Imposing Sanctions on Foreign Persons Involved in the Global Illicit Drug Trade
Executive Order 14059, signed December 15, 2021, authorizes the U.S. government to sanction foreign persons involved in the global illicit drug trade, including fentanyl and other synthetic opioids. Built on powers from the International Emergency Economic Powers Act (IEEPA), the National Emergencies Act (NEA), the Fentanyl Sanctions Act (FSA), and related statutes, the order directs the Secretary of the Treasury (in consultation with other key agencies) to designate and impose a range of penalties on individuals or entities determined to materially contribute to illicit drug production or trafficking, or to profit from it. The goal is to disrupt the financial, logistical, and leadership networks that enable the international drug trade and to reduce illicit drugs entering the United States. The order creates a framework for listing designated foreign persons and applying targeted sanctions, including asset blocking, restrictions on financial transactions, and entry bans for certain noncitizens. It also sets forth a process for implementing these sanctions through multiple agencies, with definitions to guide who is affected and how actions should be carried out. It emphasizes that listing can occur without prior notice to preserve effectiveness and requires ongoing reporting to Congress.
Key Points
- 1Grants the Treasury Secretary broad authority, in consultation with State, the Attorney General, and Homeland Security, to sanction foreign persons tied to illicit drug production, distribution, or financing, or who profit from drug-trafficking activities.
- 2Allows a range of sanctions against designated individuals or entities, including blocking their property in the U.S. and abroad, prohibiting U.S. financial transactions, restricting U.S. investments, restricting foreign exchange dealings, and sanctioning top executives or controlling principals.
- 3Adds visa and entry restrictions: certain noncitizens who are leaders, officials, or major stakeholders in sanctioned networks can be detained or denied entry into the United States; entry suspensions can be implemented with appropriate exceptions based on enforcement needs.
- 4Applies to “means of production” and precursor materials, meaning entities involved in sourcing, supplying, or facilitating equipment, chemicals, or other items used to produce illicit drugs can be targeted.
- 5Provides implementation and administrative details, including interagency coordination, implementing rules and regulations, and regular reporting to Congress on the national emergency and sanctions program. It also includes broad definitions for terms like “sanctioned person,” “foreign person,” and “proliferation of illicit drugs.”