U.S. Court of Appeals Upholds Freeze of Global Relief Foundation

On December 31, 2002, the U.S. Court of Appeals for the Seventh Circuit affirmed the decision of the U.S. District Court denying the request of Global Relief Foundation (GRF) to enjoin the U.S. Department of Treasury?s order on December 14, 2001, to block all assets of GRF. Treasury?s order was issued pursuant to Executive Order 13224 1(d)(i). The International Emergency Economic Powers Act (IEEPA) provides authority for President Bush to issue the Order. GRF denied that any ?foreign...national? has an ?interest? in its assets. It requested the district court to enjoin the blocking order for this reason and several others based on Constitutional grounds. The district court denied its request. On December 14, 2001, in additional to the issuance of the freeze order, Treasury conducted a search of GRF, to decide whether to extend the freeze. GRF also requested an injunction against Treasury?s potential extension of the freeze. Treasury would accomplish the extension by naming GRF a ?Specially Designated Global Terrorist? (SDGT) under Executive Order 13324. On October 18, 2002, the Office of Foreign Assets Control (OFAC) did list GRF as a SDGT. The appellate court observed that the designation of GRF as a SDGT was now a fait accompli, which a court cannot enjoin although it might direct OFAC to lift it. The right issue now is whether the designation of October 18, is supported by adequate information. The appellate court said the district court would need to assemble a new record to resolve this question.