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Order Code RL32120

CRS Report for Congress
Received through the CRS Web

The "FTO List" and Congress:
Sanctioning Designated Foreign
Terrorist Organizations

October 21, 2003

Audrey Kurth Cronin
Specialist in Terrorism
Foreign Affairs, Defense, and Trade Division

Congressional Research Service <» The Library of Congress
DESIGNATING FOREIGN TERRORIST ORGANIZATIONS UNDER
U.S. LAW

• The process of designating a Foreign Terrorist
Organization under the authorities of the Antiterrorism
and Effective Death Penalty Act of 1996, Public Law 104-
132, Section 301) is a detailed and extensive effort.
The State Department, working closely with the
intelligence community, and Departments of Justice and
Treasury, must first compile an Administrative Record --
an exhaustive dossier of evidence -- that documents the
group's involvement in terrorist activities. Both
classified and unclassified sources are used in preparing
the administrative record.

• This administrative record then undergoes an extensive
interagency review as the Secretary of State's
designations must be made in consultation with Attorney
General and the Secretary of Treasury.

• Congress also included in the 1996 law a provision that
makes a designation subject to judicial review in the
U.S. Court of Appeals for the District of Colombia.
Thus, the Administrative Record, which is usually
classified because it contains intelligence material,
must withstand court scrutiny. (Several groups have
challenged the designations. Thus far, the Court has
upheld the designations.)

• Seven days before publishing an FTO designation in the
Federal Register, the Department of State provides
classified notification to Congress. The designation takes
effect upon publication.

• FTO designations expire in two years unless renewed. The
law allows groups to be designated at any time following a
decision by the Secretary, in consultation with the
Attorney General and the Secretary of the Treasury. The
Secretary may also revoke designations after determining
that the statutory requirements have been met.
S/CTOrgiizationPlan •.V- .-• *

Coordinator
for Counterterrorism
Amb. Cofer Black
Staff Assistant
Libby Braun

Principal Deputy
Coordinator
William Pope

Staff Assistant Staff Assistant

Regionals Policy, Plans Administration Operations I Liaison Officers
K. Aguilar K. Wycoff) R. Gain Col. C. Burgos II I
9/11 Closed by Statute

II I

See Page 2 See Page 3 See Page 4

Strategic Planning,
Programs, & Budget

6/18/03
S/CT Organization Plan
Deputy for Regional Affairs
Karen Aguilar

QMS QMS

Office Director

Regionals Designations

EAP WHA Exec Order FTO

TEL UNSCR 1267
EUR SA

AF NEA

Multilateral / G-8

6/18/03
s/CT Organization Pk
Associate Coordinator for
Policy, Plans, Programs,
Public Diplomacy
Karl Wycoff

QMS QMS

Office Director
(and R&D/TSWG)

Public Affairs TSWG Legislative
4-
Capacity Building

ATA " T
Terrorism
Training Finance

:A I I f TIP Senior Policy
Program Work Shops

6/18/03
S/CT Operations
Kavy Hill Annex
Associate Coordinator
for Operations
Col. Carlos Burgos

QMS

Office Director TOPOFF

Director of Director Crisis
Plans/Policy Response

Reserve Augmentation
Commo
Support FEST

Sensitive Support

6/18/03
Executive Order 13224 Page 1 of5

U.S. DEPARTMENT of STATE
Fact Sheet
Office of the Coordinator for Counterterrorism
Washington, DC
December 20, 2002

Executive Order 13224

President Bush signed Executive Order 13224 on September 23, 2001. Executive Order 13224 gives the U.S.
government a powerful tool to impede terrorist funding and is part of our national commitment to lead the
international effort to bring a halt to the evil of terrorist activity. President Bush issued Executive Order 13224
pursuant to the authorities of 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. In issuing
Executive Order 13224, President Bush declared a national emergency to deal with the unusual and
extraordinary threat to the national security, foreign policy, and economy of the United States posed by grave
acts of terrorism and threats of terrorism committed by foreign terrorists, including the terrorist attacks in New
York and Pennsylvania, and on the Pentagon committed on September 11, 2001, and the continuing and
immediate threat of further attacks on U.S. nationals or the United States.

In general terms, the Order provides a means by which to disrupt the financial support network for terrorists
and terrorist organizations by authorizing the U.S. government to designate and block the assets of foreign
individuals and entities that commit, or pose a significant risk of committing, acts of terrorism. In addition,
because of the pervasiveness and expansiveness of the financial foundations of foreign terrorists, the Order
authorizes the U.S. government to block the assets of individuals and entities that provide support, services, or
assistance to, or otherwise associate with, terrorists and terrorist organizations designated under the Order, as
well as their subsidiaries, front organizations, agents, and associates.

Designation Criteria

In addition to the 29 individuals and entities designated by the President and listed in the Annex to the
Executive Order, as amended by Executive Order 13268 of July 2, 2002, the Order provides authority for the
designation (and blocking of assets) of additional individuals or entities (defined to mean partnerships,
associations, corporations, or other organizations, groups, or subgroups):

• The Secretary of State, in consultation with the Secretary of the Treasury and the Attorney General,
may designate foreign individuals or entities that he determines have committed, or 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 U.S.;

• The Secretary of the Treasury, in consultation with the Secretary of State and the Attorney General,
may designate individuals or entities that are determined:

• To be owned or controlled by, or act for or on behalf of an individual or entity listed in the Annex to the
Order or by or for persons determined to be subject to subsection 1 (b), 1 (c), or 1 (d)(i) of this Order;

• To assist in, sponsor, or provide financial, material, or technological support for, or financial or other
services to or in support of, acts of terrorism or individuals or entities designated in or under the Order;
or

• To be otherwise associated with certain individuals or entities designated in or under the Order.

http://www.state.gOv/s/ct/rls/fs/2002/16181pf.htm 9/30/03
Foreign Terrorist Organizations Page 1 of 4

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[Print Friendly Version]

Fact Sheet
Office of Counterterrorism
Washington, DC
May 23, 2003

Foreign Terrorist Organizations

Foreign Terrorist Organizations are foreign organizations that are designated by the Secretary of State in
accordance with section 219 of the Immigration and Nationality Act (INA), as amended. FTO designations play
a critical role in our fight against terrorism and are an effective means of curtailing support for terrorist activities
and pressuring groups to get out of the terrorism business.

Identification

The Office of the Coordinator for Counterterrorism in the State Department (S/CT) continually monitors the
activities of terrorist groups active around the world to identify potential targets for designation. When reviewing
potential targets, S/CT looks not only at the actual terrorist attacks that a group has carried out, but also at
whether the group has engaged in planning and preparations for possible future acts of terrorism or retains the
capability and intent to carry out such acts.

Designation

Once a target is identified, S/CT prepares a detailed "administrative record," which is a compilation of
information, typically including both classified and open sources information, demonstrating that the statutory
criteria for designation have been satisfied. If the Secretary of State, in consultation with the Attorney General
and the Secretary of the Treasury, decides to make the designation, Congress is notified of the Secretary's
intent to designate the organization and given seven days to review the designation, as the INA requires. Upon
the expiration of the seven-day waiting period, notice of the designation is published in the Federal Register, at
which point the designation takes effect. An organization designated as an FTO may seek judicial review of the
designation in the United States Court of Appeals for the District of Columbia Circuit not later than 30 days after
the designation is published in the Federal Register.

FTO designations expire automatically after two years, but the Secretary of State may redesignate an
organization for additional two-year period(s), upon a finding that the statutory criteria continue to be met. The
procedural requirements for designating an organization as an FTO also apply to any redesignation of that
organization. The Secretary of State may revoke a designation or redesignation at any time upon a finding that
the circumstances that were the basis for the designation or redesignation have changed in such a manner as
to warrant revocation, or that the national security of the United States warrants a revocation. The same
procedural requirements apply to revocations made by the Secretary of State as apply to designations or
redesignations. A designation may also be revoked by an Act of Congress, or set aside by a Court order.

Legal Criteria for Designation
(Reflecting Amendments to Section 219 of the INA in the USA PATRIOT Act of 2001)

1. It must be a foreign organization.
2. The organization must engage in terrorist activity, as defined in section 212 (a)(3)(B) of the INA
(8 U.S.C. § 1182(a)(3)(B)),* or terrorism, as defined in section 140(d)(2) of the Foreign Relations
Authorization Act, Fiscal Years 1988 and 1989 (22 U.S.C. § 2656f(d)(2)),** or retain the
capability and intent to engage in terrorist activity or terrorism.

http://www.state.gOv/s/ct/rls/fs/2003/12389.htm 6/2/03
70
for Fiscal Year 1999 (Public
91
91
tment of State Administration of Foreign Af-
91
d Consular Programs 91
(Public Law 96-449) . 93 1. State Department Basic Authorities Act of 1956
pubKc Law 84-885 [S. 2569], 70 StaL 890, approved August 1, 1956, as
amended

AN ACT To provide certain basic authority for the Department of State.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That this Act may
be cited as the "State Department Basic Authorities Act of 1956".
TITLE I—BASIC AUTHORITIES GENERALLY
ORGANIZATION OF THE DEPARTMENT OF STATE

SECTION 1. (a) SECRETARY OF STATE.—
* * * * * * *
(f)1 COORDINATOR FOR COUNTERTERRORISM.—
(1) IN GENERAL.—There is within the office of the Secretary of
State a Coordinator for Counterterrorism (in this paragraph re-
ferred to as the 'Coordinator') who shall be appointed by the Presi-
dent, by and with the advice and consent of the Senate.
(2) DUTIES.—
(A) IN GENERAL.—The Coordinator shall perform such duties
and exercise such powers as the Secretary of State shall pre-
(B) DUTIES DESCRIBED.—The principal duty of the Coordina-
tor shall be the overall supervision (including policy oversight
of resources) of international counterterrorism activities. The
Coordinator shall be the principal adviser to the Secretary of
State on international counterterrorism matters. The Coordina-
tor shall be the principal counterterrorism official within the
senior management of the Department of State and shall re-
port directly to the Secretary of State.
(3) RANK AND STATUS OF AMBASSADOR.— The Coordinator shall
have the rank and status of Ambassador at Large.".

SEC, 36.* DEPARTMENT OF STATE REWARDS PROGRAM.
(a) ESTABLISHMENT.—
(1) IN GENERAL.—There is established a program for the pay-
ment of rewards to carry out the purposes of this section.
-UDUC Uw 105-277 (112 Stat 2681-824)
oy sec. 102 of PubUc-l»w 98-533 (98 SUt. 2708). It was
Law 100-690 (102 SUt. 4287); by Public Uw 103-236 (108
SUt. 619)- by Public Uw 1O4-134 (110 SUt. 1321-45); In 1998, sec. 36 was «"«?*«d -^J^
«c. 2202 of Public Uw 105-277 (112 SUt. 2681-805) and subsequently by sec. 101 of Pubbc
Uw 105-323 (112 SUt. 3029).
(71)