[guardian.co.uk] […] The freezing
order for the UK assets of the [Iceland] Landesbanki, including funds of the
Icelandic government, was made under authority of the Anti-Terrorism
Crime and Security Act 2001.
The act was the response to
September 11 2001. It created powers to "freeze the assets of overseas
governments or residents who have taken, or are likely to take, action
to the detriment of the UK’s economy".
The move is suprising,
since Iceland is not a terrorist threat, and the act is described by
the government as intended to "cut off terrorist funding … in the
light of the new situation arising from the September 11 terrorist
attacks".
The Treasury’s order on Wednesday covers cash,
deposits, shares, interest and credit, held or controlled by
Landsbanki. The order made it an offence for UK banks or any other
organisation to make Landsbanki funds available – for example, allowing
withdrawals from its accounts or cashing cheques – without specific
permission from the Treasury.
Landsbanki has been added to a list
of more than 7,000 individuals and organisations that includes
al-Qaida, the Taliban, and the governments of Iran, Sudan and Zimbabwe.
A
Treasury spokesman said: "We have frozen assets of a company based in
Iceland to protect the financial stability of the United Kingdom."
[…] At least eight London boroughs that were in danger of losing millions
of pounds invested in the Icelandic Landsbanki, Cable told Darling
during his statement on the rescue package. By the end of the week it
became clear that the exposure of councils in Iceland was presenting
the government with another big headache. Using unusually florid
language, Brown denounced Iceland and took the remarkable step of using
anti-terror legislation to freeze the assets of its ailing banks.
Britain was angry because Reykjavik was refusing to offer the same
guarantee to British depositors that was being given to its own
citizens.
Source: http://www.guardian.co.uk/business/2008/oct/11/banking-economics
Nice article!
Thanx for posting