50 U.S.C. §1702, the second section of the International Emergency Economic Powers Act, allows the President to “investigate, regulate, or prohibit” any foreign exchange transactions, any transactions with or through a foreign bank, and the importation and exportation of currency or securities. The President may also investigate, prohibit, and even void transactions involving property in which a foreign country or national has interest. Under the Anti-Money-Laundering Act, whistleblowers may report any of these activities to FinCEN and may receive an award if their information leads to a significant seizure of assets as part of an enforcement action.
50 U.S.C. § 1702
- 1701: States that the rest of the law only applies when a national emergency has been declared; not relevant to whistleblowing.
- 1703: Addresses consultation with Congress, not relevant to whistleblowing.
- 1704: Addresses authority to issue regulations for the IEEPA, not relevant to whistleblowing.
- 1705: Addresses civil and criminal penalties under the IEEPA, not relevant to whistleblowing.
- 1706: Addresses termination of national emergencies, not relevant to whistleblowing.
- 1710: Addresses malicious cyber activities by foreign persons without money being seized; not relevant to whistleblowing.
(a) In general
(1) At the times and to the extent specified in section 1701 of this title, the President may, under such regulations as he may prescribe, by means of instructions, licenses, or otherwise—
(A) investigate, regulate, or prohibit—
(i) any transactions in foreign exchange,
(ii) transfers of credit or payments between, by, through, or to any banking institution, to the extent that such transfers or payments involve any interest of any foreign country or a national thereof,
(iii) the importing or exporting of currency or securities, by any person, or with respect to any property, subject to the jurisdiction of the United States;
(B) investigate, block during the pendency of an investigation, regulate, direct and compel, nullify, void, prevent or prohibit, any acquisition, holding, withholding, use, transfer, withdrawal, transportation, importation or exportation of, or dealing in, or exercising any right, power, or privilege with respect to, or transactions involving, any property in which any foreign country or a national thereof has any interest by any person, or with respect to any property, subject to the jurisdiction of the United States; and.[1]
(C) when the United States is engaged in armed hostilities or has been attacked by a foreign country or foreign nationals, confiscate any property, subject to the jurisdiction of the United States, of any foreign person, foreign organization, or foreign country that he determines has planned, authorized, aided, or engaged in such hostilities or attacks against the United States; and all right, title, and interest in any property so confiscated shall vest, when, as, and upon the terms directed by the President, in such agency or person as the President may designate from time to time, and upon such terms and conditions as the President may prescribe, such interest or property shall be held, used, administered, liquidated, sold, or otherwise dealt with in the interest of and for the benefit of the United States, and such designated agency or person may perform any and all acts incident to the accomplishment or furtherance of these purposes.
(2) In exercising the authorities granted by paragraph (1), the President may require any person to keep a full record of, and to furnish under oath, in the form of reports or otherwise, complete information relative to any act or transaction referred to in paragraph (1) either before, during, or after the completion thereof, or relative to any interest in foreign property, or relative to any property in which any foreign country or any national thereof has or has had any interest, or as may be otherwise necessary to enforce the provisions of such paragraph. In any case in which a report by a person could be required under this paragraph, the President may require the production of any books of account, records, contracts, letters, memoranda, or other papers, in the custody or control of such person.
(3) Compliance with any regulation, instruction, or direction issued under this chapter shall to the extent thereof be a full acquittance and discharge for all purposes of the obligation of the person making the same. No person shall be held liable in any court for or with respect to anything done or omitted in good faith in connection with the administration of, or pursuant to and in reliance on, this chapter, or any regulation, instruction, or direction issued under this chapter.
(b) Exceptions to grant of authority
The authority granted to the President by this section does not include the authority to regulate or prohibit, directly or indirectly—
(1) any postal, telegraphic, telephonic, or other personal communication, which does not involve a transfer of anything of value;
(2) donations, by persons subject to the jurisdiction of the United States, of articles, such as food, clothing, and medicine, intended to be used to relieve human suffering, except to the extent that the President determines that such donations (A) would seriously impair his ability to deal with any national emergency declared under section 1701 of this title, (B) are in response to coercion against the proposed recipient or donor, or (C) would endanger Armed Forces of the United States which are engaged in hostilities or are in a situation where imminent involvement in hostilities is clearly indicated by the circumstances; or [2]
(3) the importation from any country, or the exportation to any country, whether commercial or otherwise, regardless of format or medium of transmission, of any information or informational materials, including but not limited to, publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and news wire feeds. The exports exempted from regulation or prohibition by this paragraph do not include those which are otherwise controlled for export under section 4604 [3] of this title, or under section 4605 [3] of this title to the extent that such controls promote the nonproliferation or antiterrorism policies of the United States, or with respect to which acts are prohibited by chapter 37 of title 18; or
(4) any transactions ordinarily incident to travel to or from any country, including importation of accompanied baggage for personal use, maintenance within any country including payment of living expenses and acquisition of goods or services for personal use, and arrangement or facilitation of such travel including nonscheduled air, sea, or land voyages.
(c) Classified information
In any judicial review of a determination made under this section, if the determination was based on classified information (as defined in section 1(a) of the Classified Information Procedures Act) such information may be submitted to the reviewing court ex parte and in camera. This subsection does not confer or imply any right to judicial review.
§ 1703: Addresses consultation with Congress, not relevant to whistleblowing.
§ 1704: Addresses authority to issue regulations for the IEEPA, not relevant to whistleblowing.
§ 1705: Addresses civil and criminal penalties under the IEEPA, not relevant to whistleblowing.
§ 1706: Addresses termination of national emergencies, not relevant to whistleblowing.
50 U.S.C. §1707, the seventh section of the International Emergency Economic Powers Act, authorizes the President to seek to establish a multinational economic embargo against and seize the foreign assets of a country with which the U.S. armed forces is engaged in hostilities.
50 U.S.C. § 1707
(a) Policy on the establishment of embargoes
It is the policy of the United States, that upon the use of the Armed Forces of the United States to engage in hostilities against any foreign country, the President shall, as appropriate—
(1) seek the establishment of a multinational economic embargo against such country; and
(2) seek the seizure of its foreign financial assets.
(b) Reports to Congress
Not later than 20 days after the first day of the engagement of the United States in hostilities described in subsection (a), the President shall, if the armed conflict has continued for 14 days, submit to Congress a report setting forth—
(1) the specific steps the United States has taken and will continue to take to establish a multinational economic embargo and to initiate financial asset seizure pursuant to subsection (a); and
(2) any foreign sources of trade or revenue that directly or indirectly support the ability of the adversarial government to sustain a military conflict against the United States.
50 U.S.C. §1708, the eighth section of the International Emergency Economic Powers Act, authorizes the President to impose sanctions against foreign countries engaging in economic or industrial espionage in cyberspace with respect to U.S. trade secrets and proprietary information. Under the Anti-Money-Laundering Act, whistleblowers may report activities prohibited under this statute to FinCEN and may receive an award if their information leads to a significant seizure of assets as part of an enforcement action.
50 U.S.C. § 1708
(a) Report required
(1) In general
Not later than 180 days after December 19, 2014, and annually thereafter through 2020, the President shall submit to the appropriate congressional committees a report on foreign economic and industrial espionage in cyberspace during the 12-month period preceding the submission of the report that—
(A) identifies—
(i) foreign countries that engage in economic or industrial espionage in cyberspace with respect to trade secrets or proprietary information owned by United States persons;
(ii) foreign countries identified under clause (i) that the President determines engage in the most egregious economic or industrial espionage in cyberspace with respect to such trade secrets or proprietary information (to be known as “priority foreign countries”);
(iii) categories of technologies or proprietary information developed by United States persons that—
(I) are targeted for economic or industrial espionage in cyberspace; and
(II) to the extent practicable, have been appropriated through such espionage;
(iv) articles manufactured or otherwise produced using technologies or proprietary information described in clause (iii)(II); and
(v) to the extent practicable, services provided using such technologies or proprietary information;
(B) describes the economic or industrial espionage engaged in by the foreign countries identified under clauses (i) and (ii) of subparagraph (A); and
(C) describes—
(i) actions taken by the President to decrease the prevalence of economic or industrial espionage in cyberspace; and
(ii) the progress made in decreasing the prevalence of such espionage.
(2) Determination of foreign countries engaging in economic or industrial espionage in cyberspace
For purposes of clauses (i) and (ii) of paragraph (1)(A), the President shall identify a foreign country as a foreign country that engages in economic or industrial espionage in cyberspace with respect to trade secrets or proprietary information owned by United States persons if the government of the foreign country—
(A) engages in economic or industrial espionage in cyberspace with respect to trade secrets or proprietary information owned by United States persons; or
(B) facilitates, supports, fails to prosecute, or otherwise permits such espionage by—
(i) individuals who are citizens or residents of the foreign country; or
(ii) entities that are organized under the laws of the foreign country or are otherwise subject to the jurisdiction of the government of the foreign country.
(3) Form of report
Each report required by paragraph (1) shall be submitted in unclassified form but may contain a classified annex.
(b) Imposition of sanctions
(1) In general
The President may, pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), block and prohibit all transactions in all property and interests in property of each person described in paragraph (2), if such property and interests in property are in the United States, come within the United States, or are or come within the possession or control of a United States person.
(2) Persons described
A person described in this paragraph is a foreign person the President determines knowingly requests, engages in, supports, facilitates, or benefits from the significant appropriation, through economic or industrial espionage in cyberspace, of technologies or proprietary information developed by United States persons.
(3) Exception
The authority to impose sanctions under paragraph (1) shall not include the authority to impose sanctions on the importation of goods.
(4) Implementation; penalties
(A) Implementation
The President may exercise all authorities provided under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) to carry out this subsection.
(B) Penalties
The penalties provided for in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) shall apply to a person that violates, attempts to violate, or conspires to violate, or causes a violation of, this subsection or a regulation prescribed under this subsection to the same extent that such penalties apply to a person that commits an unlawful act described in section 206(a) of that Act [50 U.S.C. 1705(a)].
(c) Rule of construction
Nothing in this section shall be construed to affect the application of any penalty or the exercise of any authority provided for under any other provision of law.
(d) Definitions
In this section:
(1) Appropriate congressional committees
The term “appropriate congressional committees” means—
(A) the Committee on Armed Services, the Committee on Banking, Housing, and Urban Affairs, the Committee on Commerce, Science, and Transportation, the Committee on Homeland Security and Governmental Affairs, the Committee on Finance, the Committee on Foreign Relations, and the Select Committee on Intelligence of the Senate; and
(B) the Committee on Armed Services, the Committee on Energy and Commerce, the Committee on Homeland Security, the Committee on Financial Services, the Committee on Foreign Affairs, the Committee on Ways and Means, and the Permanent Select Committee on Intelligence of the House of Representatives.
(2) Cyberspace
The term “cyberspace”—
(A) means the interdependent network of information technology infrastructures; and
(B) includes the Internet, telecommunications networks, computer systems, and embedded processors and controllers.
(3) Economic or industrial espionage
The term “economic or industrial espionage” means—
(A) stealing a trade secret or proprietary information or appropriating, taking, carrying away, or concealing, or by fraud, artifice, or deception obtaining, a trade secret or proprietary information without the authorization of the owner of the trade secret or proprietary information;
(B) copying, duplicating, downloading, uploading, destroying, transmitting, delivering, sending, communicating, or conveying a trade secret or proprietary information without the authorization of the owner of the trade secret or proprietary information; or
(C) knowingly receiving, buying, or possessing a trade secret or proprietary information that has been stolen or appropriated, obtained, or converted without the authorization of the owner of the trade secret or proprietary information.
(4) Knowingly
The term “knowingly”, with respect to conduct, a circumstance, or a result, means that a person has actual knowledge, or should have known, of the conduct, the circumstance, or the result.
(5) Own
The term “own”, with respect to a trade secret or proprietary information, means to hold rightful legal or equitable title to, or license in, the trade secret or proprietary information.
(6) Person
The term “person” means an individual or entity.
(7) Proprietary information
The term “proprietary information” means competitive bid preparations, negotiating strategies, executive emails, internal financial data, strategic business plans, technical designs, manufacturing processes, source code, data derived from research and development investments, and other commercially valuable information that a person has developed or obtained if—
(A) the person has taken reasonable measures to keep the information confidential; and
(B) the information is not generally known or readily ascertainable through proper means by the public.
(8) Technology
The term “technology” has the meaning given that term in section 16 [1] of the Export Administration Act of 1979 (50 U.S.C. 4618) (as in effect pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.)).
(9) Trade secret
The term “trade secret” has the meaning given that term in section 1839 of title 18.
(10) United States person
The term “United States person” means—
(A) an individual who is a citizen or resident of the United States;
(B) an entity organized under the laws of the United States or any jurisdiction within the United States; or
(C) a person located in the United States.
50 U.S.C. §1709, the ninth section of the International Emergency Economic Powers Act, authorizes the President to impose sanctions against foreign persons who have stolen trade secrets from U.S. persons or assisted another person in doing so. Under the Anti-Money-Laundering Act, whistleblowers may report activities prohibited under this statute to FinCEN and may receive an award if their information leads to a significant seizure of assets as part of an enforcement action.
50 U.S.C. § 1709
(a) Report required
(1) In general
Not later than 180 days after January 5, 2023, and not less frequently than annually thereafter, the President shall submit to the appropriate congressional committees a report—
(A) identifying any foreign person the President determines, during the period specified in paragraph (2)—
(i) has knowingly engaged in, or benefitted from, significant theft of trade secrets of United States persons, if the theft of such trade secrets occurred on or after January 5, 2023, and is reasonably likely to result in, or has materially contributed to, a significant threat to the national security, foreign policy, or economic health or financial stability of the United States;
(ii) has provided significant financial, material, or technological support for, or goods or services in support of or to benefit significantly from, such theft;
(iii) is an entity that is owned or controlled by, or that has acted or purported to act for or on behalf of, directly or indirectly, any foreign person identified under clause (i) or (ii); or
(iv) is a chief executive officer or member of the board of directors of any foreign entity identified under clause (i) or (ii);
(B) describing the nature, objective, and outcome of the theft of trade secrets each foreign person described in subparagraph (A)(i) engaged in or benefitted from; and
(C) assessing whether any chief executive officer or member of the board of directors described in clause (iv) of subparagraph (A) engaged in, or benefitted from, activity described in clause (i) or (ii) of that subparagraph.
(2) Period specified
The period specified in this paragraph is—
(A) in the case of the first report required by paragraph (1), the period beginning on January 5, 2023, and ending on the date on which the report is required to be submitted; and
(B) in the case of each subsequent report required by paragraph (1), the one-year period preceding the date on which the report is required to be submitted.
(3) Form of report
Each report required by paragraph (1) shall be submitted in unclassified form but may include a classified annex.
(b) Authority to impose sanctions
(1) Sanctions applicable to entities
In the case of a foreign entity identified under subparagraph (A) of subsection (a)(1) in the most recent report submitted under that subsection, the President shall impose 5 or more of the following:
(A) Blocking of property
The President may, pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), block and prohibit all transactions in all property and interests in property of the entity if such property and interests in property are in the United States, come within the United States, or are or come within the possession or control of a United States person.
(B) Inclusion on entity list
The President may include the entity on the entity list maintained by the Bureau of Industry and Security of the Department of Commerce and set forth in Supplement No. 4 to part 744 of the Export Administration Regulations, for activities contrary to the national security or foreign policy interests of the United States.
(C) Export-Import bank assistance for exports to sanctioned persons
The President may direct the Export-Import Bank of the United States not to give approval to the issuance of any guarantee, insurance, extension of credit, or participation in the extension of credit in connection with the export of any goods or services to the entity.
(D) Loans from United States financial institutions
The President may prohibit any United States financial institution from making loans or providing credits to the entity totaling more than $10,000,000 in any 12-month period unless the person is engaged in activities to relieve human suffering and the loans or credits are provided for such activities.
(E) Loans from international financial institutions
The President may direct the United States executive director to each international financial institution to use the voice and vote of the United States to oppose any loan from the international financial institution that would benefit the entity.
(F) Prohibitions on financial institutions
The following prohibitions may be imposed against the entity if the entity is a financial institution:
(i) Prohibition on designation as primary dealer
Neither the Board of Governors of the Federal Reserve System nor the Federal Reserve Bank of New York may designate, or permit the continuation of any prior designation of, the financial institution as a primary dealer in United States Government debt instruments.
(ii) Prohibition on service as a repository of government funds
The financial institution may not serve as agent of the United States Government or serve as repository for United States Government funds. The imposition of either sanction under clause (i) or (ii) shall be treated as one sanction for purposes of this paragraph, and the imposition of both such sanctions shall be treated as 2 sanctions for purposes of this paragraph.
(G) Procurement sanction
The United States Government may not procure, or enter into any contract for the procurement of, any goods or services from the entity.
(H) Foreign exchange
The President may, pursuant to such regulations as the President may prescribe, prohibit any transactions in foreign exchange that are subject to the jurisdiction of the United States and in which the entity has any interest.
(I) Banking transactions
The President may, pursuant to such regulations as the President may prescribe, prohibit any transfers of credit or payments between financial institutions or by, through, or to any financial institution, to the extent that such transfers or payments are subject to the jurisdiction of the United States and involve any interest of the entity.
(J) Ban on investment in equity or debt of sanctioned person
The President may, pursuant to such regulations or guidelines as the President may prescribe, prohibit any United States person from investing in or purchasing significant amounts of equity or debt instruments of the entity.
(K) Exclusion of corporate officers
The President may direct the Secretary of State to deny a visa to, and the Secretary of Homeland Security to exclude from the United States, any alien that the President determines is a corporate officer or principal of, or a shareholder with a controlling interest in, the entity.
(L) Sanctions on principal executive officers
The President may impose on the principal executive officer or officers of the entity, or on individuals performing similar functions and with similar authorities as such officer or officers, any of the sanctions under this paragraph.
(2) Sanctions applicable to individuals
In the case of an alien identified under subparagraph (A) of subsection (a)(1) in the most recent report submitted under that subsection, the following shall apply:
(A) Blocking of property
The President shall, pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), block and prohibit all transactions in all property and interests in property of the alien if such property and interests in property are in the United States, come within the United States, or are or come within the possession or control of a United States person.
(B) Ineligibility for visas, admission, or parole
(i) Visas, admission, or parole
An alien described in subparagraph (A) of subsection (a)(1) is—
(I) inadmissible to the United States;
(II) ineligible to receive a visa or other documentation to enter the United States; and
(III) otherwise ineligible to be admitted or paroled into the United States or to receive any other benefit under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.).
(ii) Current visas revoked
(I) In general
An alien described in subparagraph (A) of subsection (a)(1) is subject to revocation of any visa or other entry documentation regardless of when the visa or other entry documentation is or was issued.
(II) Immediate effect
A revocation under subclause (I) shall—
(aa) take effect pursuant to section 221(i) of the Immigration and Nationality Act (8 U.S.C. 1201(i)); and
(bb) cancel any other valid visa or entry documentation that is in the alien’s possession.
(c) National interest waiver
The President may waive the imposition of sanctions under subsection (b) with respect to a person if the President—
(1) determines that such a waiver is in the national interests of the United States; and
(2) not more than 15 days after issuing the waiver, submits to the appropriate congressional committees a notification of the waiver and the reasons for the waiver.
(d) Implementation; penalties
(1) Implementation
The President may exercise all authorities provided under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) to carry out this section.
(2) Penalties
A person that violates, attempts to violate, conspires to violate, or causes a violation of this section or any regulation, license, or order issued to carry out this section shall be subject to the penalties set forth in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) to the same extent as a person that commits an unlawful act described in subsection (a) of that section.
(e) Exceptions
(1) Intelligence activities
This section shall not apply with respect to activities subject to the reporting requirements under title V of the National Security Act of 1947 (50 U.S.C. 3091 et seq.) or any authorized intelligence activities of the United States.
(2) Law enforcement activities
Sanctions under this section shall not apply with respect to any authorized law enforcement activities of the United States.
(3) Exception to comply with international agreements
Sanctions under this section shall not apply with respect to the admission of an alien to the United States if such admission is necessary to comply with the obligations of the United States under the Agreement regarding the Headquarters of the United Nations, signed at Lake Success June 26, 1947, and entered into force November 21, 1947, between the United Nations and the United States, or the Convention on Consular Relations, done at Vienna April 24, 1963, and entered into force March 19, 1967, or other international obligations.
(4) Exception relating to importation of goods
(A) In general
The authority or a requirement to impose sanctions under this section shall not include the authority or a requirement to impose sanctions on the importation of goods.
(B) Good defined
In this paragraph, the term “good” means any article, natural or manmade substance, material, supply, or manufactured product, including inspection and test equipment, and excluding technical data.
(f) Sunset
This section shall terminate on the date that is 7 years after January 5, 2023.
(g) Definitions
In this section:
(1) Admission; admitted; alien; lawfully admitted for permanent residence
The terms “admission”, “admitted”, “alien”, and “lawfully admitted for permanent residence” have the meanings given those terms in section 101 of the Immigration and Nationality Act (8 U.S.C. 1101).
(2) Appropriate congressional committees
The term “appropriate congressional committees” means—
(A) the Committee on Banking, Housing, and Urban Affairs and the Committee on Foreign Relations of the Senate; and
(B) the Committee on Financial Services and the Committee on Foreign Affairs of the House of Representatives.
(3) Entity
The term “entity” means a partnership, association, trust, joint venture, corporation, group, subgroup, or other organization.
(4) Export Administration Regulations
The term “Export Administration Regulations” has the meaning given that term in section 4801 of this title.
(5) Foreign entity
The term “foreign entity” means an entity that is not a United States person.
(6) Foreign person
The term “foreign person” means any person that is not a United States person.
(7) Knowingly
The term “knowingly”, with respect to conduct, a circumstance, or a result, means that a person has actual knowledge, or should have known, of the conduct, the circumstance, or the result.
(8) Person
The term “person” means an individual or entity.
(9) Trade secret
The term “trade secret” has the meaning given that term in section 1839 of title 18.
(10) United States person
The term “United States person” means—
(A) a United States citizen or an alien lawfully admitted for permanent residence to the United States;
(B) an entity organized under the laws of the United States or of any jurisdiction within the United States, including a foreign branch of such an entity; or
(C) any person in the United States.
