Financial Sanctions Against Supporters of Terrorism
Posted Oct 05, 2001

In the last week of September 2001 we shared with you, in our MurthyBulletin and NewsFlash articles, the responses of the various federal agencies to the September 11, 2001, attacks. The Law Office of Sheela Murthy continues to provide cutting edge updates on this burning issue with emphasis in the legal and immigration law contexts.

On September 25, 2001 President Bush issued an Executive Order freezing assets of "persons who commit, threaten to commit, or support terrorism." The Executive Order defines "terrorism" as a violent or other dangerous act directed against people, property or infrastructure that has the apparent intent of influencing policy, intimidating the public, or affecting government operations.

The Executive Order declares a national emergency and mandates the following financial sanctions. Assets of persons listed in an attachment to the order are blocked, regardless of any contracts that may exist or licenses that may have been granted. The sanction also extends to persons or groups not listed who have been determined by the U.S. Secretary of State to pose a national security risk based upon having previously committed acts of terrorism or who pose a risk of terrorism. Others who are less directly involved in such activities, such as persons providing "financial, material, or technological support," are also affected by the sanctions. In addition to property, transactions are also blocked.

Under the Executive Order, the President additionally has authorized the Secretary of the Treasury to take further actions consistent with the Order and with existing laws on this subject. The Executive Order directs various federal agencies to engage in cooperative efforts with the governments of other countries to prevent terrorism and the financing of terrorist organizations.

We understand from a report on CNN and other news media that as of September 30, 2001, the U.S. had frozen financial assets of organizations controlled by Osama Bin Ladin to the tune of over $90 Million. The importance of freezing financial resources will likely play a vital role in rooting out terrorism and we hope that these efforts are successful.