Last Thursday President Obama continued the international emergency first declared in a 1995 executive order which paved the way for the implementation of economic sanctions against individuals and entities accused of engaging in narcotics trafficking or materially assisting those individuals who are engaged in such activities.

Section 202(d) of the National Emergencies Act provides for the automatic termination of a national emergency unless, prior to the anniversary date of its declaration, the President publishes in the Federal Register and transmits to the Congress a notice stating that the emergency is to continue in effect beyond the anniversary date. On October 14, 2010, President Obama provided such notice.

According to President Obama, the circumstances which initially led to the declaration of a national emergency have not been resolved and as such it is necessary to maintain economic pressure on significant narcotics traffickers centered in Colombia by blocking their property and interests in property that are in the United States or within the possession or control of United States persons and by depriving them of access to the U.S. market and financial system.

Although the press release from the White House includes the language about Columbia, this emergency serves as the basis for imposition of other narcotics trafficking sanctions programs. It should be remembered that the original counter narcotics trafficking sanctions regulations promulgated in response to the issuance of Executive Order 12978 was targeted at narcotics trafficking activities originating in Columbia. Since that time, and with the passing of the Foreign Narcotics Kingpin Designation Act, the former Columbia program has served as the foundation upon with the current counter narcotics sanctions regulations are based. Hence, the inclusion of the Columbia language in the President’s notice.

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.