[Congressional Record Volume 151, Number 155 (Tuesday, December 6, 2005)]
[House]
[Page H11055]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          INTERNATIONAL ORGANIZATIONS IMMUNITIES ACT AMENDMENT

  Mr. LEACH. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 3269) to amend the International Organizations Immunities Act to 
provide for the applicability of that Act to the Bank for International 
Settlements.
  The Clerk read as follows:

                                H.R. 3269

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

     SECTION 1. DESIGNATION OF THE BANK FOR INTERNATIONAL 
                   SETTLEMENTS UNDER THE INTERNATIONAL 
                   ORGANIZATIONS IMMUNITIES ACT.

       The International Organizations Immunities Act (22 U.S.C. 
     288 et seq.) is amended by adding at the end the following 
     new section:
       ``Sec. 17. The provisions of this title may be extended to 
     the Bank for International Settlements in the same manner, to 
     the same extent, and subject to the same conditions, as they 
     may be extended to a public international organization in 
     which the United States participates pursuant to any treaty 
     or under the authority of any Act of Congress authorizing 
     such participation or making an appropriation for such 
     participation.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Iowa (Mr. Leach) and the gentleman from California (Mr. Lantos) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Iowa.


                             General Leave

  Mr. LEACH. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
and include extraneous material on H.R. 3269.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Iowa?
  There was no objection.
  Mr. LEACH. Mr. Speaker, I yield myself such time as I may consume, 
and rise in support of this bill which would designate the Bank For 
International Settlements, otherwise known as the BIS, as an 
international organization under the International Organizations 
Immunity Act, otherwise known as IOIA, thus allowing the President to 
extend appropriate immunities to the BIS.
  I should note at the outset that this legislation was requested by 
the Board of Governors of the Federal Reserve System and it is also 
strongly supported by the Department of State and the Department of the 
Treasury.
  As Members may be aware, the BIS is an international organization 
that functions as a bank for central banks and is owned exclusively by 
central banks. Following consultation with the Executive Branch and 
Congressional leadership, the Federal Reserve formally joined the BIS 
Board of Directors in 1994.

                              {time}  1530

  The Federal Reserve currently holds two seats on the BIS board and 
participates actively in the important work of the BIS to promote 
international financial stability.
  Because the BIS is indirectly owned by more than one foreign 
government, the immunities granted by the Foreign Sovereign Immunities 
Act are not available to the BIS absent legislative action by the 
Congress under the framework provided by the IOIA for international 
organizations. I concur with the Federal Reserve as well as the 
Departments of State and Treasury in concluding that providing 
appropriate immunities to the BIS has significant merit at this time.
  The BIS plays a critical role in financing large volumes of U.S. 
dollar transactions in the United States daily for its central bank 
customers. It has also been integral to international efforts to 
promote global financial stability in the face of emerging market 
financial crises, such as those that hallmarked much of the last 
decade. Without extending immunities to the BIS, these transactions 
could be disrupted by mischievous lawsuits. This may create 
disincentives to conduct international transactions in dollars.
  Moreover, an extension of immunity to the BIS in accordance with the 
provisions of the IOIA would provide protection of its assets held in 
the United States equivalent to the protection currently enjoyed by the 
European Central Bank and other international financial institutions, 
such as the International Monetary Fund and the World Bank.
  Indeed, Congress addressed a parallel situation in 2002 when it 
passed legislation allowing for the President to extend immunities 
under the IOIA to the European Central Bank.
  As I noted previously, the Federal Reserve and the Departments of 
State and Treasury strongly support this legislative initiative to 
designate the BIS as an international organization under the IOIA. I 
urge its adoption.
  Mr. Speaker, I reserve the balance of my time.
  Mr. LANTOS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of H.R. 3269. At the outset, I want to 
congratulate my good friend from Iowa (Mr. Leach) for introducing this 
thoughtful legislation.
  The Bank of International Settlements is the world's oldest 
international financial institution and plays a little-known, but key, 
role as the central bank to central banks. It also provides technical 
assistance to central banks of developing countries.
  Although the U.S. Federal Reserve has two members on the board, 
because of recent restructuring, the bank is now owned by those central 
banks that have deposits in it and therefore technically does not 
satisfy the requirements of the International Organizations Immunities 
Act, which extends immunity to organizations in which the United States 
is a member.
  Our legislation applies these immunities to the bank, helping it to 
maintain its important role and providing an incentive to keep these 
reserves in the United States.
  Mr. Speaker, I yield back the balance of my time.
  Mr. LEACH. Mr. Speaker, I yield myself such time as I may consume.
  I thank the gentleman for his thoughtful comments, and I would only 
add that the BIS plays a critical role in attempting to combat money 
laundering and to block the transfer of terrorist financing. It is a 
critical institution, although little known to the public; but it 
clearly deserves the immunities that are established for other 
international organizations and other foreign governments.
  I urge adoption of this piece of legislation.
  Mr. Speaker, I have no further requests for time, and I yield back 
the balance of my time.
  The SPEAKER pro tempore (Mr. Boozman). The question is on the motion 
offered by the gentleman from Iowa (Mr. Leach) that the House suspend 
the rules and pass the bill, H.R. 3269.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

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