More Details on Transnational Crime Strategy, EO Blocking Transactions

(See ITT’s Online Archives or 07/26/11 news, 11072613 and 11072608, for BP summaries of Immigration and Customs Enforcement and Justice announcing certain actions it will take under this strategy regarding IPR, illicit weapons trafficking, Foreign Corrupt Practices Act (FCPA) violations, etc.)

Additional details of the trade-related elements of these initiatives include:

Priority Actions Include Improving Screening, Stopping Counterfeits, Etc.

The Strategy’s 56 priority actions for combating transnational criminal organizations (TCOs) include:

• Improve & harmonize int’l screening standards - Increase collaboration with international partners to improve their capacity to support immigration, customs, transportation, and critical infrastructure screening requirements, especially in TOC “hotspots” around the world, and to harmonize standards for screening and identification.

• Disrupt TOC activities in supply chain, at border - Develop protocols to ensure appropriate TOC data flows to agencies conducting screening and interdiction operations to disrupt TOC activities at the border and at critical points of the supply chain;

• Warn business, protect legitimate trade - Work with international partners to deter crime-state alliances, raise awareness to alert businesses that may be unwitting facilitators for criminal enterprises, and continue to develop appropriate safeguards to protect the legitimate flow of trade and investment.

• Stem counterfeits - Initiate dialogue in multilateral fora to combat corruption and illicit trade, to include, as part of the Administration’s intellectual property enforcement strategy, stemming the flow of dangerous counterfeit products.

• Finalize U.S.-Mexico law enforcement cooperation - finalize the U.S.-Mexico 21st Century Border Action Plan agreements on law enforcement cooperation.

EO Blocks Property of 4 TCOs, Prohibits Transactions by U.S. Persons

As part of the strategy, the President has issued Executive Order 13581, "Blocking Property of Transnational Criminal Organizations," which blocks any property in the U.S. or in the possession or control of U.S. persons in which the TCOs listed in the Annex have an interest. In addition, U.S. persons are prohibited from engaging in transactions with the listed TCOs, including receipt and provision of goods and services.

The Order also authorizes the Treasury Department, in consultation with the Departments of Justice and State, to identify for sanctions any individual or entity determined to have materially assisted, sponsored or provided financial, material or technological support for any person whose property and interests in property are blocked pursuant to the EO.

The TCOs listed in the Annex to the EO are: The Brothers’ Circle (Eurasia); The Camorra (Italy); The Yakuza (Japan); and Los Zetas (Mexico).

Proclamation Suspends Entry of Certain Aliens into U.S.

The President also issued a proclamation in connection with the strategy which suspends the entry into the U.S. of aliens who are subject to United Nations Security Council travel bans and aliens whose property and interests in property have been blocked by an Executive Order issued in whole or in part pursuant to the President's authority under the International Emergency Economic Powers Act. (See ITT’s Online Archives or 07/25/11 news, 11072556, for BP summary of the proclamation.)

(See strategy for non-trade related aspects such as working to enact legislation to require disclosure of beneficial ownership information of legal entities at the time of company formation; establishing a new narcotics rewards program to lead to arrests, etc.)

Treasury press release, dated 07/25/11, available here.

White House fact sheet on the strategy, dated 05/25/11, available here.