Taking Additional Steps to Address the National Emergency With Respect to Significant Transnational Criminal Organizations
Signed: March 15, 2019
Published: March 19, 2019
Document Number: 2019-05370
đSummary
This executive order updates the definition of what counts as a âsignificant transnational criminal organizationâ under an existing national emergency order from 2011. It affects foreign-linked criminal groups operating across borders, and it guides U.S. agencies that use the 2011 orderâs sanctions tools (like blocking property) by clarifying which organizations can be targeted. The updated definition covers groups that include at least one foreign person, operate an ongoing pattern of serious crime across at least two foreign countries (or a foreign country and the United States), and pose a threat to U.S. national security, foreign policy, or the economy. It does not create new legal rights for individuals or change agenciesâ existing legal authorities, and it is to be carried out consistent with existing law and available funding.
đźBusiness Impact
This order broadens the definition of âsignificant transnational criminal organizationâ under the existing EO 13581 sanctions framework, which can expand the pool of entities/individuals whose property is blocked and with whom U.S. businesses are prohibited from dealing. The most affected industries are banks/fintech and payments, money services businesses, importers/exporters and logistics, marketplaces/eâcommerce platforms, and any firms operating in higherârisk regions or handling cash-intensive customersâbecause they face higher exposure to sanctioned counterparties and illicit networks. Compliance impact: expect tighter screening and due diligence needs (OFAC list screening for customers, vendors, beneficial owners; enhanced KYC/AML controls; transaction monitoring; stronger thirdâparty risk management) and opportunities for compliance, regtech, and investigative services providers as demand rises. Immediate actions: re-check your sanctions/AML risk assessment, ensure automated OFAC screening covers customers and suppliers (including beneficial ownership), review high-risk corridors/products, and update escalation/reporting procedures (including blocking/rejecting transactions and documenting decisions) to reduce enforcement and reputational risk.
Full Text
Executive Order 13863 of March 15, 2019
Taking Additional Steps to Address the National Emergency With Respect to Significant Transnational Criminal Organizations
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), the National Emergencies Act (50 U.S.C. 1601 et seq.), and section 301 of title 3, United States Code;
I, DONALD J. TRUMP, President of the United States of America, in order to take additional steps to deal with the national emergency with respect to significant transnational criminal organizations declared in Executive Order 13581 of July 24, 2011 (Blocking Property of Transnational Criminal Organizations), in view of the evolution of these organizations as well as the increasing sophistication of their activities, which threaten international political and economic systems and pose a direct threat to the safety and welfare of the United States and its citizens, and given the ability of these organizations to derive revenue through widespread illegal conduct, including acts of violence and abuse that exhibit a wanton disregard for human life as well as many other crimes enriching and empowering these organizations, hereby order:
Section 1 . Subsection (e) of section 3 of Executive Order 13581 is hereby amended to read as follows:
“(e) the term “significant transnational criminal organization” means a group of persons that includes one or more foreign persons; that engages in or facilitates an ongoing pattern of serious criminal activity involving the jurisdictions of at least two foreign states, or one foreign state and the United States; and that threatens the national security, foreign policy, or economy of the United States.”
Sec. 2 . (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
( printed page 10256)(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
THE WHITE HOUSE,
March 15, 2019.