II

106TH CONGRESS

1ST SESSION S. 1171

To block assets of narcotics traffickers who pose an unusual and extraordinary

threat to the national security, foreign policy, and economy of the United

States.

IN THE SENATE OF THE UNITED STATES

MAY 27, 1999

Mr. COVERDELL (for himself, Mrs. FEINSTEIN, Mr. DEWINE, Mr. HELMS,

Mr. LOTT, Mr. TORRICELLI, Mr. CRAIG, Mr. GRAHAM, and Mr. REID)

introduced the following bill; which was read twice and referred to the

Committee on Banking, Housing, and Urban Affairs

A BILL

To block assets of narcotics traffickers who pose an unusual

and extraordinary threat to the national security, foreign

policy, and economy of the United States.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. FINDING AND POLICY.

4 (a) FINDING.—Congress makes the following find5 ings:

6 (1) Presidential Decision Directive 42, issued

7 on October 21, 1995, ordered agencies of the execu8 tive branch of the United States Government to,
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1 inter alia, increase the priority and resources de2 voted to the direct and immediate threat inter3 national crime presents to national security, work

4 more closely with other governments to develop a

5 global response to this threat, and use aggressively

6 and creatively all legal means available to combat

7 international crime.

8 (2) Executive Order No. 12978 of October 21,

9 1995, provides for the use of the authorities in the

10 International Emergency Economic Powers Act

11 (IEEPA) to target and sanction four specially des12 ignated narcotics traffickers and their organizations

13 which operate from Colombia.

14 (b) POLICY.—It should be the policy of the United

15 States to impose economic and other financial sanctions

16 against foreign international narcotics traffickers and

17 their organizations worldwide.

18 SEC. 2. PURPOSE.

19 The purpose of this Act is to provide for the use of

20 the authorities in the International Emergency Economic

21 Powers Act to sanction additional specially designated

22 narcotics traffickers operating worldwide.
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1 SEC. 3. DESIGNATION OF CERTAIN FOREIGN INTER2 NATIONAL NARCOTICS TRAFFICKERS.

3 (a) PREPARATION OF LIST OF NAMES.—Not later

4 than January 1, 2000 and not later than January 1 of

5 each year thereafter, the Secretary of the Treasury, in

6 consultation with the Attorney General, Director of Cen7 tral Intelligence, Secretary of Defense, and Secretary of

8 State, shall transmit to the Director of National Drug

9 Control Policy a list of those individuals who play a signifi10 cant role in international narcotics trafficking as of that

11 date.

12 (b) REVIEW BY DIRECTOR OF NATIONAL DRUG CON13 TROL POLICY.—Not later than February 1, 2000 and not

14 later than February 1 of each year thereafter, the Director

15 of National Drug Control Policy shall transmit to the

16 President the list submitted that year to the Director

17 under subsection (a) to the President, together with his

18 recommendations for the inclusion in, or exclusion from,

19 the list of specific individuals.

20 (c) EXCLUSION OF CERTAIN PERSONS FROM LIST.—

21 (1) IN GENERAL.—Notwithstanding any other

22 provision of this section, neither the list described in

23 subsections (a) and (b) nor the accompanying rec24 ommendations of the Director of National Drug

25 Control Policy under subsection (b) shall include the

26 name of any individual if the Director of Central In-
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1 telligence determines that the disclosure of that per2 son’s role in international narcotics trafficking could

3 compromise United States intelligence sources or

4 methods. The Director of Central Intelligence shall

5 advise the President when a determination is made

6 to withhold an individual’s identity under this sub7 section.

8 (2) REPORTS.—In each case in which the Di9 rector of Central Intelligence has made a determina10 tion under paragraph (1), the President shall submit

11 a report in classified form to the Select Committee

12 on Intelligence of the Senate and the Permanent Se13 lect Committee on Intelligence of the House of Rep14 resent setting forth the reasons for the determina15 tion.

16 (d) DESIGNATION OF INDIVIDUALS AS THREATS TO

17 THE UNITED STATES.—The President shall determine not

18 later than March 1 of each year whether or not to des19 ignate persons on the list transmitted to the President

20 that year as persons constituting an unusual and extraor21 dinary threat to the national security, foreign policy, and

22 economy of the United States. The President shall notify

23 the Secretary of the Treasury of any person designated

24 under this subsection. If the President determines not to

25 designate any person on such list as such a threat, the
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1 President shall submit a report to Congress setting forth

2 the reasons therefore.

3 (e) CHANGES IN DESIGNATIONS OF INDIVIDUALS.—

4 (1) ADDITIONAL INDIVIDUALS DESIGNATED.—

5 If at any time after March 1 of a year, but prior to

6 January 1 of the following year, the President deter7 mines that a person is playing a significant role in

8 international narcotics trafficking and has not been

9 designated under subsection (d) as a person consti10 tuting an unusual and extraordinary threat to the

11 national security, foreign policy, and economy of the

12 United States, the President may so designate the

13 person. The President shall notify the Secretary of

14 the Treasury of any person designated under this

15 paragraph.

16 (2) REMOVAL OF DESIGNATIONS OF INDIVID17 UALS.—Whenever the President determines that a

18 person designated under subsection (d) or paragraph

19 (1) of this subsection no longer poses an unusual

20 and extraordinary threat to the national security,

21 foreign policy, and economy of the United States,

22 the person shall no longer be considered as des23 ignated under that subsection.
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1 (f) REFERENCES.—Any person designated under

2 subsection (d) or (e) may be referred to in this Act as

3 a ‘‘specially designated narcotics trafficker’’.

4 SEC. 4. BLOCKING ASSETS.

5 (a) FINDING.—Congress finds that a national emer6 gency exists with respect to any individual who is a spe7 cially designated narcotics trafficker.

8 (b) BLOCKING OF ASSETS.—Except to the extent

9 provided in section 203(b) of the International Emergency

10 Economic Powers Act (50 U.S.C. 1702(b)) and in regula11 tions, orders, directives, or licenses that may be issued

12 pursuant to this Act, and notwithstanding any contract

13 entered into or any license or permit granted prior to the

14 date of designation of a person as a specially designated

15 narcotics trafficker, there are hereby blocked all property

16 and interests in property that are, or after that date come,

17 within the United States, or that are, or after that date

18 come, within the possession or control of any United

19 States person, of—

20 (1) any specially designated narcotics trafficker;

21 (2) any person who materially assists in, pro22 vides financial or technological support for, or pro23 vides goods or services in support of, the narcotics

24 trafficking activities of a specially designated nar25 cotics trafficker; and
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1 (3) any person determined by the Secretary of

2 the Treasury, in consultation with the Attorney Gen3 eral, Director of Central Intelligence, Secretary of

4 Defense, and Secretary of State, to be owned or con5 trolled by, or to act for or on behalf of, a specially

6 designated narcotics trafficker.

7 (c) PROHIBITED ACTS.—Except to the extent pro8 vided in section 203(b) of the International Emergency

9 Economic Powers Act or in any regulation, order, direc10 tive, or license that may be issued pursuant to this Act,

11 and notwithstanding any contract entered into or any li12 cense or permit granted prior to the effective date, the

13 following acts are prohibited:

14 (1) Any transaction or dealing by a United

15 States person, or within the United States, in prop16 erty or interests in property of any specially des17 ignated narcotics trafficker.

18 (2) Any transaction or dealing by a United

19 States person, or within the United States, that

20 evades or avoids, has the purpose of evading or

21 avoiding, or attempts to violate, subsection (b).

22 (d) LAW ENFORCEMENT AND INTELLIGENCE ACTIVI23 TIES NOT AFFECTED.—Nothing in this section is intended

24 to prohibit or otherwise limit the authorized law enforce25 ment or intelligence activities of the United States, or the
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1 law enforcement activities of any State or subdivision

2 thereof.

3 (e) IMPLEMENTATION.—The Secretary of the Treas4 ury, in consultation with the Attorney General, Director

5 of Central Intelligence, Secretary of Defense, and Sec6 retary of State, is authorized to take such actions, includ7 ing the promulgation of rules and regulations, and to em8 ploy all powers granted to the President by the Inter9 national Emergency Economic Powers Act as may be nec10 essary to carry out this section. The Secretary of the

11 Treasury may redelegate any of these functions to any

12 other officer or agency of the United States Government.

13 Each agency of the United States shall take all appro14 priate measures within its authority to carry out this sec15 tion.

16 (f) ENFORCEMENT.—Violations of licenses, orders, or

17 regulations under this Act shall be subject to the same

18 civil or criminal penalties as are provided by section 206

19 of the International Emergency Economic Powers Act (50

20 U.S.C. 1705) for violations of licenses, orders, and regula21 tions under that Act.

22 (g) DEFINITIONS.—In this section:

23 (1) ENTITY.—The term ‘‘entity’’ means a part24 nership, association, corporation, or other organiza25 tion, group or subgroup.
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1 (2) NARCOTICS TRAFFICKING.—The term ‘‘nar2 cotics trafficking’’ means any activity undertaken il3 licitly to cultivate, produce, manufacture, distribute,

4 sell, finance, or transport, or otherwise assist, abet,

5 conspire, or collude with others in illicit activities re6 lating to, narcotic drugs, including, but not limited

7 to, heroin, methamphetamine and cocaine.

8 (3) PERSON.—The term ‘‘person’’ means an in9 dividual or entity.

10 (4) UNITED STATES PERSON.—The term

11 ‘‘United States person’’ means any United States

12 citizen or national, permanent resident alien, entity

13 organized under the laws of the United States (in14 cluding foreign branches), or any person in the

15 United States.

16 SEC. 5. DENIAL OF VISAS TO AND INADMISSIBILITY OF SPE17 CIALLY DESIGNATED NARCOTICS TRAF18 FICKERS.

19 (a) PROHIBITION.—The Secretary of State shall deny

20 a visa to, and the Attorney General may not admit to the

21 United States—

22 (1) any specially designated narcotics trafficker;

23 or

24 (2) any alien who the consular officer or the At25 torney General knows or has reason to believe—
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1 (A) is a spouse or minor child of a spe2 cially designated narcotics trafficker; or

3 (B) is a person described in paragraph (2)

4 or (3) of section 4(b).

5 (b) EXCEPTIONS.—Subsection (a) shall not apply—

6 (1) where the Secretary of State finds, on a

7 case-by-case basis, that the entry into the United

8 States of the person is necessary for medical rea9 sons;

10 (2) upon the request of the Attorney General,

11 Director of Central Intelligence, Secretary of the

12 Treasury, or the Secretary of Defense; or

13 (3) for purposes of the prosecution of a spe14 cially designated narcotics trafficker.

Æ