May 14, 2019 - Issue: Vol. 165, No. 80 — Daily Edition116th Congress (2019 - 2020) - 1st Session

[Pages H3769-H3771]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        BANKING TRANSPARENCY FOR SANCTIONED PERSONS ACT OF 2019

  Ms. WATERS. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 1037) to increase transparency with respect to financial 
services benefitting state sponsors of terrorism, human rights abusers, 
and corrupt officials, and for other purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 1037

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Banking Transparency for 
     Sanctioned Persons Act of 2019''.

     SEC. 2. REPORT ON FINANCIAL SERVICES BENEFITTING STATE 
                   SPONSORS OF TERRORISM, HUMAN RIGHTS ABUSERS, 
                   AND CORRUPT OFFICIALS.

       (a) In General.--Not later than 180 days after the date of 
     the enactment of this Act, and every 180 days thereafter, the 
     Secretary of the Treasury shall issue a report to the 
     Committees on Financial Services and Foreign Affairs of the 
     House of Representatives and the Committees on Banking, 
     Housing, and Urban Affairs and Foreign Relations of the 
     Senate that includes--
       (1) a copy of any license issued by the Secretary in the 
     preceding 180 days that authorizes a financial institution to 
     provide financial services benefitting a state sponsor of 
     terrorism; and
       (2) a list of any foreign financial institutions that, in 
     the preceding 180 days, knowingly conducted a significant 
     transaction or transactions, directly or indirectly, for a 
     sanctioned person included on the Department of the 
     Treasury's Specially Designated Nationals And Blocked Persons 
     List who--
       (A) is owned or controlled by, or acts on behalf of, the 
     government of a state sponsor of terrorism; or
       (B) is designated pursuant to any of the following:
       (i) Section 404 of the Russia and Moldova Jackson-Vanik 
     Repeal and Sergei Magnitsky Rule of Law Accountability Act of 
     2012 (Public Law 112-208).
       (ii) Subtitle F of title XII of the National Defense 
     Authorization Act for Fiscal Year 2017 (Public Law 114-328, 
     the Global Magnitsky Human Rights Accountability Act).
       (iii) Executive Order 13818.
       (b) Form of Report.--The report required under subsection 
     (a) shall be submitted in unclassified form but may contain a 
     classified annex.

     SEC. 3. WAIVER.

       The Secretary of the Treasury may waive the requirements of 
     section 2 with respect to a foreign financial institution 
     described in paragraph (2) of such section--
       (1) upon receiving credible assurances that the foreign 
     financial institution has ceased, or will imminently cease, 
     to knowingly conduct any significant transaction or 
     transactions, directly or indirectly, for a person described 
     in subparagraph (A) or (B) of such paragraph (2); or
       (2) upon certifying to the Committees on Financial Services 
     and Foreign Affairs of the House of Representatives and the 
     Committees on Banking, Housing, and Urban Affairs and Foreign 
     Relations of the Senate that the waiver is important to the 
     national interest of the United States, with an explanation 
     of the reasons therefor.

     SEC. 4. DEFINITIONS.

       For purposes of this Act:
       (1) Financial institution.--The term ``financial 
     institution'' means a United States financial institution or 
     a foreign financial institution.
       (2) Foreign financial institution.--The term ``foreign 
     financial institution'' has the meaning given that term under 
     section 561.308 of title 31, Code of Federal Regulations.
       (3) Knowingly.--The term ``knowingly'' with respect to 
     conduct, a circumstance, or a result, means that a person has 
     actual knowledge, or should have known, of the conduct, the 
     circumstance, or the result.
       (4) United states financial institution.--The term ``United 
     States financial institution'' has the meaning given the term 
     ``U.S. financial institution'' under section 561.309 of title 
     31, Code of Federal Regulations.

     SEC. 5. SUNSET.

       The reporting requirement under this Act shall terminate on 
     the date that is the end of the 7-year period beginning on 
     the date of the enactment of this Act.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
California (Ms. Waters) and the gentleman from Ohio (Mr. Stivers) each 
will control 20 minutes.
  The Chair recognizes the gentlewoman from California.


                             General Leave

  Ms. WATERS. Mr. Speaker, I ask unanimous consent that all Member may 
have 5 legislative days within which to revise and extend their remarks 
on this legislation and to insert extraneous material thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from California?
  There was no objection.
  Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of H.R. 1037, the Banking Transparency 
for Sanctioned Persons Act.
  This legislation requires the Secretary of the Treasury to report to 
Congress every 6 months a list of the licenses that it issues to 
financial institutions to provide services to countries and persons 
subject to certain U.S. sanctions. It also provides Congress with 
information about foreign financial firms that similarly provide

[[Page H3770]]

support to those same countries and persons.
  I support this bill because I believe its disclosure requirements 
will serve as a useful oversight tool for Congress. Today, when the 
Office of Foreign Assets Control, or OFAC, issues a license to a 
company that allows them to engage in an activity that would otherwise 
be prohibited by U.S. sanctions, OFAC does not disclose those licenses.
  I support the bill's other reporting requirement related to foreign 
financial firms. These lists of foreign financial institutions can 
provide a useful basis for Congress to review the administration's 
overall sanction strategy and to press the administration to impose 
restrictions on these institutions to change their behavior.
  When a nearly identical version of this bill was considered by the 
Financial Services Committee last Congress, I supported the bill's 
disclosure requirements, but I thought it would be counterproductive to 
have the information revealed publicly.
  For example, OFAC licenses often contain commercially sensitive 
information. If companies could no longer expect licenses to remain 
private, they would be less likely to apply for them, which would be 
detrimental to humanitarian efforts.
  I didn't think the public identification of these foreign financial 
firms would serve a useful policy purpose and could otherwise move 
legal activity into a shade of gray. For these reasons, a Democratic 
amendment was adopted in committee by voice vote to allow for Congress 
to review the lists confidentially.
  I believe H.R. 1037, which includes this critical change from last 
Congress, would increase congressional oversight of U.S. sanctions 
activity appropriately, and I urge my colleagues to support it.
  Mr. Speaker, I reserve the balance of my time.
  Mr. STIVERS. Mr. Speaker, I yield myself such time as I may consume.
  I want to express my strong support for H.R. 1037, the Banking 
Transparency for Sanctioned Persons Act. The bill includes important 
provisions to strengthen our national security, and it passed 
unanimously last year in the full House.
  I am pleased to see this legislation come to the floor under a new 
sponsor, the gentleman from Virginia (Mr. Riggleman). Although he is in 
his first term, Congressman Riggleman has already made significant 
contributions to the committee's work. His leadership on this bill is a 
case in point.
  The gentleman's legislation would require the Treasury Department to 
provide Congress with a copy of licenses that authorize financial 
services for state sponsors of terrorism. These licenses are 
essentially waivers, and while sanctions laws often require 
congressional notification when formal waivers are issued, licenses can 
fall through the cracks.
  To be clear, some licenses may be desirable, such as those allowing 
humanitarian relief or allowing for tailoring of sanctions in order to 
better advance our policy goals. In other cases, however, Congress may 
have legitimate concerns that a sanctioned entity is being licensed to 
carry out transactions with U.S. persons, including our country's 
financial institutions.
  This bill simply ensures that Congress knows whether a license has 
been issued, which will allow us to have better oversight of the 
sanctions program.
  In addition, Mr. Speaker, this bill requires Treasury to send 
Congress semiannual reports that show which foreign financial 
institutions are providing support for sanctioned terrorists, corrupt 
officials, and human rights abusers. Although these bad actors are cut 
off from American banks, we should know whether they are evading our 
measures through the use of foreign entities. If Congress is made aware 
of these relationships, we can work to close those loopholes.
  Again, the unanimous support these policies have garnered previously 
underscores their commonsense nature. Congressman Riggleman has spent 
much of his career before Congress devoted to protecting our national 
security, and his work on this bill, H.R. 1037, deserves our support.
  I urge my colleagues to support this measure, and I reserve the 
balance of my time.
  Ms. WATERS. Mr. Speaker, I reserve the balance of my time.
  Mr. STIVERS. Mr. Speaker, I yield such time as he may consume to the 
gentleman from Virginia (Mr. Riggleman), the sponsor of the bill. He 
has done great work here, and I will give him as much time as he may 
consume.
  Mr. RIGGLEMAN. Mr. Speaker, I rise today in support of H.R. 1037, the 
Banking Transparency for Sanctioned Persons Act of 2019.

  I thank the chairwoman of the committee, Ms. Waters, as well as 
Ranking Member McHenry for their support and willingness to bring this 
legislation to the House floor for a vote. I also thank my colleague 
Josh Gottheimer for cosponsoring this legislation.
  This bill requires the Department of the Treasury to report on 
financial services provided to a state sponsor of terrorism or 
sanctioned person. This is a commonsense reporting requirement that 
will further assist Congress in its oversight functions, including 
financial sanctions against state sponsors of terrorism, human rights 
abusers, and other bad actors targeted with certain U.S. sanctions.
  This legislation is simple yet essential. It requires the Secretary 
of the Treasury to submit to Congress every 180 days a report with two 
sets of information: first, a list of the licenses it issues to 
financial institutions to provide services to countries and persons 
subject to certain U.S. sanctions, and this would include state 
sponsors of terrorism such as Iran, North Korea, or Syria; second, 
Treasury would have to provide a list of any foreign banks that conduct 
significant transactions for persons that have been sanctioned for 
human rights abuses or corruption. This report will support Congress by 
ensuring that sanctions are being legally and appropriately applied 
across the board.
  The information in these reports will inform Congress about how 
sanctioned states and individuals engage in financial transactions. 
Additionally, the increased transparency will help us understand the 
impacts of sanctions on targeted individuals.
  With a clear idea of how certain foreign countries are undermining 
U.S. efforts to combat corruption and human rights atrocities, we can 
adjust our sanctions policies so they have the intended effects.
  Finally, this bill will aid Congress and the executive branch to 
tailor secondary sanctions on foreign financial institutions, as well 
as better determine how those sanctions should be effectively designed 
and what the unintended consequences might be, if any should exist.
  This will be a useful oversight tool and a powerful disclosure 
requirement that can help Congress understand existing sanctions and 
design a more effective program for the future.
  Mr. Speaker, this bill unanimously passed the House in the 115th 
Congress, and I invite all of my colleagues to join me today and pass 
H.R. 1037.
  Mr. STIVERS. Mr. Speaker, I urge adoption of this bipartisan bill 
that passed unanimously in committee and in the House last year.
  Mr. Speaker, I yield back the balance of my time.
  Ms. WATERS. Mr. Speaker, I yield myself the balance of my time.
  Mr. Speaker, H.R. 1037, the Banking Transparency for Sanctioned 
Persons Act of 2019, will help ensure that Members of Congress have the 
information they need to provide more effective oversight of the 
decisions made by Treasury and OFAC and the impact that those decisions 
have on sanctioned persons.
  Mr. Speaker, I thank Mr. Riggleman for bringing this bill forward, 
and I urge my colleagues to join me in supporting this important piece 
of legislation.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from California (Ms. Waters) that the House suspend the 
rules and pass the bill, H.R. 1037.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

[[Page H3771]]

  

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