T4 B20 Al Barakaat- Delisting Fdr- Entire Contents- Memo- 9-24-02 National Emergencies Act Report- 6...

8/14/2019 T4 B20 Al Barakaat- Delisting Fdr- Entire Contents- Memo- 9-24-02 National Emergencies Act Report- 6 Withdrawal Notices

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W I T H D R A W A L N O T I C ERG: 148Box: 00008 Folder: 0020 Document: 3Series: Team 4 FilesCopies: 1 Pages: 8

ACCESS RESTRICTEDThe item identified below has been withdrawn from this file:

Folder Title: BK -- DelistingDocument Date: 06-26-2002Document Type: MemorandumSpecial Media:From:To:

Subject: Treasury General Counsel's Office memo re: delisting

In the review of this file this item was removed because access to it isrestricted. Restrictions on records in the National Archives are stated ingeneral and specific record group restriction statements which are availablefo r examination.

NND:401Withdrawn: 10-24-2008 by:RETRIEVAL #: 401 00008 0020 3System DocID: 5236


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WITH D R A W A L N O T I C E

RG: 148Box: 00008 Folder: 0020 Document: 4Series: Team 4 FilesCopies: 1 Pages: 12


Folder Title: BK -- DelistingDocument Date: 06-04-2002Document Type: LetterSpecial Media:From: John W. LundquistTo: R. Richard Newcomb

Subject' letterre:delistin9Aaron Money Wire Service, Inc




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W I T H DR AW A L NOTI CERG: 148Box: 00008 Folder: 0020 Document: 5Series: Team 4 FilesCopies: 1 Pages: 21


Folder Title: BK -- DelistingDocument Date: 01-30-2002Document Type: MemorandumSpecial Media:From:To:

Subject: State Dept. briefing memo re: Financial Action Priorities Committee meeting




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WITH D R A W A L N O T I C ERG: 148Box: 00008 Folder: 0020 Document: 6Series: Team 4 FilesCopies: 1 Pages: 3


Folder Title: BK -- DelistingDocument Date:Document Type: DraftSpecial Media:From:To:

Subject: draft of proposed 1267 de-listing process


NND: 401Withdrawn: 10-24-2008 byRETRIEVAL #: 401 00008 0020 6System DocID: 5267


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Domestic De-listing 11/11/03,9:32 AM-DRAFT-

USG Domestic De-Listing ProceduresIntroduction

To date, the USG has received requests for de-listing under E .O.I 3224 in one of the twofollowing circumstances:(i) where the designated individual or entity seeking de-listing ("Petitioner") assertsthat the basis for designation is erroneous; or(ii) where the Petitioner asserts that he or it, exercising reasonable care, has not beena knowing participant in acts of terrorism or a knowing participant in supportingterrorist acts an d where Petitioner demonstrates a break with designatedindividuals and entities as w ell as a disassociation from offending parties.

USG De-listing Criteria

In considering a Petitioner's request for de-listing based upo n either of these circumstances, theUSG will evaluate the cred ibility and veracity of all information , docum entation and statementsproduced by or on behalf of the Petitioner.The USG will also consider, as appropriate, certain criteria, including the following:(1 ) For individuals or entities, inc luding designated officers an d directors of entities linked toterrorism or support for terrorism, whether evidence of the Petition er's w ittingparticipation in support fo r terrorist activities ha s come to light.(2) W hether the Petitioner has severed all affiliations and other associations w ith networks orpersons supporting terrorism, and whether the Petitioner will agree not to establish any

such new a ffiliations, associations or relationships in the future. (This might beestablished, for exam ple, by a sworn statement by the ind ividual Petitioner or principalsof a petitioning entity, made under penalty of perjury, and could include writtenresponses an d clarifications to questions from the USG.)(3) The evaluation of the case for or against the Petitioner by the government of residence orcitizenship or any relevant information from an y other State, includ ing an y supportingfactual or descriptive information. (This might be conveyed, fo r example, via an officialintergovernmental communication.)These criteria are neither exclusive nor exhaustive but indicative of primary USG considerationsin evaluating a de-listing request.

USG De-Listing Procedures11 Designations for the USG's list of blocked persons under Ex ecutive Order ("E.O.") 13224 may be made bythe President (as was done in E.O. 13224) or, as appropriate, by the Secretary of State or the Secretary of theTreasury (acting in consultation with each other and an interagency policy group). De-listing can be done in thesame manner, with the de-listing done by the designating authority and in the mann er used to designate the listed

1


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Domest ic De-l i s t ing 11/11/03,9:32 AM-DRAFT-

The USG believes that a post-designation reconsideration must entail a full factualassessment of info rma tion and argumen ts presented in support of a de-listing request. The U .S.Treasury D epartment's Office of Foreign Assets Control("OFAC"), which administers economicsanctions in the Un ited States, has standing regulations that provide for post-designationadm inistrative review an d remedies, where appropriate, upon a Petitioner's presentation ofarguments or evidence that th e Petitioner believes establishes that a designation w as improper orthat the basis for designation no longer applies due to changes in circumstance, such as remedialactions taken. (See Title 31 of the U nited States Code of Federal R egulations, Section 501.807.)

The O F AC procedures for post-designation reconsideration under E.O. 13224 consist of thefollowing: After receiving a de-listing request from a Petitioner, O F AC u sually seeks additionalinformation from the Petitioner and performs its own investigation to evaluate the claimscontained in the petition. Doc ume ntation sup porting the basis for de-listing is sought, suchas proof o f resignation or retirement from any position with a designated firm/organization or

from any agency relationship with a designated ind ividual (e.g., corporate records, retirementan d pension records, tax records, correspondence with the corporation/organization). This process typica lly requires th e exchange of correspondence, additional fact-finding, and,often, meetings with Petitioner's representatives to determine whether there is a basis for de-listing. A decision to de-list typically requires certification by the Petitioner, under penalty ofperjury, that the representations made by or on behalf of the Petitioner are complete andaccurate, and, where relevan t, a pledge not to act for or on behalf of, or provide support to,an y designated individual or entity in the future. After O F A C has conducted a review of the de-listing request, if de-listing appears

appropriate, it consults on its proposed de-listing action with an interagency group, whichincludes experts and policy makers from the Departments of State, Treasury, Justice, theFederal Bureau of Investigation, the intelligenc e comm unity and the National SecurityCouncil. At the conclusion of consultations w ith this interagency group, the USG will take th enecessary and appropriate steps to de-list and notify the Petitioner of the decision.

person in question. H oweve r, given th e role of the U.S. Treasury Department 's Off ice of Foreign Assets Control("OFAC") in administering econom ic sanctions in the Un ited States, OFA C will act as a clearinghouse for requestsfo r de-listing, ensuring that such requests are transmitted for White House, Treasury or State Department action, asappropriate. Because OFAC has established procedures for the handl ing of de-listing requests related todesignations by the Secretary of the Treasury or his delegate, those procedures ar e described in this paper.Analogous State procedures, including involvement by the interagency policy group, ar e likely. A Presidentialdecision to de-list is not subject to the same procedural requirements , bu t would likely be based on similar criteria.


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W I T H D R A W A L N O T I C ERG: 148Box: 00008 Folder: 0020 Document: 7Series: Team 4 FilesCopies: 1 Pages: 18


Folder Title: BK - DelistingDocument Date: 07-11-2002Document Type: MemorandumSpecial Media:From:To:

Subject: Treasury memo re: delisting Al Barakaat

In the review of this file this item was removed because access to it isrestricted. Restrictions on records in the National Archives are stated ingeneral and specific record group restriction statements which are availablefor examination.

NND:401Withdrawn: 10-24-2008RETRIEVAL #: 401 00008 0020 7System DocID: 5268


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WITH D R A W A L N O T I C ERG: 148Box: 00008 Folder: 0020 Document: 8Series: Team 4 FilesCopies: 1 Pages: 2


Folder Title: BK -- DelistingDocument Date: 01-02-2002Document Type: LetterSpecial Media:From:To:

Subject: letter to Treasury from chairman of Al Barakaat




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107th Congress, 2d Session House Document 107-264

PERIODIC REPORT ON THE NATIONAL EMERGENCYWITH RESPECT TO PERSONS W HO COMMIT, THREAT-EN TO COMMIT, OR SUPPORT TERRORISM

COMMUNICATIONFROM

T H E P R E S ID E N T O F T H E U N I T E D S T A T E STRANSMITTING

A SIX M ONTH PERIODIC REPORT ON THE NATIONAL EMERGENCYWITH RESPECT TO PERSONS WHO COMM IT, THREATEN TO COM-MIT, OR SUPPORT TERRORISM THAT WAS DECLARED IN EXECU-TIVE ORDER 13224 OF SEPTEMBER 23 , 2002, PURSUANT TO 50U.S.C. 1641(c) AND 50 U.S.C. 1703(c)

E:\Seals\CongressJ13

SEPTEMBER 24, 2002.Referred to the Committee on InternationalRelations an d ordered to be printed

U.S. GOVERNMENT PRINTING OFFICEWASHINGTON : 2002


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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 section 204(c) of the International Emer-gency Economic Powers Act, 50U.S.C. 1703(c), I transmit herewiththe 6-m onth periodic report p repared by my Adm inistration on thenational emergency with respect to persons who commit, threatento commit, or support terrorism that was declared in ExecutiveOrder 13224 of September 23, 2001.GEORGE W . BUSH.THE WHITE HOUSE, September 19 , 2002.

( i )


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P E R I O D I C R E P O R T O N T H E N A T I O N A L E M E R G E N C Y W I T H R E S P E C T T OP E R S O N S W H O C O M M I T , T H R E A T E N T o C O M M I T , O R S U P P O R T T E R -R O R I S MThis report to the Congress covers developments over the courseo f the past 6 months concerning the national emergency declaredin Executive Order 13224 of September 23, 2001, "Blocking Prop-erty and Prohibiting Transactions With Persons Who Commit,Threaten to Commit, or Support Terrorism" (66 Fed. Reg. 49079,September 25, 2001) (the "Order"). This report is submitted pursu-ant to section 401(c) of the National Emergencies Act, 50 U.S.C.

1641(c), an d section 204(c) of the International Emergency Eco-nomic Powers A c t ("I E E PA " ), 50 U.S.C. 1703(c).1 . On July 2, 2002, Executive Order 13268, "Termination o fEmergency With Respect to the Taliban and Amendment or Execu-tive Order 13224 of September 23, 2001" (67 Fed. Reg. 44751, July3, 2002) amended the Order, to add Mohammed Omar and theTaliban to the list of blocked persons contained in the Annex to theOrder.2. As of September 13, 2002, 236 individuals and entities are list-ed as blocked persons pursuant to the Order and have been des-ignated as Specially Designated Global Terrorists (SDGTs). Someo f these individuals and entities were also previously designated aspersons whose property and interests in property are blocked in orpursuant to Executive Order 12947 of January 23, 1995 (60 Fed.Reg. 5079, January 25, 1995), "Prohibiting Transactions with Ter-rorists who Threaten to Disrupt the Middle East Peace Process,"and Executive Order 13099 ofAugust 22, 1998, in which the Presi-dent took additional steps by amending the Annex of ExecutiveOrder 12947 to add f o u r individuals or entities, including Usamabin Laden and al-Qaida.A lso included as SDGTs pursuant to the Order are 34 ForeignTerrorist Organizations ( F T O ) , also designated by the Secretary ofState under section 219 of the Immigration and Nationality Act, 8U.S.C. 1189, as amended by the Antiterrorism and Effective DeathPenalty Act of 1996, Pub. L. 104-132, 110 Stat. 1247-1258.3. The international community has recognized the need to takeaction against terrorism and has condemned such acts of terrorismin U.N. Security Council resolutions 1368 of September 12, 2001;1373 of September 28, 2001; and 1390 of January 16, 2002. Theseresolutions, taken together, obligate U.N. member states, amongother things, to take necessary steps to prevent the financing ofterrorism, to deny safe haven to terrorists, and to restrict thetransfer of arms and arms-related material to terrorists. In par-ticular, these resolutions impose sanctions against the Taliban,Usama bin Laden, and al-Qaida, and obligate all U.N. memberstates to "Freeze without delay the funds and other financial assetso r economic resources" of those entities and individuals designated

(3)


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by the U.N. Executive Order 13224 is a fundamental tool in theU.S. effort to w or k closely with governments around the world inidentifying and freezing the assets of terrorists and their sup-porters.4. During the current reporting period, the United States des-ignated a number of individuals and entities pursuant to theOrder, including 44 individuals and entities whose designation re-sulted from joint efforts with international partners. On April 19,2002, as a result of cooperation with other G-7 countries, theUnited States designated nine individuals and one organizationbased on links to al-Qaida, and referred these names to the U.N.jointly with the other G-7. Similarly, working with Italy, theUnited States designated another 25 individuals and entities onAugust 29, 2002, based on al-Qaida ties, and with Italy referredthese names to the U.N. Likewise, the United States on September6, 2002, designated Wa'el Hamza Julaidan as an al-Qaida sup-porter and, together with Saudi Arabia, referred his name to theU.N. Additionally, in collaboration with our European allies, theUnited States and the European Union undertook a coordinatedblocking action on May 3, 2002, with respect to seven individualsand one organization based on their ties to the FTO Euzkadi TaAskatasuna (ETA).5. There have also been a series of developments with respect toentities designated in the previous reporting period. The Holy LandFoundation for Relief and Development (HLF), headquartered inRichardson, Texas, was designated as an SDGT on December 4,2001, pursuant to the Order and Executive Order 12947 based onits support for Hamas. On May 31, 2002, the Treasury Departmentmade a superseding designation of HLF under the Order and Exec-utive Order 12947 based on additional information concerning theconnection between HLF and Hamas. HLF filed suit in Federal dis-trict court in the District of Columbia raising statutory and con-stitutional issues and challenging its designation. On July 18,2002, the court heard arguments on the parties' motion. On August8, 2002, the court denied HLF's motion fo r preliminary injunctiverelief, by which it sought to overturn the designation, and grantedthe Government's motion to dismiss and/or for summary judgmentas to all but one of the statutory and constitutional claims. The rul-ing is being appealed.Funds, accounts, and business records of Global Relief Founda-tion, Inc. (GRF), and Benevolence International Foundation, Inc.(BIF), both headquartered in Chicago, were blocked by the Depart-ment of the Treasury's Office of Foreign Assets Control (OFAC)pending investigation on December 14, 2001. On May 24, 2002, andJune 14, 2002, OFAC notified GRF and BIF, respectively, thatOFAC intended to designate them as blocked entities pursuant tothe Order. Prior to OFAC's notification of intent to designate, GRFand BIF filed separate lawsuits in the Northern District of Illinoisraising constitutional and statutory issues and seeking theunblocking of their assets. GRF's motion fo r preliminary injunctionagainst the Government defendants was denied by the districtcourt and is now on appeal to the Seventh Circuit. Civil pro-ceedings in the BIF case have been stayed pending certain criminalproceedings.


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On November 7, 2001, OFAC blocked, pursuant to the Order,persons and entities that are part of the "Barakaat network," in-cluding nine entities and two individuals based in the UnitedStates. In addition, four U.S.-based entities were blocked in aid ofinvestigation ("BIA entities"). One of the individuals, Liban Hus-sein, was delisted on July 15, 2002, and his property wasunblocked. Aaran Money Wire, Mr. Garad Nor, and Global ServiceInternational, all located in Minneapolis, and one other U.S.-basedentity, Barakaat Enterprises, Inc., located in Columbus, Ohio, andtwo Swedish individuals, Abdirisak Aden and Abdi Abdulaziz Ali,all designated on November 7, 2001, based on their affiliations withthe "Barakaat network," were removed from the list of blocked en-tities on August 27, 2002, and their assets unblocked. The removalof these entities and individuals from the list of blocked persons isbased on the actions taken by these individuals and entities to suf-ficiently eliminate the basis for their designations, which were pre-mised on the parties' now severed affiliations with the "Barakaatnetwork."6. OFAC has responded to numerous license applications underthis program. Most of these requests were made in the context oflitigation by U.S.-based entities challenging designations or theblocking of assets in aid of investigation. Licenses were issued au-thorizing payment from offshore sources that are not blocked fo rlegal services provided to designated offshore entities, and the pay-ment from blocked funds for the legal representation of U.S.-baseddesignated entities and entities whose assets are blocked in aid ofinvestigation. Licenses were also issued authorizing the release ofblocked funds to pay debts that the designated entities and BIA en-tities incurred prior to the designation or blocking; to pay certainlimited operating expenses of BIA entities while the investigationof these entities continues; to pay living expenses of a designatedU.S. person; to release assets to the participants of a retirementsavings plan sponsored by a designated entity, provided that anyplan assets in which the sponsor has a property interest remainblocked; and to return blocked funds transfers after OFAC deter-mined that no designated entity had a property interest in thefunds.A license was issued authorizing a bank to release blocked fundspursuant to a seizure warrant issued to another governmental enti-ty. Licenses were also issued authorizing the release of, or accessto, blocked property (other than funds) , particularly records andcomputers.A number of license requests were denied, including requests fo rthe release of an entity's blocked funds to pay the legal expensesof individuals whose personal assets are not blocked, and requeststo pay offshore creditors or to fund an entity's offshore operations.7. Since the effective date of the Order, OFAC has emphasizedto the financial communityth e importance of identifying and block-ing payments and accounts in which interests of persons des-ignated under the Order are implicated. OFAC has worked veryclosely with banks, broker-dealers, and others to assure the effec-tiveness of interdiction software systems to identify payments,other transactions, and accounts, and has fielded thousands ofphone calls from the financial community regarding suspect activi-


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ties. As of September 13, 2002, OFAC has also blocked an addi-tional $75,000 in terrorist-related assets beyond the approximately$7.6 million reported in my last report. Our international partnershave taken parallel blocking actions in their own financial sectors.Each of the accounts frozen had the potential to be a pipeline fo rfar more money than what was in the account on the day that ac-count was frozen. In addition to closing off these identified pipe-lines, blocking actions have a larger deterrent effect on those whowould otherwise consider assisting the financing of terrorism. Be-tween February 15 and July 24, 2002, OFAC updated its websiteno less than 28 times to keep the public informed of the latestsanctions developments. This included adding new names to its listof Specially Designated Nationals and Blocked Persons and postingspecial alerts and bulletins.8. The expenses incurred by the Federal Government in the six-month period beginning March 24, 2002, that are directly attrib-utable to the exercise of powers and authorities conferred by thedeclaration of the national emergency with respect to persons whocommit, threaten to commit, or support terrorism are estimated atapproximately $8.8 million. These data do not reflect costs of oper-ations by the intelligence and certain law enforcement commu-nities. Reported costs were predominantly related to salary and ex-E enses for personnel in the Department of the Treasury (particu-irly in the Office of Foreign Assets Control, the Office of the Gen-eral Counsel, and the U.S. Customs Service), the Department ofState, an d components of the Department of Justice.9. The United States continues to be concerned by the grave actsof terrorism committed or threatened by foreign terrorists, includ-ing the heinous attacks committed in New York and Pennsylvania,and against the Pentagon, on September 11, 2001. Available infor-mation confirms that terrorist organizations seek to acquire weap-ons of mass destruction, including chemical, biological, and nuclearweapons. In addition, global financial networks continue to supportand fund terrorists and their ability to engage in terrorist actsthrough a variety of financial mechanisms. For these reasons, per-sons who commit, threaten to commit, or support terrorism con-tinue to pose an unusual and extraordinary threat to internationalsecurity.

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T4 B20 Al Barakaat- Delisting Fdr- Entire Contents- Memo- 9-24-02 National Emergencies Act Report- 6...

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