[House Document 108-47]
[From the U.S. Government Publishing Office]
108th Congress, 1st Session - - - - - - - - - - - House Document 108-47
PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO IRAN
__________
MESSAGE
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) and 22 U.S.C. 2349aa-
9(c)
March 13, 2003.--Message and accompanying papers 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 am
transmitting 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 12, 2003.
Periodic Report on the National Emergency With Respect to Iran
This report to the Congress on developments over the course
of the past 6 months concerns 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, as of January 15,
2003, 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
Iranian Transactions Regulations, 31 C.F.R. Part 560, (the
``Regulations''). Seventy-three licenses were issued, of which
43 authorized commercial sales and exportation to Iran of bulk
agricultural commodities, other agricultural commodities,
medicines, or medical equipment. Eight licenses authorized the
import or export of Iranian-origin theatrical equipment and/or
artifacts and three licenses authorized U.S. participation in
international medical or environmental workshops. An additional
19 licenses authorized a variety of transactions consistent
with U.S. foreign policy.
2. For the period September 15, 2002, through March 14,
2003, on OFAC's instructions, U.S. banks refused to process
approximately 900 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 $375 million
in financial dealings involving Iran by virtue of U.S. economic
sanctions.
3. Since the last report, OFAC has collected 15 civil
monetary penalties, settlements, and installment payments
totaling nearly $88,000 for Iran-related violations of IEEPA
and the Regulations. The violators included seven companies,
four U.S. financial institutions, and four individuals. An
additional $163,000 in penalties stand as 21 accounts
receivable either in ongoing installment payment plans, active
debt collection, or collected and as yet unreported to OFAC.
Penalty enforcement action is underway against an additional
163 violators of the Regulations and IEEPA.
4. During this reporting period, two individuals who
pleaded guilty in New York City to illegally operating a money
remittance business and violating the Iran embargo were
sentenced. One individual was sentenced to 10 months in prison
and the other was sentenced to one year and one day in prison.
In addition, a criminal forfeiture of $5,155,531 was imposed
against both individuals. Sentencing is still pending in a
similar case for the August 15, 2002, conviction of an
individual and his company for money laundering and illegal
money transmission to Iran in violation of the embargo.
In another action in New York City, the Department of
Justice is seeking to forfeit approximately $3.5 million from a
company that allegedly provided illegal money transfer services
with respect to Iran. The company received the funds in
question for transfer to Iran. Two other separate criminal
indictments have been filed against individuals in Phoenix and
Seattle for allegedly providing illegal money transfer services
with respect to Iran (the Seattle case also involves alleged
violations of other U.S. embargo programs administered by
OFAC). No trial date has been set in either case.
5. The expenses incurred by the Federal Government in the
6-month period from September 15, 2002, through March 14, 2003,
that are directly attributable to the exercise of powers and
authorities conferred by the declaration of a national
emergency with respect to Iran are reported to be approximately
$1 million, 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 Assistant Secretary for Enforcement, and the Office of the
General Counsel), the Department of State, and the Department
of Commerce.
6. 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 Orders 12959 and 13059
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.