[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.

                                
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