Page:2020-07-29 PSI Staff Report - The Art Industry and U.S. Policies that Undermine Sanctions.pdf/20

 for enforcing economic sanctions as well as developing policy, strategies, and guidance to combat terrorist funding.

The Office of Foreign Assets Control ("OFAC"), a division of TFI, reports directly to the Undersecretary for Terrorism and Financial Crimes. OFAC's sanction authority stems from "[p]residential national emergency powers, as well as authority granted by specific legislation, to impose controls on transactions and freeze assets under U.S. jurisdiction." Specific sanctions authorities include the Trading with the Enemy Act ("TWEA"), the International Emergency Economic Powers Act ("IEEPA"), and the Global Magnitsky Human Rights Accountability Act ("Magnitsky Act") as described below. OFAC is the office specifically tasked with the administration and enforcement of economic and trade sanctions developed by the President.

The sanction authority tied to presidential emergency power dates back to the TWEA, which prohibits transactions with enemy persons and powers. During the Cold War, TWEA was used "to block international financial transactions, seize U.S.-based assets held by foreign nationals, restrict exports, modify regulations to deter the hoarding of gold, limit foreign direct investment in U.S. companies, and impose tariffs on all imports into the United States."

Since its enactment in 1977, IEEPA has also served as an important sanction authority that the president may exercise "to deal with an unusual and extraordinary threat with respect to a national emergency" that "has its source in whole or substantial part outside the United States." IEEPA has been amended several times since its enactment, but the change most relevant to the art market is the "Berman Amendment" passed in 1988. This amendment exempted