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Guidance on President Bush's Executive Order Freezing Assets That Support Terrorism

Guidance for Licensed Money Transmitters on President Bush's Executive Order
Freezing Assets that Support Terrorism


BULLETIN FROM THE OFFICE OF FOREIGN ASSETS CONTROL
(for immediate implementation)

September 24, 2001

The President has issued a new Executive Order targeting terrorists  and a number of new names have been added to OFAC's SDN List under  the Order. Their assets need to be blocked and immediate notice  given to OFAC. Banks should call OFAC's Hotline if they have any  hits or questions. All of OFAC's informational material will be   updated as soon as possible.

EXECUTIVE ORDER

BLOCKING PROPERTY AND PROHIBITING TRANSACTIONS WITH PERSONS WHO  COMMIT, THREATEN TO COMMIT, OR SUPPORT TERRORISM

By the authority vested in me as President by the Constitution and  the laws of the United States of America, including the International  Emergency Economic Powers Act (50 U.S.C. 1701 et seq.)(IEEPA), the  National Emergencies Act (50 U.S.C. 1601 et seq.), section 5 of the  United Nations Participation Act of 1945, as amended (22 U.S.C. 287c)  (UNPA), and section 301 of title 3, United States Code, and in view   of United Nations Security Council Resolution (UNSCR) 1214 of  December 8, 1998, UNSCR 1267 of October 15, 1999, UNSCR 1333 of  December 19, 2000, and the multilateral sanctions contained therein,  and UNSCR 1363 of July 30, 2001, establishing a mechanism to monitor  the implementation of UNSCR 1333,

I, GEORGE W. BUSH, President of the United States of America,  find that grave acts of terrorism and threats of terrorism committed  by foreign terrorists, including the terrorist attacks in New York,  Pennsylvania, and the Pentagon committed on September 11, 2001,  acts recognized and condemned in UNSCR 1368 of September 12, 2001,  and UNSCR 1269 of October 19, 1999, and the continuing and immediate  threat of further attacks on United States nationals or the United   States constitute an unusual and extraordinary threat to the national   security, foreign policy, and economy of the United States, and in   furtherance of my proclamation of September 14, 2001, Declaration of  National Emergency by Reason of Certain Terrorist Attacks, hereby  declare a national emergency to deal with that threat. I also find  that because of the pervasiveness and expansiveness of the financial  foundation of foreign terrorists, financial sanctions may be  appropriate for those foreign persons that support or otherwise   associate with these foreign terrorists. I also find that a need  exists for further consultation and cooperation with, and sharing of  information by, United States and foreign financial institutions as  an additional tool to enable the United States to combat the financing  of terrorism.

I hereby order:

Section 1. Except to the extent required by section 203(b) of  IEEPA (50 U.S.C. 1702(b)), or provided in regulations, orders,  directives, or licenses that may be issued pursuant to this order,  and notwithstanding any contract entered into or any license or  permit granted prior to the effective date of this order, all   property and interests in property of the following persons that  are in the United States or that hereafter come within the United  States, or that hereafter come within the possession or control of  United States persons are blocked:

(a) foreign persons listed in the Annex to this order;

(b) foreign persons determined by the Secretary of State, in  consultation with the Secretary of the Treasury and the Attorney  General, to have committed, or to 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;

(c) persons determined by the Secretary of the Treasury, in  consultation with the Secretary of State and the Attorney General,  to be owned or controlled by, or to act for or on behalf of those  persons listed in the Annex to this order or those persons   determined to be subject to subsection 1(b), 1(c), or 1(d)(i) of this order;

(d) except as provided in section 5 of this order and after such  consultation, if any, with foreign authorities as the Secretary of  State, in consultation with the Secretary of the Treasury and the  Attorney General, deems appropriate in the exercise of his  discretion, persons determined by the Secretary of the Treasury,   in consultation with the Secretary of State and the Attorney General;

(i) to assist in, sponsor, or provide financial, material, or  technological support for, or financial or other services to  or in support of, such acts of terrorism or those persons listed  in the Annex to this order or determined to be subject to this order; or

(ii) to be otherwise associated with those persons listed in the  Annex to this order or those persons determined to be subject  to subsection 1(b), 1(c), or 1(d)(i) of this order.

Sec. 2. Except to the extent required by section 203(b) of IEEPA  (50 U.S.C. 1702(b)), or provided in regulations, orders, directives,  or licenses that may be issued pursuant to this order, and  notwithstanding any contract entered into or any license or permit  granted prior to the effective date:

(a) any transaction or dealing by United States persons or within  the United States in property or interests in property blocked
pursuant to this order is prohibited, 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 this order or determined to be subject to this order;

(b) any transaction by any United States 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 set forth  in this order is prohibited; and

(c) any conspiracy formed to violate any of the prohibitions set  forth in this order is prohibited.

Sec. 3. For purposes of this order:

(a) the term "person" means an individual or entity;

(b) the term "entity" means a partnership, association, corporation,  or other organization, group, or subgroup;

(c) the term "United States person" means any United States citizen,   permanent resident alien, entity organized under the laws of the  United States (including foreign branches), or any person in the  United States; and(d) the term "terrorism" means an activity that --

(i) involves a violent act or an act dangerous to human life,  property, or infrastructure; and (ii) appears to be intended --

  1. to intimidate or coerce a civilian population;
  2. to influence the policy of a government by intimidation or coercion; or
  3. to affect the conduct of a government by mass  destruction, assassination, kidnapping, or hostage-taking.

Sec. 4. I hereby determine that the making of donations of the type  specified in section 203(b)(2) of IEEPA (50 U.S.C. 1702(b)(2)) by  United States persons to persons determined to be subject to this  order would seriously impair my ability to deal with the national emergency declared in this order, and would endanger Armed Forces of  the United States that are in a situation where imminent involvement  in hostilities is clearly indicated by the circumstances, and hereby  prohibit such donations as provided by section 1 of this order.  Furthermore, I hereby determine that the Trade Sanctions Reform and  Export Enhancement Act of 2000 (title IX, Public Law 106-387) shall   not affect the imposition or the continuation of the imposition of  any unilateral agricultural sanction or unilateral medical sanction  on any person determined to be subject to this order because  imminent involvement of the Armed Forces of the United States in  hostilities is clearly indicated by the circumstances.

Sec. 5. With respect to those persons designated pursuant to  subsection 1(d) of this order, the Secretary of the Treasury, in the  exercise of his discretion and in consultation with the Secretary of  State and the Attorney General, may take such other actions than  the complete blocking of property or interests in property as the   President is authorized to take under IEEPA and UNPA if the  Secretary of the Treasury, in consultation with the Secretary of  State and the Attorney General, deems such other actions to be  consistent with the national interests of the United States,  considering such factors as he deems appropriate.

Sec. 6. The Secretary of State, the Secretary of the Treasury, and  other appropriate agencies shall make all relevant efforts to  cooperate and coordinate with other countries, including through  technical assistance, as well as bilateral and multilateral  agreements and arrangements, to achieve the objectives of this   order, including the prevention and suppression of acts of  terrorism, the denial of financing and financial services to  terrorists and terrorist organizations, and the sharing of  intelligence about funding activities in support of terrorism.

Sec. 7. The Secretary of the Treasury, in consultation with the  Secretary of State and the Attorney General, is hereby authorized  to take such actions, including the promulgation of rules and  regulations, and to employ all powers granted to the President by  IEEPA and UNPA as may be necessary to carry out the purposes of   this order. The Secretary of the Treasury may redelegate any of  these functions to other officers and agencies of the United States  Government. All agencies of the United States Government are hereby  directed to take all appropriate measures within their authority to  carry out the provisions of this order.

Sec. 8. Nothing in this order is intended to affect the continued  effectiveness of any rules, regulations, orders, licenses, or other  forms of administrative action issued, taken, or continued in effect  heretofore or hereafter under 31 C.F.R. chapter V, except as  expressly terminated, modified, or suspended by or pursuant to this order. 

Sec. 9. Nothing contained in this order is intended to create, nor  does it create, any right, benefit, or privilege, substantive or  procedural, enforceable at law by a party against the United States,  its agencies, officers, employees or any other person.

Sec. 10. For those persons listed in the Annex to this order or  determined to be subject to this order who might have a  constitutional presence in the United States, I find that because  of the ability to transfer funds or assets instantaneously, prior  notice to such persons of measures to be taken pursuant to this  order would render these measures ineffectual. I therefore  determine that for these measures to be effective in addressing the  national emergency declared in this order, there need be no prior  notice of a listing or determination made pursuant to this order.

Sec. 11.

(a) This order is effective at 12:01 a.m. eastern daylight  time on September 24, 2001.

(b) This order shall be transmitted to the Congress and published in the Federal Register.

THE WHITE HOUSE,
September 23, 2001.

ANNEX

Al Qaida/Islamic Army
Abu Sayyaf Group
Armed Islamic Group (GIA)
Harakat ul-Mujahidin (HUM)
Al-Jihad (Egyptian Islamic Jihad)
Islamic Movement of Uzbekistan (IMU)
Asbat al-Ansar
Salafist Group for Call and Combat (GSPC)
Libyan Islamic Fighting Group
Al-Itihaad al-Islamiya (AIAI)
Islamic Army of Aden
Usama bin Laden
Muhammad Atif (aka, Subhi Abu Sitta, Abu Hafs Al Masri)
Sayf al-Adl
Shaykh Sai'id (aka, Mustafa Muhammad Ahmad)
Abu Hafs the Mauritanian (aka, Mahfouz Ould al-Walid, Khalid Al-Shanqiti)
Ibn Al-Shaykh al-Libi
Abu Zubaydah (aka, Zayn al-Abidin Muhammad Husayn, Tariq)
Abd al-Hadi al-Iraqi (aka, Abu Abdallah)
Ayman al-Zawahiri
Thirwat Salah Shihata
Tariq Anwar al-Sayyid Ahmad (aka, Fathi, Amr al-Fatih)
Muhammad Salah (aka, Nasr Fahmi Nasr Hasanayn)
Makhtab Al-Khidamat/Al Kifah
Wafa Humanitarian Organization
Al Rashid Trust
Mamoun Darkazanli Import-Export Company

OFAC'S FAX-ON-DEMAND SERVICE

OFAC's automated fax-on-demand service is free and is available 24 hours a day, seven days a week, by dialing 202/622-0077 from any touchtone phone and following voice prompts. OFAC documents kept up to date on the system include all those available at OFAC's Web site as well as notices, licensing guidelines, and copies of Federal Register notices (often including notices filed, but not yet printed in the Federal Register). The "Index of Available Documents" is date-specific.

User comments on the usefulness and accuracy of the various versions of the SDN list are welcomed. Call OFAC Compliance at 202/622-2490, press the comment button on the Home Page, or contact us through <dennis.wood@do.treas.gov>.

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