{"id":1138,"date":"2019-09-11T20:33:30","date_gmt":"2019-09-12T00:33:30","guid":{"rendered":"http:\/\/ielrblog.com\/?p=1138"},"modified":"2019-09-11T20:33:30","modified_gmt":"2019-09-12T00:33:30","slug":"updated-executive-order-provides-enhanced-counterterrorism-sanctions-and-targets-foreign-financial-institutions","status":"publish","type":"post","link":"https:\/\/ielrblog.com\/index.php\/2019\/09\/11\/updated-executive-order-provides-enhanced-counterterrorism-sanctions-and-targets-foreign-financial-institutions\/","title":{"rendered":"Updated Executive Order Provides Enhanced Counterterrorism Sanctions and Targets Foreign Financial Institutions"},"content":{"rendered":"

On September 10, 2019, President Donald Trump issued a revised Executive Order 13224, furnishing the Treasury and State Departments new mechanisms permitting the U.S. Government to better identify and designate perpetrators of terrorism worldwide, especially ones involved in terrorism financing.\u00a0 Also on September 10, the U.S. Department of the Treasury\u2019s Office of Foreign Assets Control (OFAC) used the new authorities in E.O. 13324 to designate a series of terrorist leaders, facilitators, and entities<\/a>.<\/p>\n

Treasury designated 15 leaders, individuals, and entities affiliated with terrorist groups<\/a>.\u00a0 The action targets entities affiliated with HAMAS, the Islamic State of Iraq and Syria (ISIS), al-Qa\u2019ida, and the Islamic Revolutionary Guard Corps-Qods-Force (IRGC-QF), and combined with actions taken by the State Department amounts to some of the furthest reaching designations of terrorists and their supporters in the past 15 years.<\/p>\n

The President\u2019s revised E.O. and Treasury\u2019s announcement of new designations came just one day before the eighteenth anniversary of 9\/11 attacks that occurred on September 11, 2001.\u00a0 The purpose of the original E.O. 13224 was to disrupt the financial infrastructure of terrorist groups worldwide.\u00a0 Treasury\u2019s press release states that E.O. 13224 has helped to dismantle networks supporting a broad range of terrorist groups from al-Qa\u2019ida and ISIS to Iranian-backed groups like Hizballah and HAMAS.\u00a0 The E.O. also is an important mechanism in the U.S. Government\u2019s efforts to drain the financial resources of the Iranian regime\u2019s bad actors including the IRGC, and its foreign expeditionary arm, the Qods Force (IRGC-QF).<\/p>\n

Revised E.O. 13324 and New CounterTerrorism Tools<\/strong><\/p>\n

The revised E.O. 13224 gives the Treasury and State Departments new tools that permit the U.S. Government to better identify and designate terrorist perpetrators worldwide.\u00a0 In particular, the E.O.:<\/p>\n

    \n
  1. Has new designation criteria that permits the U.S. Government to more efficiently target leaders or officials of terrorists groups as well as individuals who participate in terrorist training;<\/li>\n
  2. Provides for secondary sanctions against foreign financial institutions that have knowingly conducted or facilitated significant financial transactions on behalf of any person sanctioned pursuant to E.O. 13224;<\/li>\n
  3. Authorizes Treasury to prohibit a foreign financial institution that has knowingly conducted or facilitated a significant transaction with any Specially Designated Global Terrorist (SDGT) from opening or maintaining a correspondent or payable-through account in the United States; and<\/li>\n
  4. Consolidates U.S. counterterrorism authorities under a single sanctions program by eliminating E.O. 12497 and combining that authority\u2019s goal of defending the Middle East Peace Process with E.O. 13224\u2019s global remit and expanded authorities.<\/li>\n
  5. The new authority warns foreign financial institutions that enabling terrorists and their financial backers to rely upon the international financial system to facilitate their malign activities will have consequences.<\/li>\n<\/ol>\n

    New Targets of Treasury\u2019s Sanctions under E.O. 13224<\/strong><\/p>\n

    Treasury has sanctioned a broad away of persons.\u00a0 Among them is the Turkish-based Redin Exchange<\/em> for materially assisting, sponsoring, or providing financial, material, or technological support for, or goods or services to, HAMAS.\u00a0 As of March 2019, the Redin Exchange and Treasury-designated financial facilitator Muhammad Sarur as having been involved in a $10 million dollar transfer to HAMAS\u2019s operational arm, the Izz-Al-Din Al-Qassam Brigades.\u00a0 As of mid-2018, Redin Exchange was identified as a key part of the infrastructure used to transfer money to HAMAS.\u00a0 Throughout 2017, tens of millions of dollars was transferred to HAMAS with the assistance of Redin Exchange.<\/p>\n

    Treasury sanctioned Marwan Mahdi Salah Al-Rawi<\/em> as Redin\u00a0 Exchange\u2019s Chief Executive Officer, and Ismael Tash, as its Redin Exchange\u2019s Deputy CEO and in charge of its foreign relations.<\/p>\n

    Treasury sanctioned Lebanon-based Muhammad Sa\u2019id Izadi<\/em> as a leader or official of the IRGC-QF who has materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to, HAMAS.<\/p>\n

    The Turkey-based Zaher Jabarin<\/em> was sanctioned as the head of HAMAS\u2019s Finance Office.\u00a0 He allegedly manages HAMAS\u2019s yearly budget amounting to tens of millions of dollars, is in charge of HAMAS\u2019s income from around the world, and seeks to obtain add additional sources of funding for HAMAS.<\/p>\n

    Treasury has sanctioned SMART Ithalat Ihracat Dis Ticaret Limited Sirketi<\/em>.\u00a0 Ismael Tash is also newly sanctioned. He is the owner of SMART, which is an import\/export company and possible front company associated with Redin.\u00a0 Both SMART and Redin Exchange share the same Istanbul \u2013based address.<\/p>\n

    Saksouk Company for Exchange and Money Transfer (Saksouk<\/em>) was sanctioned for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to, ISIS.\u00a0 In late 2018, Saksouk handled fund transfers on behalf of Syria-based ISIS members.<\/p>\n

    Treasury has sanctioned Mohamed Ahmed Elsayed Ahmed Ibrahim<\/em>, a Brazil-based member of al-Qa\u2019ida, who provided facilitation support to al-Qa\u2019ida members and material support to al-Qa\u2019ida.<\/p>\n

    Treasury has sanctioned\u00a0 Almaida Marani Salvin<\/em> for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to, ISIS-Philippines.\u00a0 In April 2019, \u00a0Philippine authorities arrested Salvin in Zamboanga City, Philippines, based on her being suspected of unlawful manufacture, sale, acquisition, disposition, importation, or\u00a0 possession of an explosive or incendiary device.<\/p>\n

    Maldives-based Mohamad Ameen<\/em> was sanctioned for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, ISIS-Khorasan (ISIS-K).\u00a0 He is allegedly an ISIS-K recruiter who encouraged people to join ISIS-Khorasan.<\/p>\n

    Treasury has sanctioned\u00a0 Al-Hebo Jewelry Company<\/em>\u00a0 for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to ISIS. As of late 2017, al-Hebo\u2019s location in Gaziantep, Turkey allegedly participated in an ISIS scheme to convert gold into cash to more efficiently and secretly send funds via hawalas<\/em> in Turkey to ISIS sleeper cells in Iraq and Syria.<\/p>\n

    Analysis<\/strong><\/p>\n

    A significant new tool in the revised E.O. 13224 is the provision of secondary sanctions against foreign financial institutions that have knowingly conducted or facilitated significant financial transactions on behalf of any person sanctioned pursuant to E.O. 13224. \u00a0Treasury will be able to force people to choose between using foreign financial institutions under the threat of the secondary sanctions. The ability of Treasury to prohibit a foreign financial institution that has knowingly conducted or facilitated a significant transaction with any Specially Designated Global Terrorist (SDGT) from opening or maintaining a correspondent or payable-through account in the U.S. is also an important sanction.<\/p>\n

    The new persons sanctioned show the diversity of types of occupations sanctions (e.g., recruiters, financial institutions, jewelers, import-export businesses, CEOs and Deputy-CEOs of financial institutions).<\/p>\n

    The persons are located worldwide (e.g., Turkey, Lebanon, Maldives, Brazil, Syria, and the Philippines).<\/p>\n

    The current issue of the IELR will have a more comprehensive discussion of the revised E.O. and the new sanctions.<\/p>\n

     <\/p>\n

     <\/p>\n

     <\/p>\n","protected":false},"excerpt":{"rendered":"

    On September 10, 2019, President Donald Trump issued a revised Executive Order 13224, furnishing the Treasury and State Departments new mechanisms permitting the U.S. Government to better identify and designate perpetrators of terrorism worldwide, especially ones involved in terrorism financing.\u00a0 Also on September 10, the U.S. Department of the Treasury\u2019s Office of Foreign Assets Control […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[13,8,6,98,16,77,43,115,83,11],"tags":[],"class_list":{"0":"post-1138","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-international-administrative-penal-law","7":"category-counterterrorism-and-international-human-rights","8":"category-economic-sanctions","9":"category-extraterritorial-jurisdiction","10":"category-foreign-intelligence-and-surveillance","11":"category-international-criminal-law","12":"category-international-regimes","13":"category-ounterterrorism-financial-enforcement","14":"category-sanctions","15":"category-transnational-organized-crime-cybercrime-narcotics","16":"entry"},"yoast_head":"\nUpdated Executive Order Provides Enhanced Counterterrorism Sanctions and Targets Foreign Financial Institutions | IELR Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ielrblog.com\/index.php\/2019\/09\/11\/updated-executive-order-provides-enhanced-counterterrorism-sanctions-and-targets-foreign-financial-institutions\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Updated Executive Order Provides Enhanced Counterterrorism Sanctions and Targets Foreign Financial Institutions | IELR Blog\" \/>\n<meta property=\"og:description\" content=\"On September 10, 2019, President Donald Trump issued a revised Executive Order 13224, furnishing the Treasury and State Departments new mechanisms permitting the U.S. Government to better identify and designate perpetrators of terrorism 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