United States Proposals and Presidential Executive Order
By: Leonard A. Miller

The United States is moving rapidly to strike back at terrorist organizations and deprive them of the resources necessary to carry on their illegal activities. These new measures include legislation and executive orders designed to strike at the financial assets and activities of terrorist organizations, both in the United States and outside of the United States. Mr. Miller reports that in his firm's view, from the international financial service sector's perspective, relevant provisions of the proposed United States Anti-Terrorism Act would include sections that:

Enable U.S. law enforcement agencies to seize books and records of terrorist organizations pursuant to subpoena

Broaden the statutory definition of criminal "terrorist activity" to include anyone who affords material support to an organization that the individual knows or should know is a terrorist organizations, regardless of whether the proposed purpose of the support is relate d to terrorism Expand the definition of prohibited "material support" for terrorist organizations to include expert services and assistance - potentially including financial advice or services used to assist in the concealment of funds or assets belonging to terrorist organizations Broaden anti-money laundering statutes to include financial transactions and the use of financial instruments in furtherance of terrorist activities, and to permit the seizure of the assets of terrorist organizations regardless of their sources and regardless of whether they are being used for terrorist activities

Authorize the Department of Treasury to disclose financial information to law enforcement and intelligence agencies

Give US courts extraterritorial jurisdiction to enforce the provisions of the Act. In addition to the foregoing, the President of the United States issued executive orders on the 25th of September, 2001:

freezing the assets of terrorist organizations; and imposing penalties on foreign financial institutions that fail to cooperate in the U.S. investigations of, and reprisals against terrorist organizations.

Note that these penalties against foreign banking institutions would include a freeze on their U.S. assets.

Leonard A. Miller

For info contact: Leonard A. Miller LLP
Swidler Berlin Shereff Friedman,
Washington DC / New York, United States
E-mail: LAMiller@SWIDLAW.COM