U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

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99–011 2002

107th Congress, 2d Session – – – – – – – – – – – – House Document 107–192

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 6-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, 2001, PURSUANT TO 50

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

APRIL 9, 2002.—Referred to the Committee on International Relations and

ordered to be printed

(1)

THE WHITE HOUSE,

Washington, March 20, 2002.

Hon. J. DENNIS HASTERT,

Speaker of the House of Representatives,

Washington, DC.

DEAR MR. SPEAKER: As required by section 401(c) of the National

Emergencies Act, 50 U.S.C. 1641(c), section 204(c) of the International Emergency Economic Powers Act, 50 U.S.C. 1703(c), I

transmit herewith a 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.

Sincerely,

GEORGE W. BUSH.

(3)

PERIODIC REPORT ON THE NATIONAL EMERGENCY WITH RESPECT TO

PERSONS WHO COMMIT, THREATEN TO COMMIT, OR SUPPORT TERRORISM

This report to the Congress presents developments over the past

6 months concerning 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. 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 September 23, 2001, Executive Order 13224, ‘‘Blocking

Property and Prohibiting Transactions With Persons Who Commit,

Threaten to Commit, or Support Terrorism’’ (66 Fed. Reg. 4909,

September 25, 2001) (the ‘‘Order’’) was signed. The Order, effective

12:01 a.m., EST, September 24, 2001, was issued to deal with the

grave acts of terrorism and threats of terrorism committed by foreign terrorists, including the terrorist attacks in New York and

Pennsylvania and against the Pentagon committed on September

11, 2001. These terrorist acts were also condemned in United Nations Security Council Resolutions 1368 of September 12, 2001, and

1373 of September 28, 2001.

The Order blocks all property and interests in property within

the United States or in the possession or control of U.S. persons,

including foreign branches, in which there is an interest of any person listed in the Annex to the Order or subsequently determined

to be subject to the Order. The Order further prohibits any transaction or dealing by a U.S. person or by a person within the United

States in property or interests in property blocked by the Order, including but not limited to the making or receiving of any contribution of funds, goods, or services to or for the benefit of those persons listed in the Annex to the Order or subsequently determined

to be subject to the Order. The Order also prohibits any transaction

by a U.S. person or within the United States that evades or avoids,

or has the purpose of evading or avoiding, or attempts to violate,

any of the prohibitions of the Order, and any conspiracy formed to

violate the prohibitions of the Order. A copy of the Order is attached to this report.

2. In the Annex to the Order, the assets of 12 individuals and

15 entities were blocked. Additional individuals and entities have

been subsequently designated by the Secretary of State and the

Secretary of the Treasury. As of February 15, 2002, the Secretary

of State, in consultation with the Secretary of the Treasury and the

Attorney General, has identified 37 individuals and entities who,

pursuant to subsection 1(b) of the Order, have been determined to

have committed, or to pose a significant risk of committing, acts of

terrorism that threaten the security of U.S. nationals or the naVerDate 11-MAY-2000 19:44 Apr 10, 2002 Jkt 099011 PO 00000 Frm 00005 Fmt 6601 Sfmt 6601 E:\HR\OC\HD192.XXX pfrm04 PsN: HD192
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tional security, foreign policy, or economy of the United States. In

addition, as of February 15, 2002, the Secretary of the Treasury,

in consultation with the Secretary of State and the Attorney General, has designated 104 individuals and entities who, pursuant to

subsections 1(c) and 1(d) of the Order have been determined: (1) to

be owned or controlled by, or to act for or on the behalf of, persons

listed in the Annex to the Order or determined to be subject to subsections 1(b), 1(c) or 1(d)(i) of the Order; (2) to assist in, sponsor,

or provide financial or other support for, or financial or other services to or in support of, acts of terrorism or persons listed in the

Annex or determined to be subject to the Order; or (3) to be otherwise associated with persons listed in the Annex or determined to

be subject to subsections 1(b), 1(c), or 1(d)(i) of the Order.

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 FR 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 persons or entities, including

Usama bin Laden and al-Qaida. Also designated in or pursuant to

the Order are 30 Foreign Terrorist Organizations (‘‘FTOs’’), previously 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, Public Law 104–132, 110 Stat. 1247–1258, making these entities subject to an even broader basis for the imposition of sanctions.

3. As of February 15, 2002, the Department of the Treasury’s Office of Foreign Assets Control (‘‘OFAC’’) has issued 10 licenses

under this program. Six licenses authorized the provision of legal

services and/or the receipt of payment for such services, three licenses authorized the return of funds after it was determined by

OFAC that no Specially Designated Global Terrorist (SDGT) had a

property interest in the funds, and one license authorized the payment of specific expenses incurred by the entity prior to the date

that its assets were blocked in aid of investigation.

4. Since the signing of the Order, OFAC has emphasized to the

financial community the importance of identifying and blocking

payments and accounts which contain interests of persons designated under the Order. 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 activities, resulting in the blocking of approximately $7.6 million in terrorist-related assets. Between September 24, 2001, and February 15, 2002,

OFAC updated its website no less than 26 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.

5. On November 7, 2001, OFAC issued specific blocking notices

to nine entities and two individuals located within the United

States who were designated under the Order. Of the nine desVerDate 11-MAY-2000 19:44 Apr 10, 2002 Jkt 099011 PO 00000 Frm 00006 Fmt 6601 Sfmt 6601 E:\HR\OC\HD192.XXX pfrm04 PsN: HD192
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ignated entities, three were determined to have ceased operations

prior to November 7. OFAC served blocking orders on the six operational entities located in Columbus, Ohio; Dorchester, Massachusetts; Minneapolis, Minnesota; and Seattle, Washington. On December 4, 2001, OFAC issued blocking orders on an entity with locations in Richardson, Texas; Patterson, New Jersey; and

Bridgeview, Illinois. As of January 30, 2002, OFAC also blocked, in

aid of investigation, specific accounts of one individual and four domestic entities during the pendency of its ongoing investigation for

alleged violations of IEEPA. OFAC also blocked, in aid of investigation, all financial assets and business records of two domestic entities during the pendency of similar on-going investigations. As of

February 15, 2002, there have been two lawsuits filed in federal

district court challenging implementation of certain aspects of the

Order.

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

month period from September 24, 2001, through March 23, 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 $13 million. These data do

not reflect certain costs of operations by the intelligence and law

enforcement communities. Personnel costs were largely centered 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.

7. 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 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.

The international community has recognized the need to take action against terrorism and has condemned such acts of terrorism

in United Nations Security Council resolutions 1368 of September

12, 2001, 1373 of September 28, 2001, and 1390 of January 16,

2002. These resolutions, taken together, obligate UN 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.

Executive Order 13224 is a fundamental tool in the U.S. efforts to

work closely with governments around the world in identifying and

freezing the assets of terrorists and their supporters.

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