Procedures regarding blocking property of charities

(a)

In general

The International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) is amended— (1)by redesignating section 208 as section 209; and (2)by inserting after section 207 the following new section:

208.

Procedures regarding blocking property of charities

(a)

Definitions

In this section: (1)

Charity

The term charity means an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code. (2)

Sanction

The term sanction means the blocking of property under section 203(a). (b)

Warrant requirement

(1)

Warrant requirement

A sanction may be imposed that blocks property of a charity only pursuant to a warrant obtained in the same manner as provided for a search warrant under the Federal Rules of Criminal Procedure. The court may issue such warrant if the United States demonstrates that there is probable cause to believe that— (A)the property with respect to which the warrant is sought is subject to the sanction; and (B)the property may be moved outside the jurisdiction of the United States. (2)

Exception

(A)

In general

The United States may impose a sanction that blocks property of a charity before applying to the court for a warrant under paragraph (1) if the United States has reason to believe that delay in seizure from such ex parte application may have an adverse result, including— (i)endangering the life or physical safety of an individual; (ii)flight from prosecution; (iii)destruction of or tampering with evidence; (iv)intimidation of potential witnesses; or (v)otherwise seriously jeopardizing an investigation. (B)

Probable cause showing

In a case in which property is subject to a sanction under subparagraph (A), the property shall be released from the order blocking it unless the United States makes the probable cause showing required by paragraph (1) within 48 hours after the property is blocked. (3)

Subsequent court actions

Upon a finding of probable cause, the court may issue the warrant. Upon the motion of the United States, the court may require the execution of satisfactory performance bonds, create receiverships, appoint conservators, custodians, appraisers, accountants, or trustees, or take any other action to secure, maintain, or preserve the availability of the property that is the subject of the warrant. (c)

Procedures regarding charities

The President shall establish procedures with respect to the imposition of a sanction that blocks property of a charity in order to implement the following: (1)

Prior notice; opportunity for compliance

In any case in which the President anticipates imposing such a sanction on a charity, the President shall, before imposing the sanction, notify the charity in writing, by delivery to the chief executive officer or chair of the governing body of the charity, of the facts, events, persons, and other relevant information serving as the basis for imposing the sanction, and setting forth the steps the charity may take to avoid imposition of the sanction. (2)

Notice

If the sanction is imposed on the charity because the charity has failed to take the steps described in paragraph (1), or if paragraph (3) applies, the President shall notify the charity, in the manner described in paragraph (1), of the imposition of the sanction. (3)

Exigent circumstances

The notice under paragraph (1) need not be provided if the President determines that there is probable cause to believe that the property of the charity is subject to the sanction and that providing such notice and opportunity— (A)will jeopardize the availability of the property; or (B)may have an adverse result, including— (i)endangering the life or physical safety of an individual; (ii)flight from prosecution; (iii)destruction of or tampering with evidence; (iv)intimidation of potential witnesses; or (v)otherwise seriously jeopardizing an investigation. (4)

Opportunity to present response

The President shall provide a charity notified under paragraph (1) or (2) of the imposition of a sanction an opportunity to provide a response to imposing the sanction, including a hearing on the record if so requested by the charity. Such hearing or other proceeding agreed to by the parties shall be held not later than 60 days after the notice is provided. (5)

Subsequent allegations

If, after notice is provided under paragraph (1) or (2), additional allegations arise involving the charity that are or may provide additional bases for imposing the sanction involving blocking property of the charity, the procedures under this subsection shall apply with respect to such additional allegations. (d)

Periodic review of blocking orders

(1)

Periodic review

The President shall— (A)at least once in every 2-year period, review each sanction imposed that involves blocking the property of a charity in order to ensure that the basis for imposing the sanction remains valid; and (B)provide the charity an opportunity for a hearing on the record with respect to such review. (e)

Appeals

(1)

Administrative appeal

The President shall provide to any charity on which a sanction is imposed that blocks the property of the charity, or is continued pursuant to a periodic review under subsection (d), an opportunity to appeal the sanction in accordance with the procedures set forth in sections 556 and 557 of title 5, United States Code, without regard to any exclusion set forth in section 554(a) of such title. (2)

Judicial appeal

In any appeal under chapter 7 of title 5, United States Code, of a determination in a hearing under paragraph (1)— (A)the court shall review the case de novo; and (B)the burden is on the United States Government to establish, by a preponderance of the evidence, that the property is subject to the sanction. (f)

Access to classified information

At any hearing or other proceeding held at the request of a charity under this section, the charity shall be entitled to be represented by counsel and shall be provided the opportunity to review the evidence of the Government with respect to the sanction involved, consistent with procedures analogous to those set forth in the Classified Information Procedures Act (18 U.S.C. App. 3), as determined by the court. (g)

Confidentiality and privacy

Property of a charity that is blocked pursuant to the imposition of a sanction may not be made available to a Government agency other than the Government agency responsible for blocking the property, except to the appropriate law enforcement agency pursuant to the Federal Rules of Criminal Procedure.