[Congressional Record Volume 147, Number 125 (Monday, September 24, 2001)]
[Senate]
[Pages S9738-S9739]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 REPORT ON BLOCKING PROPERTY AND PROHIBITING TRANSACTIONS WITH PERSONS 
WHO COMMIT, THREATEN TO COMMIT, OR SUPPORT TERRORISM--MESSAGE FROM THE 
                            PRESIDENT--PM 44

  The PRESIDING OFFICER laid before the Senate the following message 
from the President of the United States, together with an accompanying 
report; which was referred to the Committee on Banking, Housing, and 
Urban Affairs.

To the Congress of the United States:
  Pursuant to section 204(b) of the International Emergency Economic 
Powers Act, 50 U.S.C. 1703(b) (IEEPA), and section 301 of the National 
Emergencies Act, 50 U.S.C. 1631, I hereby report that I have exercised 
my statutory authority to declare a national emergency in response to 
the unusual and extraordinary threat posed to the national security, 
foreign policy, and economy of the United States by grave acts of 
terrorism and threats of terrorism committed by foreign terrorists, 
including the September 11, 2001, terrorist attacks at the World Trade 
Center, New York, at the Pentagon, and in Pennsylvania. I have also 
issued an Executive Order to help deal with this threat by giving the 
United States more powerful tools to reach the means by which 
terrorists and terrorist networks finance themselves and to encourage 
greater cooperation by foreign financial institutions and other 
entities that may have access to foreign property belonging to 
terrorists or terrorist organizations.
  The attacks of September 11, 2001, highlighted in the most tragic way 
the threat posed to the security and national interests of the United 
States by terrorists who have abandoned any regard for humanity, 
decency, morality, or honor. Terrorists and terrorist networks operate 
across international borders and derive their financing from sources in 
many nations. Often, terrorist property and financial assets lie 
outside the jurisdiction of the United States. Our effort to combat and 
destroy the financial underpinnings of global terrorism must therefore 
be broad, and not only provide powerful sanctions against the U.S. 
property of terrorists and their supporters, but also encourage 
multilateral cooperation in identifying and freezing property and 
assets located elsewhere.
  This Executive Order is part of our national commitment to lead the 
international effort to bring a halt to the evil of terrorist activity. 
In general terms, it provides additional means by which to disrupt the 
financial support network for terrorist organizations by blocking the 
U.S. assets not only of foreign persons or entities who commit or pose 
a significant risk of committing acts of terrorism, but also by 
blocking the assets of their subsidiaries, front organizations, agents, 
and associates, and any other entities that provide services or 
assistance to them. Although the blocking powers enumerated it the 
order are broad, my Administration is committed to exercising them 
responsibly, with due regard for the culpability of the persons and 
entities potentially covered by the order, and in consultation with 
other countries.
  The specific terms of the Executive Order provide for the blocking of 
the property and interests in property, including bank deposits, of 
foreign persons designated in the order or pursuant thereto, when such 
property is within the United States or in the possession or control of 
United States persons. In addition, the Executive Order prohibits any 
transaction or dealing by United States persons in such property or 
interests in property, including the making or receiving of any 
contribution of funds, goods, or services to or for the benefit of such 
designated persons.
  I have identified in an Annex to this order eleven terrorism 
organizations, twelve individual terrorist leaders, three charitable or 
humanitarian organizations that operate as fronts for terrorist 
financing and support, and one business entity that operates as a front 
for terrorist financing and support. I have determined that each of 
these organizations and individuals have committed, supported, or 
threatened acts of terrorism that imperil the security of U.S. 
nationals or the national security, foreign policy, or economy of the 
United States. I have also authorized the Secretary of State to 
determine and designate additional foreign persons who have committed 
or 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. Such designations are 
to be made in consultation with the Secretary of the Treasury and the 
Attorney General.

  The Executive Order further authorizes the Secretary of the Treasury 
to identify, in consultation with the Secretary of State and the 
Attorney General, additional persons or entities that:
  --Are owned or controlled by, or that act for or on behalf of, those 
    persons designated in or pursuant to the order;
  --Assist in, sponsor, or provide financial, material, or 
    technological support for, or financial or other services to or in 
    support of acts of terrorism or those persons designated in or 
    pursuant to the order; or
  --Are otherwise associated with those persons designated in or 
    pursuant to the order.
  Prior to designating persons that fall within the latter two 
categories, the Secretary of the Treasury is authorized to consult with 
any foreign authorities the Secretary of State deems appropriate, in 
consultation with the Secretary of the Treasury and the Attorney 
General. Such consultation is intended to avoid the need for additional 
designations by securing bilateral or multilateral cooperation from 
foreign governments and foreign financial and other institutions. Such 
consultation may include requests to foreign governments to seek, in 
accordance with international law and their domestic laws, information 
from financial institutions regarding terrorist property and to take 
action to deny terrorists the use of such property. The order also 
provides broad authority, with respect to the latter two categories, 
for the Secretary of the Treasury, in his

[[Page S9739]]

discretion, and in consultation with the Secretary of State and the 
Attorney General, to take lesser action than the complete blocking of 
property or interests in property if such lesser action is deemed 
consistent with the national interests of the United States. Some of 
the factors that may be considered in deciding whether a lesser action 
against a foreign person is consistent with the national interests of 
the United States include:
  --The impact of blocking on the U.S. or international financial 
    system;
  --The extent to which the foreign person has cooperated with U.S. 
    authorities;
  --The degree of knowledge the foreign person had of the terrorist-
    related activities of the designated person;
  --The extent of the relationship between the foreign person and the 
    designated person; and
  --The impact of blocking or other measures on the foreign person.
  The Executive Order also directs the Secretary of State, the 
Secretary of the Treasury, and other agencies to make all relevant 
efforts to cooperate and coordinate with other countries, including 
through existing and future multilateral and bilateral agreements and 
arrangements, to achieve the objectives of this order, including the 
prevention and suppression of acts of terrorism, the denial of the 
financing of and financial services to terrorists and terrorist 
organizations, and the sharing of intelligence about funding activities 
in support of terrorism.
  In the Executive Order, I also have made determinations to suspend 
otherwise applicable exemptions for certain humanitarian, medical, or 
agricultural transfers or donations. Regrettably, international 
terrorist networks make frequent use of charitable or humanitarian 
organizations to obtain clandestine financial and other support for 
their activities. If these exemptions were not suspended, the provision 
of humanitarian materials could be used as a loophole through which 
support could be provided to individuals or groups involved with 
terrorism and whose activities endanger the safety of United States 
nationals, both here and abroad.
  The Secretary of the Treasury, in consultation with the Secretary of 
State and the Attorney General, is authorized to issue regulations in 
exercise of my authorities under IEEPA to implement the prohibitions 
set forth in the Executive Order. All Federal agencies are also 
directed to take actions within their authority to carry out the 
provisions of the order, and, where applicable, to advise the Secretary 
of the Treasury in a timely manner of the measures taken.
  The measures taken here will immediately demonstrate our resolve to 
bring new strength to bear in our multifaceted struggle to eradicate 
international terrorism. It is my hope that they will point the way for 
other civilized nations to adopt similar measures to attack the 
financial roots of global terrorist networks.
  In that regard, this Executive Order is an integral part of our 
larger effort to form a coalition in the global war against terrorism. 
We have already worked with nations around the globe and groups such as 
the G-8, the European Union, and the Rio Group, all of which have 
issued strong statements of their intention to take measures to limit 
the ability of terrorism groups to operate. In the next several weeks 
the 33rd Session of the International Civil Aviation Organization 
(ICAO) General Assembly and other fora will focus on terrorism 
worldwide. It is our intention to work within the G-7/G-8, the ICAO, 
and other fora to reach agreement on strong concrete steps that will 
limit the ability of terrorists to operate. In the G-7/G-8, the United 
States will work with its partners, drawing on the G-8 Lyon Group on 
Transnational Crime, the G-8 Group on Counter-terrorism, the G-7 
Financial Action Task Force, and the existing G-8 commitments to build 
momentum and practical cooperation in the fight to stop the flow of 
resources to support terrorism. In addition, both the Convention for 
the Suppression of the Financing of Terrorism and the Convention for 
the Suppression of Terrorist Bombings have been forwarded to the 
Senate, and I will be forwarding shortly to the Congress implementing 
legislation for both Conventions.
  I am enclosing a copy of the Executive Order I have issued. This 
order is effective at 12:01 a.m. eastern daylight time on September 24, 
2001.
                                                      George W. Bush.  
The White House, September 23, 2001.

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