Jerusalem, 21 October 2001

Israel to take necessary steps to report and seize terrorist assets
(Communicated by the Minister of Justice’s Media Adviser)

Justice Minister Meir Sheetrit today (Sunday), October 21, 2001, at the weekly Cabinet meeting presented the following proposals which were accepted by the Cabinet:

1. Immediately take the steps necessary to cooperate with the government of the United States in its struggle against terrorism, specifically the implementation of US President George W. Bush’s executive order of October 24, 2001 regarding the reporting and seizing of terrorist assets (see 2. Justice Minister Sheetrit will examine whether or not the necessary laws exist to allow implementation of the foregoing, and if not, will initiate the necessary legislative changes.

3. Justice Minister Sheetrit will consult with Bank of Israel Governor David Klein regarding the necessary legal changes regarding the implementation of the decision in the banking system.

In order to implement the aforementioned US President’s executive order, the US Federal Reserve Board instructed US banks to ascertain whether the persons and/or groups cited in the order were among their customers, held assets with them or had used them to carry out financial transactions. The banks were requested to report back to the US authorities and freeze any assets belonging to the persons or groups listed in the executive order. The USFRB instruction was also sent to the US branches of the various Israeli banks along with a request that their parent banks in Israel also act accordingly. It was against this background that the Cabinet adopted Minister Sheetrit’s proposals.