IIB
106TH CONGRESS
1ST SESSION
H. R. 3164
IN THE SENATE OF THE UNITED STATES
NOVEMBER 3, 1999
Received
NOVEMBER 19, 1999
Read twice and referred to the Committee on Foreign Relations
AN ACT
To provide for the imposition of economic sanctions on cer-
tain foreign persons engaging in, or otherwise involved
in, international narcotics trafficking.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Foreign Narcotics
Kingpin Designation Act’’.
SEC. 2. FINDINGS AND POLICY.
(a) FINDINGS.—Congress makes the following find-
ings:
(1) Presidential Decision Directive 42, issued
on October 21, 1995, ordered agencies of the execu-
tive branch of the United States Government to,
inter alia, increase the priority and resources de-
voted to the direct and immediate threat inter-
national crime presents to national security, work
more closely with other governments to develop a
global response to this threat, and use aggressively
and creatively all legal means available to combat
international crime.
(2) Executive Order No. 12978 of October 21,
1995, provides for the use of the authorities in the
International Emergency Economic Powers Act
(IEEPA) (50 U.S.C. 1701 et seq.) to target and
apply sanctions to 4 international narcotics traf-
fickers and their organizations that operate from Co-
lombia.
(3) IEEPA was successfully applied to inter-
national narcotics traffickers in Colombia and based
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on that successful case study, Congress believes
similar authorities should be applied worldwide.
(4) There is a national emergency resulting
from the activities of international narcotics traf-
fickers and their organizations that threatens the
national security, foreign policy, and economy of the
United States.
(b) POLICY.—It shall be the policy of the United
States to apply economic and other financial sanctions to
significant foreign narcotics traffickers and their organiza-
tions worldwide to protect the national security, foreign
policy, and economy of the United States from the threat
described in subsection (a)(4).
SEC. 3. PURPOSE.
The purpose of this Act is to provide authority for
the identification of, and application of sanctions on a
worldwide basis to, significant foreign narcotics traf-
fickers, their organizations, and the foreign persons who
provide support to those significant foreign narcotics traf-
fickers and their organizations, whose activities threaten
the national security, foreign policy, and economy of the
United States.
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SEC. 4. PUBLIC IDENTIFICATION OF SIGNIFICANT FOREIGN
NARCOTICS TRAFFICKERS AND REQUIRED
REPORTS.
(a) PROVISION
OF INFORMATION
TO
THE PRESI-
DENT.—The Secretary of the Treasury, the Attorney Gen-
eral, the Secretary of Defense, the Secretary of State, and
the Director of Central Intelligence shall consult among
themselves and provide the appropriate and necessary in-
formation to enable the President to submit the report
under subsection (b). This information shall also be pro-
vided to the Director of the Office of National Drug Con-
trol Policy.
(b) PUBLIC IDENTIFICATION AND SANCTIONING OF
SIGNIFICANT FOREIGN NARCOTICS TRAFFICKERS.—Not
later than June 1, 2000, and not later than June 1 of
each year thereafter, the President shall submit a report
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 to the Select Committee on Intel-
ligence, and the Committees on the Judiciary, Foreign Re-
lations, Armed Services, and Finance of the Senate—
(1) identifying publicly the foreign persons that
the President determines are appropriate for sanc-
tions pursuant to this Act; and
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(2) detailing publicly the President’s intent to
impose sanctions upon these significant foreign nar-
cotics traffickers pursuant to this Act.
The report required in this subsection shall not include
information on persons upon which United States sanc-
tions imposed under this Act, or otherwise on account of
narcotics trafficking, are already in effect.
(c) UNCLASSIFIED REPORT REQUIRED.—The report
required by subsection (b) shall be submitted in unclassi-
fied form and made available to the public.
(d) CLASSIFIED REPORT.—(1) Not later than July
1, 2000, and not later than July 1 of each year thereafter,
the President shall provide the Permanent Select Com-
mittee on Intelligence of the House of Representatives and
the Select Committee on Intelligence of the Senate with
a report in classified form describing in detail the status
of the sanctions imposed under this Act, including the per-
sonnel and resources directed towards the imposition of
such sanctions during the preceding fiscal year, and pro-
viding background information with respect to newly-iden-
tified significant foreign narcotics traffickers and their ac-
tivities.
(2) Such classified report shall describe actions the
President intends to undertake or has undertaken with re-
spect to such significant foreign narcotics traffickers.
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(3) The report required under this subsection is in
addition to the President’s obligations to keep the intel-
ligence committees of Congress fully and currently in-
formed pursuant to the provisions of the National Security
Act of 1947.
(e) EXCLUSION OF CERTAIN INFORMATION.—
(1) 
INTELLIGENCE.—Notwithstanding 
any
other provision of this section, the reports described
in subsections (b) and (d) shall not disclose the iden-
tity of any person, if the Director of Central Intel-
ligence determines that such disclosure could com-
promise an intelligence operation, activity, source, or
method of the United States.
(2) LAW ENFORCEMENT.—Notwithstanding any
other provision of this section, the reports described
in subsections (b) and (d) shall not disclose the
name of any person if the Attorney General, in co-
ordination as appropriate with the Director of the
Federal Bureau of Investigation, the Administrator
of the Drug Enforcement Administration, and the
Secretary of the Treasury, determines that such dis-
closure could reasonably be expected to—
(A) compromise the identity of a confidential
source, including a State, local, or foreign agency or
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authority or any private institution that furnished
information on a confidential basis;
(B) jeopardize the integrity or success of an on-
going criminal investigation or prosecution;
(C) endanger the life or physical safety of any
person; or
(D) cause substantial harm to physical prop-
erty.
(f) NOTIFICATION REQUIRED.—(1) Whenever either
the Director of Central Intelligence or the Attorney Gen-
eral makes a determination under subsection (e), the Di-
rector 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 Se-
lect Committee on Intelligence of the Senate not later than
July 1, 2000, and on an annual basis thereafter.
(g) DETERMINATIONS NOT TO APPLY SANCTIONS.—
(1) The President may waive the application to a signifi-
cant foreign narcotics trafficker of any sanction author-
ized by this title if the President determines that the appli-
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cation of sanctions under this Act would significantly
harm the national security of the United States.
(2) When the President determines not to apply sanc-
tions that are authorized by this Act to any significant
foreign narcotics trafficker, the President shall notify 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 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 for-
eign person has not been publicly identified in a re-
port required under subsection (b), the President
shall submit an additional public report containing
the information described in subsection (b) with re-
spect to such foreign person to the Permanent Select
Committee on Intelligence, and the Committees on
the Judiciary, International Relations, Armed Serv-
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ices, and Ways and Means of the House of Rep-
resentatives, and the Select Committee on Intel-
ligence, and the Committees on the Judiciary, For-
eign Relations, Armed Services, and Finance of the
Senate.
(B) The President may apply sanctions author-
ized under this Act to the significant foreign nar-
cotics trafficker identified in the report submitted
under subparagraph (A) as if the trafficker were
originally included in the report submitted pursuant
to subsection (b) of this section.
(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 for-
eign narcotics trafficker in the report required under
subsection (b) or this subsection no longer engages
in those activities for which sanctions under this Act
may be applied, the President shall issue public no-
tice 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 unclassi-
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fied form, the Permanent Select Committee on Intel-
ligence, and the Committees on the Judiciary, Inter-
national Relations, Armed Services, and Ways and
Means of the House of Representatives, and the Se-
lect 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 description of the basis for
such actions.
SEC. 5. BLOCKING ASSETS AND PROHIBITING TRANS-
ACTIONS.
(a) APPLICABILITY
OF SANCTIONS.—A significant
foreign narcotics trafficker publicly identified in the report
required under subsection (b) or (h)(1) of section 4 and
foreign persons designated by the Secretary of the Treas-
ury pursuant to subsection (b) of this section shall be sub-
ject to any and all sanctions as authorized by this Act.
The application of sanctions on any foreign person pursu-
ant to subsection (b) or (h)(1) of section 4 or subsection
(b) of this section shall remain in effect until revoked pur-
suant to section 4(h)(2) or subsection (e)(1)(A) of this
section or waived pursuant to section 4(g)(1).
(b) BLOCKING OF ASSETS.—Except to the extent
provided in regulations, orders, instructions, licenses, or
directives issued pursuant to this Act, and notwith-
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standing 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 sec-
tion 4, 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 con-
trol of any United States person, which are owned or con-
trolled by—
(1) any significant foreign narcotics trafficker
publicly identified by the President in the report re-
quired under subsection (b) or (h)(1) of section 4;
(2) any foreign person that 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 Adminis-
trator of the Drug Enforcement Administration, the
Secretary of Defense, and the Secretary of State,
designates as materially assisting in, or providing fi-
nancial or technological support for or to, or pro-
viding goods or services in support of, the inter-
national narcotics trafficking activities of a signifi-
cant foreign narcotics trafficker so identified in the
report required under subsection (b) or (h)(1) of sec-
tion 4, or foreign persons designated by the Sec-
retary of the Treasury pursuant to this subsection;
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(3) any foreign person that 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 Adminis-
trator of the Drug Enforcement Administration, 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 nar-
cotics trafficker so identified in the report required
under subsection (b) or (h)(1) of section 4, or for-
eign 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 Central Intelligence, the Director of
the Federal Bureau of Investigation, the Adminis-
trator of the Drug Enforcement Administration, the
Secretary of Defense, and the Secretary of State,
designates as playing a significant role in inter-
national narcotics trafficking.
(c) PROHIBITED TRANSACTIONS.—Except to the ex-
tent provided in regulations, orders, instructions, licenses,
or directives issued pursuant to this Act, and notwith-
standing any contract entered into or any license or permit
granted prior to the date on which the President submits
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the report required under subsection (b) or (h)(1) of sec-
tion 4, the following transactions are prohibited:
(1) Any transaction or dealing by a United
States person, or within the United States, in prop-
erty or interests in property of any significant for-
eign narcotics trafficker so identified in the report
required pursuant to subsection (b) or (h)(1) of sec-
tion 4, and foreign persons designated by the Sec-
retary 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
Act.
(d) LAW ENFORCEMENT AND INTELLIGENCE ACTIVI-
TIES NOT AFFECTED.—Nothing in this Act prohibits or
otherwise limits the authorized law enforcement or intel-
ligence activities of the United States, or the law enforce-
ment 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 Fed-
eral Bureau of Investigation, the Administrator of the
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Drug Enforcement Administration, the Secretary of De-
fense, and the Secretary of State, is authorized to take
such actions as may be necessary to carry out this Act,
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 per-
mitted under this Act; and
(C) employing all powers conferred on the Sec-
retary of the Treasury under this Act.
(2) Each agency of the United States shall take all
appropriate measures within its authority to carry out the
provisions of this Act.
(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 Act.
(f) JUDICIAL REVIEW.—The determinations, identi-
fications, findings, and designations made pursuant to sec-
tion 4 and subsection (b) of this section shall not be sub-
ject to judicial review.
SEC. 6. AUTHORITIES.
(a) IN GENERAL.—To carry out the purposes of this
Act, the Secretary of the Treasury may, under such regu-
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lations as he may prescribe, by means of instructions, li-
censes, or otherwise—
(1) investigate, regulate, or prohibit—
(A) any transactions in foreign exchange,
currency, or securities; and
(B) transfers of credit or payments be-
tween, by, through, or to any banking institu-
tion, to the extent that such transfers or pay-
ments involve any interests of any foreign coun-
try or a national thereof; and
(2) investigate, block during the pendency of an
investigation, regulate, direct and compel, nullify,
void, prevent, or prohibit any acquisition, holding,
withholding, use, transfer, withdrawal, transpor-
tation, placement into foreign or domestic commerce
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 na-
tional 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 production of documents to carry out the
purposes of this Act.
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(c) DEFENSES.—
(1) Full and actual compliance with any regula-
tion, order, license, instruction, or direction issued
under this Act shall be a defense in any proceeding
alleging a violation of any of the provisions of this
Act.
(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 Act, or any
regulation, instruction, or direction issued under this
Act.
(d) RULEMAKING.—The Secretary of the Treasury
may issue such other regulations or orders, including regu-
lations prescribing recordkeeping, reporting, and produc-
tion of documents, definitions, licenses, instructions, or di-
rections, as may be necessary for the exercise of the au-
thorities granted by this Act.
SEC. 7. ENFORCEMENT.
(a) CRIMINAL PENALTIES.—(1) Whoever willfully
violates the provisions of this Act, or any license rule, or
regulation issued pursuant to this Act, or willfully neglects
or refuses to comply with any order of the President issued
under this Act shall be—
(A) imprisoned for not more than 10 years,
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(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.
(2) Any officer, director, or agent of any entity who
knowingly participates in a violation of the provisions of
this Act 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 Treas-
ury on any person who violates any license, order, rule,
or regulation issued in compliance with the provisions of
this Act.
(c) JUDICIAL REVIEW OF CIVIL PENALTY.—Any pen-
alty imposed under subsection (b) shall be subject to judi-
cial review only to the extent provided in section 702 of
title 5, United States Code.
SEC. 8. DEFINITIONS.
As used in this Act:
(1) ENTITY.—The term ‘‘entity’’ means a part-
nership, joint venture, association, corporation, orga-
nization, network, group, or subgroup, or any form
of business collaboration.
(2) FOREIGN PERSON.—The term ‘‘foreign per-
son’’ means any citizen or national of a foreign state
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or any entity not organized under the laws of the
United States, but does not include a foreign state.
(3) NARCOTICS TRAFFICKING.—The term ‘‘nar-
cotics trafficking’’ means any illicit activity to cul-
tivate, produce, manufacture, distribute, sell, fi-
nance, or transport narcotic drugs, controlled sub-
stances, 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
CHEMICAL.—The terms ‘‘narcotic drug’’,
‘‘controlled substance’’, and ‘‘listed chemical’’ have
the meanings given those terms in section 102 of the
Controlled Substances Act (21 U.S.C. 802).
(5) PERSON.—The term ‘‘person’’ means an in-
dividual or entity.
(6) 
UNITED
STATES
PERSON.—The 
term
‘‘United States person’’ means any United States
citizen or national, permanent resident alien, an en-
tity organized under the laws of the United States
(including its foreign branches), or any person with-
in the United States.
(7) SIGNIFICANT
FOREIGN
NARCOTICS
TRAF-
FICKER.—The term ‘‘significant foreign narcotics
trafficker’’ means any foreign person that plays a
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significant role in international narcotics trafficking,
that the President has determined to be appropriate
for sanctions pursuant to this Act, and that the
President has publicly identified in the report re-
quired under subsection (b) or (h)(1) of section 4.
SEC. 9. EXCLUSION OF PERSONS WHO HAVE BENEFITED
FROM ILLICIT ACTIVITIES OF DRUG TRAF-
FICKERS.
Section 212(a)(2)(C) of the Immigration and Nation-
ality Act (8 U.S.C. 1182(a)(2)(C)) is amended to read as
follows:
‘‘(C) 
CONTROLLED
SUBSTANCE
TRAF-
FICKERS.—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 controlled 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 illicit trafficking in any
such controlled or listed substance or
chemical, or endeavored to do so; or
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‘‘(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 reason-
ably should have known that the financial
or other benefit was the product of such il-
licit activity,
is inadmissible.’’.
SEC. 10. EFFECTIVE DATE.
This Act shall take effect on the date of the enact-
ment of this Act.
Passed the House of Representatives November 2,
1999.
Attest:
JEFF TRANDAHL,
Clerk.