Congressional Record, Volume 162 Issue 111 (Monday, July 11, 2016)

[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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