ACAMS Today, Jun-Aug 2023 | Page 61

Generating compensation for victims
Compensation eligibility
Amendments

Generating compensation for victims

The compensation to victims of terrorism derives directly from the net proceeds of forfeited or paid property from these states . 5 In civil enforcement money laundering cases involving state sponsors of terrorism , half of the money goes to the fund , and in criminal cases , 100 % of the money goes into the fund . These fines are then dispersed 50 % to victims of the 9 / 11 terrorist attacks and 50 % to non 9 / 11 victims . 6 An overview of the qualifying case deposits into the fund by fiscal year is available on the USVSST website . 7 Notably , over $ 1 billion was deposited in the fund during 2019 .
As impersonal as it might seem , terrorism has a price . Compensation for victims at the hands of a state sponsor of terrorism can range from up to $ 20 million for an individual to $ 35 million for families of victims under the USVSST . 8

Compensation eligibility

This fund compensates individuals who have received a final judgement by a U . S . district court awarding damages and people involved in the Iran Hostage Crisis . On December 29 , 2022 , Congress amended the USVSST to expand its compensation eligibility criteria to include victims of the 1983 Beirut barracks bombings and the 1996 Khobar Towers bombing . Personal representatives of the deceased in these areas may also recover for the deceased . Over 6,000 victims of 9 / 11 alone have received compensation through USVSST . 9
Both U . S . and non-U . S . citizens are eligible , and only compensatory damages are eligible . As stated in the USVSST “ Frequently Asked Questions ” document , “ If your judgment is solely against a terrorist group — like al-Qaeda or Hamas — and not against a state sponsor of
9 / 11 Memorial
terrorism , you are not eligible for compensation from the USVSST fund .” 10 Instrumentalities of state sponsors of terrorism , such as Iran ’ s Ministry of Intelligence and Security , may be eligible .
Although the individual recovering funds for the victim does not have to be an immediate family member , in the case that an immediate family member is involved , “ the Foreign Sovereign Immunities Act guides the definition of who is an immediate family member for purposes of the USVSST Fund .” 11

Amendments

As previously mentioned , the Fairness Act reopened the application period for 1983 Beirut barracks bombing victims and the 1996 Khobar Towers bombing victims whose final judgments were awarded before December 29 , 2022 . These individuals must submit their applications on or before June 27 , 2023 . 12
While this was not the first amendment to the USVSST , the most recent amendment is especially significant because the act explicitly expanded eligibility for individuals who were not victims of an official case of international state sponsored terrorism , although Iran was implicated in the above bombings . Furthermore , this amendment expanded eligibility for 9 / 11 victims and dependents who were previously barred from receiving compensation . 13
These amendments beget a fundamental question : What does the future hold for this fund ? Will current events and cases surrounding the USVSST Fund pave the way for any additional amendments that can affect the fund ’ s prospects ?
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