U.S. Report to the Counterterrorism Committee

Report to the Counterterrorism Committee pursuant to paragraph 6 of security council resolution 1373 of 28 September 2001 Implementation of UNSCR 1373

Introduction and Summary

On the day after the heinous September 11 terrorist attacks in Washington and New York, the General Assembly of the United Nations, by consensus of the 189 member states, called for international cooperation to prevent and eradicate acts of terrorism and to hold accountable the perpetrators and those who harbor or support them. That same day, the United Nations Security Council unanimously determined, for the first time ever, any act of international terrorism to be a threat to international peace and security. This determination laid the foundation for Security Council action to bring together the international community under a common set of obligations in the fight to end international terrorism.

On September 28, 2001, the Security Council unanimously adopted resolution 1373 under Chapter VII of the Charter of the United Nations. This historic resolution established a body of legally binding obligations on all UN member states. It defined the common core of the new international campaign to deal with international terrorists, their organizations, and those who support them.

Its provisions require, among other things, that all member states prevent the financing of terrorism and deny safe haven to terrorists. States will need to review and strengthen their border security operations, banking practices, customs and immigration procedures, law enforcement and intelligence cooperation, and arms transfer controls. All states are called upon to increase cooperation and share pertinent information with respect to these efforts. Resolution 1373 also mandated that each state report on the steps it had taken, and established a committee of the Security Council to monitor implementation. The committee will highlight best practices, identify gaps, and help coordinate advice and assistance to states that need it.

Full implementation of resolution 1373 will require each UN member state to take specific measures to combat terrorism. Most states will have to make changes in their laws, regulations, and practices. Those with the capacity to assist in these changes will be needed to help those who lack the expertise and resources to achieve full implementation. As this report that follows makes clear, the United States is ready to provide technical assistance to help in these efforts. We will work closely with other nations who also have the capacity to assist, and with those seeking assistance. Cooperation is key to success.

It will be especially important that these efforts be sustained in the coming months and years. The goal should be to ensure through the UN that enduring mechanisms are created, and that existing institutions are utilized, to raise the capabilities of all nations to confront the threat of terrorism. As UNSCR 1373 recognizes, there will be a need for enhanced coordination of efforts on national, subregional, regional and global levels.

The United States is waging a broad-ranging campaign both at home and abroad against terrorism, including by taking military action in Afghanistan. As another way of combating terrorism internationally, the United States strongly supports UNSCR 1373 and the Counter Terrorist Committee set up by the resolution, and wishes to see full implementation by all states. As President Bush has promised: "We will direct every resource at our command -- every means of diplomacy, every tool of intelligence, every instrument of law enforcement, every financial influence, and every necessary weapon of war -- to the disruption and to the defeat of the global terror network."

Our report details only some of the many steps that we have been taking to combat terrorism and comply with UNSCR 1373. But, we intend to do even more to ensure that we have taken all appropriate measures. The following is a list of some of the steps taken, which are detailed in this report.

Steps taken by the U.S.

On September 23, Executive Order (E.O.) 13224, froze all the assets of 27 foreign individuals, groups, and entities linked to terrorist acts or supporting terrorism and authorized the freezing of assets of those who commit, or pose a significant threat of committing, acts of terrorism.
On September 28, the U.S. sponsored the UN Security Council Resolution 1373, calling on all UN members to criminalize the provision of funds to all terrorists, effectively denying terrorists safe financial haven anywhere.

On October 5, 2001, the Secretary of State, in consultation with the Attorney General and the Secretary of the Treasury, redesignated 25 terrorist organizations (including al-Qaeda) as foreign terrorist organizations pursuant to the Antiterrorism and Effective Death Penalty Act of 1996. Giving material support or resources to any of these foreign organizations is a felony under U.S. law.

On October 12, the U.S. added 39 names to the list of individuals and organizations linked to terrorism or terrorist financing under E.O. 13224.
On October 26, the U.S. enacted the USA PATRIOT Act, which significantly expanded the ability of U.S. law enforcement to investigate and prosecute persons who engage in terrorist acts.
On October 29, the U.S. created a Foreign Terrorist Tracking Task Force aimed at denying entry into the U.S. of persons suspected of being terrorists and locating, detaining, prosecuting and deporting terrorists already in the U.S.
On November 2, the U.S. designated 22 terrorist organizations located throughout the world under E.O. 13224, thus, highlighting the need to focus on terrorist organizations worldwide.

On November 7, the U.S. added 62 new organizations and individuals, all of whom were either linked to the Al Barakaat conglomerate or the Al Taqwa Bank, which have been identified as supplying funds to terrorists.

On December 4, the U.S. froze under E.O. 13224 the assets and accounts of the Holy Land Foundation in Richardson, Texas, whose funds are used to support the Hamas terrorist organization, and two other entities, bringing the total to 153.
On December 5, the Secretary of State designated 39 groups as "terrorist organizations" under the Immigration and Nationality Act, as amended by the new USA PATRIOT Act, in order to strengthen the United States' ability to exclude supporters of terrorism or to deport them if they are found within our borders. We call the list of such designated organizations the "Terrorist Exclusion List."

The U.S. has signed and expects to ratify in the near future the UN Convention for the Suppression of the Financing of Terrorism and the UN Convention for the Suppression of Terrorist Bombings.

The U.S. has met with numerous multilateral groups and regional organizations to accelerate the exchange of operational information as mentioned in UNSCR 1373.

The U.S. has stepped up bilateral information exchanges through law enforcement and intelligence channels to prevent terrorist acts and to investigate and prosecute the perpetrators of terrorist acts.

Our Federal Bureau of Investigation has created an interagency Financial Investigation Group to examine the financial arrangements used to support the terrorist attacks. The FBI headquarters houses this group, which includes analysts and investigators from numerous federal agencies and federal prosecutors with background in investigating and prosecuting financial crimes.
The U.S. brought to conclusion the prosecution of four al-Qaeda members for the bombing of U.S. embassies in Dar es Salaam and Nairobi.
We have designed a new tamper-resistant U.S. visa, and we have upgraded passports to prevent photo substitution.

We have intensified border discussions with Canada and Mexico to improve border security.
UNSCR 1373 Operative Paragraph 1

1(a): What measures if any have been taken to prevent and suppress the financing of terrorists acts in addition to those listed in your responses to questions on 1(b) to (d)?

The assault on the financial underpinnings of terrorism is central to U.S. efforts to fight terrorists and their supporters with every available weapon. Through the September 23 Executive Order freezing U.S. assets of designated individuals and organizations that commit terrorist acts or fund terrorism, and other measures, the U.S. is taking concrete actions internally to combat the financing of terrorist entities. The U.S. also works closely with governments around the world in identifying and freezing terrorists' assets. The U.S. has contacted almost every other UN Member State to encourage them to identify and freeze terrorist assets through implementation of the UN Security Council Resolutions and other means. A list of U.S. actions is set forth below.

Freezing of Terrorist Assets

President George W. Bush signed Executive Order (E.O.) 13224[1] on September 23 pursuant to his authority under the International Emergency Economic Powers Act (IEEPA). This order blocks all property and interests in property of foreign persons and entities designated by the President in the Order, or designated by the Secretary of State as committing, or posing a significant risk of committing, acts of terrorism threatening the security of U.S. nationals or U.S. national security, foreign policy, or economy, if that property is either within the U.S. or within the possession or control of U.S. persons.

The Order also blocks the property and interests in property of persons determined by the Secretary of the Treasury to provide support or services to, or to be associated with, any individuals or entities designated under the Order. The Secretary of the Treasury may also block property and interests in property of persons determined to be owned or controlled by, or to act for or on behalf of, persons designated in or under the E.O. Any transaction or dealing by U.S. persons or within the U.S. in property and interests in property blocked pursuant to the Order is prohibited.

The Order directs the U.S. Government to cooperate and coordinate with foreign governments to suppress and prevent terrorism, to deny financial services and financing to terrorists, and to share intelligence about terrorist financing.
Under Section 219 of the Immigration and Nationality Act [2] (as amended by the Antiterrorism and Effective Death Penalty Act of 1996), the Secretary of State may, in consultation with the Attorney General and the Secretary of the Treasury, designate an organization as a Foreign Terrorist Organization ("FTO") period if the organization is a "foreign organization" that "engages in terrorist activity" that "threatens the security of U.S. nationals or the security of the United States". The Department of the Treasury may require U.S. financial institutions possessing or controlling assets of designated FTOs to block all financial transactions involving these assets. Further, it is a federal crime to provide material support to designated FTOs, and certain members of these FTOs are not allowed to enter or remain in the U.S.

Under Executive Order 12947 of January 23, 1995, as amended by E.O. 13099 of August 20, 1998, the President designated sixteen organizations, and authorized the Secretary of State to designate additional foreign individuals or entities who have committed, or pose a significant risk of committing, acts of violence with the purpose or effect of disrupting the Middle East peace process, or who have provided support for or services in support of such acts of violence. Designations of terrorism-related organizations and individuals pursuant to the Order, as amended, have continuing validity as actions taken in the U.S. consistent with the objectives of UNSCR 1373.

The Order further authorized the Secretary of the Treasury to block the property of persons determined to be owned or controlled by, or acting for or on behalf of, persons designated in or under the Order. All property and interests in property of persons designated under the Order in the U.S. or in the control of U.S. persons are blocked. Any transaction or dealing in such blocked property is prohibited.

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