Directs the Secretary of the Treasury to identify and report annually on each country that is a country of concern because its government is not complying with the International Convention for the Suppression of the Financing of Terrorism, regardless of whether the country is a party to the Convention.
Requires with respect to such a country: (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 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1952 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 1952
To require that certain measures be taken with respect to countries of
concern regarding terrorist financing.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 28, 2005
Mrs. Kelly (for herself, Ms. Berkley, 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.
(a) In General.--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 is not complying with the requirements of the
International Convention for the Suppression of the Financing of
Terrorism, regardless of whether the country is a State party to the
Convention. The report shall include the information on which the
Secretary relied in determining whether or not each country is such a
country of concern. The report shall also include the efforts made by
the United States to provide to that government technical assistance to
comply with such requirements.
(b) Application.--For purposes of subsection (a), paragraph 1(a) of
article 2 of the Convention shall be applied to a country as if that
country were a party to each of the treaties listed in the annex to the
Convention.
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).
(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(a),
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.--Except as provided in subsection
(c), 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(a), 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 Secretary of the Treasury determines
and certifies to the Congress, at the time of the submission of
the report required by section 1(a), that--
(A) during the previous year--
(i) the United States offered technical
assistance to the country to assist the country
in complying with the requirements of the
Convention; and
(ii) the country has taken adequate steps
to comply with the requirements of the
Convention and to cooperate fully with the
United States in efforts to comply with such
requirements, including by--
(I) establishing laws and
regulations to prohibit offenses under
the Convention and enforcing those laws
and regulations;
(II) identifying and freezing or
seizing assets used in the commission
of offenses referred to in subclause
(I);
(III) investigating, prosecuting,
or extraditing persons committing, or
suspected of committing, any such
offense; and
(IV) regulating and monitoring
public an private charitable entitie,
transmissions of funds, formal and
informal financial systems and
institutions such as banks, financial
markets, the insurance sector,
financial and high-value commodity
markets, and remittance services, for
purposes of identifying persons
committing any such offense; or
(B) for a country that would not otherwise qualify
for certification under subparagraph (A), the vital
national security 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, except that any such determination shall not
take effect until at least 15 days after the Secretary
of the Treasury 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) 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 security 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 security interests of the United States by the
failure of such country to meet the requirements of
paragraph (1)(A).
(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(a), the Congress enacts a joint resolution disapproving the
determination of the President contained in such certification.
(d) Consequences for Countries Decertified.--If the Secretary of
the Treasury 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 Secretary of the Treasury, at the time of
submission of the report required by section 1(a), 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 Secretary of the Treasury, 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 Secretary 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 Secretary had not made
a certification with respect to that
country under subsection (b)(1)(A); or
(II) if the Secretary 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) Convention.--The term ``Convention'' means the
International Convention for the Suppression of the Financing
of Terrorism.
(2) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
<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 International Terrorism and Nonproliferation.
Referred to the Subcommittee on Domestic and International Monetary Policy, Trade, and Technology.
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