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

Publication Date: October 2003

Publisher: Library of Congress. Congressional Research Service

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Research Area: Government

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Abstract:

The purpose of this report is to provide Congress with an overview of the nature and status of the designated foreign terrorist organizations list, as a potential tool in overseeing the implementation and effects of U.S. legislation designed to sanction terrorists. It centers on the list of terrorist groups that are formally designated by the Secretary of State pursuant to section 219 of the Immigration and Nationality Act, as amended under the Antiterrorism and Effective Death Penalty Act of 1996 (P.L. 104132). These groups are often collectively referred to as the "FTO list."

FTO list designations, which last for two years and must be renewed, occur after an interagency process involving the departments of State, Justice, Homeland Security, and the Treasury. Since the designations can be challenged in court, they require a detailed administrative record often based on classified information. An organization that is placed on the FTO list is subject to financial and immigration sanctions, potentially including the blocking of assets, the prosecution of supporters who provide funds, refusal of visas, and deportations of members. There have been a number of designations and changes since the list was established, but it currently includes thirty-six organizations. (See Appendix A.)

The FTO list is often confused with some of the other "terrorist lists" that are maintained by the U.S. government. These include the "state-sponsors of terrorism" list, which is pursuant to Section 6(j) of the 1979 Export Administration Act (P.L. 96-72; 50 U.S.C. app. 2405(6)(j)); the "Specially Designated Terrorists" (SDTs) list, which is pursuant to the International Emergency Economic Powers Act (P.L. 95223; 50 U.S.C. 1701 et seq.) and was initiated in 1995 under Presidential Executive Order 12947; the "Specially Designated Global Terrorists" (SDGT) list, initiated in 2001 under Presidential Executive Order 13224; and, finally, the "Specially Designated Nationals and Blocked Persons" (SDN) list, a master list that contains the other lists. All of these are summarized and maintained by the Office of Foreign Assets Control of the Treasury Department. Lastly, the "Terrorist Exclusion List" or "TEL," which relates to immigration and is pursuant to Section 411 of the USA Patriot Act of 2001 (8 U.S.C.1182) is maintained by the State Department. Like the FTO list, the TEL includes the names of terrorist organizations, but it has a broader standard for inclusion, is subject to less stringent administrative requirements, and is not challengeable in court. There is a complicated interplay among all of these lists, and it is important to distinguish them from the better-known FTO list.

The FTO list has been of considerable interest to Congress, and there are arguments in favor and against it. It publicly stigmatizes groups and provides a clear focal point for interagency cooperation on terrorist sanctions; however, some argue that it is inflexible and misleading, since groups that are not on the list are still often subject to U.S. sanctions. The report concludes with a discussion of potential policy options for Congress, including some of the recently proposed amendments to the legislation that establishes it. It will be updated as events warrant.