[Congressional Record Volume 168, Number 157 (Wednesday, September 28, 2022)]
[House]
[Pages H8158-H8159]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        BANKING TRANSPARENCY FOR SANCTIONED PERSONS ACT OF 2021

  Ms. WATERS. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 2710) to increase transparency with respect to financial 
services benefitting state sponsors of terrorism, human rights abusers, 
and corrupt officials, and for other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 2710

       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 ``Banking Transparency for 
     Sanctioned Persons Act of 2021''.

     SEC. 2. REPORT ON FINANCIAL SERVICES BENEFITTING STATE 
                   SPONSORS OF TERRORISM, HUMAN RIGHTS ABUSERS, 
                   AND CORRUPT OFFICIALS.

       (a) In General.--Not later than 180 days after the date of 
     the enactment of this Act, and every 180 days thereafter, 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 that includes a copy of any license issued by the 
     Secretary in the preceding 180 days that authorizes a United 
     States financial institution (as defined under section 
     561.309 of title 31, Code of Federal Regulations) to provide 
     financial services benefitting--
       (1) a state sponsor of terrorism; or
       (2) a person sanctioned pursuant to any of the following:
       (A) Section 404 of the Russia and Moldova Jackson-Vanik 
     Repeal and Sergei Magnitsky Rule of Law Accountability Act of 
     2012 (Public Law 112-208).
       (B) Subtitle F of title XII of the National Defense 
     Authorization Act for Fiscal Year 2017 (Public Law 114-328, 
     the Global Magnitsky Human Rights Accountability Act).
       (C) Executive Order No. 13818.
       (b) Form of Report.--The report required under subsection 
     (a) shall be submitted in unclassified form but may contain a 
     classified annex.

     SEC. 3. SUNSET.

       The reporting requirement under this Act shall terminate on 
     the date that is the end of the 7-year period beginning on 
     the date of the enactment of this Act.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
California (Ms. Waters) and the gentleman from Wisconsin (Mr. Steil) 
each will control 20 minutes.
  The Chair recognizes the gentlewoman from California.


                             General Leave

  Ms. WATERS. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days in which to revise and extend their remarks and 
insert extraneous material thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from California?
  There was no objection.

[[Page H8159]]

  

  Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of H.R. 2710, the Banking Transparency 
for Sanctioned Persons Act of 2021.
  This legislation requires the Secretary of the Treasury to report to 
Congress semiannually with a copy of any license Treasury issues in the 
preceding 180 days that authorizes a U.S. financial institution to 
provide services benefiting a state sponsor of terrorism and certain 
other sanctioned entities, including human rights abusers and corrupt 
officials. It would sunset 7 years after enactment of the act.
  I am supportive of the disclosure requirements in this bill because I 
believe that this after-the-fact reporting to congressional committees 
regarding these specific licenses can serve as a useful oversight tool.
  When the Office of Foreign Assets Control, or OFAC, issues a specific 
license, it allows a particular individual or entity to engage in a 
transaction that would otherwise be prohibited under a United States 
sanctions program. Typically, specific licenses are granted by OFAC 
when the person or entity requesting such a license makes clear that 
allowing for the permitted transactions serves a compelling public 
policy goal. But currently, Treasury does not release specific licenses 
granted to individuals or entities or any information about them.
  OFAC's licensing authority is an important part of an effective 
administration of United States sanctions, and disclosure is an 
important part of Congress' ability to conduct effective oversight.
  Now, there is a risk that if some licenses were to become public, 
they would disclose commercially sensitive information to potential 
market competitors, introducing issues of corporate theft and unfair 
competition. That is why the bill allows for sensitive information in 
these licenses to be included in a classified annex to the report. 
Moving forward, we may want to examine whether this provides sufficient 
protection for proprietary or commercially sensitive information 
submitted by private-sector representatives which may not be classified 
and, if publicly released, would allow potential market competitors to 
gain an unfair competitive advantage. We certainly do not want to 
create a chilling effect and a wariness on behalf of companies about 
continuing to file for licenses moving forward, and we should guard 
against that.
  Mr. Speaker, ultimately, I support the underlying goal and the 
disclosure requirements of H.R. 2710 because I believe they will 
increase congressional oversight of United States' sanctions activity. 
I urge my colleagues to do the same, and I reserve the balance of my 
time.
  Mr. STEIL. Mr. Speaker, I yield myself such time as I may consume.
  I thank the Chairwoman of the Financial Services Committee, the 
gentlewoman from California (Ms. Waters), for bringing the bill to the 
floor today.
  I rise in strong support of H.R. 2710, the Banking Transparency for 
Sanctioned Persons Act. This bill that I authored represents an 
important step forward for oversight of the Treasury Department's 
sanctions program.
  Under current law, Treasury may issue licenses through its Office of 
Foreign Assets Control, authorizing U.S. financial institutions to 
engage in transactions that would otherwise be prohibited. These 
licenses typically allow for the facilitation of trade in humanitarian 
and agricultural goods such as medicines and food.
  H.R. 2710 requires the administration to inform Congress that certain 
financial services-related licenses have been improved when they 
involve state sponsors of terrorism or others sanctioned for human 
rights abuses.
  While OFAC may have good reasons to issue a license, it is essential 
for Congress to be aware of bad actors' access to our financial system. 
Though some OFAC licenses are made public, others are not disclosed or 
even their existence may be unknown to Congress.
  By requiring a semiannual report on these licenses, my bill would 
make the disclosure of OFAC's actions more consistent with 
congressional notification procedures for other sanctions waivers. 
Without this knowledge, Congress is limited in its ability to oversee 
the implementation of sanctions.

                              {time}  1645

  I am pleased to note that our colleagues on the other side of the 
aisle have long supported this oversight, and they have provided 
helpful input as we have developed this important legislation.
  Mr. Speaker, let me conclude by noting that our majority support for 
this measure is reflective of a strong spirit of bipartisanship on the 
Committee on Financial Services when it comes to safeguarding our 
national security.
  While we may not agree on everything, our Members have been extremely 
productive in advancing our national security interests while 
maintaining a vibrant financial system. It is important to have a 
government that is accountable, and this bill brings needed 
accountability to our sanctions enforcement efforts.
  Mr. Speaker, I urge my colleagues to support H.R. 2710, and I reserve 
the balance of my time.
  Ms. WATERS. Mr. Speaker, I have no further speakers, and I am 
prepared to close.
  Mr. Speaker, I reserve the balance of my time.
  Mr. STEIL. Mr. Speaker, I simply close by urging my colleagues to 
support this bill, and I yield back the balance of my time.
  Ms. WATERS. Mr. Speaker, I yield myself the balance of my time.
  Mr. Speaker, the Banking Transparency for Sanctioned Persons Act of 
2021 will help ensure that Members of Congress have the information 
they need to provide more effective oversight of the decisions made by 
Treasury and OFAC and the impact that those decisions have on 
sanctioned persons.
  I thank Mr. Steil for bringing this measure forward, and I urge my 
colleagues to join me in supporting this bill.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from California (Ms. Waters) that the House suspend the 
rules and pass the bill, H.R. 2710, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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