U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

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99–011 2002

107th Congress, 2d Session – – – – – – – – – – – – House Document 107–264

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 SIX 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, 2002, PURSUANT TO 50 

U.S.C. 1641(c) AND 50 U.S.C. 1703(c)

E:\Seals\Congress.#13

SEPTEMBER 24, 2002.—Referred to the Committee on International 

Relations and ordered to be printed 

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To the Congress of the United States: 

As required by 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, 50 U.S.C. 1703(c), I transmit herewith 

the 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.

GEORGE W. BUSH. 

THE WHITE HOUSE, September 19, 2002. 

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PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO

PERSONS WHO COMMIT, THREATEN TO COMMIT, OR SUPPORT TERRORISM

This report to the Congress covers developments over the course 

of the past 6 months concerning the national emergency declared 

in Executive Order 13224 of September 23, 2001, ‘‘Blocking Property and Prohibiting Transactions With Persons Who Commit, 

Threaten to Commit, or Support Terrorism’’ (66 Fed. Reg. 49079, 

September 25, 2001) (the ‘‘Order’’). 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 July 2, 2002, Executive Order 13268, ‘‘Termination of 

Emergency With Respect to the Taliban and Amendment or Executive Order 13224 of September 23, 2001’’ (67 Fed. Reg. 44751, July 

3, 2002) amended the Order, to add Mohammed Omar and the 

Taliban to the list of blocked persons contained in the Annex to the 

Order. 

2. As of September 13, 2002, 236 individuals and entities are listed as blocked persons pursuant to the Order and have been designated as Specially Designated Global Terrorists (SDGTs). 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 Fed. 

Reg. 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 individuals or entities, including Usama 

bin Laden and al-Qaida. 

Also included as SDGTs pursuant to the Order are 34 Foreign 

Terrorist Organizations (FTO), also 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, Pub. L. 104–132, 110 Stat. 1247–1258. 

3. The international community has recognized the need to take 

action against terrorism and has condemned such acts of terrorism 

in U.N. Security Council resolutions 1368 of September 12, 2001; 

1373 of September 28, 2001; and 1390 of January 16, 2002. These 

resolutions, taken together, obligate U.N. 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. In particular, these resolutions impose sanctions against the Taliban, 

Usama bin Laden, and al-Qaida, and obligate all U.N. member 

states to ‘‘Freeze without delay the funds and other financial assets 

or economic resources’’ of those entities and individuals designated 

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by the U.N. Executive Order 13224 is a fundamental tool in the 

U.S. effort to work closely with governments around the world in 

identifying and freezing the assets of terrorists and their supporters. 

4. During the current reporting period, the United States designated a number of individuals and entities pursuant to the 

Order, including 44 individuals and entities whose designation resulted from joint efforts with international partners. On April 19, 

2002, as a result of cooperation with other G–7 countries, the 

United States designated nine individuals and one organization 

based on links to al-Qaida, and referred these names to the U.N. 

jointly with the other G–7. Similarly, working with Italy, the 

United States designated another 25 individuals and entities on 

August 29, 2002, based on al-Qaida ties, and with Italy referred 

these names to the U.N. Likewise, the United States on September 

6, 2002, designated Wa’el Hamza Julaidan as an al-Qaida supporter and, together with Saudi Arabia, referred his name to the 

U.N. Additionally, in collaboration with our European allies, the 

United States and the European Union undertook a coordinated 

blocking action on May 3, 2002, with respect to seven individuals 

and one organization based on their ties to the FTO Euzkadi Ta 

Askatasuna (ETA). 

5. There have also been a series of developments with respect to 

entities designated in the previous reporting period. The Holy Land 

Foundation for Relief and Development (HLF), headquartered in 

Richardson, Texas, was designated as an SDGT on December 4, 

2001, pursuant to the Order and Executive Order 12947 based on 

its support for Hamas. On May 31, 2002, the Treasury Department 

made a superseding designation of HLF under the Order and Executive Order 12947 based on additional information concerning the 

connection between HLF and Hamas. HLF filed suit in Federal district court in the District of Columbia raising statutory and constitutional issues and challenging its designation. On July 18, 

2002, the court heard arguments on the parties’ motion. On August 

8, 2002, the court denied HLF’s motion for preliminary injunctive 

relief, by which it sought to overturn the designation, and granted 

the Government’s motion to dismiss and/or for summary judgment 

as to all but one of the statutory and constitutional claims. The ruling is being appealed.

Funds, accounts, and business records of Global Relief Foundation, Inc. (GRF), and Benevolence International Foundation, Inc. 

(BIF), both headquartered in Chicago, were blocked by the Department of the Treasury’s Office of Foreign Assets Control (OFAC) 

pending investigation on December 14, 2001. On May 24, 2002, and 

June 14, 2002, OFAC notified GRF and BIF, respectively, that 

OFAC intended to designate them as blocked entities pursuant to 

the Order. Prior to OFAC’s notification of intent to designate, GRF 

and BIF filed separate lawsuits in the Northern District of Illinois 

raising constitutional and statutory issues and seeking the 

unblocking of their assets. GRF’s motion for preliminary injunction 

against the Government defendants was denied by the district 

court and is now on appeal to the Seventh Circuit. Civil proceedings in the BIF case have been stayed pending certain criminal 

proceedings. 

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On November 7, 2001, OFAC blocked, pursuant to the Order, 

persons and entities that are part of the ‘‘Barakaat network,’’ including nine entities and two individuals based in the United 

States. In addition, four U.S.-based entities were blocked in aid of 

investigation (‘‘BIA entities’’). One of the individuals, Liban Hussein, was delisted on July 15, 2002, and his property was 

unblocked. Aaran Money Wire, Mr. Garad Nor, and Global Service 

International, all located in Minneapolis, and one other U.S.-based 

entity, Barakaat Enterprises, Inc., located in Columbus, Ohio, and 

two Swedish individuals, Abdirisak Aden and Abdi Abdulaziz Ali, 

all designated on November 7, 2001, based on their affiliations with 

the ‘‘Barakaat network,’’ were removed from the list of blocked entities on August 27, 2002, and their assets unblocked. The removal 

of these entities and individuals from the list of blocked persons is 

based on the actions taken by these individuals and entities to sufficiently eliminate the basis for their designations, which were premised on the parties’ now severed affiliations with the ‘‘Barakaat 

network.’’ 6. OFAC has responded to numerous license applications under 

this program. Most of these requests were made in the context of 

litigation by U.S.-based entities challenging designations or the 

blocking of assets in aid of investigation. Licenses were issued authorizing payment from offshore sources that are not blocked for 

legal services provided to designated offshore entities, and the payment from blocked funds for the legal representation of U.S.-based 

designated entities and entities whose assets are blocked in aid of 

investigation. Licenses were also issued authorizing the release of 

blocked funds to pay debts that the designated entities and BIA entities incurred prior to the designation or blocking; to pay certain 

limited operating expenses of BIA entities while the investigation 

of these entities continues; to pay living expenses of a designated 

U.S. person; to release assets to the participants of a retirement 

savings plan sponsored by a designated entity, provided that any 

plan assets in which the sponsor has a property interest remain 

blocked; and to return blocked funds transfers after OFAC determined that no designated entity had a property interest in the 

funds. 

A license was issued authorizing a bank to release blocked funds 

pursuant to a seizure warrant issued to another governmental entity. Licenses were also issued authorizing the release of, or access 

to, blocked property (other than funds), particularly records and 

computers. 

A number of license requests were denied, including requests for 

the release of an entity’s blocked funds to pay the legal expenses 

of individuals whose personal assets are not blocked, and requests 

to pay offshore creditors or to fund an entity’s offshore operations. 

7. Since the effective date of the Order, OFAC has emphasized 

to the financial community the importance of identifying and blocking payments and accounts in which interests of persons designated under the Order are implicated. 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 activiVerDate Sep 04 2002 04:18 Sep 28, 2002 Jkt ?????? PO 00000 Frm 00007 Fmt 6601 Sfmt 6602 E:\HR\OC\HD264.XXX HD264
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ties. As of September 13, 2002, OFAC has also blocked an additional $75,000 in terrorist-related assets beyond the approximately 

$7.6 million reported in my last report. Our international partners 

have taken parallel blocking actions in their own financial sectors. 

Each of the accounts frozen had the potential to be a pipeline for 

far more money than what was in the account on the day that account was frozen. In addition to closing off these identified pipelines, blocking actions have a larger deterrent effect on those who 

would otherwise consider assisting the financing of terrorism. Between February 15 and July 24, 2002, OFAC updated its website 

no less than 28 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. 

8. The expenses incurred by the Federal Government in the sixmonth period beginning March 24, 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 $8.8 million. These data do not reflect costs of operations by the intelligence and certain law enforcement communities. Reported costs were predominantly related to salary and expenses for personnel 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. 

9. 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, biological, and nuclear 

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.

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