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FEDERAL RESERVE BANK
OF NEW YORK
F isca l A g en t o f the U n ited S tates
[
Circular No. 10444-!
March 22, 1991
IRAQ SANCTIONS
Special Blocking Memorandum
To All Banks, and Others Concerned,
in the Second Federal Reserve District:
The Office of Foreign Assets Control of the Department of the Treasury has
requested that we provide each Second District commercial bank with a copy of
the enclosed communication.
Questions on this matter may be directed to the persons specified in the last
paragraph of the communication, or, at this Bank, to Bradley K. Sabel, Counsel
(Tel. No. 212-720-5041).
E. G erald C o r r ig a n ,
P r e s id e n t.
DEPARTMENT OF THE TREASURY
WASHINGTON
MAR 21199]
FAC NO- 121910
MEMORANDUM FOR ALL FEDERAL RESERVE
FROM;
R* RICHARD NEWCOMB
DIRECTOR
OFFICE OF FOREIGN ASSETS CONTROL
SUBJECT;
IRAQ SANCTIONS: SPECIAL BLOCKING MEMORANDUM AND
REQUEST FOR ASSISTANCE
This is a request for immediate action.
The Office of Foreign Assets Control, pursuant to Executive
Orders No- 12722 of August 2, 1990, No. 12724 of'August 9, 1990,
("Blocking Iraqi Government Property and Prohibiting Transactions
with Iraq"), section 203 of the international Emergency Economic
Powers Act, 50 U.S.C* 1701-1706 ("IEEPA"*), section 5 of the
United Nations Participation Act, 22 U.S*C- 287c, and section
575*306 of the Iraqi Sanctions Regulations, 31 C.F.R. Part 575,
56 FR 2112, January 18, 1991 (the "Regulations"), finds that
there is reasonable cause to believe that on or since the
effective date (August 2, 1990 at 5:00 a.m-, EST) the belowlisted company and persons have in their possession property and
financial assets iii which the Government of Iraq or the
authorities thereof have had an interestBay Industries, Inc*
Anees Mansoor Wadi ("Wa&i”)
Shamsaban Al-Eayderi (“Al-Beyderi”) (wife of Wadi)
Consequently, pursuant to section 575*201 of the Regulations, all
real and personal property and financial assets of and Bay
Industries and all real property and financial assets of Wadi and
Al-Hayderi are blocked* The blocked financial assets include,
without limitation, all bank, loan, charge, and investment
accounts and securities in which Bay industries, Wadi and/or AlHayderi have any interest- Neither the company or persons listed
herein nor their representatives shall be permitted access to
property within a bank*s custody, specifically including safe
deposit boxes, except as authorized by the Office of Foreign
Assets ControlAll Federal Reserve Banks, including branches and other offices,
are requested to notify the commercial banks in their districts
of these determinations and to instruct them that all such
accounts are blocked and that no transactions concerning such
accounts or Bay Industries, Wadi or Al-Hayderi are permitted
except as specifically authorized by the Director, Office of
Foreign Assets Control[Enc. Cir. No. 10444]
(OVER)
2
Furthermore, we request that, banks be instructed, in accordance
with section 575.602 of the Regulations and section 203(a) (2) of
IESPA, to report, under oath, any blocked property within their
possession of Bay Industries, Wadi, or Al-Eayderi, and all
transactions therein, on or after the effective date, including
prohibited transactions that are or were blocked by the banks or
transactions that are or were attempted but not consummated,
within 10 days of receipt of the Federal Reserve Bank’s
notification or, in the case of attempted transactions, within 10
days of occurrence. The banks’ reports should include all
information within their possession, control or custody detailing
the blocked property (including accounts) as of August 2, 1990,
specifically identifying where such property is now held, and
separately accounting for any transfers of property since
August 2, 1990. In the case of accounts of any nature, the bank
or other financial institution should provide the account number,
the amount on deposit, available credit or balance outstanding,
and the name and address of the institution or agency holding the
account; and it should provide evidence confirming that the
account is being maintained in a blocked status.
In the case of attempted transactions involving Bay Industries,
Radi and Al-Hayderi or relating to their accounts, the bank
should provide the names, addresses, account numbers and any
other available information identifying the parties or intended
parties, including all financial institutions, involved with the
attempted transaction.
For your information, Radi and/or Al-Eayderi will be permitted to
operate one account of their choice. It will have a limited
monthly amount allowed for necessary and reasonable expenditures.
Such details will be worked out between Wadi and/or Al-Hayderi
and the office of Foreign Assets Control when they file an
application for a specific license to operate such an account.
If you have any questions concerning any aspect of this memo,
please contact me at (202)535-9445 or J. Robert KcBrien at
(202)566-5021.
@FedFRASER