the first day of the 2003 Iraq invasion, confiscated Iraqi government funds held in U.S. financial institutions and vested them in the Department of the Treasury for use in Iraqi reconstruction and assistance to the Iraqi people. It exempted diplomatic funds and amounts subject to terrorism-related court judgments, and delegated broad implementation authority to the Treasury Secretary.

Federal Register Open PDF 68 FR 14307

Impact dates

Date TBD
Treasury Secretary to issue rules and regulations as necessary
Mar 20, 2003
Confiscation and vesting of Iraqi funds takes effect

Key directives

Confiscate and vest all blocked Iraqi government funds in Treasury (effective immediately)
Exempt diplomatic/consular funds and funds subject to TRIA post-judgment writs
Authorize Treasury Secretary to perform IEEPA section 203(a)(1)(C) functions without further presidential action
Direct Treasury Secretary to promulgate implementing rules and regulations
Require Treasury Secretary to consult Attorney General as appropriate
Mandate use of vested property to assist Iraqi people and reconstruct Iraq

Who is ordered

Timeline

Immediate

Confiscation and vesting of blocked Iraqi funds in Treasury effective upon signing (March 20, 2003)
Exemption for diplomatic/consular funds takes effect
Exemption for funds subject to TRIA post-judgment writs takes effect

Near term (90d)

Treasury Secretary to promulgate rules and regulations as necessary
Treasury Secretary to consult Attorney General on implementation

Long term

Vested property to be used for Iraqi reconstruction and assistance to Iraqi people
Potential release of remainder funds after satisfaction of terrorism judgments

Risks & tensions

Vague 'as appropriate' qualifier on Attorney General consultation weakens oversight mechanism
No explicit deadline for promulgation of implementing regulations
Potential tension with international law regarding sovereign property confiscation, though framed under IEEPA emergency authorities
Post-judgment writ exception creates competing claims between terrorism victims and reconstruction fund
Broad delegation to Treasury Secretary without further presidential approval concentrates significant power in one agency