Venezuela's Sanctionable Activity Joint Hearing Committee on Oversight and Government Reform Committee on Foreign Affairs Hous

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Venezuela's Sanctionable Activity Joint Hearing Committee on Oversight and Government Reform Committee on Foreign Affairs Hous VENEZUELA’S SANCTIONABLE ACTIVITY JOINT HEARING BEFORE THE SUBCOMMITTEE ON NATIONAL SECURITY, HOMELAND DEFENSE AND FOREIGN OPERATIONS OF THE COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM AND THE SUBCOMMITTEE ON THE WESTERN HEMISPHERE AND THE SUBCOMMITTEE ON THE MIDDLE EAST AND SOUTH ASIA OF THE COMMITTEE ON FOREIGN AFFAIRS HOUSE OF REPRESENTATIVES ONE HUNDRED TWELFTH CONGRESS FIRST SESSION JUNE 24, 2011 Serial No. 112–71 Committee on Oversight and Government Reform Serial No. 112–79 Committee on Foreign Affairs Printed for the use of the Committees on Oversight and Government Reform and Foreign Affairs ( Available via the World Wide Web: http://www.fdsys.gov http://www.house.gov/reform http://www.foreignaffairs.house.gov U.S. GOVERNMENT PRINTING OFFICE 71–297 PDF WASHINGTON : 2011 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM DARRELL E. ISSA, California, Chairman DAN BURTON, Indiana ELIJAH E. CUMMINGS, Maryland, Ranking JOHN L. MICA, Florida Minority Member TODD RUSSELL PLATTS, Pennsylvania EDOLPHUS TOWNS, New York MICHAEL R. TURNER, Ohio CAROLYN B. MALONEY, New York PATRICK T. MCHENRY, North Carolina ELEANOR HOLMES NORTON, District of JIM JORDAN, Ohio Columbia JASON CHAFFETZ, Utah DENNIS J. KUCINICH, Ohio CONNIE MACK, Florida JOHN F. TIERNEY, Massachusetts TIM WALBERG, Michigan WM. LACY CLAY, Missouri JAMES LANKFORD, Oklahoma STEPHEN F. LYNCH, Massachusetts JUSTIN AMASH, Michigan JIM COOPER, Tennessee ANN MARIE BUERKLE, New York GERALD E. CONNOLLY, Virginia PAUL A. GOSAR, Arizona MIKE QUIGLEY, Illinois RAU´ L R. LABRADOR, Idaho DANNY K. DAVIS, Illinois PATRICK MEEHAN, Pennsylvania BRUCE L. BRALEY, Iowa SCOTT DESJARLAIS, Tennessee PETER WELCH, Vermont JOE WALSH, Illinois JOHN A. YARMUTH, Kentucky TREY GOWDY, South Carolina CHRISTOPHER S. MURPHY, Connecticut DENNIS A. ROSS, Florida JACKIE SPEIER, California FRANK C. GUINTA, New Hampshire BLAKE FARENTHOLD, Texas MIKE KELLY, Pennsylvania LAWRENCE J. BRADY, Staff Director JOHN D. CUADERES, Deputy Staff Director ROBERT BORDEN, General Counsel LINDA A. GOOD, Chief Clerk DAVID RAPALLO, Minority Staff Director SUBCOMMITTEE ON NATIONAL SECURITY, HOMELAND DEFENSE AND FOREIGN OPERATIONS JASON CHAFFETZ, Utah, Chairman RAU´ L R. LABRADOR, Idaho, Vice Chairman JOHN F. TIERNEY, Massachusetts, Ranking DAN BURTON, Indiana Minority Member JOHN L. MICA, Florida BRUCE L. BRALEY, Iowa TODD RUSSELL PLATTS, Pennsylvania PETER WELCH, Vermont MICHAEL R. TURNER, Ohio JOHN A. YARMUTH, Kentucky PAUL A. GOSAR, Arizona STEPHEN F. LYNCH, Massachusetts BLAKE FARENTHOLD, Texas MIKE QUIGLEY, Illinois (II) COMMITTEE ON FOREIGN AFFAIRS ILEANA ROS-LEHTINEN, Florida, Chairman CHRISTOPHER H. SMITH, New Jersey HOWARD L. BERMAN, California DAN BURTON, Indiana GARY L. ACKERMAN, New York ELTON GALLEGLY, California ENI F.H. FALEOMAVAEGA, American DANA ROHRABACHER, California Samoa DONALD A. MANZULLO, Illinois DONALD M. PAYNE, New Jersey EDWARD R. ROYCE, California BRAD SHERMAN, California STEVE CHABOT, Ohio ELIOT L. ENGEL, New York RON PAUL, Texas GREGORY W. MEEKS, New York MIKE PENCE, Indiana RUSS CARNAHAN, Missouri JOE WILSON, South Carolina ALBIO SIRES, New Jersey CONNIE MACK, Florida GERALD E. CONNOLLY, Virginia JEFF FORTENBERRY, Nebraska THEODORE E. DEUTCH, Florida MICHAEL T. MCCAUL, Texas DENNIS CARDOZA, California TED POE, Texas BEN CHANDLER, Kentucky GUS M. BILIRAKIS, Florida BRIAN HIGGINS, New York JEAN SCHMIDT, Ohio ALLYSON SCHWARTZ, Pennsylvania BILL JOHNSON, Ohio CHRISTOPHER S. MURPHY, Connecticut DAVID RIVERA, Florida FREDERICA WILSON, Florida MIKE KELLY, Pennsylvania KAREN BASS, California TIM GRIFFIN, Arkansas WILLIAM KEATING, Massachusetts TOM MARINO, Pennsylvania DAVID CICILLINE, Rhode Island JEFF DUNCAN, South Carolina ANN MARIE BUERKLE, New York RENEE ELLMERS, North Carolina VACANT YLEEM D.S. POBLETE, Staff Director RICHARD J. KESSLER, Democratic Staff Director SUBCOMMITTEE ON THE WESTERN HEMISPHERE CONNIE MACK, Florida, Chairman MICHAEL T. MCCAUL, Texas ELIOT L. ENGEL, New York JEAN SCHMIDT, Ohio ALBIO SIRES, New Jersey DAVID RIVERA, Florida ENI F.H. FALEOMAVAEGA, American CHRISTOPHER H. SMITH, New Jersey Samoa ELTON GALLEGLY, California DONALD M. PAYNE, New Jersey (III) IV Page SUBCOMMITTEE ON THE MIDDLE EAST AND SOUTH ASIA STEVE CHABOT, Ohio, Chairman MIKE PENCE, Indiana GARY L. ACKERMAN, New York JOE WILSON, South Carolina GERALD E. CONNOLLY, Virginia JEFF FORTENBERRY, Nebraska THEODORE E. DEUTCH, Florida ANN MARIE BUERKLE, New York DENNIS CARDOZA, California RENEE ELLMERS, North Carolina BEN CHANDLER, Kentucky DANA ROHRABACHER, California BRIAN HIGGINS, New York DONALD A. MANZULLO, Illinois ALLYSON SCHWARTZ, Pennsylvania CONNIE MACK, Florida CHRISTOPHER S. MURPHY, Connecticut MICHAEL T. MCCAUL, Texas WILLIAM KEATING, Massachusetts GUS M. BILIRAKIS, Florida TOM MARINO, Pennsylvania C O N T E N T S Page Hearing held on June 24, 2011 ............................................................................... 1 Statement of: Benjamin, Daniel, Ambassador-at-Large, Coordinator for Counterterrorism, U.S. Department of State; Kevin Whitaker, Acting Deputy Assistant Secretary for Western Hemisphere Affairs, U.S. De- partment of State; Thomas Delare, Director for Terrorism Finance and Economic Sanctions Policy, U.S. Department of State; and Adam J. Szubin, Director, Office of Foreign Assets Control, U.S. Department of the Treasury .............................................................................................. 13 Benjamin, Daniel ....................................................................................... 13 Delare, Thomas .......................................................................................... 22 Szubin, Adam J. ........................................................................................ 24 Whitaker, Kevin ........................................................................................ 24 Letters, statements, etc., submitted for the record by: Benjamin, Daniel, Ambassador-at-Large, Coordinator for Counterterrorism, U.S. Department of State, prepared statement of ...... 16 Mack, Hon. Connie, a Representative in Congress from the State of Florida, prepared statement of .................................................................... 6 Szubin, Adam J., Director, Office of Foreign Assets Control, U.S. Depart- ment of the Treasury, prepared statement of ............................................. 27 (V) VENEZUELA’S SANCTIONABLE ACTIVITY FRIDAY, JUNE 24, 2011 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON NA- TIONAL SECURITY, HOMELAND DEFENSE AND FOREIGN OPERATIONS, COMMITTEE ON OVERSIGHT AND GOVERN- MENT REFORM, JOINT WITH THE SUBCOMMITTEE ON THE WESTERN HEMISPHERE AND THE SUBCOMMITTEE ON THE MIDDLE EAST AND SOUTH ASIA, COMMITTEE ON FOREIGN AFFAIRS, Washington, DC. The subcommittees met, pursuant to notice, at 9:02 a.m., in room 2154, Rayburn House Office Building, Hon. Jason Chaffetz (chair- man of the Subcommittee on National Security, Homeland Defense, and Foreign Operations) presiding. Present: Representatives Chaffetz, Labrador, Platts, Tierney, Welch, Quigley, and Cummings. Present from Foreign Affairs Subcommittee on the Western Hemisphere: Representatives Mack, Schmidt, Rivera, Marino, Sires, and Faleomavaega. Present from Foreign Affairs Subcommittee on the Middle East and South Asia: Representatives Chabot, Mack, Marino, Ackerman, Connolly, and Deutch. Staff present: Thomas A. Alexander, senior counsel; Molly Boyl, parliamentarian; Kate Dunbar, staff assistant; Adam P. Fromm, di- rector of Member services and committee operations; Linda Good, chief clerk; Mitchell S. Kominsky, counsel; Cecelia Thomas, minor- ity counsel/deputy clerk; and Carlos Uriarte, minority counsel. Mr. CHAFFETZ. Good morning. The committee will come to order. Welcome to today’s hearing: Venezuela’s Sanctionable Activity. This is a joint hearing between the Oversight Committee’s National Security, Homeland Defense and Foreign Operations Sub- committee, the Foreign Affairs Subcommittee on Western Hemi- sphere, and the Foreign Affairs Subcommittee on the Middle East and South Asia. We are joined today by the chairmen of those subcommittees, Chairman Connie Mack of Florida and Chairman Steve Chabot of Ohio. I would also like to welcome Ranking Member Tierney of Massa- chusetts, Ranking Member Ackerman of New York. Mr. Sires of New Jersey will be sitting in for the Ranking Member Engel today. Thank you all for being here. Today we are examining the administration’s policies to conduct national security threats abroad through the use of sanctions. For the past decade, the United States has focused much of its atten- (1) 2 tion on the Middle East. Since the 9/11 attacks, Americans have in- vested over a trillion dollars fighting the wars in Iraq and Afghani- stan. Since 2001, 6,072 Americans have died in Operations Endur- ing Freedom, Iraqi Freedom, and New Dawn. Another 44,266 have been injured. In Afghanistan alone these numbers have risen dra- matically since our current President took office in 2009. Wednesday evening, President Obama announced the intent to withdraw 33,000 troops from Afghanistan by the fall of 2012. This will leave approximately 67,000 troops behind, which is twice as many when President Obama entered office. While I support a withdrawal, it must be rooted in prudence, not politics; because it is the right thing to do
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