[House Document 107-192]
[From the U.S. Government Publishing Office]
107th Congress, 2d Session - - - - - - - - - - - House Document 107-192
PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO PERSONS WHO
COMMIT, THREATEN TO COMMIT, OR SUPPORT TERRORISM
__________
COMMUNICATION
from
THE PRESIDENT OF THE UNITED STATES
transmitting
A 6-MONTH PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO
PERSONS WHO COMMIT, THREATEN TO COMMIT, OR SUPPORT TERRORISM THAT WAS
DECLARED IN EXECUTIVE ORDER 13224 OF SEPTEMBER 23, 2001, PURSUANT TO 50
U.S.C. 1641(c) AND 50 U.S.C. 1703(c)
April 9, 2002.--Referred to the Committee on International Relations
and ordered to be printed
__________
U.S. GOVERNMENT PRINTING OFFICE
99-011 WASHINGTON : 2002
The White House,
Washington, March 20, 2002.
Hon. J. Dennis Hastert,
Speaker of the House of Representatives,
Washington, DC.
Dear Mr. Speaker: 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), I transmit herewith a 6-month periodic report prepared
by my Administration on the national emergency with respect to
persons who commit, threaten to commit, or support terrorism
that was declared in Executive Order 13224 of September 23,
2001.
Sincerely,
George W. Bush.
Periodic Report on the National Emergency With Respect to Persons Who
Commit, Threaten to Commit, or Support Terrorism
This report to the Congress presents developments over the
past 6 months concerning the national emergency with respect to
persons who commit, threaten to commit, or support terrorism
that was declared in Executive Order 13224 of September 23,
2001. This report is submitted pursuant to section 401(c) of
the National Emergencies Act, 50 U.S.C. 1641(c), and section
204(c) of the International Emergency Economic Powers Act
(``IEEPA''), 50 U.S.C. 1703(c).
1. On September 23, 2001, Executive Order 13224, ``Blocking
Property and Prohibiting Transactions With Persons Who Commit,
Threaten to Commit, or Support Terrorism'' (66 Fed. Reg. 4909,
September 25, 2001) (the ``Order'') was signed. The Order,
effective 12:01 a.m., EST, September 24, 2001, was issued to
deal with the grave acts of terrorism and threats of terrorism
committed by foreign terrorists, including the terrorist
attacks in New York and Pennsylvania and against the Pentagon
committed on September 11, 2001. These terrorist acts were also
condemned in United Nations Security Council Resolutions 1368
of September 12, 2001, and 1373 of September 28, 2001.
The Order blocks all property and interests in property
within the United States or in the possession or control of
U.S. persons, including foreign branches, in which there is an
interest of any person listed in the Annex to the Order or
subsequently determined to be subject to the Order. The Order
further prohibits any transaction or dealing by a U.S. person
or by a person within the United States in property or
interests in property blocked by the Order, including but not
limited to the making or receiving of any contribution of
funds, goods, or services to or for the benefit of those
persons listed in the Annex to the Order or subsequently
determined to be subject to the Order. The Order also prohibits
any transaction by a U.S. person or within the United States
that evades or avoids, or has the purpose of evading or
avoiding, or attempts to violate, any of the prohibitions of
the Order, and any conspiracy formed to violate the
prohibitions of the Order. A copy of the Order is attached to
this report.
2. In the Annex to the Order, the assets of 12 individuals
and 15 entities were blocked. Additional individuals and
entities have been subsequently designated by the Secretary of
State and the Secretary of the Treasury. As of February 15,
2002, the Secretary of State, in consultation with the
Secretary of the Treasury and the Attorney General, has
identified 37 individuals and entities who, pursuant to
subsection 1(b) of the Order, have been determined to have
committed, or to pose a significant risk of committing, acts of
terrorism that threaten the security of U.S. nationals or the
national security, foreign policy, or economy of the United
States. In addition, as of February 15, 2002, the Secretary of
the Treasury, in consultation with the Secretary of State and
the Attorney General, has designated 104 individuals and
entities who, pursuant to subsections 1(c) and 1(d) of the
Order have been determined: (1) to be owned or controlled by,
or to act for or on the behalf of, persons listed in the Annex
to the Order or determined to be subject to subsections 1(b),
1(c) or 1(d)(i) of the Order; (2) to assist in, sponsor, or
provide financial or other support for, or financial or other
services to or in support of, acts of terrorism or persons
listed in the Annex or determined to be subject to the Order;
or (3) to be otherwise associated with persons listed in the
Annex or determined to be subject to subsections 1(b), 1(c), or
1(d)(i) of the Order.
Some of these individuals and entities were also previously
designated as persons whose property and interests in property
are blocked in or pursuant to Executive Order 12947 of January
23, 1995 (60 FR 5079, January 25, 1995), ``Prohibiting
Transactions with Terrorists who Threaten to Disrupt the Middle
East Peace Process,'' and Executive Order 13099 of August 22,
1998, in which the President took additional steps by amending
the Annex of Executive Order 12947 to add four persons or
entities, including Usama bin Laden and al-Qaida. Also
designated in or pursuant to the Order are 30 Foreign Terrorist
Organizations (``FTOs''), previously designated by the
Secretary of State under section 219 of the Immigration and
Nationality Act, 8 U.S.C. 1189, as amended by the Antiterrorism
and Effective Death Penalty Act of 1996, Public Law 104-132,
110 Stat. 1247-1258, making these entities subject to an even
broader basis for the imposition of sanctions.
3. As of February 15, 2002, the Department of the
Treasury's Office of Foreign Assets Control (``OFAC'') has
issued 10 licenses under this program. Six licenses authorized
the provision of legal services and/or the receipt of payment
for such services, three licenses authorized the return of
funds after it was determined by OFAC that no Specially
Designated Global Terrorist (SDGT) had a property interest in
the funds, and one license authorized the payment of specific
expenses incurred by the entity prior to the date that its
assets were blocked in aid of investigation.
4. Since the signing of the Order, OFAC has emphasized to
the financial community the importance of identifying and
blocking payments and accounts which contain interests of
persons designated under the Order. OFAC has worked very
closely with banks, broker-dealers, and others to assure the
effectiveness of interdiction software systems to identify
payments, other transactions, and accounts, and has fielded
thousands of phone calls from the financial community regarding
suspect activities, resulting in the blocking of approximately
$7.6 million in terrorist-related assets. Between September 24,
2001, and February 15, 2002, OFAC updated its website no less
than 26 times to keep the public informed of the latest
sanctions developments. This included adding new names to its
list of Specially Designated Nationals and Blocked persons and
posting special alerts and bulletins.
5. On November 7, 2001, OFAC issued specific blocking
notices to nine entities and two individuals located within the
United States who were designated under the Order. Of the nine
designated entities, three were determined to have ceased
operations prior to November 7. OFAC served blocking orders on
the six operational entities located in Columbus, Ohio;
Dorchester, Massachusetts; Minneapolis, Minnesota; and Seattle,
Washington. On December 4, 2001, OFAC issued blocking orders on
an entity with locations in Richardson, Texas; Patterson, New
Jersey; and Bridgeview, Illinois. As of January 30, 2002, OFAC
also blocked, in aid of investigation, specific accounts of one
individual and four domestic entities during the pendency of
its ongoing investigation for alleged violations of IEEPA. OFAC
also blocked, in aid of investigation, all financial assets and
business records of two domestic entities during the pendency
of similar on-going investigations. As of February 15, 2002,
there have been two lawsuits filed in federal district court
challenging implementation of certain aspects of the Order.
6. The expenses incurred by the Federal Government in the
6-month period from September 24, 2001, through March 23, 2002,
that are directly attributable to the exercise of powers and
authorities conferred by the declaration of the national
emergency with respect to persons who commit, threaten to
commit, or support terrorism are estimated at approximately $13
million. These data do not reflect certain costs of operations
by the intelligence and law enforcement communities. Personnel
costs were largely centered in the Department of the Treasury
(particularly in the Office of Foreign Assets Control, the
Office of the General Counsel, and the U.S. Customs Service),
the Department of State, and components of the Department of
Justice.
7. The United States continues to be concerned by the grave
acts of terrorism committed or threatened by foreign
terrorists, including the heinous attacks committed in New York
and Pennsylvania, and against the Pentagon, on September 11,
2001. Available information confirms that terrorist
organizations seek to acquire weapons of mass destruction,
including chemical weapons. In addition, global financial
networks continue to support and fund terrorists and their
ability to engage in terrorist acts through a variety of
financial mechanisms. For these reasons, persons who commit,
threaten to commit, or support terrorism continue to pose an
unusual and extraordinary threat to international security.
The international community has recognized the need to take
action against terrorism and has condemned such acts of
terrorism in United Nations Security Council resolutions 1368
of September 12, 2001, 1373 of September 28, 2001, and 1390 of
January 16, 2002. These resolutions, taken together, obligate
UN Member states, among other things to take necessary steps to
prevent the financing of terrorism, to deny safe haven to
terrorists, and to restrict the transfer of arms and arms-
related material to terrorists. Executive Order 13224 is a
fundamental tool in the U.S. efforts to work closely with
governments around the world in identifying and freezing the
assets of terrorists and their supporters.