International Emergency Economic Powers Act

The International Emergency Economic Powers Act (IEEPA) is a United States federal law that authorizes the President to regulate certain economic transactions after declaring a national emergency in response to an unusual and extraordinary threat to the United States that originates in whole or substantial part outside the United States.

IEEPA is primarily codified in Title 50 of the United States Code, sections 1701–1708.

A simplified framework is:

$\mathrm{F}\mathrm{o}\mathrm{r}\mathrm{e}\mathrm{i}\mathrm{g}\mathrm{n}\mathrm{T}\mathrm{h}\mathrm{r}\mathrm{e}\mathrm{a}\mathrm{t}\to \mathrm{N}\mathrm{a}\mathrm{t}\mathrm{i}\mathrm{o}\mathrm{n}\mathrm{a}\mathrm{l}\mathrm{E}\mathrm{m}\mathrm{e}\mathrm{r}\mathrm{g}\mathrm{e}\mathrm{n}\mathrm{c}\mathrm{y}\to \mathrm{P}\mathrm{r}\mathrm{e}\mathrm{s}\mathrm{i}\mathrm{d}\mathrm{e}\mathrm{n}\mathrm{t}\mathrm{i}\mathrm{a}\mathrm{l}\mathrm{A}\mathrm{u}\mathrm{t}\mathrm{h}\mathrm{o}\mathrm{r}\mathrm{i}\mathrm{t}\mathrm{y}\to \mathrm{E}\mathrm{c}\mathrm{o}\mathrm{n}\mathrm{o}\mathrm{m}\mathrm{i}\mathrm{c}\mathrm{M}\mathrm{e}\mathrm{a}\mathrm{s}\mathrm{u}\mathrm{r}\mathrm{e}\mathrm{s}$

History

IEEPA was enacted in 1977 as part of legislation that restructured and limited presidential emergency economic powers.

The act amended the legal framework that had previously allowed the President to exercise broad emergency economic authorities under the Trading with the Enemy Act.

IEEPA established a more specific statutory framework for exercising emergency economic powers in response to threats originating outside the United States.

A simplified progression is:

$\mathrm{E}\mathrm{a}\mathrm{r}\mathrm{l}\mathrm{i}\mathrm{e}\mathrm{r}\mathrm{E}\mathrm{m}\mathrm{e}\mathrm{r}\mathrm{g}\mathrm{e}\mathrm{n}\mathrm{c}\mathrm{y}\mathrm{P}\mathrm{o}\mathrm{w}\mathrm{e}\mathrm{r}\mathrm{s}\to \mathrm{I}\mathrm{E}\mathrm{E}\mathrm{P}\mathrm{A}\to \mathrm{D}\mathrm{e}\mathrm{f}\mathrm{i}\mathrm{n}\mathrm{e}\mathrm{d}\mathrm{E}\mathrm{m}\mathrm{e}\mathrm{r}\mathrm{g}\mathrm{e}\mathrm{n}\mathrm{c}\mathrm{y}\mathrm{E}\mathrm{c}\mathrm{o}\mathrm{n}\mathrm{o}\mathrm{m}\mathrm{i}\mathrm{c}\mathrm{A}\mathrm{u}\mathrm{t}\mathrm{h}\mathrm{o}\mathrm{r}\mathrm{i}\mathrm{t}\mathrm{i}\mathrm{e}\mathrm{s}$

Declaration of a national emergency

IEEPA generally becomes available when the President declares a national emergency with respect to an unusual and extraordinary threat to the United States that has its source in whole or substantial part outside the United States.

The President must exercise the authority consistently with the statutory requirements governing the declaration and use of emergency powers.

A simplified representation is:

$\mathrm{U}\mathrm{n}\mathrm{u}\mathrm{s}\mathrm{u}\mathrm{a}\mathrm{l}\mathrm{a}\mathrm{n}\mathrm{d}\mathrm{E}\mathrm{x}\mathrm{t}\mathrm{r}\mathrm{a}\mathrm{o}\mathrm{r}\mathrm{d}\mathrm{i}\mathrm{n}\mathrm{a}\mathrm{r}\mathrm{y}\mathrm{T}\mathrm{h}\mathrm{r}\mathrm{e}\mathrm{a}\mathrm{t}\to \mathrm{P}\mathrm{r}\mathrm{e}\mathrm{s}\mathrm{i}\mathrm{d}\mathrm{e}\mathrm{n}\mathrm{t}\mathrm{i}\mathrm{a}\mathrm{l}\mathrm{D}\mathrm{e}\mathrm{c}\mathrm{l}\mathrm{a}\mathrm{r}\mathrm{a}\mathrm{t}\mathrm{i}\mathrm{o}\mathrm{n}\to \mathrm{I}\mathrm{E}\mathrm{E}\mathrm{P}\mathrm{A}\mathrm{A}\mathrm{u}\mathrm{t}\mathrm{h}\mathrm{o}\mathrm{r}\mathrm{i}\mathrm{t}\mathrm{i}\mathrm{e}\mathrm{s}$

The declaration of a national emergency does not by itself mean that every economic power available under IEEPA is automatically exercised.

Presidential powers

IEEPA authorizes the President, after declaring an applicable national emergency, to regulate certain transactions involving property in which a foreign country or national has an interest.

Authorities can include:

• blocking property;
• prohibiting transactions;
• regulating transfers of property;
• restricting financial transactions;
• imposing restrictions on imports or exports in circumstances authorized by the statute.

A simplified relationship is:

$\mathrm{N}\mathrm{a}\mathrm{t}\mathrm{i}\mathrm{o}\mathrm{n}\mathrm{a}\mathrm{l}\mathrm{E}\mathrm{m}\mathrm{e}\mathrm{r}\mathrm{g}\mathrm{e}\mathrm{n}\mathrm{c}\mathrm{y}\to \mathrm{E}\mathrm{c}\mathrm{o}\mathrm{n}\mathrm{o}\mathrm{m}\mathrm{i}\mathrm{c}\mathrm{R}\mathrm{e}\mathrm{s}\mathrm{t}\mathrm{r}\mathrm{i}\mathrm{c}\mathrm{t}\mathrm{i}\mathrm{o}\mathrm{n}\mathrm{s}\to \mathrm{B}\mathrm{l}\mathrm{o}\mathrm{c}\mathrm{k}\mathrm{e}\mathrm{d}\mathrm{o}\mathrm{r}\mathrm{R}\mathrm{e}\mathrm{g}\mathrm{u}\mathrm{l}\mathrm{a}\mathrm{t}\mathrm{e}\mathrm{d}\mathrm{T}\mathrm{r}\mathrm{a}\mathrm{n}\mathrm{s}\mathrm{a}\mathrm{c}\mathrm{t}\mathrm{i}\mathrm{o}\mathrm{n}\mathrm{s}$

The precise scope of restrictions depends on the relevant presidential order, statutory authority, and circumstances of the emergency.

Economic sanctions

IEEPA is a principal statutory basis for many United States economic sanctions programmes.

Presidential orders issued under IEEPA can authorize the United States Department of the Treasury, particularly its Office of Foreign Assets Control (OFAC), to administer and enforce sanctions.

A simplified framework is:

$\mathrm{I}\mathrm{E}\mathrm{E}\mathrm{P}\mathrm{A}\to \mathrm{E}\mathrm{x}\mathrm{e}\mathrm{c}\mathrm{u}\mathrm{t}\mathrm{i}\mathrm{v}\mathrm{e}\mathrm{O}\mathrm{r}\mathrm{d}\mathrm{e}\mathrm{r}\to \mathrm{O}\mathrm{F}\mathrm{A}\mathrm{C}\mathrm{S}\mathrm{a}\mathrm{n}\mathrm{c}\mathrm{t}\mathrm{i}\mathrm{o}\mathrm{n}\mathrm{s}\to \mathrm{E}\mathrm{c}\mathrm{o}\mathrm{n}\mathrm{o}\mathrm{m}\mathrm{i}\mathrm{c}\mathrm{R}\mathrm{e}\mathrm{s}\mathrm{t}\mathrm{r}\mathrm{i}\mathrm{c}\mathrm{t}\mathrm{i}\mathrm{o}\mathrm{n}\mathrm{s}$

Sanctions can target countries, governments, organizations, individuals, financial assets, sectors, or particular types of transactions.

Restrictions on transactions

IEEPA can permit the President to prohibit or regulate transactions involving property subject to United States jurisdiction.

Depending on the applicable sanctions programme, restrictions can affect:

• banking transactions;
• securities transactions;
• asset transfers;
• trade;
• investment;
• provision of services;
• dealings involving designated persons or entities.

A simplified relationship is:

$\mathrm{S}\mathrm{a}\mathrm{n}\mathrm{c}\mathrm{t}\mathrm{i}\mathrm{o}\mathrm{n}\mathrm{s}\mathrm{A}\mathrm{u}\mathrm{t}\mathrm{h}\mathrm{o}\mathrm{r}\mathrm{i}\mathrm{t}\mathrm{y}\to \mathrm{T}\mathrm{r}\mathrm{a}\mathrm{n}\mathrm{s}\mathrm{a}\mathrm{c}\mathrm{t}\mathrm{i}\mathrm{o}\mathrm{n}\mathrm{R}\mathrm{e}\mathrm{s}\mathrm{t}\mathrm{r}\mathrm{i}\mathrm{c}\mathrm{t}\mathrm{i}\mathrm{o}\mathrm{n}\mathrm{s}\to \mathrm{R}\mathrm{e}\mathrm{d}\mathrm{u}\mathrm{c}\mathrm{e}\mathrm{d}\mathrm{E}\mathrm{c}\mathrm{o}\mathrm{n}\mathrm{o}\mathrm{m}\mathrm{i}\mathrm{c}\mathrm{A}\mathrm{c}\mathrm{c}\mathrm{e}\mathrm{s}\mathrm{s}$

The specific restrictions depend on the applicable legal authority and implementing regulations.

Limitations

IEEPA is subject to statutory limitations.

For example, the act generally does not authorize the regulation or prohibition of personal communications, donations of certain types of humanitarian materials, or certain informational materials in circumstances specified by the statute.

The statute also contains limitations concerning personal communications and certain other categories of transactions.

A simplified principle is:

$\mathrm{I}\mathrm{E}\mathrm{E}\mathrm{P}\mathrm{A}\mathrm{A}\mathrm{u}\mathrm{t}\mathrm{h}\mathrm{o}\mathrm{r}\mathrm{i}\mathrm{t}\mathrm{y}\to \mathrm{S}\mathrm{t}\mathrm{a}\mathrm{t}\mathrm{u}\mathrm{t}\mathrm{o}\mathrm{r}\mathrm{y}\mathrm{L}\mathrm{i}\mathrm{m}\mathrm{i}\mathrm{t}\mathrm{s}\to \mathrm{P}\mathrm{e}\mathrm{r}\mathrm{m}\mathrm{i}\mathrm{t}\mathrm{t}\mathrm{e}\mathrm{d}\mathrm{E}\mathrm{c}\mathrm{o}\mathrm{n}\mathrm{o}\mathrm{m}\mathrm{i}\mathrm{c}\mathrm{M}\mathrm{e}\mathrm{a}\mathrm{s}\mathrm{u}\mathrm{r}\mathrm{e}\mathrm{s}$

The precise scope of these limitations depends on the statutory provisions and applicable regulations.

Congressional oversight

The President must report certain actions taken under IEEPA to Congress.

IEEPA also operates within the broader framework governing presidential emergency powers, including the National Emergencies Act.

A simplified institutional relationship is:

$\mathrm{P}\mathrm{r}\mathrm{e}\mathrm{s}\mathrm{i}\mathrm{d}\mathrm{e}\mathrm{n}\mathrm{t}\to \mathrm{E}\mathrm{m}\mathrm{e}\mathrm{r}\mathrm{g}\mathrm{e}\mathrm{n}\mathrm{c}\mathrm{y}\mathrm{D}\mathrm{e}\mathrm{c}\mathrm{l}\mathrm{a}\mathrm{r}\mathrm{a}\mathrm{t}\mathrm{i}\mathrm{o}\mathrm{n}\to \mathrm{I}\mathrm{E}\mathrm{E}\mathrm{P}\mathrm{A}\mathrm{A}\mathrm{c}\mathrm{t}\mathrm{i}\mathrm{o}\mathrm{n}\to \mathrm{C}\mathrm{o}\mathrm{n}\mathrm{g}\mathrm{r}\mathrm{e}\mathrm{s}\mathrm{s}\mathrm{i}\mathrm{o}\mathrm{n}\mathrm{a}\mathrm{l}\mathrm{R}\mathrm{e}\mathrm{p}\mathrm{o}\mathrm{r}\mathrm{t}\mathrm{i}\mathrm{n}\mathrm{g}$

Congress can enact legislation affecting emergency authorities, subject to constitutional requirements.

Enforcement

Violations of sanctions or other restrictions implemented under IEEPA can result in civil or criminal penalties under applicable law.

OFAC administers many sanctions programmes based on IEEPA and other statutory authorities.

A simplified enforcement process is:

$\mathrm{I}\mathrm{E}\mathrm{E}\mathrm{P}\mathrm{A}\to \mathrm{S}\mathrm{a}\mathrm{n}\mathrm{c}\mathrm{t}\mathrm{i}\mathrm{o}\mathrm{n}\mathrm{s}\mathrm{R}\mathrm{e}\mathrm{g}\mathrm{u}\mathrm{l}\mathrm{a}\mathrm{t}\mathrm{i}\mathrm{o}\mathrm{n}\mathrm{s}\to \mathrm{C}\mathrm{o}\mathrm{m}\mathrm{p}\mathrm{l}\mathrm{i}\mathrm{a}\mathrm{n}\mathrm{c}\mathrm{e}\mathrm{O}\mathrm{b}\mathrm{l}\mathrm{i}\mathrm{g}\mathrm{a}\mathrm{t}\mathrm{i}\mathrm{o}\mathrm{n}\mathrm{s}\to \mathrm{E}\mathrm{n}\mathrm{f}\mathrm{o}\mathrm{r}\mathrm{c}\mathrm{e}\mathrm{m}\mathrm{e}\mathrm{n}\mathrm{t}$

Financial institutions and other organizations subject to United States jurisdiction may therefore need to implement compliance procedures for applicable sanctions programmes.

Relationship with the Trading with the Enemy Act

IEEPA and the Trading with the Enemy Act (TWEA) are related but distinct federal statutes.

TWEA provides emergency economic powers primarily in connection with wartime circumstances, while IEEPA provides authorities for certain national emergencies involving unusual and extraordinary threats originating outside the United States.

A simplified distinction is:

$\mathrm{W}\mathrm{a}\mathrm{r}\mathrm{t}\mathrm{i}\mathrm{m}\mathrm{e}\mathrm{E}\mathrm{m}\mathrm{e}\mathrm{r}\mathrm{g}\mathrm{e}\mathrm{n}\mathrm{c}\mathrm{y}\to \mathrm{T}\mathrm{W}\mathrm{E}\mathrm{A}$

$\mathrm{Q}\mathrm{u}\mathrm{a}\mathrm{l}\mathrm{i}\mathrm{f}\mathrm{y}\mathrm{i}\mathrm{n}\mathrm{g}\mathrm{F}\mathrm{o}\mathrm{r}\mathrm{e}\mathrm{i}\mathrm{g}\mathrm{n}\mathrm{T}\mathrm{h}\mathrm{r}\mathrm{e}\mathrm{a}\mathrm{t}\to \mathrm{I}\mathrm{E}\mathrm{E}\mathrm{P}\mathrm{A}$

The applicable authority depends on the circumstances and the legal basis specified by the President.

Role in United States foreign policy

IEEPA provides a legal mechanism through which the United States can impose economic restrictions in response to foreign-policy, national-security, and other external threats.

Economic measures implemented under IEEPA can be used to restrict access to the United States financial system, freeze assets, limit transactions, and impose other economic constraints.

A simplified relationship is:

$\mathrm{F}\mathrm{o}\mathrm{r}\mathrm{e}\mathrm{i}\mathrm{g}\mathrm{n}\mathrm{P}\mathrm{o}\mathrm{l}\mathrm{i}\mathrm{c}\mathrm{y}\mathrm{O}\mathrm{b}\mathrm{j}\mathrm{e}\mathrm{c}\mathrm{t}\mathrm{i}\mathrm{v}\mathrm{e}\to \mathrm{I}\mathrm{E}\mathrm{E}\mathrm{P}\mathrm{A}\mathrm{A}\mathrm{u}\mathrm{t}\mathrm{h}\mathrm{o}\mathrm{r}\mathrm{i}\mathrm{t}\mathrm{y}\to \mathrm{E}\mathrm{c}\mathrm{o}\mathrm{n}\mathrm{o}\mathrm{m}\mathrm{i}\mathrm{c}\mathrm{M}\mathrm{e}\mathrm{a}\mathrm{s}\mathrm{u}\mathrm{r}\mathrm{e}\mathrm{s}\to \mathrm{P}\mathrm{o}\mathrm{l}\mathrm{i}\mathrm{c}\mathrm{y}\mathrm{P}\mathrm{r}\mathrm{e}\mathrm{s}\mathrm{s}\mathrm{u}\mathrm{r}\mathrm{e}$

IEEPA measures can therefore form part of broader diplomatic and national-security strategies.

See also

• Economic sanctions
• Office of Foreign Assets Control
• National Emergencies Act
• Trading with the Enemy Act
• United States Department of the Treasury
• United States sanctions against Iran
• United States sanctions against Russia
• United States sanctions against North Korea