Executive Order 13622-Authorizing Additional Sanctions With Respect to Iran
Issued 2012-07-30 by Barack Obama
Plain-English Overview
AI-generated summary explaining what this action does, who it affects, and why it matters
On July 30, 2012, President Obama issued an executive order authorizing additional economic sanctions against Iran. The order targets foreign financial institutions that conduct or facilitate significant financial transactions with Iran's National Iranian Oil Company or Naftiran Intertrade Company, or that purchase petroleum, petroleum products, or petrochemical products from Iran. The President cited Iran's use of revenues from these industries for illicit purposes, Iran's attempts to evade international sanctions through deceptive practices, and the risk posed to the international financial system by Iran's activities.
The order primarily affects foreign banks and financial institutions doing business with Iran's energy sector. The Secretary of the Treasury is authorized to prohibit these foreign institutions from opening or maintaining correspondent accounts or payable-through accounts in the United States if they engage in these transactions with Iran. Exceptions are made for sales of food, medicine, or medical devices to Iran, and for transactions specifically authorized by the Secretary of the Treasury.
This action builds upon a national emergency originally declared in 1995 and uses authority granted by Congress through the International Emergency Economic Powers Act. While courts have generally upheld presidential authority to impose such sanctions during declared emergencies, the breadth of this power—particularly when emergencies last for years—has raised constitutional questions about whether Congress can delegate such extensive economic regulatory authority to the President.
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Constitutional Analysis
How this action fits (or doesn't) within Article II authority and existing law
Executive Order 13622 ("Executive Order 13622-Authorizing Additional Sanctions With Respect to Iran") imposes sanctions or economic restrictions targeting Iran. The President's stated rationale: "because of the ability to transfer funds or other assets instantaneously, prior notice to such persons of measures to be taken pursuant to subsection (a)(iv) of section 4 or subsection (b) of section 5 of this order would render those measures ineffe..." The International Emergency Economic Powers Act (IEEPA) grants the President broad authority to regulate international economic transactions when a national emergency has been declared. Presidents from both parties have used IEEPA extensively for foreign policy sanctions.
While the statutory authority is well-established, IEEPA's breadth has drawn constitutional criticism. The statute delegates sweeping power to the President during emergencies that can last for years or decades. The non-delegation doctrine questions whether Congress can transfer such broad economic regulatory authority to the executive branch. Despite these concerns, courts have generally deferred to presidential sanctions decisions.
Official Summary
Administration of Barack Obama, 2012 Executive Order 13622—Authorizing Additional Sanctions With Respect to Iran July 30, 2012 By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq .) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq .), and section 301 of title 3, United States Code, I, Barack Obama, President of the United States of America, in order to take additional steps with respect to the national emergency declared in Executive Order 12957 of March 15, 1995, as relied upon for additional steps in subsequent Executive Orders, particularly in light of the Government of Iran's use of revenues from petroleum, petroleum products, and petrochemicals for illicit purposes, Iran's continued attempts to evade international sanctions through deceptive practices, and the unacceptable risk posed to the international financial system by Iran's activities, hereby order: Section 1 . (a) The Secretary of the Treasury, in consultation with the Secretary of State, is hereby authorized to impose on a foreig