H. R. 1555—23
Drug Enforcement Administration, and the Secretary of the
Treasury, determines that such disclosure could reasonably
be expected to—
(A) compromise the identity of a confidential source,
including a State, local, or foreign agency or authority or any
private institution that furnished information on a confidential
basis;
(B) jeopardize the integrity or success of an ongoing
criminal investigation or prosecution;
(C) endanger the life or physical safety of any person;
or
(D) cause substantial harm to physical property.
(f ) NOTIFICATION REQUIRED.—(1) Whenever either the Director
of Central Intelligence or the Attorney General makes a determina-
tion under subsection (e), the Director of Central Intelligence or
the Attorney General shall notify the Permanent Select Committee
on Intelligence of the House of Representatives and the Select
Committee on Intelligence of the Senate, and explain the reasons
for such determination.
(2) The notification required under this subsection shall be
submitted to the Permanent Select Committee on Intelligence of
the House of Representatives and the Select Committee on Intel-
ligence of the Senate not later than July 1, 2000, and on an
annual basis thereafter.
(g) DETERMINATIONS NOT TO APPLY SANCTIONS.—(1) The Presi-
dent may waive the application to a significant foreign narcotics
trafficker of any sanction authorized by this title if the President
determines that the application of sanctions under this title would
significantly harm the national security of the United States.
(2) When the President determines not to apply sanctions that
are authorized by this title to any significant foreign narcotics
trafficker, the President shall notify the Permanent Select Com-
mittee on Intelligence, and the Committees on the Judiciary, Inter-
national Relations, Armed Services, and Ways and Means of the
House of Representatives, and the Select Committee on Intelligence,
and the Committees on the Judiciary, Foreign Relations, Armed
Services, and Finance of the Senate not later than 21 days after
making such determination.
(h) CHANGES IN DETERMINATIONS TO IMPOSE SANCTIONS.—
(1) ADDITIONAL DETERMINATIONS.—(A) If at any time after
the report required under subsection (b) the President finds
that a foreign person is a significant foreign narcotics trafficker
and such foreign person has not been publicly identified in
a report required under subsection (b), the President shall
submit an additional public report containing the information
described in subsection (b) with respect to such foreign person
to the Permanent Select Committee on Intelligence, and the
Committees on the Judiciary, International Relations, Armed
Services, and Ways and Means of the House of Representatives,
and the Select Committee on Intelligence, and the Committees
on the Judiciary, Foreign Relations, Armed Services, and
Finance of the Senate.
(B) The President may apply sanctions authorized under
this title to the significant foreign narcotics trafficker identified
in the report submitted under subparagraph (A) as if the traf-
ficker were originally included in the report submitted pursuant
to subsection (b) of this section.
H. R. 1555—24
(C) The President shall notify the Secretary of the Treasury
of any determination made under this paragraph.
(2) REVOCATION
OF
DETERMINATION.—(A) Whenever the
President finds that a foreign person that has been publicly
identified as a significant foreign narcotics trafficker in the
report required under subsection (b) or this subsection no longer
engages in those activities for which sanctions under this title
may be applied, the President shall issue public notice of such
a finding.
(B) Not later than the date of the public notice issued
pursuant to subparagraph (A), the President shall notify, in
writing and in classified or unclassified form, the Permanent
Select Committee on Intelligence, and the Committees on the
Judiciary, International Relations, Armed Services, and Ways
and Means of the House of Representatives, and the Select
Committee on Intelligence, and the Committees on the
Judiciary, Foreign Relations, Armed Services, and Finance of
the Senate of actions taken under this paragraph and a descrip-
tion of the basis for such actions.
SEC. 805. BLOCKING ASSETS AND PROHIBITING TRANSACTIONS.
(a) APPLICABILITY OF SANCTIONS.—A significant foreign nar-
cotics trafficker publicly identified in the report required under
subsection (b) or (h)(1) of section 804 and foreign persons designated
by the Secretary of the Treasury pursuant to subsection (b) of
this section shall be subject to any and all sanctions as authorized
by this title. The application of sanctions on any foreign person
pursuant to subsection (b) or (h)(1) of section 804 or subsection
(b) of this section shall remain in effect until revoked pursuant
to section 804(h)(2) or subsection (e)(1)(A) of this section or waived
pursuant to section 804(g)(1).
(b) BLOCKING OF ASSETS.—Except to the extent provided in
regulations, orders, instructions, licenses, or directives issued pursu-
ant to this title, and notwithstanding any contract entered into
or any license or permit granted prior to the date on which the
President submits the report required under subsection (b) or (h)(1)
of section 804, there are blocked as of such date, and any date
thereafter, all such property and interests in property within the
United States, or within the possession or control of any United
States person, which are owned or controlled by—
(1) any significant foreign narcotics trafficker publicly
identified by the President in the report required under sub-
section (b) or (h)(1) of section 804;
(2) any foreign person that the Secretary of the Treasury,
in consultation with the Attorney General, the Director of Cen-
tral Intelligence, the Director of the Federal Bureau of Inves-
tigation, the Administrator of the Drug Enforcement Adminis-
tration, the Secretary of Defense, and the Secretary of State,
designates as materially assisting in, or providing financial
or technological support for or to, or providing goods or services
in support of, the international narcotics trafficking activities
of a significant foreign narcotics trafficker so identified in the
report required under subsection (b) or (h)(1) of section 804,
or foreign persons designated by the Secretary of the Treasury
pursuant to this subsection;
H. R. 1555—25
(3) any foreign person that the Secretary of the Treasury,
in consultation with the Attorney General, the Director of Cen-
tral Intelligence, the Director of the Federal Bureau of Inves-
tigation, the Administrator of the Drug Enforcement Adminis-
tration, the Secretary of Defense, and the Secretary of State,
designates as owned, controlled, or directed by, or acting for
or on behalf of, a significant foreign narcotics trafficker so
identified in the report required under subsection (b) or (h)(1)
of section 804, or foreign persons designated by the Secretary
of the Treasury pursuant to this subsection; and
(4) any foreign person that the Secretary of the Treasury,
in consultation with the Attorney General, the Director of Cen-
tral Intelligence, the Director of the Federal Bureau of Inves-
tigation, the Administrator of the Drug Enforcement Adminis-
tration, the Secretary of Defense, and the Secretary of State,
designates as playing a significant role in international nar-
cotics trafficking.
(c) PROHIBITED TRANSACTIONS.—Except to the extent provided
in regulations, orders, instructions, licenses, or directives issued
pursuant to this title, and notwithstanding any contract entered
into or any license or permit granted prior to the date on which
the President submits the report required under subsection (b)
or (h)(1) of section 804, the following transactions are prohibited:
(1) Any transaction or dealing by a United States person,
or within the United States, in property or interests in property
of any significant foreign narcotics trafficker so identified in
the report required pursuant to subsection (b) or (h)(1) of section
804, and foreign persons designated by the Secretary of the
Treasury pursuant to subsection (b) of this section.
(2) Any transaction or dealing by a United States person,
or within the United States, that evades or avoids, or has
the effect of evading or avoiding, and any endeavor, attempt,
or conspiracy to violate, any of the prohibitions contained in
this title.
(d) LAW ENFORCEMENT
AND INTELLIGENCE ACTIVITIES NOT
AFFECTED.—Nothing in this title prohibits or otherwise limits the
authorized law enforcement or intelligence activities of the United
States, or the law enforcement activities of any State or subdivision
thereof.
(e) IMPLEMENTATION.—(1) The Secretary of the Treasury, in
consultation with the Attorney General, the Director of Central
Intelligence, the Director of the Federal Bureau of Investigation,
the Administrator of the Drug Enforcement Administration, the
Secretary of Defense, and the Secretary of State, is authorized
to take such actions as may be necessary to carry out this title,
including—
(A) making those designations authorized by paragraphs
(2), (3), and (4) of subsection (b) of this section and revocation
thereof;
(B) promulgating rules and regulations permitted under
this title; and
(C) employing all powers conferred on the Secretary of
the Treasury under this title.
(2) Each agency of the United States shall take all appropriate
measures within its authority to carry out the provisions of this
title.
H. R. 1555—26
(3) Section 552(a)(3) of title 5, United States Code, shall not
apply to any record or information obtained or created in the
implementation of this title.
(f ) JUDICIAL
REVIEW.—The determinations, identifications,
findings, and designations made pursuant to section 804 and sub-
section (b) of this section shall not be subject to judicial review.
SEC. 806. AUTHORITIES.
(a) IN GENERAL.—To carry out the purposes of this title, the
Secretary of the Treasury may, under such regulations as he may
prescribe, by means of instructions, licenses, or otherwise—
(1) investigate, regulate, or prohibit—
(A) any transactions in foreign exchange, currency,
or securities; and
(B) transfers of credit or payments between, by,
through, or to any banking institution, to the extent that
such transfers or payments involve any interests of any
foreign country or a national thereof; and
(2) investigate, block during the pendency of an investiga-
tion, regulate, direct and compel, nullify, void, prevent, or pro-
hibit any acquisition, holding, withholding, use, transfer, with-
drawal, transportation, placement into foreign or domestic com-
merce of, or dealing in, or exercising any right, power, or
privilege with respect to, or transactions involving, any property
in which any foreign country or a national thereof has any
interest,
by any person, or with respect to any property, subject to the
jurisdiction of the United States.
(b) RECORDKEEPING.—Pursuant to subsection (a), the Secretary
of the Treasury may require recordkeeping, reporting, and produc-
tion of documents to carry out the purposes of this title.
(c) DEFENSES.—
(1) Full and actual compliance with any regulation, order,
license, instruction, or direction issued under this title shall
be a defense in any proceeding alleging a violation of any
of the provisions of this title.
(2) No person shall be held liable in any court for or
with respect to anything done or omitted in good faith in
connection with the administration of, or pursuant to, and
in reliance on this title, or any regulation, instruction, or direc-
tion issued under this title.
(d) RULEMAKING.—The Secretary of the Treasury may issue
such other regulations or orders, including regulations prescribing
recordkeeping, reporting, and production of documents, definitions,
licenses, instructions, or directions, as may be necessary for the
exercise of the authorities granted by this title.
SEC. 807. ENFORCEMENT.
(a) CRIMINAL PENALTIES.—(1) Whoever willfully violates the
provisions of this title, or any license rule, or regulation issued
pursuant to this title, or willfully neglects or refuses to comply
with any order of the President issued under this title shall be—
(A) imprisoned for not more than 10 years,
(B) fined in the amount provided in title 18, United States
Code, or, in the case of an entity, fined not more than
$10,000,000,
or both.
H. R. 1555—27
(2) Any officer, director, or agent of any entity who knowingly
participates in a violation of the provisions of this title shall be
imprisoned for not more than 30 years, fined not more than
$5,000,000, or both.
(b) CIVIL PENALTIES.—A civil penalty not to exceed $1,000,000
may be imposed by the Secretary of the Treasury on any person
who violates any license, order, rule, or regulation issued in compli-
ance with the provisions of this title.
(c) JUDICIAL REVIEW OF CIVIL PENALTY.—Any penalty imposed
under subsection (b) shall be subject to judicial review only to
the extent provided in section 702 of title 5, United States Code.
SEC. 808. DEFINITIONS.
As used in this title:
(1) ENTITY.—The term ‘‘entity’’ means a partnership, joint
venture, association, corporation, organization, network, group,
or subgroup, or any form of business collaboration.
(2) FOREIGN PERSON.—The term ‘‘foreign person’’ means
any citizen or national of a foreign state or any entity not
organized under the laws of the United States, but does not
include a foreign state.
(3) NARCOTICS
TRAFFICKING.—The term ‘‘narcotics traf-
ficking’’ means any illicit activity to cultivate, produce, manu-
facture, distribute, sell, finance, or transport narcotic drugs,
controlled substances, or listed chemicals, or otherwise
endeavor or attempt to do so, or to assist, abet, conspire,
or collude with others to do so.
(4) NARCOTIC DRUG; CONTROLLED SUBSTANCE; LISTED CHEM-
ICAL.—The terms ‘‘narcotic drug’’, ‘‘controlled substance’’, and
‘‘listed chemical’’ have the meanings given those terms in sec-
tion 102 of the Controlled Substances Act (21 U.S.C. 802).
(5) PERSON.—The term ‘‘person’’ means an individual or
entity.
(6) UNITED STATES PERSON.—The term ‘‘United States per-
son’’ means any United States citizen or national, permanent
resident alien, an entity organized under the laws of the United
States (including its foreign branches), or any person within
the United States.
(7) SIGNIFICANT
FOREIGN
NARCOTICS
TRAFFICKER.—The
term ‘‘significant foreign narcotics trafficker’’ means any foreign
person that plays a significant role in international narcotics
trafficking, that the President has determined to be appropriate
for sanctions pursuant to this title, and that the President
has publicly identified in the report required under subsection
(b) or (h)(1) of section 804.
SEC. 809. EXCLUSION OF PERSONS WHO HAVE BENEFITED FROM
ILLICIT ACTIVITIES OF DRUG TRAFFICKERS.
Section 212(a)(2)(C) of the Immigration and Nationality Act
(8 U.S.C. 1182(a)(2)(C)) is amended to read as follows:
‘‘(C) CONTROLLED SUBSTANCE TRAFFICKERS.—Any alien
who the consular officer or the Attorney General knows
or has reason to believe—
‘‘(i) is or has been an illicit trafficker in any con-
trolled substance or in any listed chemical (as defined
in section 102 of the Controlled Substances Act (21
U.S.C. 802)), or is or has been a knowing aider, abettor,
assister, conspirator, or colluder with others in the
H. R. 1555—28
illicit trafficking in any such controlled or listed sub-
stance or chemical, or endeavored to do so; or
‘‘(ii) is the spouse, son, or daughter of an alien
inadmissible under clause (i), has, within the previous
5 years, obtained any financial or other benefit from
the illicit activity of that alien, and knew or reasonably
should have known that the financial or other benefit
was the product of such illicit activity,
is inadmissible.’’.
SEC. 810. JUDICIAL REVIEW COMMISSION ON FOREIGN ASSET CON-
TROL.
(a) ESTABLISHMENT.—There is established a commission to be
known as the ‘‘Judicial Review Commission on Foreign Asset Con-
trol’’ (in this section referred to as the ‘‘Commission’’).
(b) MEMBERSHIP AND PROCEDURAL MATTERS.—(1) The Commis-
sion shall be composed of five members, as follows:
(A) One member shall be appointed by the Chairman of
the Select Committee on Intelligence of the Senate.
(B) One member shall be appointed by the Vice Chairman
of the Select Committee on Intelligence of the Senate.
(C) One member shall be appointed by the Chairman of
the Permanent Select Committee on Intelligence of the House
of Representatives.
(D) One member shall be appointed by the Ranking
Minority Member of the Permanent Select Committee on Intel-
ligence of the House of Representatives.
(E) One member shall be appointed jointly by the members
appointed under subparagraphs (A) through (D).
(2) Each member of the Commission shall, for purposes of
the activities of the Commission under this section, possess or
obtain an appropriate security clearance in accordance with
applicable laws and regulations regarding the handling of classified
information.
(3) The members of the Commission shall choose the chairman
of the Commission from among the members of the Commission.
(4) The members of the Commission shall establish rules
governing the procedures and proceedings of the Commission.
(c) DUTIES.—The Commission shall have as its duties the
following:
(1) To conduct a review of the current judicial, regulatory,
and administrative authorities relating to the blocking of assets
of foreign persons by the United States Government.
(2) To conduct a detailed examination and evaluation of
the remedies available to United States persons affected by
the blocking of assets of foreign persons by the United States
Government.
(d) POWERS.—(1) The Commission may hold such hearings,
sit and act at such times and places, take such testimony, and
receive such evidence as the Commission considers advisable to
carry out the purposes of this section.
(2) The Commission may secure directly from any executive
department, agency, bureau, board, commission, office, independent
establishment, or instrumentality of the Government information,
suggestions, estimates, and statistics for the purposes of this sec-
tion. Each such department, agency, bureau, board, commission,
H. R. 1555—29
office, establishment, or instrumentality shall, to the extent author-
ized by law, furnish such information, suggestions, estimates, and
statistics directly to the Commission, upon request of the chairman
of the Commission. The Commission shall handle and protect all
classified information provided to it under this section in accordance
with applicable statutes and regulations.
(3) The Attorney General and the Secretary of the Treasury
shall provide to the Commission, on a nonreimbursable basis, such
administrative services, funds, facilities, and other support services
as are necessary for the performance of the Commission’s duties
under this section.
(4) The Commission shall receive the full and timely cooperation
of any official, department, or agency of the United States Govern-
ment whose assistance is necessary for the fulfillment of the duties
of the Commission under this section, including the provision of
full and current briefings and analyses.
(5) No department or agency of the Government may withhold
information from the Commission on the grounds that providing
the information to the Commission would constitute the unauthor-
ized disclosure of classified information or information relating to
intelligence sources or methods.
(6) The Commission may use the United States mails in the
same manner and under the same conditions as the departments
and agencies of the United States.
(e) STAFF.—(1) Subject to paragraph (2), the chairman of the
Commission, in accordance with rules agreed upon by the Commis-
sion, shall appoint and fix the compensation of a staff director
and such other personnel as may be necessary to enable the
Commission to carry out its duties, without regard to the provisions
of title 5, United States Code, governing appointments in the
competitive service, and without regard to the provisions of chapter
51 and subchapter III or chapter 53 of such title relating to classi-
fication and General Schedule pay rates, except that no rate of
pay fixed under this subsection may exceed the equivalent of that
payable to a person occupying a position at level V of the Executive
Schedule under section 5316 of such title.
(2)(A) Any employee of a department or agency referred to
in subparagraph (B) may be detailed to the Commission without
reimbursement from the Commission, and such detailee shall retain
the rights, status, and privileges of his or her regular employment
without interruption.
(B) The departments and agencies referred to in this subpara-
graph are as follows:
(i) The Department of Justice.
(ii) The Department of the Treasury.
(iii) The Central Intelligence Agency.
(3) All staff of the Commission shall possess a security clearance
in accordance with applicable laws and regulations concerning the
handling of classified information.
(f ) COMPENSATION AND TRAVEL EXPENSES.—(1)(A) Except as
provided in subparagraph (B), each member of the Commission
may be compensated at not to exceed the daily equivalent of the
annual rate of basic pay in effect for a position at level IV of
the Executive Schedule under section 5315 of title 5, United States
Code, for each day during which that member is engaged in the
actual performance of the duties of the Commission under this
section.
H. R. 1555—30
(B) Members of the Commission who are officers or employees
of the United States shall receive no additional pay by reason
of their service on the Commission.
(2) While away from their homes or regular places of business
in the performance of services for the Commission, members of
the Commission may be allowed travel expenses, including per
diem in lieu of subsistence, in the same manner as persons employed
intermittently in the Government service are allowed expenses
under section 5703(b) of title 5, United States Code.
(g) REPORT.—(1) Not later than 1 year after the date of the
enactment of this Act, the Commissions shall submit to the commit-
tees of Congress referred to in paragraph (4) a report on the
activities of the Commission under this section, including the
findings, conclusions, and recommendations, if any, of the Commis-
sion as a result of the review under subsection (c)(1) and the
examination and evaluation under subsection (c)(2).
(2) The report under paragraph (1) shall include any additional
or dissenting views of a member of the Commission upon the
request of the member.
(3) The report under paragraph (1) shall be submitted in
unclassified form, but may include a classified annex.
(4) The committees of Congress referred to in this paragraph
are the following:
(A) The Select Committee on Intelligence and the Commit-
tees on Foreign Relations and the Judiciary of the Senate.
(B) The Permanent Select Committee on Intelligence and
the Committees on International Relations and the Judiciary
of the House of Representatives.
(h) TERMINATION.—The Commission shall terminate at the end
of the 60-day period beginning on the date on which the report
required by subsection (g) is submitted to the committees of Con-
gress referred to in that subsection.
(i) INAPPLICABILITY OF CERTAIN ADMINISTRATIVE PROVISIONS.—
(1) The provisions of the Federal Advisory Committee Act (5 U.S.C.
App.) shall not apply to the activities of the Commission under
this section.
(2) The provisions of section 552 of title 5, United States Code
(commonly referred to as the Freedom of Information Act), shall
not apply to the activities, records, and proceedings of the Commis-
sion under this title.
( j) FUNDING.—The Attorney General shall, from amounts
authorized to be appropriated to the Attorney General by this
Act, make available to the Commission $1,000,000 for purposes
of the activities of the Commission under this section. Amounts
made available to the Commission under the preceding sentence
shall remain available until expended.
H. R. 1555—31
SEC. 811. EFFECTIVE DATE.
This title shall take effect on the date of the enactment of
this Act.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.