tv Economic Sanctions - Treasury Under Secretary CSPAN March 12, 2018 6:51pm-7:31pm EDT
how the trump administration is applying pressure to regimes such as north korea, russia and venezuela. [inaudible conversations] >> it is my great pleasure to introduce undersecretary, the senior sanctions person in the u.s. government. someone who has the good the to be in charge of a deeply confident organization with an
issue no matter how well they do it will never satisfy everybody so that's just life she is exceptionally qualified. southern district of new york attorney's office, counselor to dhs secretary, deputy assistant attorney general. and lots more. but she has one other qualification i want to emphasize. i suspect the undersecretary knows the public policy counts. not inside the washington beltway or in terms of reputation, influence, position of the next job that accounts for people and when you get it right millions of people benefit. when policy goes wrong, people
end up in bad places or dead. lots of them and real fast. i suspect she understands that which is the essential ingredient to differentiate someone that simply does a job or helps to change the world. that is what public policy can be about. so with that and my appreciation for coming, the floor is yours. [applause] >> thank you dan. really that is one of the kindest and most meaningful introductions i have ever received. i greatly appreciate that and thank you for inviting me to speak. as many of you know the office of tourism financial office is
a close-knit family is always terrific to speak at an event with so many treasury alumni. i will start today with a bit of a history lesson. it is a history that i learned in my early months as undersecretary. it is part of the fabric of our organization, and helped shape the framework under which i view our mission, and the way in which we execute that mission. it starts in 1940 during world war ii, a small group of very smart professionals at treasury under the direction of then secretary henry morgan powell recognize they could use economic authority trading with the enemy at to prevent the nazis from seizing u.s. held assets in countries that
the nazis were invading. so they set up the administrative agency called the office of foreign fund control following the issuance of the executive order that prohibited financial transactions related to countries that germany occupied. the treasury department then required financial institutions to freeze the assets to be sure that the fund did not fall into not the hands. they could seize and freeze billions of dollars in a number of dramatic ways. this was the predecessor agency to what we now know as foreign assets control. but the treasury department
stop there. in 1943, after learning that jewish children were in hiding in not the occupied europe, that same group of professionals resolved to find a way use their authorities to help save those jewish children. they were asked by the world jewish congress to issue a license to authorize that such funds be made available to help jewish children escape not see controlled europe. they worked for months to secure authorization to enable the funds to be released to support this effort. overcoming significant obstacles within the u.s. government to do so.
having learned through this work about the atrocities happening in europe, secretary morgan thought -- mercantile and others believe u.s. government should do much more to save the jews of europe. late 43 and 44 they pushed for the establishment of the war refugee board. this board was led by members of the treasury team and played an instrumental role to save the lives of thousands of holocaust survivors in the final years of world war ii including wallenberg. at the very same time these efforts were underway at the treasury department, my parents were jewish children hiding in europe. they were hiding underground
and in the forest and in haystacks also hidden by courageous individuals who risk their own lives to save my parents and others. that my parents survived is literally nothing short of a miracle. to learn that there was a group in the treasury department in the office that i now oversee, working steadily to use the government's economic authority to save jewish children in hiding and others, is truly remarkable and incredibly humbling. from the words of secretary morganthau and others at the treasury department during world war ii provides the framework under which i view our role today. they recognized in the 1940s the treasury department had
unique economic authorities that they could deploy in a variety of ways and they work steadily, strategically and smartly to figure out how to use those authorities in the most impactful way. that is the important element of the approach we employ today but with much more robust tools. the components today include the office of terrorist financing and financial crimes, the office intelligence and analysis in the executive office for asset forfeiture. within those components of dfi we have a broad array of economic authorities and tools across a wide spectrum including sanctions, usa patriot act authorities like section 311 and 314 and enforcement and international
engagement, policy, intelligence and analysis and other regulatory authorities. i view the authorities as operating as part of one continuum. every problem that we face whether terrorist financing, proliferation financing, drug trafficking, corruption, human rights abuses and others, we are strategically deploying and integrating those tools. . . . .
>> this is truly a revolutionary development in the national security arena. counterterrorism and national security had traditionally been in the realms of foreign affairs, intelligence, law-enforcement. treasury authorities were brought together under one concept. bad actors cannot operate without funding. just as the secretary did seven years ago after 9/11 they set out to cut the terraced access to the u.s. financial system by deploying new tools on long-held authorities with renewed energy and strategic outlook. today, to counter the threats we face across the globe from murderous dictators praying on their own citizens, weapons proliferators threatening are the united states and their
allies, tears murdering the innocent and others, we work said steadily to assess and analyze each threat. we use intelligence and other information and apply tools and innovative ways constantly adapting to ensure they are synchronized and calibrated to bring maximum economic leverage to bear. we also collaborate with our partners, with congress and allies across the world and with the private sector to amplifier actions in different ways. to further promote and find a way to pressure adversaries were standing up new units within the treasury's existing structure. these of to gather individuals
to further develop innovative strategies for using our economic authorities. pizza focus on particular threats and systemic risk. they will harness use of deep expertise in complex issue areas and working together they will review, analyze and record men strategies to further calibrate our authorities. they will regularly assess the effects of our action to continually sharpen our efforts and tactics the integrated use must be part of a broader strategic plan. as i have said before this is not sanctions are not a foreign policy, they are a tool among authorities we use to achieve particular objectives. they are part of the interagency strategy that include other
economic and law-enforcement and other elements of power. you may give you a few examples of power using authorities and innovative and integrated ways just just a phase. the north koreans showed the allies their frame trumped they refrain from testing more weapons that are willing to denuclearize. they have made promises in the past but will have the chance to test their sincerity. it's clear that the maximum campaign has brought us to this juncture. north korea poses an urgent threat which we are using the entire arsenal of our economic authority.
the years they built up the nuclear ballistic missile program with little global oversight. north korea has been launching missiles over allies and territories has most of the weapons of mass distraction can reach american cities. inside north korea, the kim regime has developed a brutal apparatus to coerce, control, and punish ordinary citizens and anything might contemplate. it's estimated that tens of thousands of political prisoners are detained and elaborate network of prison camps. just one of which is three times the size of washington d.c. according to united nations they had been deliberate, execution, torture, rape and forced abortion. when facing a regime and leaders who prioritize power over people we have broader economic authorities to bear to change the calculus and siphon off the
funds that enable them to continue to proliferate. we cannot tolerate these threats. together with our allies have been intensifying our economic pressure campaign until north korea achieves complete, verifiable and denuclearization. just two weeks ago we announced the largest sanctions program ever. the designated one individual 27 entities in 28 vessels abroad located affecting countries across the globe. we coupled this with other tools to achieve maximum effect. on the same day ambassador haley nominated these vessels to be lifted at the un. we had a global shipping
highlight into the world that north korea's deceptive shipping practices. after the designations i met with a representative to urge them to take sweat actions to the extent they had not already done so. we are synchronizing our actions in these and other ways with partners to maximize the impact of these crucial authorities. these have built on our effort to maximize pressure in the kim regime. in addition to tough resolutions treasury has designated over 200 individuals and entities in connection with the north korea threat. we have amplified this in multiple ways. this includes actions under the u.s. patriot act including cutting off a chinese bank from
the financial system only found it to be a concern for facilitating. just a few weeks ago we use the authority to identify the lobby of banks that had process transactions for parties connected to north korea as a primary money-laundering concern and to propose similar restrictions. we have also listed the private sector providing information to financial institutions to highlight how north korea disguises, moves and launder funds to finance its nuclear ballistic missile program. i have conducted a number of roundtables including my travels to asia and europe where i tell
financial institutions they need to be vigilant to make sure north korea's not moving money through their banks. we work closely with you and to encourage strict implementation and compliance for, perforation. weller sanctions advisory and outreach are each powerful, by bringing them to bear in the kim regime we magnify the impact of our pressure campaign. is starting to have an impact. turning to iran. in iran the regime of islamic revolutionary guard has spread its tentacles across the middle east. they promoted stability of the syria. the igc contributes to violence and insecurity in yemen by
sending military equipment to the 50s. they provide upwards of 700 million a year to hezbollah which continues to threaten her or close ally, israel. including rockets to target israeli cities. at the same time the ranney regime suppresses public dissent at home. over the last few months iranian citizens have taken to the streets. probably shouting that they have had enough of the regime's corruption and financial support. many have done so grave risk to their lives has the regime has thrown protesters in jail under this administration we have designated targets in the middle east, asia, and europe in
connection with the irg see in iran support for terrorism, ballistic missile programs human rights abuses, censorship, cyber attacks and transnational criminal activity. to push back we magnify our powerful sanctions with our international engagement and clear messaging to the private sector. there's no transparency to speak of it iran. their massive deficiencies in their anti- money laundering. the irg c has an extensive presence in iran's economy. in our engagements both here and abroad we make the companies doing business in iran pay substantial risk. we will hold this knowingly doing business with the irg c to account.
for over a decade the status has highlighted the terrorist risks emanating from iran and the threat it poses to the international system. a threat so significant that countermeasures were imposed when iran committed to an action plan to address the deficiencies. at the same time iran remained on the status blacklists. two weeks ago they concluded that iran had failed to fulfill its commitment to implement the action plan. it may clear the onus of responsibility falls on iran and called out iran for failing to address the majority of the action plan requirements. for the first time ever the status provided a comprehensive list of iran's major
deficiencies highlighting its financing risk and reiterating the threat of poses to the international system. make the appropriate measures need to be passed and implemented. very focused on pressuring russia for continuing efforts to destabilize ukraine, occupied cream crimea, today, the administration has sanctioned 100 individuals and entities under the ukraine sanctions authority. these are in addition to holding rush accountable. including sanctioning russia for activities her global program most recently on januarjanuary ,
2018 we section 42 individuals and entities related to russia and ukraine including a number who helped transfer turbines to crimea in clear violation of our sanctions. the following week we submitted a report under section 241 on senior political figures and oligarchs this extensive report coordinated closely with the intelligence community including the office of intelligence contains a thorough analysis being used to inform future targeted sanctions. we have taken other vigorous steps. during the fall of 2017 treasury amended henry issued directive one, two, and four. further tightening a restart restrictions on key industries such as energy and finance.
our targeting of russian finances that you business run the world includes the independent petroleum companies, a russian company that signed a contract to provide oil to north korea and shipped petroleum products to north korea and others engaged in sanctionable activities related to north korea. recalling on russia and those trade representatives that reside in their country as they are required under the un security council resolution. the administration issued a public attribution of attacks to the russian military. they build on our government efforts to conserve counter rushes -- venezuela, the regime
has continued to undermined democracy impoverished citizens and elude the country. this combined with responsible economic policies have had a devastating impact essential goods like food and medicine have become increasingly for scarce. the medora regime uses food as a weapon to enrich itself while refusing to allow humanitarian assistance in the country. is a dictator who prioritizes power over people. to counter the continued assaults on democracy and its
own people were using our sanctions to target those in the regime responsible for the dire economic social and political and economic situation and those engaging in illicit activities. secretary mnuchin's wrist and office he announced -- replanted significant role in narcotics trafficking and the designation of his front man for assisting. there designation disrupted their ability to elicit proceeds in hundreds of millions of dollars of assets have since been blocked. we have sanctioned 44 more current and former government officials including maduro himself. most recently announced the military officers in january. we amplify this through an
executive order the president issued in august 2017 that denies critical sources of financing and protects u.s. financial system. this limits the ability of the government and his companies to secure financing from international market. it cuts the regime off from important revenue streams. in september 2017 another action issued an advisory to alert financial institutions of widespread corruption in venezuela and the message that senior political figures may use to use and hide proceeds to their corruption. combined with powerful targeted sanctions and other public messaging, this advisory for financial institutions on laun
launch. at the same time were taking action through economic authorities were working with international partners to bring additional pressure including through multilateral sanctions on the regime. turning to global corruption and human rights abuses, too many countries across the world in a sense live under fear of arbitrary kidnapping, deprivation and starvation, forced labor and even execution. corrupt leaders and their families and better folder countries well at the expense of their citizens. traffickers paid pray of on innocent people and exploiting them for their organs. such serious human rights abuses
undermined the foundation of stable, secure, and functioning society. they devastate individuals, we can democratic institutions integrate the rules of law. they perpetuate violent conflict and undermine economic market and threaten the integrity of the u.s. and international system. this administration is undertaken a campaign against those who prey upon the vulnerable. we are imposing financial consequences on those who pillage the wealth and resources of their people and generate ill profits from criminal activity. in december 2017 president trump signed an executive order
implementing the human rights accountability act authorizing sanctions and persons involved in serious human rights violations. as part of that announcement they impose sanctions on 52 individuals and entities. think of the billionaire who amassed his fortune through hundreds of millions of dollars worth of opaque and corrupt mining and oil deals the democratic republic of the congo. roberto was president of the nicaragua supreme council and has been accused of amassing sizing personal wealth and described as a general is above the law. the burmese army official who oversaw military actions against the rohingya sexual violence and
arbitrary arrests were alleged to have taken place. treasuries sticks a nation sends a powerful message to those who abuse human rights are line their pockets with riches at the expense of the innocence. human rights abusers and corrupter unnoticed. we are watching and we will take action. these designations are about impact the couple these efforts to combat human rights abusers in the cropped and other authorities. they issued an advisory in september 2017 alerting to the potential exposure caused by
senior political figures. we also teach to bolster the impact of our action through coordination with international partners. for example the e.u. impose sanctions among those targeted we are now working with the e.u. and other like-minded partners to encourage them to develop similar authorities of their own. additionally we have extensive outreach following the publication of treasury actions. after the september 27 action we immediately engaged with neighboring governments asking them to investigate the illicit financial flows into their countries and to conduct outreach to the private sector
paris financing. every day we are using our authorities to counter isis, al qaeda, hezbollah, and others who engage in her support terrorism. we have made great progress including against isis identifying and disrupting their networks anywhere they operate. we will continue to target these organizations including by cutting them off from their affiliates across the world. we been working to tackle the threat against foreign terrorist fighters. and to share information with our domestic and international partners.
we amplify the impact of our sanctions through international coordination and cooperation. an important initiative fostering is the terrorists financing center. a collaborative approach to addressing the threats evolve from financing. this is a joint effort between the united states and teach cc countries. through it we have taken multilateral action to disrupt the terror finance network. in october 2017 all members designated 13 liters financiers and facilitators who are directly responsible for perpetuating the violence plaguing yemen and threatening the security of the entire region. this is a top national security
priority and we are continuing to work with developed countries to fully realize the vision. as you can see, treasuries authorities continue to serve as some of the top tools of choice. as we strive to be more impactful we need ted's word resources. deploying our authorities takes hard work, strategic thinking and intelligence. our actions of all collaboration with law enforcement partners in the intelligence community. that's why we've asked for more resources. we recently requested 25 million above the president's fy 2018 budget and to immediately deploy resources to counter threat
those by north korea. the budget requests a 40 million increase from her current operating level. if we continue to use our authorities for maximum impact while attracting the best talent in mind to focus strategically when he more people and better tools at a town hall a few months ago i also started my remarks by speaking of the history of this great organization. i asked each person in the room to put themselves in the shoes of those treasury officials over 70 years ago who found strategic and innovative ways to deploy economic authorities to keep assets out of the hands of bad
actors and to say victims of the holocaust. as i asked them to put themselves in the shoes i reminded them that is exactly where they are today. they're terrible things happening around the world today. we live in a time where their great threats to our country. each one of our career professionals stand as an important part of the mission but to prevent and deter other threats around the world by illicit actors and financiers. we are dedicated to taking our work further. i cannot be any powder to lead this effort. thank you. [applause]
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