    [Public Papers of the Presidents of the United States: George W. Bush (2001, Book II)]
    [September 23, 2001]
    [Pages 1146-1149]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Message to the Congress on United States Financial Sanctions Against
    Terrorists and Their Supporters
    September 23, 2001

    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

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    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 in 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 terrorist
    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 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

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    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 terrorist 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

    [[Page 1149]]

    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.

    Note: This message was released by the Office of the Press Secretary on
    September 24. The Executive order of September 23 blocking property and
    prohibiting transactions with persons who commit, threaten to commit, or
    support terrorism is listed in Appendix D at the end of this volume.