U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

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99–011 2002

107th Congress, 2d Session – – – – – – – – – – – – House Document 107–202

PERIODIC REPORT ON THE NATIONAL EMERGENCY

WITH RESPECT TO SIGNIFICANT NARCOTICS TRAFFICKERS CENTERED IN COLOMBIA

MESSAGE

FROM

THE PRESIDENT OF THE UNITED STATES

TRANSMITTING

A SIX-MONTH PERIODIC REPORT ON THE NATIONAL EMERGENCY

WITH RESPECT TO SIGNIFICANT NARCOTICS TRAFFICKERS CENTERED IN COLOMBIA THAT WAS DECLARED IN EXECUTIVE

ORDER 12978 OF OCTOBER 21, 1995, PURSUANT TO 50 U.S.C.

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

APRIL 24, 2002.—Message and accompanying papers referred to the

Committee on International Relations and ordered to be printed

(1)

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 204(c) of the International Emergency Economic Powers Act, 50 U.S.C. 1703(c), I transmit herewith a 6-

month periodic report that my Administration has prepared on the

national emergency with respect to significant narcotics traffickers

centered in Colombia that was declared in Executive Order 12978

of October 21, 1995.

GEORGE W. BUSH.

THE WHITE HOUSE, April 23, 2002.

(3)

PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO

SIGNIFICANT NARCOTICS TRAFFICKERS CENTERED IN COLOMBIA

This report to the Congress includes developments over the

course of the past 6 months concerning the national emergency

with respect to significant narcotics traffickers centered in Colombia that was declared in Executive Order 12978 of October 21,

1995. 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). Sanctions imposed against significant narcotics traffickers centered in Colombia (‘‘SDNTs’’) pursuant to Executive

Order 12978 are separate from, and independent of, sanctions imposed pursuant to the Foreign Narcotics Kingpin Designation Act

(21 U.S.C. 1901–1908).

1. Persons or entities with whom financial and business dealings

are prohibited and whose assets are blocked under Executive Order

12978 total 578, comprised of 10 principals, 231 entities, and 337

individuals from Colombia’s Cali, North Valle, and North Coast

drug cartels. The narcotics trafficking sanctions continue to have a

significant adverse impact on the operation of these cartels. The

SDNT list will continue to be expanded to include additional Colombian drug trafficking organizations and their fronts, as appropriate.

2. As of February 21, 2002, the Office of Foreign Asset Control

(OFAC) had issued one license during the current reporting period.

That license was issued for the release of blocked funds following

a determination that there was no property interest of an SDNT

involved.

3. During this reporting period, OFAC has continued to disseminate and update details of this program to the financial, securities,

and international trade communities by both electronic and conventional media. This included bulletins to banking institutions via the

Federal Reserve System and the Clearing House Interbank Payments System (CHIPS). The same material was also provided to

the U.S. Embassy in Bogota ́ for distribution to U.S. companies operating in Colombia.

4. Since the last report, OFAC has collected one civil monetary

penalty for a violation of the Executive Order, IEEPA, and the Narcotics Trafficking Sanctions Regulations, 31 C.F.R. Part 536, by a

U.S. company importing goods in which an SDNT had an interest.

5. The expenses incurred by the Federal Government in the 6-

month period from October 21, 2001, through April 20, 2002, that

are directly attributable to the exercise of powers and authorities

conferred by the declaration of the national emergency with respect

to SDNTs are estimated at more than $730,000. Personnel costs

were largely centered in the Department of the Treasury (particularly in the Office of Foreign Assets Control, the U.S. Customs

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Service, and the Office of the General Counsel), the Department of

Justice, and the Department of State. These personnel cuts do not

reflect certain costs of operations by the intelligence and law enforcement communities.

6. Executive Order 12978 provides the Government of the United

States with an effective tool for combating the actions of significant

foreign narcotics traffickers centered in Colombia and the unparalleled violence, corruption, and harm that such actions cause in the

United States and abroad. The magnitude and the dimension of the

narcotics trafficking in Colombia—perhaps the most pivotal country of all in terms of the world’s cocaine trade—are extremely

grave.

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