The Manhattan U.S. Attorney’s Office is merging two units within their office into one that will prosecute terrorism and international narcotics cases. The proffered reason for this is to increase the focus on extremist Islamic groups who may be turning to the drug trade in order to finance their activities.

According to U.S. Attorney Preet Bharara, the new unit will be better able to bring drug charges against some terrorists. In addition, the passage of a new law that allows federal agents to pursue narcotics and terrorism crimes all over the world if a link between a drug offense and a terrorist act or group can be established will assist in the bringing of such charges.

The new unit named “Terrorism and International Narcotics” will employ 21 prosecutors, and will be headed by Michael Farbiarz former deputy in the terrorism unit, and Anjan Sahni, formerly the chief of International Narcotics.

The new unit will have the effect of doubling the number of prosecutors handling terrorism cases in the office. This is particularly interesting as the office prepares for the trial of Khalid Shaikh Mohammed, and four other former Guantánamo Bay detainees. These trials are obviously a major undertaking that will draw heavily upon the resources of the unit.

What impact if any will this move have on the United States Department of the Treasury Office of Foreign Assets Control (“OFAC”)? Well, OFAC maintains economic sanctions programs targeting both international narcotics traffickers and global terrorists. In designating individuals and entities under these programs they conduct investigations and obtain information into activities which relate to the purpose of each sanctions program. I believe that the creation of this new narco-terrorism unit in the U.S. Attorneys Office in Manhattan could portend a greater increase in cooperation between OFAC and U.S. Attorneys Office nationwide, particularly if other U.S. Attorneys Offices follow the lead of Manhattan.

What we are likely to see as result of the creation of this new unit could be more designations under both the Foreign Narcotics Kingpin Designation Act, as well as the Global Terrorism Sanctions Regulations. Furthermore, we could see increased prosecutions and attempted extraditions of individuals who have already been designated or who become designated under one of these sanctions programs. As it stands now, OFAC only refers a small number of cases over to the Department of Justice for prosecution. With the creation of this new unit within the Manhattan US Attorneys Office, we could see this number increase dramatically.

The author of this blog is Erich Ferrari, an attorney specializing in OFAC litigation. If you have any questions please contact him at 202-280-6370 at 202-351-6161 or ferrari@ferrari-legal.com.