[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.


                                  
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