Directs the Secretary of the Treasury to identify and report annually on countries of concern whose governments, nationals, or entities finance domestic or international terrorism.
Requires with respect to such countries: (1) withholding of 50 percent of bilateral assistance; and (2) withholding of access to financial institution multilateral assistance.
Authorizes the Secretary to require domestic financial institutions to take special measures with respect to a country of concern, including financial institutions operating outside the United States engaging in financial transactions in such country to the same extent as if such country or financial institution were of primary money laundering concern.
Exempts a country from such prohibitions if the President certifies to Congress that: (1) during the previous year the country has cooperated fully with the United States or has taken adequate steps to terminate financial support for terrorism; or (2) for a country that would not otherwise qualify for such certification, vital U.S. national interests apply.
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5124 Introduced in House (IH)]
108th CONGRESS
2d Session
H. R. 5124
To require that certain measures be taken with respect to countries of
concern regarding terrorist financing.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 22, 2004
Mrs. Kelly (for herself, Mr. Royce, and Mr. Feeney) introduced the
following bill; which was referred to the Committee on Financial
Services, and in addition to the Committee on International Relations,
for a period to be subsequently determined by the Speaker, in each case
for consideration of such provisions as fall within the jurisdiction of
the committee concerned
_______________________________________________________________________
A BILL
To require that certain measures be taken with respect to countries of
concern regarding terrorist financing.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. ANNUAL REPORT BY SECRETARY OF THE TREASURY.
Not later than March 1 of each year, the Secretary of the Treasury
shall submit to the Congress a report that identifies each country that
is a country of concern because the government of that country, or
persons or entities that are in, or are nationals of, that country, are
providing financial support for domestic terrorism or international
terrorism. The report shall include the information on which the
Secretary relied in determining whether or not each country is such a
country of concern.
SEC. 2. WITHHOLDING OF ASSISTANCE; WITHHOLDING OF ACCESS TO FINANCIAL
INSTITUTIONS; SPECIAL MEASURES.
(a) Withholding of Bilateral Assistance; Opposition to Multilateral
Development Assistance; Special Measures.--
(1) Bilateral assistance.--Fifty percent of the United
States assistance allocated each fiscal year in the report
required by section 653 of the Foreign Assistance Act of 1961
for each country of concern listed in the report submitted to
Congress under section 1 shall be withheld from obligation and
expenditure, except as provided in subsection (c). This
paragraph shall not apply with respect to a country if the
President determines that its application to that country would
be contrary to the national interest of the United States,
except that any such determination shall not take effect until
at least 15 days after the President submits written
notification of that determination to the appropriate
congressional committees in accordance with the procedures
applicable to reprogramming notifications under section 634A of
the Foreign Assistance Act of 1961.
(2) Multilateral assistance.--The Secretary of the Treasury
shall instruct the United States Executive Director of each
multilateral development bank to vote, on and after March 1 of
each year, against any loan or other utilization of the funds
of their respective institution to or for any country of
concern listed in the report submitted under section 1, except
as provided in subsection (c). For purposes of this paragraph,
the term ``multilateral development bank'' means the
International Bank for Reconstruction and Development, the
International Development Association, the Inter-American
Development Bank, the Asian Development Bank, the African
Development Bank, and the European Bank for Reconstruction and
Development.
(3) Special measures.--The Secretary of the Treasury may
require domestic financial agencies to take 1 or more of the
special measures described in section 5318A(c) of title 31,
United States Code, with respect to a country of concern
identified in the most recent report submitted under section 1,
including financial institutions operating outside the United
States engaging in financial transactions in that country with
nationals or entities of that country, to the same extent as if
such country or financial institution were of primary money
laundering concern under such section 5318A.
(b) Certification Procedures.--
(1) What must be certified.--Subject to subsection (c), the
assistance withheld from a country pursuant to subsection
(a)(1) may be obligated and expended, the requirement of
subsection (a)(2) to vote against multilateral development bank
assistance to a country shall not apply, and subsection (a)(3)
shall not apply, if the President determines and certifies to
the Congress, at the time of the submission of the report
required by section 1, that--
(A) during the previous year the country has
cooperated fully with the United States, or has taken
adequate steps on its own, to terminate the provision
of financial support for domestic terrorism or
international terrorism, as the case may be, by the
government of that country or by persons or entities
that are in, or are nationals of, that country; or
(B) for a country that would not otherwise qualify
for certification under subparagraph (A), the vital
national interests of the United States require that
the assistance withheld pursuant to subsection (a)(1)
be provided, that the United States not vote against
multilateral development bank assistance for that
country pursuant to subsection (a)(2), and that
subsection (a)(3) not apply to that country.
(2) Information to be included in national interest
certification.--If the President makes a certification with
respect to a country pursuant to paragraph (1)(B), the
President shall include in such certification--
(A) a full and complete description of the vital
national interests placed at risk if United States
bilateral assistance to that country is terminated
pursuant to this section, multilateral development bank
assistance is not provided to such country, and special
measures are imposed under subsection (a)(3) with
respect to that country; and
(B) a statement weighing the risk described in
subparagraph (A) against the risks posed to the vital
national interests of the United States by the failure
of such country to cooperate fully with the United
States, or to take adequate steps on its own, to
terminate the provision of financial support for
domestic terrorism or international terrorism, as the
case may be.
(c) Congressional Review.--Subsection (d) shall apply if, within 30
calendar days after receipt of a certification submitted under
subsection (b) at the time of submission of the report required by
section 1, the Congress enacts a joint resolution disapproving the
determination of the President contained in such certification.
(d) Consequences for Countries Decertified.--If the President does
not make a certification under subsection (b) with respect to a country
or the Congress enacts a joint resolution disapproving such
certification, then until such time as the conditions specified in
subsection (e) are satisfied--
(1) funds may not be obligated for United States assistance
for that country, and funds previously obligated for United
States assistance for that country may not be expended for the
purpose of providing assistance for that country;
(2) the requirement to vote against multilateral
development bank assistance pursuant to subsection (a)(2) shall
apply with respect to that country, without regard to the date
specified in that subsection; and
(3) subsection (a)(3) shall apply with respect to that
country.
(e) Recertification.--Subsection (d) shall apply to a country
described in that subsection until--
(1) the President, at the time of submission of the report
required by section 1, makes a certification under subsection
(b)(1)(A) or (b)(1)(B) with respect to that country, and the
Congress does not enact a joint resolution under subsection (d)
disapproving the determination of the President contained in
that certification; or
(2) the President, at any other time, makes the
certification described in subsection (b)(1)(B) with respect to
that country, except that this paragraph applies only if
either--
(A) the President also certifies that--
(i) that country has undergone a
fundamental change in government; or
(ii) there has been a fundamental change in
the conditions that were the reason--
(I) why the President had not made
a certification with respect to that
country under subsection (b)(1)(A); or
(II) if the President had made such
a certification and the Congress
enacted a joint resolution disapproving
the determination contained in the
certification, why the Congress enacted
that joint resolution; or
(B) the Congress enacts a joint resolution
approving the determination contained in the
certification under subsection (b)(1)(B).
Any certification under subparagraph (A) of paragraph (2) shall discuss
the justification for the certification.
(f) Senate Procedures.--Any joint resolution under this section
shall be considered in the Senate in accordance with the provisions of
section 601(b) of the International Security Assistance and Arms Export
Control Act of 1976.
SEC. 3. DEFINITIONS.
In this Act:
(1) Financial support.--The term ``financial support''
includes funds, currency or monetary instruments or financial
securities, and financial sources.
(2) Terrorism.--The terms ``domestic terrorism'' and
``international terrorism'' have the meanings given those terms
in section 2331 of title 18, United States Code.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Financial Services, and in addition to the Committee on International Relations, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Financial Services, and in addition to the Committee on International Relations, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Financial Services, and in addition to the Committee on International Relations, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Domestic and International Monetary Policy, Trade, and Technology.
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