[Congressional Record Volume 162, Number 111 (Monday, July 11, 2016)]
[House]
[Pages H4582-H4583]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  SUPPORT FOR CAPACITY OF THE INTERNATIONAL MONETARY FUND TO PREVENT 
              MONEY LAUNDERING AND FINANCING OF TERRORISM

  Mr. FITZPATRICK. Mr. Speaker, I move to suspend the rules and pass 
the bill (H.R. 5469) to require the Secretary of the Treasury to direct 
the United States Executive Director at the International Monetary Fund 
to support the capacity of the International Monetary Fund to prevent 
money laundering and financing of terrorism.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 5469

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

     SECTION 1. SUPPORT FOR CAPACITY OF THE INTERNATIONAL MONETARY 
                   FUND TO PREVENT MONEY LAUNDERING AND FINANCING 
                   OF TERRORISM.

       (a) In General.--Title XVI of the International Financial 
     Institutions Act (22 U.S.C. 262p--262p-12) is amended by 
     adding at the end the following:

     ``SEC. 1629. SUPPORT FOR CAPACITY OF THE INTERNATIONAL 
                   MONETARY FUND TO PREVENT MONEY LAUNDERING AND 
                   FINANCING OF TERRORISM.

       ``The Secretary of the Treasury shall instruct the United 
     States Executive Director at the International Monetary Fund 
     to support the use of the administrative budget of the Fund 
     for technical assistance that strengthens the capacity of 
     Fund members to prevent money laundering and the financing of 
     terrorism.''.
       (b) Report to the Congress.--Within 1 year after the date 
     of the enactment of this Act, the Secretary of the Treasury 
     shall report to the Committee on Financial Services of the 
     House of Representatives and the Committee on Foreign 
     Relations of the Senate on--
       (1) the activities of the Fund in the most recently 
     completed fiscal year to provide technical assistance that 
     strengthens the capacity of Fund members to prevent money 
     laundering and the financing of terrorism, and the 
     effectiveness of the assistance; and
       (2) the efficacy of efforts by the United States to achieve 
     the policy goal described in this section and any further 
     actions that need to be taken to implement this goal.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Pennsylvania (Mr. Fitzpatrick) and the gentlewoman from New York (Ms. 
Velazquez) each will control 20 minutes.
  The Chair recognizes the gentleman from Pennsylvania.


                             General Leave

  Mr. FITZPATRICK. Mr. Speaker, I unanimous consent that all Members 
may have 5 legislative days within which to revise and extend their 
remarks and include extraneous material on the bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Pennsylvania?
  There was no objection.
  Mr. FITZPATRICK. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, the IMF provides consultations to improve the economic 
governance of member countries. Traditional areas of focus have 
included fiscal administration, monetary policy, and financial 
statistics. More recently, however, the Fund has had to respond to 
increased demand for technical assistance devoted to anti-money 
laundering and countering the finance of terrorism, AML/CFT.
  While other international financial institutions also provide such 
assistance, it is commonly agreed that the IMF's role is preeminent, 
given its ongoing specialized work with fiscal authorities and other 
central banks.
  The IMF bases its AML/CFT work on the international standards, with 
its technical assistance including activities such as risk assessments, 
national AML/CFT strategies, legal and regulatory reforms, and the 
development of financial intelligence units. These FIUs are 
particularly important for countries that need to process reports of 
suspicious transactions that may be related to criminal and terrorism 
activity.
  H.R. 5469 will help the IMF continue and expand these programs by 
making AML/CFT technical assistance a priority and by reasserting its 
importance to the U.S. Treasury.
  Mr. Speaker, I reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may 
consume.

[[Page H4583]]

  This commonsense legislation is aimed at expanding the resources the 
International Monetary Fund can tap in order to provide member 
countries with technical assistance for anti-money laundering and 
counterterrorist financing efforts.
  Through the IMF's legal department, experts provide assistance to 
countries that want to put in place effective AML/CFT frameworks in 
compliance with international standards. Unfortunately, demand is 
outpacing supply.
  Currently, the IMF provides only about $7 million dollars in AML/CFT 
technical assistance a year. It is funded almost entirely through 
volunteer donor trust fund contributions. The U.S. does not contribute 
to the trust fund. This bill will require the U.S. Executive Director 
at the IMF to advocate for additional AML/CFT technical assistance 
financing through the IMF's administrative budget.
  The provision of AML/CFT technical assistance should be a top 
priority, and I think many of us would support a slightly larger 
transfer of the IMF's annual net profits into the budget to accommodate 
this important work.
  This bill represents an important goal, one that the U.S. should 
pursue at the IMF, and I urge my colleagues to support this measure.
  Mr. Speaker, I yield back the balance of my time.
  Mr. FITZPATRICK. Mr. Speaker, I yield 3 minutes to the gentleman from 
New Mexico (Mr. Pearce), the author of the bill.
  Mr. PEARCE. Mr. Speaker, I thank the gentleman for yielding, and I 
appreciate my colleague for her support on the bill.
  The IMF plays a very significant role in global economic stability. 
Since they work with the world's central banks and financial 
institutions, it is only appropriate that we would be extending 
technical assistance to this organization and make it more permanent 
that they would finance and back up the plans of all countries to 
combat money laundering and terrorism. That is the simple precept of 
the bill.
  So as we look at the possibilities, the global rise of terrorism is 
causing instability in every corner of the world. The world should be 
now standing up saying that we all join hands, we join arms, link arms 
to fight this global scourge. One of the most important fights is the 
ability to choke off the financing, to interrupt the financing of the 
operations.
  This will not do completely what we need to do to stop the threats of 
global terrorism, but it will go a long way. But, more importantly, it 
will get buy-in from countries right now are reticent to take part. 
That is one of the essential things. Some nations are allowed to sit on 
the sidelines, and all we are saying is that should be up to all of us, 
not one country here, not the countries that are being affected, but 
the entire world should be standing together.
  This is just a commonsense, pragmatic approach to the situation of 
money laundering and terrorism. Again, it is not a partisan issue. So I 
appreciate the input of my colleagues on the other side of the aisle.
  With that, I recommend that all vote ``yes'' on H.R. 5469.
  Mr. FITZPATRICK. Mr. Speaker, I yield myself such time as I may 
consume.
  I thank my colleague from New Mexico (Mr. Pearce), for his important 
work on the anti-financing of terrorism issue. It is a very patriotic 
effort on his part. It's an important bill. We thank our colleagues 
across the aisle for their support of the bill as well, and I ask our 
colleagues as well to support the passage of H.R. 5469.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Pennsylvania (Mr. Fitzpatrick) that the House suspend 
the rules and pass the bill, H.R. 5469.
  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.

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