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11.23.4 Regulation of External Trade. The Occupying Power may also regulate foreigntrade, including completely suspending such trade. 482 For example, the Occupying Power mayhalt the export of precious metals and other valuable items that are readily converted orexchanged on the international market, including metals such as copper, jewels, and securities. 483Commercial relations between the occupied territory and the remaining territory of theenemy and its allies are also normally suspended. 484 Such suspension may be relaxed throughlicenses to trade. 48511.23.5 Exchange Controls, Including Clearing Arrangements, and Asset Controls. TheOccupying Power may also institute exchange controls, including clearing arrangements, and, ifnecessary, the freezing or blocking of certain assets, in order to conserve the monetary assets ofthe occupied territory, as well as for security purposes. 486 For example, the Occupying Powermay regulate, or even prohibit, the flow of funds between the occupied territory and othercountries, under the theory that preventing flight of capital assets is critical to maintaining orderand stability. 487 Such measures must not, however, be used to enrich the Occupying Power or482 VON GLAHN, THE OCCUPATION OF ENEMY TERRITORY 211-12 (“The occupant possesses a right, based on logic,to regulate all trade between an occupied area and the outside world. ... [N]ormally, also, all commercial relationsbetween the area and its allies as well as the remainder of the sovereign’s territory are suspended as soon asoccupation becomes effective.”).483 For example, Coalition Provisional Authority Order No. 12, Trade Liberalization Policy, Annex – ProhibitedExports (Jun. 8, 2003); Coalition Provisional Authority Order No. 54, Trade Liberalization Policy 2004, Annex –Restricted Exports (Feb. 26, 2004); Coalition Provisional Authority Memorandum No. 8, Exportation of ScrapMetal Under Order Number 12, Trade Liberalization Policy (CPA/ORD/7 June2003/12), §3 (Jan. 25, 2004)(“Effective February 1, 2004, metal, including scrap metal, shall not be exported without authorization from theMinistry of Trade. Prior to February 1, 2004, scrap metal, excluding copper and lead, may be exported without alicense.”).484 1956 FM 27-10 (Change No. 1 1976) 376 (“The commander of the occupying forces will usually find itadvisable to forbid intercourse between the occupied territory and the territory still in the possession of theenemy.”). Refer to § 12.1.1 (Traditional Rule of Non-Intercourse During War).485 Refer to § 12.6.3.2 (Licenses to Trade).486 1956 FM 27-10 (Change No. 1 1976) 430 (“The occupant may also institute exchange controls, includingclearing arrangements, in order to conserve the monetary assets of the occupied territory.”). For example, CoalitionProvisional Authority Order No. 93, Anti-Money Laundering Act of 2004, §1 (Jun. 3, 2004) (“The purpose of theAnti-Money Laundering Law is to secure financial institutions and combat instability by criminalizing the acts oflaundering money, financing crime, financing terrorism, and structuring certain transactions.”); Haw Pia v. ChinaBanking Corp. (Supreme Ct., Philippines 1949), Annual Digest, 1951, Case No. 203, reprinted in 43 AJIL 821-23(1949) (“As to the first question, we … hold, that the Japanese military authorities had power, under theinternational law, to order the liquidation of the China Banking Corporation and to appoint and authorize the Bankof Taiwan as liquidator to accept the payment in question, because such liquidation is not a confiscation of theproperties of the bank appellee, but a mere sequestration of its assets which require the liquidation or winding up ofthe business of said bank.”) (amendment in AJIL).487 VON GLAHN, THE OCCUPATION OF ENEMY TERRITORY 203-04 (“Thus an occupant would appear to possess theright to regulate and even to prohibit a flow of funds between an occupied territory and other countries, in view ofthe likely possibility that a capital flight would disrupt the monetary system and hence the order and safety to bepreserved by the occupant.”).820