[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.
____________________