June 2, 2000

FACT SHEET

                              THE WHITE HOUSE

                       Office of the Press Secretary
                             (Aachen, Germany)
For Immediate Release                                                  June
2, 2000

                                FACT SHEET

                           Implementation of the
                 Foreign Narcotics Kingpin Designation Act

Overview

On June 1, the Administration imposed sanctions against significant foreign
drug traffickers pursuant to the new Foreign Narcotics Kingpin Designation
Act ("the Kingpin Act").  The President has designated the following
individuals as appropriate for sanctions pursuant to the Kingpin Act:
Benjamin Alberto Arellano-Felix; Ramon Eduardo Arellano-Felix; Jose de
Jesus Amezcua-Contreras; Luis Ignacio Amezcua-Contreras; Rafael
Caro-Quintero; Vicente Carrillo-Fuentes; Chang Chi-Fu; Wei Hsueh-Kang; Noel
Timothy Heath; Glenroy Vingrove Matthews; Abeni 0. Ogungbuyi; and Oluwole
A. Ogungbuyi.

Background

In December 1999, the President signed into law the Kingpin Act (21 U.S.C.
1901-1908, 8 U.S.C. 1182), the result of legislation originally introduced
by Senators Coverdell and Feinstein.  The Kingpin Act establishes a
sanctions program targeting the activities of significant foreign narcotics
traffickers and their organizations on a worldwide basis.  It authorizes
the President to impose sanctions against foreign drug kingpins when such
sanctions are appropriate, with the objective of denying such persons,
their businesses and their agents access to the U.S. financial system and
to the benefits of trade and transactions involving U.S. businesses and
individuals.

The Kingpin Act is modeled after the effective sanctions program that the
Department of the Treasury's Office of Foreign Assets Control ("OFAC")
administers against the Colombian drug cartels pursuant to Executive Order
12978.  The Colombian program was initiated in October 1995 under the
authority of the International Emergency Economic Powers Act ("IEEPA").

Implementation

The Kingpin Act provides that, on an annual basis, the President shall
report to specified congressional committees those "foreign persons [he]
determines are appropriate for sanctions" and detail publicly his intent to
impose sanctions upon those foreign persons pursuant to the Act.  The
Kingpin Act requires  the Secretary of State, the Secretary of Treasury,
the Secretary of Defense, the Attorney General, and the Director of Central
Intelligence to provide the President with the information necessary to
make these determinations.

The Kingpin Act blocks assets subject to the jurisdiction of the United
States of designated persons, and also prohibits U.S. persons from engaging
in any dealings with those designated, their front companies, and their
agents.  The Act also gives the Treasury authority (to be exercised in
consultation with the relevant law enforcement and intelligence agencies
and with the Department of State) to make derivative designations, which
can be used to expand application of the Kingpin Act sanctions to the
associates and organizations of the designated significant foreign
narcotics traffickers.

In addition to civil penalties of up to $1 million for violations, the
Kingpin Act provides for criminal penalties of up to: 10 years'
imprisonment for individuals; $10 million fine for entities; and 30 years'
imprisonment and/or a $5 million fine for officers, directors or agents of
entities who knowingly participate in violations of the economic sanctions
imposed.  The Kingpin Act also provides that designated foreign persons,
and immediate family members who have knowingly benefited from their
illicit activity, will be denied visas for entry into the United States.

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