Iraq Sanctions Screening Regulations Take Effect

Washington D.C., May 21, 2003 - New Regulations Facilitate Humanitarian Aid to War-Torn Iraq

The United States has issued new regulations governing sanctions screening in Iraq, aimed at facilitating humanitarian aid to the war-torn country. Effective immediately, US financial institutions are authorized to establish a presence in Iraq for purposes of facilitating non-commercial humanitarian funds transfers.

Key Provisions

• Financial institutions can establish a presence in Iraq for humanitarian aid facilitation
• Goods and technology exports or reexports to Iraq subject to strict guidelines in subpart E of the Iraqi Sanctions Regulations
• Section 575.532 outlines detailed requirements for approval and licensing process for such transactions

The move is seen as a significant step towards easing the flow of humanitarian aid into Iraq, following the US-led invasion in March 2003. The regulations were issued under the authority of various laws, including:

Relevant Laws and Executive Orders

• International Emergency Economic Powers Act
• United Nations Participation Act
• Executive Orders 12722 and 12724

Financial institutions involved in facilitating non-commercial humanitarian funds transfers to Iraq are advised to carefully review the new regulations to ensure compliance with all relevant requirements.