28 February 2002
Fact Sheet: Background On Terror Assets Designation Process
(Multi-agency vetting process is explained) (730)
Shortly after the terrorist attacks on September 11, President Bush
signed Executive Order 13224 to block the funds of terrorists and
anyone associated with terrorist groups or terrorism, and asked
Treasury Secretary Paul O'Neill to lead the campaign to expose,
isolate, and incapacitate the terrorists' financial networks. The
result has been the creation of a list whose members have had their
financial assets in the United States frozen.
The following text provides background information about the process
whereby individuals and entities are designated, and also how they may
seek to be removed from the designation list.
(begin fact sheet)
U.S. Department of State Office of Counterterrorism
February 28, 2002
The United States Terrorist Assets Designation Process
Background Sheet
How are the names of individuals and entities vetted for designation?
A number of US agencies, including the Treasury, State, Justice, the
FBI and the intelligence community, review open source and
confidential information, including tips and leads, about persons and
entities who commit, threaten to commit or support terrorism. A subset
of the agencies are then responsible for developing a background file,
which is reviewed by a larger group, to see if there is adequate
material to begin the designation process. These files are also
reviewed for legal sufficiency under President Bush's September 24
Executive Order. The final determination on designation is then
forwarded for decision to the National Security Council, which
convenes a meeting of deputy Agency heads. Upon their recommendation,
the Secretary of the Treasury, in cooperation with the Secretary of
State and the Attorney General, issues a designation and blocking
order. This blocking order is implemented by the Treasury Department's
Office of Foreign Assets Control (OFAC). Our Embassies worldwide are
also consulted to provide information and advice. We also take into
consideration comments from our close friends and allies.
How does the process for seeking removal from the list work?
-- OFAC has an established practice for reconsideration of
designations and, where appropriate, removal of designated persons
(individuals or entities) from the lists under its various designation
programs. OFAC regulations provide for post-designation administrative
review and remedies (Sections 501.806 and 501.807 of OFAC's
regulations in 31 Code of Federal Regulations).
-- After receiving a removal petition, OFAC usually seeks additional
information from the petitioner and engages in other research and
investigation in order to establish, or refute, the claim that the
petitioner has sufficiently changed the circumstances or behavior that
caused him to be designated.
-- Removals, which are not frequent, have nearly always been in cases
where the petitioner has individually established that he is no longer
engaging in the activity or activities that qualified him for
designation under the applicable Executive Order.
-- Most petitioners initiate the review process simply by writing to
OFAC. Exchanges of correspondence, additional fact-finding, and,
often, meetings occur before OFAC decides whether there is a basis for
removal. Most parties seeking removal have followed this approach.
What factors are involved in removal requests?
Removal factors in designation petition cases include:
-- Change in circumstances or behavior. The basic removal petition
issue is nearly always whether the petitioner has made a demonstrable
break with the designated entity.
-- Documents. Proof of resignation or retirement from any position
with the designated firm/organization or from any agency relationship
with it (e.g., corporate records, retirement and pension records, tax
records, correspondence with the corporation/organization).
-- Additional research and investigation. OFAC also initiates its own
follow-up research and investigation to provide us with current
information about the petitioner and his claimed separation from the
designated entity. In this process, we look for information that
corroborates the petitioner as well as information indicating that the
petitioner's assertions are deceptive or that the petitioner otherwise
is not credible.
-- Terms of Removal. Statements admitting and describing past and
current relationships with the designated entity and pledges not to
act for, or on behalf of, those persons or any other designated entity
or individual.
Is there a process to expedite the administrative appeal process if
necessary or so desired?
Removal petitions are handled on a case-by-case basis. While no
specific process exists for expedited review, a situation might
indicate the need for accelerated review.
(end fact sheet)
(Distributed by the Office of International Information Programs, U.S.
Department of State. Web site: http://usinfo.state.gov)
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