[Congressional Record Volume 162, Number 111 (Monday, July 11, 2016)]
[House]
[Pages H4588-H4590]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               ENHANCING TREASURY'S ANTI-TERROR TOOLS ACT

  Mr. FITZPATRICK. Mr. Speaker, I move to suspend the rules and pass 
the bill (H.R. 5607) to enhance the Department of the Treasury's role 
in protecting national security, and for other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 5607

       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 ``Enhancing Treasury's Anti-
     Terror Tools Act''.

     SEC. 2. EXAMINING THE DEPARTMENT OF THE TREASURY'S COUNTER-
                   TERROR FINANCING ROLE IN EMBASSIES.

       Within 180 days of the enactment of this Act, 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 
     containing--
       (1) a list of the United States embassies in which a full-
     time Department of the Treasury attache is stationed;
       (2) a list of the United States embassies at which a 
     Department of the Treasury attache is assigned for temporary 
     duty, the length of such assignments, and the reason why such 
     assignments are not considered to be a permanent assignments;
       (3) how the Department of the Treasury's interests relating 
     to anti-terror finance, money laundering, and related illicit 
     finance issues are handled at other embassies, including a 
     discussion of the reporting structure by which such issues 
     are brought to the direct attention of the ambassador;
       (4) a description of the role the Department of the 
     Treasury attaches play in advancing America's anti-terrorism 
     financing interests;
       (5) a discussion of patterns, trends, or other issues 
     identified by Department of the Treasury attaches in the 
     previous year concerning anti-terror finance, money 
     laundering, and related illicit finance;
       (6) recommendations to improve coordination between the 
     Department of the Treasury and foreign financial ministries 
     of efforts to block the financing of terror, money 
     laundering, and related illicit finance; and
       (7) a discussion of whether the Department of the 
     Treasury's interests relating to anti-terror finance, money 
     laundering, or related illicit finance issues are thought to 
     be under-represented in some embassies or regions.

     SEC. 3. CLARIFYING REQUIREMENTS FOR RECORDKEEPING.

       (a) In General.--Section 5326 of title 31, United States 
     Code, is amended--
       (1) in the heading of such section, by striking ``coin and 
     currency'';
       (2) in subsection (a)--
       (A) by striking ``subtitle and'' and inserting ``subtitle 
     or to''; and
       (B) in paragraph (1)(A), by striking ``United States coins 
     or currency (or such other monetary instruments as the 
     Secretary may describe in such order)'' and inserting ``funds 
     (as the Secretary may describe in such order),''; and
       (3) in subsection (b)--
       (A) in paragraph (1)(A), by striking ``coins or currency 
     (or monetary instruments)'' and inserting ``funds''; and
       (B) in paragraph (2), by striking ``coins or currency (or 
     such other monetary instruments as the Secretary may describe 
     in the regulation or order)'' and inserting ``funds (as the 
     Secretary may describe in the regulation or order)''.
       (b) Clerical Amendment.--The table of contents for chapter 
     53 of title 31, United States Code, is amended in the item 
     relating to section 5326 by striking ``coin and currency''.

     SEC. 4. STUDY OF BUREAU STATUS.

       (a) Study.--The Secretary of the Treasury shall carry out a 
     study on the advisability and implications of transforming 
     the Office of Terrorism and Financial Intelligence into a 
     standalone bureau of the Department of the Treasury, and the 
     effects such a move would have on the Department of the 
     Treasury's efforts to stop money laundering, the financing of 
     terror, and related illicit finance.
       (b) Report.--Within 270 days of the date of the enactment 
     of this Act, the Secretary of the Treasury shall issue a 
     report to the Committee on Financial Services and the 
     Permanent Select Committee on Intelligence of the House of 
     Representatives and the Committee on Banking, Housing, and 
     Urban Affairs and the Select Committee on Intelligence of the 
     Senate containing all findings and determinations made in 
     carrying out the study required under subsection (a).

     SEC. 5. IMPROVING ANTI-TERROR FINANCE MONITORING OF FUNDS 
                   TRANSFERS.

       (a) Study.--To improve the Department of the Treasury's 
     ability to better track cross-border fund transfers and 
     identify potential financing of terror or other illicit 
     finance, the Secretary of the Treasury shall carry out a 
     study to assess--
       (1) the potential efficacy of requiring banking regulators 
     to establish a pilot program to provide technical assistance 
     to depository institutions and credit unions that wish to 
     provide account services to money services businesses serving 
     individuals in Somalia;
       (2) whether such a pilot program could be a model for 
     improving the ability of Americans to legitimately send funds 
     to their loved ones through transparent and easily monitored 
     channels; and
       (3) the potential impact of allowing money services 
     businesses to share their State examinations with depository 
     institutions and credit unions, or if another mechanism could 
     be found to allow a similar exchange of information that 
     would give such depository institutions and credit unions a 
     better understanding of whether an individual money services 
     business is adequately meeting its anti-money laundering and 
     counter terror financing obligations to combat money 
     laundering, the financing of terror, or related illicit 
     finance.
       (b) Report.--Within 270 days of the date of the enactment 
     of this Act, 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 containing all findings and determinations made in 
     carrying out the study required under subsection (a).
       (c) Money Services Business Defined.--For purposes of this 
     section, the term ``money services business'' has the meaning 
     given that term under section 1010.100 of title 31, Code of 
     Federal Regulations.

     SEC. 6. SENSE OF CONGRESS.

       It is the sense of the Congress that the Secretary of the 
     Treasury, acting in the Secretary's own capacity and through 
     the Under Secretary for Terrorism and Financial Crimes, 
     should work with finance ministry counterparts worldwide to 
     spur the development within such ministries of entities 
     similar to the Department of the Treasury's Office of 
     Intelligence and Analysis to more solidly integrate the 
     intelligence community with anti-money laundering and 
     counter-terrorist financing efforts.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Pennsylvania (Mr. Fitzpatrick) and the gentleman from Massachusetts 
(Mr. Lynch) each will control 20 minutes.
  The Chair recognizes the gentleman from Pennsylvania.


                             General Leave

  Mr. FITZPATRICK. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days in which to revise and extend their 
remarks and include extraneous materials on this 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 Department of the Treasury has done excellent work 
in its endeavor to curb money laundering and assist Federal law 
enforcement in its mission to combat terrorism. However, we cannot take 
its successes for granted.
  Throughout the task force, we heard time and time again that 
organized criminal and terrorist groups are constantly changing; 
adapting their techniques in an effort to expose and utilize the 
international financial system and that of the United States. As a 
result, it is imperative that we continue to improve the tools we use 
to combat these threats. H.R. 5607 aims to do just that.
  This bill enhances a number of tools that the Department of the 
Treasury uses in its efforts to combat the financing of terror and 
money laundering, which includes providing a greater emphasis on 
Treasury attaches stationed in embassies overseas, strengthening the 
requirements for temporary enhanced reporting, and adding the Secretary 
of the Treasury as a full-time member of the National Security Council.
  Our adversaries are constantly adapting. We must adapt as well. The 
policies implemented by this bill will prove to strengthen the 
Treasury's weapons as it continues to carry out its important work.
  Mr. Speaker, I reserve the balance of my time.


[[Page H4589]]


         House of Representatives, Permanent Select Committee on 
           Intelligence,
                                                     July 6, 2016.
     Hon. Jeb Hensarling, 
     Chairman, Committee on Financial Services, House of 
         Representatives, Washington, DC.
       Dear Chairman Hensarling: On June 28, 2016, the Permanent 
     Select Committee on Intelligence (``the Committee'') received 
     a referral for H.R. 5607, ``To Enhance the Department of the 
     Treasury's role in protecting national security, and for 
     other purposes.''
       In order to expedite the House's consideration of this 
     important legislation, the Committee will forego 
     consideration of the measure. This waiver is, however, 
     conditioned on our mutual understanding that it does not 
     diminish or otherwise affect any future jurisdictional claim 
     over the subject matter contained in the bill or any similar 
     legislation.
       Please place a copy of this letter and your response 
     acknowledging the Committee's jurisdictional interest into 
     any committee report on H.R. 5607 and into the Congressional 
     Record during its floor consideration. I would also 
     appreciate your support for the appointment of Committee 
     members to any House-Senate conference on this legislation. 
     Thank you in advance for your cooperation.
           Sincerely,
                                                      Devin Nunes,
     Chairman.
                                  ____

                                         House of Representatives,


                              Committee on Financial Services,

                                     Washington, DC, July 7, 2016.
     Hon. Devin Nunes,
     Chairman, Permanent Select Committee on Intelligence, 
         Washington, DC.
       Dear Chairman Nunes: Thank you for your July 6th letter 
     regarding H.R. 5607, the ``Enhancing Treasury's Anti-Terror 
     Tools Act.''
       I am most appreciative of your decision to forego action on 
     H.R. 5607 so that it may move expeditiously to the House 
     floor. I acknowledge that although you are waiving action on 
     the bill, the Permanent Select Committee on Intelligence is 
     in no way waiving its jurisdictional interest in this or 
     similar legislation. In addition, if a conference is 
     necessary on this legislation, I will support any request 
     that your committee be represented therein.
       Finally, I shall be pleased to include your letter and this 
     letter in the Congressional Record during floor consideration 
     of H.R. 5607.
           Sincerely,
                                                   Jeb Hensarling,
     Chairman.
                                  ____

                                         House of Representatives,


                                 Committee on Foreign Affairs,

                                     Washington, DC, July 7, 2016.
     Hon. Jeb Hensarling,
     Chairman, Committee on Financial Services,
     Washington, DC.
       Dear Chairman Hensarling: Thank you for consulting with the 
     Committee on Foreign Affairs on H.R. 5607, the Enhancing 
     Treasury's Anti-Terror Tools Act, and for agreeing to add the 
     Foreign Affairs Committee as a recipient of the reporting 
     required by that bill.
       I agree that the Foreign Affairs Committee may be 
     discharged from further action on this bill so that it may 
     proceed expeditiously to the Floor, subject to the 
     understanding that this waiver does not in any way diminish 
     or alter the jurisdiction of the Foreign Affairs Committee, 
     or prejudice its jurisdictional prerogatives on this bill or 
     similar legislation in the future. The Committee also 
     reserves the right to seek an appropriate number of conferees 
     to any House-Senate conference involving this bill, and would 
     appreciate your support for any such request.
       I ask that you place our exchange of letters into the 
     Congressional Record during floor consideration of the bill. 
     I appreciate your cooperation regarding this legislation and 
     look forward to continuing to work with you as this measure 
     moves through the legislative process.
           Sincerely,
                                                  Edward R. Royce,
     Chairman.
                                  ____

                                  Committee on Financial Services,


                                     House of Representatives,

                                     Washington, DC, July 7, 2016.
     Hon. Ed Royce,
     Chairman, Committee on Foreign Affairs,
     Washington, DC.
       Dear Chairman Royce: Thank you for your July 7 letter 
     regarding H.R. 5607, the ``Enhancing Treasury's Anti-Terror 
     Tools Act.''
       I am most appreciative of your decision to forgo action on 
     H.R. 5607 so that it may move expeditiously to the House 
     floor. I acknowledge that although you are waiving action on 
     the bill, the Committee on Foreign Affairs is in no way 
     waiving its jurisdictional interest in this or similar 
     legislation. In addition, if a conference is necessary on 
     this legislation, I will support any request that your 
     committee be represented therein.
       Finally, I shall be pleased to include your letter and this 
     letter in the Congressional Record during floor consideration 
     of H.R. 5607.
           Sincerely,
                                                   Jeb Hensarling,
     Chairman.
                                  ____

                                      Committee on Ways and Means,


                                     House of Representatives,

                                     Washington, DC, July 8, 2016.
     Hon. Jeb Hensarling,
     Chairman, Committee on Financial Services, Washington, DC
       Dear Chairman Hensarling: I am writing concerning H.R. 
     5607, the ``Enhancing Treasury's Anti-Terror Tools Act,'' on 
     which the Committee on Ways and Means was granted an 
     additional referral.
       I appreciate your willingness to work with me on the 
     provisions in my Committee's jurisdiction. In order to allow 
     H.R. 5607 to move expeditiously to the House floor, I agree 
     to waive formal consideration of this bill. The Committee on 
     Ways and Means takes this action with our mutual 
     understanding that by foregoing consideration on H.R. 5607 at 
     this time, we do not waive any jurisdiction over subject 
     matter contained in this or similar legislation, and that our 
     Committee will be appropriately consulted and involved as 
     this bill or similar legislation moves forward. Our Committee 
     also reserves the right to seek appointment of an appropriate 
     number of conferees to any House-Senate conference involving 
     this or similar legislation, and asks that you support any 
     such request.
       I would appreciate your response to this letter confirming 
     this understanding, and would request that you include a copy 
     of this letter and your response in the Congressional Record 
     during the floor consideration of this bill. Thank you in 
     advance for your cooperation.
           Sincerely,
                                                      Kevin Brady,
     Chairman.
                                  ____

                                  Committee on Financial Services,


                                     House of Representatives,

                                     Washington, DC, July 8, 2016.
     Hon. Kevin Brady,
     Chairman, Committee on Ways and Means,
     Washington, DC.
       Dear Chairman Brady: Thank you for your July 8th letter 
     regarding H.R. 5607, the ``Enhancing Treasury's Anti-Terror 
     Tools Act.''
       I am most appreciative of your decision to forgo action on 
     H.R. 5607 so that it may move expeditiously to the House 
     floor. I acknowledge that although you are waiving action on 
     the bill, the Committee on Ways and Means is in no way 
     waiving its jurisdictional interest in this or similar 
     legislation. In addition, if a conference is necessary on 
     this legislation, I will support any request that your 
     committee be represented therein.
       Finally, I shall be pleased to include your letter and this 
     letter in the Congressional Record during floor consideration 
     of H.R. 5607.
           Sincerely,
                                                   Jeb Hensarling,
     Chairman.
                                  ____

                                      Committee on Armed Services,


                                     House of Representatives,

                                     Washington, DC, July 8, 2016.
     Hon. Jeb Hensarling,
     Chairman, Committee on Financial Services,
     Washington, DC.
       Dear Mr. Chairman: I am writing to you concerning the bill 
     H.R. 5607, the Enhancing Treasury's Anti-Terror Tools Act. 
     This legislation was referred to the Committee on Armed 
     Services as certain provisions in the legislation fall within 
     the Rule X jurisdiction of the Committee on Armed Services.
       Because the Committee on Financial Services has agreed to 
     remove Section 8 from the bill relating to the National 
     Security Council, and in the interest of permitting your 
     committee to proceed expeditiously to floor consideration of 
     this important legislation, I am willing to waive this 
     committee's further consideration of H.R. 5607. I request 
     that you urge the Speaker to name members of this committee 
     to any conference committee which is named to consider this 
     legislation.
       Please place this letter into any committee report on H.R. 
     5607 and into the Congressional Record during consideration 
     of the measure on the House floor. Thank you for the 
     cooperative spirit in which you have worked regarding this 
     matter and others between our respective committees.
           Sincerely,
                                    William M. ``Mac'' Thornberry,
     Chairman.
                                  ____

                                  Committee on Financial Services,


                                     House of Representatives,

                                    Washington, DC, July 11, 2016.
     Hon. Mac Thornberry,
     Chairman, Committee on Armed Services,
     Washington, DC.
       Dear Chairman Thornberry: Thank you for your July 11th 
     letter regarding H.R. 5607, the ``Enhancing Treasury's Anti-
     Terror Tools Act.''
       I am most appreciative of your decision to forego action on 
     H.R. 5607 so that it may move expeditiously to the House 
     floor. I acknowledge that although you are waiving action on 
     the bill, the Committee on Armed Services is in no way 
     waiving its jurisdictional interest in this or similar 
     legislation. In addition, if a conference is necessary on 
     this legislation, I will support any request that your 
     committee be represented therein.
       Finally, I shall be pleased to include your letter and this 
     letter in the Congressional

[[Page H4590]]

     Record during floor consideration of H.R. 5607.
           Sincerely,
                                                   Jeb Hensarling,
                                                         Chairman.

  Mr. LYNCH. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise to speak in support of H.R. 5607, entitled, 
Enhancing Treasury's Anti-Terror Tools Act.
  Again, I would like to thank my colleague and the vice chair of our 
task force, the gentleman from North Carolina (Mr. Pittenger), for his 
great work on this and for introducing this bill. I am proud to serve 
as the lead Democratic cosponsor on this most important legislation.
  This bill will enhance tools available to the Department of the 
Treasury in its efforts to combat the financing of terror, money 
laundering, and related illicit finance.
  This legislation is one of a package of bills that reflects the 
culmination of 11 hearings in the Financial Services Committee's Task 
Force to Investigate Terrorism Financing, which explored a wide range 
of vulnerabilities in the global financial system.
  Over the course of the task force hearings, Members learned that 
there are relatively few full-time Treasury attaches at our embassies. 
At one point I know that members of the task force met with our 
Treasury attaches in the Middle East, and they are so thin on 
representation there that several of them have multi-country 
responsibilities requiring them to hop around and deal with several 
high-risk locations and countries. So we obviously need to get them 
some more help. They do a tremendous job. Don't get me wrong. I am 
extremely pleased and proud of the work that Treasury does, but I think 
they could use some more resources, and this bill aims at that 
vulnerability.
  Over the course of the task force hearings, Members learned that 
there are relatively few full-time Treasury attaches at our embassies 
around the globe to lend their expertise and to help them eliminate 
terrorism and money laundering vulnerabilities in the global financial 
system. The bill before us today takes welcome steps to help us better 
understand how to improve coordination between the Department of the 
Treasury, foreign financial ministries, and foreign central banks in an 
effort to block the financing of terror, money laundering, and related 
illicit finance.
  The legislation also addresses gaps that the Treasury Department has 
identified in its efforts to compel reporting of information on 
transactions that present elevated anti-money laundering risks, which 
may not be captured by broad-based anti-money laundering program 
requirements.
  Additionally, the legislation takes steps to address longstanding 
humanitarian concerns resulting from the private sector's increased 
unwillingness to serve higher-risk areas like Somalia. With few global 
banks willing to keep remittance channels open, diaspora communities 
here in the U.S. have been left with few safe and legitimate channels 
to get critical funds to their families back home.
  The bill seeks to address this growing concern by directing the 
Treasury Department to review and report on the viability of creating a 
pilot program aimed at helping banks and credit unions become more 
comfortable offering account services to countries that facilitate 
remittances to high-risk locations.

                              {time}  1500

  Finally, the bill would promote the importance of America's 
international engagement by encouraging the Secretary of the Treasury 
to work with finance ministries around the world to spur the 
integration of intelligence authorities with ani-money laundering and 
counterterrorism finance efforts.
  I am extremely pleased with this legislation, and I would like to 
commend all of my colleagues on the task force for their efforts to 
help counter the financing available to terrorist groups. Our work on 
the task force has been a truly bipartisan effort, it has been a 
pleasure, and I look forward to the opportunities to build on this good 
work in the future.
  I reserve the balance of my time.
  Mr. FITZPATRICK. Mr. Speaker, I thank my colleague, Mr. Lynch, for 
his hard work on this important bill.
  This bill contains seven sections, and each of those sections was the 
subject of extensive testimony and work in the 11 hearings of the task 
force over the course of the past 1\1/2\ to 2 years.
  I yield such time as he may consume to the gentleman from North 
Carolina (Mr. Pittenger), the author of the bill.
  Mr. PITTENGER. Mr. Speaker, I thank Chairman Fitzpatrick for yielding 
and for his leadership. I thank the gentleman from Massachusetts (Mr. 
Lynch) for his extraordinary support and skills and knowledge in these 
areas. It has really been an honor to work with him.
  Our proposal seeks to enhance a number of the tools the Treasury 
Department uses in its efforts to combat the financing of terror, money 
laundering, and the related illicit finance.
  Specifically, our bill helps specify the roles the Treasury 
Department plays, both domestically and abroad, to assist in the fight 
against terror finance. Over the past year, our Task Force to 
Investigate Terrorism Financing has received ample testimony supporting 
the role of Treasury in our larger strategic efforts to defeat ISIS and 
other global terrorist networks.
  Many individuals are not aware of the substantial role our Treasury 
Department plays in our embassies abroad. Treasury has several attaches 
abroad that are used to supplement foreign efforts to enforce financial 
laws and combat terror financing. This bill is an effort to support 
Treasury's role in our larger strategic efforts to defeat terrorist 
organizations and put an end to their operations.
  Mr. Speaker, the longer groups like ISIS remain on the battlefield, 
the more effective their messaging and recruitment efforts become. 
Congress must fully support our government's efforts to stop the flow 
of dollars and resources from funding terror. This bill will allow 
Treasury to report to Congress on its role in various countries 
throughout the world and, subsequently, the need to expand that role. 
It also will provide to Congress its advisability and the implications 
of turning the Treasury's Office of Terrorism and Financial 
Intelligence--which includes FinCEN and OFAC--sanctions enforcement 
unit into a stand-alone bureau, similar to the FBI.
  Mr. Speaker, I commit this bill to our body, and I seek the full 
support in this truly bipartisan effort that we have had on our task 
force.
  Mr. LYNCH. Mr. Speaker, I don't have any further speakers.
  I yield back the balance of my time.
  Mr. FITZPATRICK. Mr. Speaker, I have no further speakers.
  We ask our colleagues to support and adopt H.R. 5607.
  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. 5607, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. AMASH. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this motion will be postponed.

                          ____________________