Missouri Based Charity has Assets Frozen

A federal appeals court on Tuesday upheld the government's decision to freeze the assets of a Missouri-based Islamic charity with alleged links to a foreign group that supports terrorism.^[1] The Treasury Department claims the Islamic American Relief Agency-USA, of Columbia, Mo., is an affiliate of a Sudanese charity - Islamic African Relief Agency- which is accused of financing al-Qaida and other terrorist organizations.^[2] The U.S. Court of Appeals for the District of Columbia Circuit upheld the lower court's 2005 decision finding that the charity is a branch of the Sudanese-based agency.^[3]

Records describe the Missouri charity as an ''affiliate'' and a ''partner'' of the Sudanese group, and the charity sought permission to transfer funds to the group.^[4] While the Missouri charity did not contest the terrorist designation of the Sudanese group, they claim that the two charities have independent leadership and bank accounts.^[5] In 2004, federal agents raided the group's headquarters in Columbia, Mo., as part of a criminal investigation; however, no criminal charges have been filed against the charity or any of its employees.^[6]

While the court found the unclassified evidence was ''not overwhelming,'' the three-judge panel noted that in its review of national security cases it is ''extremely deferential'' to the government.^[7] Furthermore the appeals court rejected the charity's argument that freezing its assets violated its rights under the Constitution.^[8] The law is clear that ''there is no constitutional right to fund terrorism……where an organization is found to have supported terrorism, government actions to suspend that support are not unconstitutional,'' the court said.^[9]

One of the more controversial aspects of the United States on terrorism is the designation of some charitable organizations as terrorist organizations.^[10] By designating these charities as terrorist organizations, the United States is able to freeze any assets held by those entities in the United States.^[11] Section 219 of the Immigration and Nationality Act states that the Secretary of State “is authorized to designate an organization as a foreign terrorist organization … if the Secretary finds that:”

• the organization is foreign
• the organization engages in terrorist activity, in terrorism, or retains the capability and intent to engage in terrorist activity or terrorism; and
• the terrorist activity or terrorism of the organization threatens the security of the US nationals or the national security of the US. ^[12]

The effect of the terrorist organization designation also has criminal ramifications under 18 U.S.C. § 2339B, which makes it a crime for a person to provide material support or resources to a terrorist organization.^[13] Although in order to violate this law, the person “must have knowledge that the organization is a designated terrorist organization.”^[14]

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^[1] Sam Hananel, Appeals Court Upholds Terrorist Designation for Islamic Charity, AP (Examiner.com), February 13, 2007.
^[2] Id.
^[3] Id.
^[4] Id.
^[5] Id.
^[6] Id.
^[7] Id.
^[8] Id
^[9] Id.
^[10] See James Dobbins, America Needs to Pick its Fights Carefully, Int’l Herald Tribune, May 2, 2006.
^[11] Pakistan Permits Charities US Calls Terrorist, Reuters (via Yahoo!). May 2, 2006.
^[12] 8 U.S.C. § 1189(a)(1) (2006).
^[13] 18 U.S.C. § 2339B(a)(1).
^[14] Id.