The U.S. Department of the Treasury Office of Foreign Assets Control (“OFAC”) has designated Muthanna Harith al-Dari for providing financial, material, or technological support and financial  services to or in support of Al Qaeda in Iraq. This designation was made pursuant to the Global Terrorism Sanctions Regulations and Executive Order 13224. These sanctions block the assets of a designee under U.S. jurisdiction. More importantly a designation prevents U.S. persons from engaging in any transactions with a designee.

The United Nations has also taken similar steps by adding al-Dari to the Consolidated List of individuals and entities associated with Usama bin Laden, al-Qaeda and the Taliban. This action was taken at the request of the Governments of Iraq and the United States.

Al-Dari is thought to have provided support to Al Qaeda in Iraq by offering operational guidance for attacks against Iraqi and Coalition Forces in Iraq.  This included providing training to insurgent organizations fighting Coalition Forces.   He also advised the trainees that he and two other individuals would travel to Baghdad to begin resupplying insurgent leaders with equipment.

It is believed that al-Dari provided $1 million for the recruitment of Iraqis in Syria and al-Anbar province to support Al Qaeda in Iraq, and instructed the recruiter to inform new recruits that they would be paid up to $10,000 upon completion of their training in Syria.  Furthermore, al-Dari financed an Al Qaeda cell that called for fighting against the Iraqi Army and Multinational Forces – Iraq.

Al-Dari also provided financial support to his own Sunni insurgent group, the 1920s Revolutionary Brigade, and other insurgent cells.  It is believed he funded the operations of a faction of the 1920s Revolutionary Brigade faction. Those operations included targeting Coalition Forces, the Iraqi Army and Police, and Government of Iraq officials.  Furthermore, al-Dari provided funding to a cell leader conducting an improvised explosive device (IED) operations targeting Coalition Forces along a highway between Zaidan and Nassir Wa Salaam, Iraq.

Designation under this sanctions program can be contested, however, it can be quite difficult. For one, there is the consideration that the designation removal requires counsel seeking the removal on behalf of the designated party to be specifically licensed in order to receive payment. This is a provision which often scares certain attorneys off. Second, there may not be a great deal of physical documentation to show that the individual has ceased to the provision of support to terrorists or terrorist organizations. It would seem hard to believe that there would be much in the way of a paper trail to show the cessation of financial assistance to any particular terrorist organization. This is problematic in that OFAC often looks for such documentation.

If you have been designated under any of OFAC’s sanctions programs, contact an attorney who is knowledgable about the regulations and experienced in dealing with OFAC to learn what rights you may have.

The author of this blog is Erich Ferrari, an attorney specializing in OFAC litigation. If you have any questions please contact him at 202-280-6370 at 202-351-6161 or ferrari@ferrari-legal.com.