United States" as an SDGT115 The Secretary of the Treasury, in consultation
with the Secretary of State and the Attorney General, can further designate as
SDGTs any organizations owned or controlled by, or acting on behalf of SDGTs
designated by the Secretary of State.' 6 The Secretary of the Treasury has the
power to block all property interests of SDGTs in the United States and prohibit
any transactions involving the blocked property interests." 7
The D.C. Circuit and the Seventh Circuit have split on the issue of when
due process should be afforded to SDGTs. In Holy Land Foundation for Relief
and Development v. Ashcroft ("Holy Land Foundation"), the D.C. Circuit held
that the pre-designation notice and hearing requirements of NCRI also apply to
the designation of SDGTs. 118 By contrast, in Global Relief Foundation v.
O'Neill, the Seventh Circuit held that post-designation notice and hearings were
sufficient for SDGTs. 119 The courts did agree, however, that any classified
information utilized in these designations need not be disclosed to the designated
organizations. t 20
In Holy Land Foundation, the Secretary of the Treasury designated the
Holy Land Foundation for Relief and Development ("HLF"), a large Islamic
charity, as an SDGT because it acted for or on behalf of Hamas, a militant
Palestinian group previously designated as an SDGT.12
1 Seeking a preliminary
injunction against the designation, the HLF argued that the designation violated
its procedural due process rights because the government had not provided it
with notice or a hearing prior to its designation. ' 22
The district court found that NCRI did not control its decision in this case
because, unlike in NCRI, "a Presidentially declared national emergency (as required
by the IEEPA) existed to justify the absence of notice and an opportunity
to be heard" prior to the designation. 1 23 The court examined the HLF's due
process claim in light of the test outlined in Calero-Toledo v. Pearson Yacht
Leasing Company. 24 To justify post-deprivation notice and hearings under the
Calero-Toledo test, the government must show that