[Weekly Compilation of Presidential Documents Volume 37, Number 39 (Monday, October 1, 2001)]
[Pages 1361-1363]
[Online from the Government Publishing Office, www.gpo.gov]
<R04>
Message to the Congress on United States Financial Sanctions Against
Foreign Terrorists and Their Supporters
September 23, 2001
To the Congress of the United States:
Pursuant to section 204(b) of the International Emergency Economic
Powers Act, 50 U.S.C. 1703(b) (IEEPA), and section 301 of the National
Emergencies Act, 50 U.S.C. 1631, I hereby report that I have exercised
my statutory authority to declare a national emergency in response to
the unusual and extraordinary threat posed to the national security,
foreign policy, and economy of the United States by grave acts of
terrorism and threats of terrorism committed by foreign terrorists,
including the September 11, 2001, terrorist attacks at the World Trade
Center, New York, at the Pentagon, and in Pennsylvania. I have also
issued an Executive Order to help deal with this threat by giving the
United States more powerful tools to reach the means by which terrorists
and terrorist networks finance themselves and to encourage greater
cooperation by foreign financial institutions and other entities that
may have access to foreign property belonging to terrorists or terrorist
organizations.
The attacks of September 11, 2001, highlighted in the most tragic
way the threat posed to the security and national interests of the
United States by terrorists who have abandoned any regard for humanity,
decency, morality, or honor. Terrorists and terrorist networks operate
across international borders and derive their financing from sources in
many nations. Often, terrorist property and financial assets lie outside
the jurisdiction of the United States. Our effort to combat and destroy
the financial underpinnings of global terrorism must therefore be broad,
and not only provide powerful sanctions against the U.S. property of
terrorists and their supporters, but also encourage multilateral
cooperation in identifying and freezing property and assets located
elsewhere.
This Executive Order is part of our national commitment to lead the
international effort to bring a halt to the evil of terrorist activity.
In general terms, it provides additional means by which to disrupt the
financial support network for terrorist organizations by blocking the
U.S. assets not only of foreign persons or entities who commit or pose a
significant risk of committing acts of terrorism, but also by blocking
the assets of their subsidiaries, front organizations, agents, and
associates, and any other entities that provide services or assistance
to them. Although the blocking powers enumerated in the order are broad,
my Administration is committed to exercising them responsibly, with due
regard for the culpability of the persons and entities potentially
covered by the order, and in consultation with other countries.
The specific terms of the Executive Order provide for the blocking
of the property and interests in property, including bank deposits, of
foreign persons designated in the order or pursuant thereto, when such
property is within the United States or in the possession
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or control of United States persons. In addition, the Executive Order
prohibits any transaction or dealing by United States persons in such
property or interests in property, including the making or receiving of
any contribution of funds, goods, or services to or for the benefit of
such designated persons.
I have identified in an Annex to this order eleven terrorist
organizations, twelve individual terrorist leaders, three charitable or
humanitarian organizations that operate as fronts for terrorist
financing and support, and one business entity that operates as a front
for terrorist financing and support. I have determined that each of
these organizations and individuals have committed, supported, or
threatened acts of terrorism that imperil the security of U.S. nationals
or the national security, foreign policy, or economy of the United
States. I have also authorized the Secretary of State to determine and
designate additional foreign persons who have committed or pose a
significant risk of committing acts of terrorism that threaten the
security of U.S. nationals or the national security, foreign policy, or
economy of the United States. Such designations are to be made in
consultation with the Secretary of the Treasury and the Attorney
General.
The Executive Order further authorizes the Secretary of the Treasury
to identify, in consultation with the Secretary of State and the
Attorney General, additional persons or entities that:
<bullet> Are owned or controlled by, or that act for or on behalf
of, those persons designated in or pursuant to the order;
<bullet> Assist in, sponsor, or provide financial, material, or
technological support for, or financial or other services to
or in support of acts of terrorism or those persons
designated in or pursuant to the order; or
<bullet> Are otherwise associated with those persons designated in
or pursuant to the order.
Prior to designating persons that fall within the latter two
categories, the Secretary of the Treasury is authorized to consult with
any foreign authorities the Secretary of State deems appropriate, in
consultation with the Secretary of the Treasury and the Attorney
General. Such consultation is intended to avoid the need for additional
designations by securing bilateral or multilateral cooperation from
foreign governments and foreign financial and other institutions. Such
consultation may include requests to foreign governments to seek, in
accordance with international law and their domestic laws, information
from financial institutions regarding terrorist property and to take
action to deny terrorists the use of such property. The order also
provides broad authority, with respect to the latter two categories, for
the Secretary of the Treasury, in his discretion, and in consultation
with the Secretary of State and the Attorney General, to take lesser
action than the complete blocking of property or interests in property
if such lesser action is deemed consistent with the national interests
of the United States. Some of the factors that may be considered in
deciding whether a lesser action against a foreign person is consistent
with the national interests of the United States include:
<bullet> The impact of blocking on the U.S. or international
financial system;
<bullet> The extent to which the foreign person has cooperated with
U.S. authorities;
<bullet> The degree of knowledge the foreign person had of the
terrorist-related activities of the designated person;
<bullet> The extent of the relationship between the foreign person
and the designated person; and
<bullet> The impact of blocking or other measures on the foreign
person.
The Executive Order also directs the Secretary of State, the
Secretary of the Treasury, and other agencies to make all relevant
efforts to cooperate and coordinate with other countries, including
through existing and future multilateral and bilateral agreements and
arrangements, to achieve the objectives of this order, including the
prevention and suppression of acts of terrorism, the denial of the
financing of and financial services to terrorists and terrorist
organizations, and the sharing of intelligence about funding activities
in support of terrorism.
In the Executive Order, I also have made determinations to suspend
otherwise applicable exemptions for certain humanitarian,
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medical, or agricultural transfers or donations. Regrettably,
international terrorist networks make frequent use of charitable or
humanitarian organizations to obtain clandestine financial and other
support for their activities. If these exemptions were not suspended,
the provision of humanitarian materials could be used as a loophole
through which support could be provided to individuals or groups
involved with terrorism and whose activities endanger the safety of
United States nationals, both here and abroad.
The Secretary of the Treasury, in consultation with the Secretary of
State and the Attorney General, is authorized to issue regulations in
exercise of my authorities under IEEPA to implement the prohibitions set
forth in the Executive Order. All Federal agencies are also directed to
take actions within their authority to carry out the provisions of the
order, and, where applicable, to advise the Secretary of the Treasury in
a timely manner of the measures taken.
The measures taken here will immediately demonstrate our resolve to
bring new strength to bear in our multifaceted struggle to eradicate
international terrorism. It is my hope that they will point the way for
other civilized nations to adopt similar measures to attack the
financial roots of global terrorist networks.
In that regard, this Executive Order is an integral part of our
larger effort to form a coalition in the global war against terrorism.
We have already worked with nations around the globe and groups such as
the G-8, the European Union, and the Rio Group, all of which have issued
strong statements of their intention to take measures to limit the
ability of terrorist groups to operate. In the next several weeks the
33rd Session of the International Civil Aviation Organization (ICAO)
General Assembly and other fora will focus on terrorism worldwide. It is
our intention to work within the G-7/G-8, the ICAO, and other fora to
reach agreement on strong concrete steps that will limit the ability of
terrorists to operate. In the G-7/G-8, the United States will work with
its partners, drawing on the G-8 Lyon Group on Transnational Crime, the
G-8 Group on Counter-terrorism, the G-7 Financial Action Task Force, and
the existing G-8 commitments to build momentum and practical cooperation
in the fight to stop the flow of resources to support terrorism. In
addition, both the Convention for the Suppression of the Financing of
Terrorism and the Convention for the Suppression of Terrorist Bombings
have been forwarded to the Senate, and I will be forwarding shortly to
the Congress implementing legislation for both Conventions.
I am enclosing a copy of the Executive Order I have issued. This
order is effective at 12:01 a.m. eastern daylight time on September 24,
2001.
George W. Bush
The White House,
September 23, 2001.
Note: This message was released by the Office of the Press Secretary on
September 24.