FOR IMMEDIATE RELEASE: November 20, 2002

SCHUMER INITIATIVE GIVES TERRORISM VICTIMS ACCESS TO FROZEN ASSETS OF TERRORIST STATES FOR FIRST TIME EVER

Congress Passed Schumer's Amendment as Part of Terrorism Insurance Bill; Paves Way for Victims of Terrorism to Receive Compensation From Treasury Department's $3.1 Billion in Frozen Assets of Terrorists and Countries That Sponsor Terrorism

44 New York Victims of Terrorism Are Potential Beneficiaries Under Amendment; 9/11 Victims Families Also Qualify for Access to Frozen Terrorist Assets

US Senator Chuck Schumer announced today that language from his amendment giving victims of terrorist attacks access to frozen assets of terrorist organizations and nations that support terrorism has passed the Congress and now awaits the President's signature. The amendment provides access to $3.1 billion in frozen assets held by the Treasury Department from Iran, Iraq, Cuba, Libya, North Korea, Syria, and Sudan by extending the scope of the Victims of Trafficking And Violence Protection Act of 2000 to all victims with final judgments from US courts against terrorist organizations and state sponsors. Schumer said the amendment also paves the way for the families of the victims of the September 11 attacks to receive financial compensation from the frozen assets of Al Qaeda, particularly if the Bush Administration succeeds in freezing more of the terrorist network's assets.

"This amendment achieves two very powerful goals. First, it grants justice to the families who lost a loved one to terrorism. And equally important, it sends a message, loud and clear, to any government that thinks about protecting terrorists: if you harbor terrorists or sponsor their actions, you are going to pay," Schumer said. "It's that simple."

While court decisions have been rendered against terrorists and state sponsors, few claimants have actually received the money they were awarded. With the old law, the President was able to block the release of funds from the Treasury for reasons of national security. But citing diplomatic reasons, the Administration did not release assets desired by victims, even after courts ruled in the victims' favor.

Schumer's amendment, known as the Terrorism Victim's Access to Compensation Act of 2002, makes perpetrators of terrorism pay for the damage they cause. It was included in the Senate version of the Terrorism Insurance bill, which today was passed by the full Congress. Schumer praised Senator Christopher Dodd (D-CT) for his leadership in driving the terrorism insurance bill forward. He also praised Senators Tom Harkin (D-IA) and George Allen (R-VA) for their continued leadership and support on the issue.

Schumer said that paying the penalties assessed by the courts from blocked assets not only punishes the entities responsible for the attacks but provides a powerful incentive for foreign governments not to sponsor terrorist attacks on the US and help deter future acts of terrorism.

Since the passage of the Antiterrorism Act in 1991, victims of terrorist attacks have been able to sue their attackers in federal court, giving victims a direct right of action against terrorists, attorney's fees and significant procedural advantages. In 1996, the Antiterrorism and Effective Death Penalty Act (AEDPA) expanded the right of action to encompass states that sponsor terrorism and gave victims the right to seek punitive damages for pain and suffering. In the Victims of Trafficking and Violence Protection Act of 2000, Congress approved payment to certain victims from a Treasury account linked to Iran's FMS account and utilized foreign assets from Cuba. The language from Schumer's amendment passed today broadens this legislation by extending access to all victims who possess final judgment from US courts against terrorist organizations and state sponsors

Currently the United States holds $3.1 billion in frozen assets from the seven designated state sponsors of terror. From Iraq, the U.S. holds $1.7 billion, Libya $1.2 billion, Iran $252 million, Syria $104 million, North Korea $30 million, and Sudan $27.3 million. Since September 11, the United States has frozen $112 million in terrorist-related assets worldwide with $34 million frozen in the United States. Of the $112 million, $38.5 million is related to the Taliban, $44.5 million is related to Al Qaeda, and about $29 million is related to other terrorists. The United States currently holds $1.1 million of Al Qaeda assets in the United States that can be potentially used to compensate victims of the September 11 terrorist attacks.

Under the newly passed amendment, 44 New Yorkers who have cases pending against these terrorists states would receive access to the frozen assets. In the case of Weinstein v. Iran, the plaintiff was awarded $33.3 million (US) in compensatory damages from Iran to the family of Ira Weinstein, who died in a 1996 bus bombing in Israel. Hamas, which is supported by Iran, claimed responsibility for the attack, which killed 25 people. In Hill et. al. v. Iraq and Vine et. al. v. Iraq, several Americans, including 4 New Yorkers sued Iraq and Saddam Hussein for taking them hostage in 1990 after the invasion of Kuwait.

Additionally, 35 Americans have cases pending against Libya and its connection to the hijacking of Pan AM flight 103. Libya has proposed a settlement to have the case against it dropped in which it would put $10 million for each of the families of the 270 victims into an escrow fund, to be released in stages. There are other pending cases are against Iran, Iraq, and Cuba.

"We had made some headway in getting victims of the September 11 terrorist attacks compensation from Al Qaeda, but not enough. Today with the passage of this amendment, justice is being served in a bigger and better way than ever before," Schumer said. "If a victim sues and wins, they deserve compensation. That's why the State Department and Treasury must continue to pursue the assets of these terrorists. We owe it to the victims and we owe it to their families."

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