[House Document 108-64]
[From the U.S. Government Publishing Office]
108th Congress, 1st Session - - - - - - - - - - - - - House Document
108-64
PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO SIGNIFICANT
NARCOTICS TRAFFICKERS CENTERED IN COLOMBIA
__________
COMMUNICATION
from
THE PRESIDENT OF THE UNITED STATES
transmitting
A 6-MONTH PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO
SIGNIFICANT NARCOTICS TRAFFICKERS CENTERED IN COLOMBIA DECLARED IN
EXECUTIVE ORDER 12978 OF OCTOBER 21, 1995, PURSUANT TO 50 U.S.C.
1641(c) AND 50 U.S.C. 1703(c)
April 29, 2003.--Referred to the Committee on International Relations
and ordered to be printed
The White House,
Washington, April 15, 2003.
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), and 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
significant narcotics traffickers centered in Colombia declared
in Executive Order 12978 of October 21, 1995.
Sincerely,
George W. Bush.
Report on the National Emergency With Respect to Significant Narcotics
Traffickers Centered in Colombia
This report to the Congress covers developments from
October 21, 2002 to April 20, 2003 concerning the national
emergency with respect to significant narcotics traffickers
centered in Colombia that was declared in Executive Order 12978
of October 21, 1995. 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). Sanctions
imposed against specifically designated narcotics traffickers
(SDNT) centered in Colombia pursuant to Executive Order 12978
are separate from, and independent of, sanctions imposed
pursuant to the Foreign Narcotics Kingpin Designation Act (21
U.S.C. 1901-1908; 8 U.S.C. 1182).
1. During this reporting period, the Department of the
Treasury's Office of Foreign Assets Control (OFAC), in
consultation with the Departments of Justice and State, carried
out three major SDNT actions. The first occurred on October 25,
2002, when OFAC designated two North Valle drug cartel leaders
as SDNT principal individuals. OFAC also added 13 businesses
and 21 associated individuals in Colombia that were determined
to be acting as fronts for the two newly designated North Valle
cartel leaders or for another previously designated North Valle
cartel leader. The second action occurred on February 6, 2003,
when OFAC designated 59 businesses and 78 individuals in Spain
and Colombia as fronts for the Cali cartel. Third, on March 21,
2003, OFAC designated another nine businesses and eight
individuals as fronts for the Cali cartel. Persons or entities
with whom financial and business dealings are prohibited and
whose assets are blocked under Executive Order 12978 now total
749, comprised of twelve principals, 303 entities, and 434
individuals from Colombia's Cali, North Valle, and North Coast
drug cartels. The narcotics trafficking sanctions continue to
have a significant adverse impact on the operation of these
cartels. The SDNT list will continue to be expanded to include
additional Colombian drug trafficking organizations and their
fronts, as appropriate.
2. As of February 24, 2003, OFAC had issued seven licenses
during the current reporting period. four licenses authorized
the payment/receipt of legal fees and costs in connection with
the provision of legal services, one license authorized certain
administrative transactions, while the other two licenses
authorized the release of blocked funds following a
determination that there was no property interest of an SDNT
involved.
3. During this reporting period, as of February 20, 2003,
U.S. banks have blocked more than 1,000 financial transactions
and additional accounts involving SDNT-related assets, totaling
$1.1 million. OFAC has continued to disseminate and update
details of this program to the financial, securities, and
international trade communities by both electronic and
conventional media. This included close to 20,000 emails to
Listserv subscribers to OFAC's website and bulletins to banking
institutions via the Federal Reserve System and the Clearing
House Interbank Payments System. The same material was also
provided to the U.S. Embassy in Bogota for distribution to U.S.
companies operating in Colombia.
4. The expenses incurred by the Federal Government in the
6-month period from October 21, 2002 through April 20, 2003,
that are directly attributable to the exercise of powers and
authorities conferred by the declaration of the national
emergency with respect to SDNTs are estimated at approximately
$750,000. Personnel costs were largely centered in the
Department of the Treasury (particularly in the Office of
Foreign Assets Control, the U.S. Customs Service, and the
Office of the General Counsel), the Department of Justice, and
the Department of State. These data do not reflect certain
costs of operations by the intelligence and law enforcement
communities.
5. Executive Order 12978 provides the United States with an
effective tool for combating the actions of significant
narcotics traffickers centered in Colombia and the extreme
level of violence, corruption, and harm that such actions cause
in the United States and abroad. The magnitude and the
dimension of the narcotics trafficking in Colombia, perhaps the
most pivotal country of all in terms of the world's cocaine
trade, are extremely grave.