[House Document 107-188]
[From the U.S. Government Publishing Office]
107th Congress, 2d Session - - - - - - - - - - - - House Document 107-188
PERIODIC REPORT ON THE NATIONAL EMERGENCY
WITH RESPECT TO IRAN
__________
COMMUNICATION
From
THE PRESIDENT OF THE UNITED STATES
transmitting
A 6-MONTH PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO
IRAN THAT WAS DECLARED IN EXECUTIVE ORDER 12957 OF MARCH 15, 1995,
PURSUANT TO 50 U.S.C. 1641(c); 50 U.S.C. 1730(c); 22 U.S.C. 2349aa-9(c)
March 13, 2002.--Referred to the Committee on International Relations
and ordered to be printed
To the Congress of the United States:
As required by section 401(c) of the National Emergencies
Act, 50 U.S.C. 1641(c), section 204(c) of the International
Emergency Economic Powers Act, 50 U.S.C. 1703(c), and section
505(c) of the International Security and Development
Cooperation Act of 1985, 22 U.S.C. 2349aa-9(c), I transmit
herewith a 6-month periodic report prepared by my
Administration on the national emergency with respect to Iran
that was declared in Executive Order 12957 of March 15, 1995.
George W. Bush.
The White House, March 13, 2002.
Periodic Report on the National Emergency With Respect to Iran
This report to the Congress presents developments over the
course of the past 6 months concerning the national emergency
with respect to Iran that was declared in Executive Order 12957
of March 15, 1995, as added to in Executive Order 12959 of May
6, 1995, and clarified in Executive Order 13059 of August 19,
1997. This report is submitted pursuant to section 204(c) of
the International Emergency Economic Powers Act, 50 U.S.C.
1703(c) (``IEEPA''), section 401(c) of the National Emergencies
Act, 50 U.S.C. 1641(c), and section 505(c) of the International
Security and Development Cooperation Act of 1985, 22 U.S.C.
2349aa-9(c). This report discusses only matters concerning the
national emergency with respect to Iran that was declared in
Executive Order 12957 and does not deal with those relating to
the emergency declared on November 14, 1979, in connection with
the hostage crisis.
1. During the current reporting period, the Department of
the Treasury's Office of Foreign Assets Control (OFAC) made
numerous decisions with respect to applications for licenses to
engage in transactions under the Regulations. Of those
applications for licenses that were denied, the majority were
for requests to authorize commercial exports to Iran--
particularly of machinery and equipment for various
industries--and the importation of Iranian-origin goods.
Ninety-six licenses were issued, of which 33 authorized
commercial sales and exportation to Iran of bulk agricultural
commodities. In addition, 41 licenses were also issued
authorizing sales of medicines or medical equipment. Other
licenses issued authorized certain licensable transactions
involving commercial transactions made pursuant to contracts
executed prior to the imposition of sanctions, the provision of
international Internet access service, scientific workshops,
the importation of art objects for public exhibition, and
transactions relating to the transshipment of agricultural
products destined for Afghanistan under the auspices of the
United Nations, as well as other transactions ultimately
related to the humanitarian efforts in Afghanistan. Pursuant to
Sections 3 and 4 of Executive Order 12959 and Executive Order
13059 and consistent with statutory restrictions concerning
certain goods and technology, including those involved in air
safety cases, Treasury continues to consult with the
Departments of State and Commerce in the issuance of licenses.
2. For the period September 15, 2001, through March 14,
2002, on OFAC's instructions, U.S. banks refused to process
approximately 500 commercial transactions, the majority
involving foreign financial institutions. The completion of
these transactions by U.S. banks would have been contrary to
U.S. foreign policy with respect to Iran. The rejected
transactions caused a disruption of approximately $271 million
in financial dealings involving Iran by virtue of U.S. economic
sanctions.
3. Since the last report, OFAC has collected 19 civil
monetary penalties, settlements, and installment payments
totaling more than $200,000 for violations of IEEPA and the
Regulations. The violators included seven companies, four U.S.
financial institutions, one carrier, and one individual. An
additional 175 cases are undergoing penalty action for
violations of the Regulations and IEEPA. In addition, criminal
charges were filed in Phoenix and New York City in two separate
cases involving the export of financial services to Iran. The
indictments each allege that the defendants were involved in an
illegal money transmitting operation by transferring funds from
the United States to accounts maintained in banks in Iran via
Dubai, U.A.E. The parties are not linked to any terrorist
funding operations. Various other enforcement actions carried
over from previous reporting periods are continuing and new
reports of violations are being aggressively pursued.
4. The expenses incurred by the Federal Government in the
6-month period from September 15, 2001, through March 14, 2002,
that are directly attributable to the exercise of powers and
authorities conferred by the declaration of a national
emergency with respect to Iran are estimated to be
approximately $1,450,000, most of which represent wage and
salary costs for Federal personnel. Personnel costs were
largely centered in the Department of the Treasury
(particularly in the Office of Foreign Assets Control, the U.S.
Customs Service, the Office of the Under Secretary for
Enforcement, and the Office of the General Counsel), the
Department of State, and the Department of Commerce.
5. The situation in Iran continues to present an
extraordinary and unusual threat to the national security,
foreign policy, and economy of the United States. The
declaration of the national emergency with respect to Iran
contained in Executive Order 12957 and the comprehensive
economic sanctions imposed by Executive Order 12959 underscore
the United States Government's opposition to the actions and
policies of the Government of Iran, particularly its support of
international terrorism and its efforts to acquire weapons of
mass destruction and the means to deliver them. The
prohibitions contained in Executive Orders 12957, 12959, and
13059 advance important objectives in furthering the
nonproliferation and anti-terrorism policies of the United
States.