Libyan NTC can now do business in the U.S.
The U.S. government has issued a new policy that allows the Libyan National Transitional Council (NTC) to do business with U.S. organizations and financial institutions, one more step in helping the country establish a new government. The United Nations agreed last week to let the United States release $1.5 billion of the $37 billion of ...
The U.S. government has issued a new policy that allows the Libyan National Transitional Council (NTC) to do business with U.S. organizations and financial institutions, one more step in helping the country establish a new government.
The United Nations agreed last week to let the United States release $1.5 billion of the $37 billion of frozen Qaddafi assets. The State and Treasury Departments are working with the United Nations on thawing more of the Qaddafi money, but that might take a while. In the meantime, the Treasury Department’s Office of Foreign Assets Control (OFAC) has issued a general license that would nullify the part of the executive order that prevents U.S. institutions from dealing with the "Libyan government," in order to allow the NTC to conduct new business with those institutions.
"All transactions involving the TNC are authorized," reads the new General License, signed Aug. 19. (The U.S. government still uses TNC to refer to the new Libyan leadership, though the rebel leadership council has officially changed its name to NTC.)The license explains that this new policy does not affect the frozen Qaddafi assets, but simply allows U.S. institutions conduct future transaction with the NTC.
"It was necessary because the executive order blocks all transactions with the ‘Government of Libya,’ and now could impact the TNC" said Treasury Undersecretary David S. Cohen. "So we wanted to clear away that inadvertent technical problem by issuing this license, which says that any interactions with the TNC or any entity the TNC controls is permitted."
Recently, at least one transaction between the NTC and a U.S. institution was blocked, Cohen said.
Of course, the NTC’s main goal — to get its hands on the rest of the frozen Qaddafi assets — is still a work in progress. The United Nations needs to take action to amend the U.N. Security Council’s resolutions to unfreeze those funds, and the U.S. mission at the U.N. is working that issue hard now.
"The general license addresses new transactions, not the frozen assets," Cohen added, pointing out that some of the frozen assets are personal assets of the Qaddafi family and some are the assets of the Libyan government.
"We’re going to continue to work through the issues with our colleagues at State and our allies both through the U.N. and the contact group to figure out whether there are additional funds that will be unfrozen and delivered up to the TNC, but that’s the next step," said Cohen. "Right now we’re focused on transferring over the $1.5 billion that’s already been approved for release."