[House Report 115-569]
[From the U.S. Government Publishing Office]


115th Congress     }                                 {  Rept. 115-569
                        HOUSE OF REPRESENTATIVES
 2d Session        }                                 {         Part 2
======================================================================



 
             END BANKING FOR HUMAN TRAFFICKERS ACT OF 2017

                                _______
                                

 February 23, 2018.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

    Mr. Royce of California, from the Committee on Foreign Affairs, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 2219]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Foreign Affairs, to whom was referred the 
bill (H.R. 2219) to increase the role of the financial industry 
in combating human trafficking, having considered the same, 
reports favorably thereon with an amendment and recommends that 
the bill as amended do pass.

                           TABLE OF CONTENTS

                                                                   Page
The Amendment....................................................     1
Summary and Purpose..............................................     3
Background and Need for the Legislation..........................     3
Hearings.........................................................     4
Committee Consideration..........................................     4
Committee Oversight Findings.....................................     4
New Budget Authority, Tax Expenditures, and Federal Mandates.....     4
Congressional Budget Office Cost Estimate........................     5
Directed Rule Making.............................................     6
Non-Duplication of Federal Programs..............................     6
Performance Goals and Objectives.................................     6
Congressional Accountability Act.................................     6
New Advisory Committees..........................................     7
Earmark Identification...........................................     7
Section-by-Section Analysis......................................     7
Changes in Existing Law Made by the Bill, as Reported............     7

                             The Amendment

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``End Banking for Human Traffickers Act 
of 2017''.

SEC. 2. INCREASING THE ROLE OF THE FINANCIAL INDUSTRY IN COMBATING 
                    HUMAN TRAFFICKING.

  (a) Treasury as a Member of the President's Interagency Task Force To 
Monitor and Combat Trafficking.--Section 105(b) of the Victims of 
Trafficking and Violence Protection Act of 2000 (22 U.S.C. 7103(b)) is 
amended by inserting ``the Secretary of the Treasury,'' after ``the 
Secretary of Education,''.
  (b) Required Review of Procedures.--Not later than 180 days after the 
date of enactment of this Act, the Financial Institutions Examination 
Council shall, in consultation with the Secretary of the Treasury and 
other appropriate law enforcement agencies, take the following actions:
          (1) Review and enhance, where necessary, training and 
        examinations procedures to improve the ability of anti-money 
        laundering programs to target human trafficking operations.
          (2) Review and enhance, where necessary, procedures for 
        referring potential human trafficking cases to the appropriate 
        law enforcement agency.
  (c) Interagency Task Force Recommendations Targeting Money Laundering 
Related to Human Trafficking.--
          (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Interagency Task Force to Monitor 
        and Combat Trafficking shall prepare and submit to Congress, 
        the Secretary of the Treasury, and each appropriate Federal 
        banking agency a series of legislative, administrative, and 
        regulatory recommendations, if necessary, to revise anti-money 
        laundering programs of financial institutions in order to 
        specifically target money laundering related to human 
        trafficking, as described in paragraph (2).
          (2) Required recommendations.--The recommendations required 
        under paragraph (1) shall, at a minimum, include the following:
                  (A) Successful anti-human trafficking programs 
                currently in place at financial institutions that are 
                suitable for broader adoption.
                  (B) Recommended changes, if necessary, to the 
                internal policies, procedures, and controls at 
                financial institutions so that such institutions can 
                better deter and detect money laundering related to 
                human trafficking.
                  (C) Recommended changes, if necessary, to ongoing 
                employee training programs at financial institutions so 
                that those institutions can better equip employees to 
                deter and detect money laundering related to human 
                trafficking, including the training of legal counsel, 
                risk managers, and compliance officers.
                  (D) Recommended revisions, if necessary, to existing 
                regulatory requirements and guidelines for the 
                reporting of suspicious transactions by financial 
                institutions, as required pursuant to section 5318(g) 
                of title 31, United States Code, in order to facilitate 
                the collection of data on instances of suspected human 
                trafficking.
  (d) Additional Reporting Requirement.--Section 110(b) of the 
Trafficking Victims Protection Act of 2000 (22 U.S.C. 7107(b)) is 
amended by adding at the end the following:
          ``(4) Description of efforts of united states to eliminate 
        money laundering related to human trafficking.--In addition to 
        the information required in the annual report under paragraph 
        (1) and the interim report under paragraph (2), the Secretary 
        of State, in consultation with the Attorney General and the 
        Secretary of the Treasury, shall include in each such report a 
        description of efforts of the United States to eliminate money 
        laundering related to human trafficking and the number of 
        investigations, arrests, indictments and convictions in money 
        laundering cases with a nexus to human trafficking.''.
  (e) Limitation.--Nothing in this Act shall be construed to grant 
rulemaking authority to the Interagency Task Force to Monitor and 
Combat Trafficking.
  (f) Definitions.--As used in this section--
          (1) the term ``anti-money laundering program'' means any 
        program established by a financial institution pursuant to 
        section 5318(h) of title 31, United States Code;
          (2) the term ``appropriate Federal banking agency'' has the 
        meaning given the term in section 3(q) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1813(q));
          (3) the term ``human trafficking'' means--
                  (A) sex trafficking in which a commercial sex act is 
                induced by force, fraud, or coercion, or in which the 
                person induced to perform such act has not attained 18 
                years of age; or
                  (B) the recruitment, harboring, transportation, 
                provision, or obtaining of a person for labor or 
                services, through the use of force, fraud, or coercion 
                for the purpose of subjection to involuntary servitude, 
                peonage, debt bondage, or slavery;
          (4) the term ``Interagency Task Force to Monitor and Combat 
        Trafficking'' means the Interagency Task Force to Monitor and 
        Combat Trafficking established by the President pursuant to 
        section 105 of the Victims of Trafficking and Violence 
        Protection Act of 2000 (22 U.S.C. 7103); and
          (5) the term ``law enforcement agency'' means an agency of 
        the United States, a State, or a political subdivision of a 
        State, authorized by law or by a government agency to engage in 
        or supervise the prevention, detection, investigation, or 
        prosecution of any violation of criminal or civil law.

SEC. 3. MINIMUM STANDARDS FOR THE ELIMINATION OF TRAFFICKING.

  Section 108(b) of the Trafficking Victims Protection Act of 2000 (22 
U.S.C. 7106(b)) is amended by adding at the end the following new 
paragraph:
          ``(13) Whether the government of the country, consistent with 
        the capacity of the country, has in effect a framework to 
        prevent financial transactions involving the proceeds of severe 
        forms of trafficking in persons, and is taking steps to 
        implement such a framework, including by investigating, 
        prosecuting, convicting, and sentencing individuals who attempt 
        or conduct such transactions.''.

                          Summary and Purpose

    H.R. 2219, the End Banking for Human Traffickers Act, seeks 
to choke off human traffickers' access to the financial system 
by enhancing the financial industry's efforts to detect and 
deter money laundering related to human trafficking and by 
encouraging foreign governments to have in effect a framework 
to prevent financial transactions involving the proceeds of 
severe forms of trafficking in persons.

                Background and Need for the Legislation

    Human trafficking has devastated the lives of tens of 
millions of people around the world, including in the United 
States. The perpetrators of this exploitation prey on the 
defenseless in our society, including young children.
    The International Labor Organization estimates that over 
$150 billion in illegal profits are made from forced labor each 
year and $99 billion are earned from the victims of sexual 
exploitation. Billions in human trafficking profits are also 
earned in sectors like construction, manufacturing and 
agriculture. Contrary to popular misconception, this is not 
just a problem in developing nations, as nearly one-third of 
those profits are generated in industrialized countries.
    These profits have made human trafficking the third most 
lucrative criminal enterprise in the world, according to the 
United Nations. Banks, credit card companies, and money 
transfer companies are all used by traffickers to facilitate 
their business and the exploitation of their victims. 
Traffickers aren't hiding their illegal profits under a 
mattress or burying them in their backyard--they are laundering 
funds through financial institutions and depositing them in 
accounts that they can access electronically. Cutting off their 
access to the banking system is critical to putting an end to 
this illegal activity.
    The End Banking for Human Traffickers Act will help law 
enforcement and financial institutions identify and report 
suspected human traffickers so that they can be prosecuted to 
the full extent of the law without relying entirely on 
testimony from victims.
    This legislation will not only bolster United States 
efforts to combat human traffickers' use of the domestic 
financial system but it will also encourage other countries to 
cut off traffickers from the global financial system. 
Specifically, H.R. 2219 will update the State Department's 
Trafficking in Persons Report to require a country-by-country 
assessment of whether foreign governments have established a 
functioning legal framework to prevent financial transactions 
involving the proceeds of severe forms of human trafficking. 
This assessment will become part of the State Department Tier 
Rankings of countries' efforts to combat human trafficking, 
which are taken seriously in foreign capitals and help to 
reinforce global norms of responsible governmental behavior.
    As the center of the global financial system and leading 
country in the world in combating human trafficking, it is 
incumbent on the United States to take all possible steps to 
address this heinous crime.

                                Hearings

    Most recently, the Subcommittee on Africa, Global Health, 
Global Human Rights, and International Organizations held a 
hearing on May 2, 2017, entitled ``Winning the Fight Against 
Human Trafficking'' related to the contents of H.R. 2219. The 
bill is an additional result of the committee's extended focus 
on human trafficking, which has included numerous hearings in 
recent Congresses, and the consideration of several 
trafficking-related bills, including H.R. 2200 and H.R. 1625, 
during the 115th Congress.

                        Committee Consideration

    On December 14, 2017, the Committee on Foreign Affairs 
marked up H.R. 2219 in open session, pursuant to notice. An 
amendment (offered by Chairman Royce) was considered en bloc 
with the underlying bill and both were agreed to by voice vote.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII of Rules of 
the House of Representatives, the committee reports that 
findings and recommendations of the committee, based on 
oversight activities under clause 2(b)(1) of House Rule X, are 
incorporated in the descriptive portions of this report, 
particularly in the ``Background and Need for the Legislation'' 
and ``Section-by-Section Analysis'' sections.

      New Budget Authority, Tax Expenditures, and Federal Mandates

    In compliance with clause 3(c)(2) of House Rule XIII and 
the Unfunded Mandates Reform Act (P.L. 104-4), the committee 
adopts as its own the estimate of new budget authority, 
entitlement authority, tax expenditure or revenues, and Federal 
mandates contained in the cost estimate prepared by the 
Director of the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974.

               Congressional Budget Office Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, February 15, 2018.

Hon. Edward R. Royce, Chairman,
Committee on Foreign Affairs,
House of Representatives, Washington, DC.

    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2219, the End 
Banking for Human Traffickers Act of 2017.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Stephen 
Rabent (for FFIEC costs) and Sunita D'Monte (for Interagency 
Task Force and Department of State costs), who can be reached 
at 226-2860.
            Sincerely,
                                                Keith Hall.
Enclosure

cc:
        Honorable Eliot L. Engel
        Ranking Member
H.R. 2219--End Banking for Human Traffickers Act of 2017.
    As ordered reported by the House Committee on Foreign 
Affairs on December 14, 2017.

    H.R. 2219 would require the existing Interagency Task Force 
to Monitor and Combat Trafficking (Interagency Task Force) to 
recommend methods to combat money laundering related to human 
trafficking and to submit those recommendations to the 
Congress, the Secretary of the Treasury, and federal banking 
agencies. In addition, the bill would require the Department of 
State to add information about programs to deter such money 
laundering to its periodic reports on human trafficking.
    Using information about the costs of preparing similar 
reports, CBO estimates that implementing the bill would cost 
less than $500,000 over the 2018-2022 period to develop the 
analysis and recommendations required under the bill. Such 
spending would be subject to the availability of appropriated 
funds.
    H.R. 2219 also would direct the Federal Financial 
Institutions Examination Council (FFIEC) to review and evaluate 
examination procedures for financial institutions regarding 
efforts to counter money laundering and the detection of 
financial transactions related to human trafficking. Using 
information from the affected financial regulatory agencies, 
CBO estimates that reviewing and evaluating the procedures 
would cost $1 million over the 2018-2020 period.
    Review and evaluation costs incurred by the Federal Deposit 
Insurance Corporation, the National Credit Union 
Administration, and the Office of the Comptroller of the 
Currency are recorded in the budget as increases in direct 
spending, but those agencies are authorized to collect premiums 
and fees from the financial institutions they regulate to cover 
such administrative expenses. Thus, CBO estimates enacting H.R. 
2219 would increase net direct spending by a negligible amount 
over the 2018-2020 period.
    Review and evaluation costs incurred by the Federal Reserve 
System, also an FFIEC member, to implement the bill would 
reduce remittances to the Treasury, which are recorded in the 
budget as revenues. CBO estimates that enacting H.R. 2219 would 
decrease revenues by less than $500,000 over the 2018-2020 
period.
    Because H.R. 2219 would affect direct spending and 
revenues, pay-as-you-go procedures apply.
    CBO estimates that enacting H.R. 2219 would not 
significantly increase net direct spending or on-budget 
deficits in any of the four consecutive 10-year periods 
beginning in 2028.
    H.R. 2219 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act.
    On February 15, CBO transmitted a cost estimate for H.R. 
2219, the End Banking for Human Traffickers Act of 2017, as 
ordered reported by the House Committee on Financial Services 
on December 13, 2017. The two bills are similar and CBO's 
estimates of their budgetary effects are the same.
    The CBO staff contacts for this estimate are Stephen Rabent 
(for the FFIEC) and Sunita D'Monte (for the Interagency Task 
Force and the Department of State). The estimate was approved 
by H. Samuel Papenfuss, Deputy Assistant Director for Budget 
Analysis.

                          Directed Rule Making

    Pursuant to clause 3(c) of House Rule XIII, as modified by 
section 3(i) of H. Res. 5 during the 115th Congress, the 
committee notes that H.R. 2219 contains no directed rule-making 
provisions.

                  Non-Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of House Rule XIII, the 
committee states that no provision of this bill establishes or 
reauthorizes a program of the Federal Government known to be 
duplicative of another Federal program, a program that was 
included in any report from the Government Accountability 
Office to Congress pursuant to section 21 of Public Law 111-
139, or a program related to a program identified in the most 
recent Catalog of Federal Domestic Assistance.

                    Performance Goals and Objectives

    The objective of this legislation is to choke off human 
traffickers' access to the financial system by galvanizing 
expertise within the financial industry and the United States 
Government. Section 4 requires the Attorney General's annual 
Trafficking in Persons report to include information about the 
efforts of the United States to eliminate money laundering 
related to human trafficking, including the number of 
investigations, arrests, indictments, and convictions in money 
laundering cases with a nexus to human trafficking. This will 
enable Congress to conduct effective oversight of performance 
and results.

                    Congressional Accountability Act

    H.R. 2219 does not apply to terms and conditions of 
employment or to access to public services or accommodations 
within the legislative branch.

                        New Advisory Committees

    H.R. 2219 does not establish or authorize any new advisory 
committees.

                         Earmark Identification

    H.R. 2219 contains no congressional earmarks, limited tax 
benefits, or limited tariff benefits as described in clauses 
9(e), 9(f), and 9(g) of House Rule XXI.

                      Section-by-Section Analysis

    Section 1. Short Title. The bill may be cited as the ``End 
Banking for Human Traffickers Act of 2017.''
    Section 2. Increasing the Role of the Financial Industry in 
Combating Human Trafficking. Adds the Secretary of the Treasury 
as a member of the President's Task Force to Monitor and Combat 
Trafficking; requires the Financial Institutions Examination 
Council to review and enhance certain procedures to address 
human trafficking-related financial transactions and determine 
whether requirements for financial institutions are sufficient 
to detect and deter money laundering related to human 
trafficking; and requires the Interagency Task Force to Monitor 
and Combat Trafficking to report to Congress on efforts of the 
United States Government and financial institutions related to 
human trafficking, including feedback and recommendations 
related to successful anti-human trafficking programs currently 
in place that may be suitable for broader adoption by similarly 
situated financial institutions, human trafficking-related 
information sharing, and other efforts to detect and deter 
money laundering related to human trafficking.
    Section 3. Coordination of Human Trafficking Issues by the 
Office of Terrorism and Financial Intelligence. Requires the 
Secretary of the Treasury to designate an office within the 
Office of Terrorism and Financial Intelligence that shall 
coordinate efforts to combat the illicit financing of human 
trafficking.
    Section 4. Additional Reporting Requirement Under the 
Trafficking Victims Protection Act of 2000. Adds the House 
Committee on Financial Services and the Senate Committee on 
Banking, Housing, and Urban Affairs to the list of 
congressional committees to which the Attorney General's annual 
Trafficking in Persons report must be submitted and includes as 
part of such report information about the efforts of the United 
States to eliminate money laundering related to human 
trafficking.
    Section 5. Minimum Standards for the Elimination of 
Trafficking. Requires the State Department, for the purposes of 
rating countries' commitment to the minimum standards for the 
elimination of trafficking as part of its annual Trafficking in 
Persons Report, to assess whether foreign governments have in 
effect a framework to prevent financial transactions involving 
the proceeds of severe forms of human trafficking.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

       VICTIMS OF TRAFFICKING AND VIOLENCE PROTECTION ACT OF 2000



           *       *       *       *       *       *       *
DIVISION A--TRAFFICKING VICTIMS PROTECTION ACT OF 2000

           *       *       *       *       *       *       *


SEC. 105. INTERAGENCY TASK FORCE TO MONITOR AND COMBAT TRAFFICKING.

    (a) Establishment.--The President shall establish an 
Interagency Task Force to Monitor and Combat Trafficking.
    (b) Appointment.--The President shall appoint the members 
of the Task Force, which shall include the Secretary of State, 
the Administrator of the United States Agency for International 
Development, the Attorney General, the Secretary of Labor, the 
Secretary of Health and Human Services, the Director of 
National Intelligence, the Secretary of Defense, the Secretary 
of Homeland Security, the Secretary of Education, the Secretary 
of the Treasury, and such other officials as may be designated 
by the President.
    (c) Chairman.--The Task Force shall be chaired by the 
Secretary of State.
    (d) Activities of the Task Force.--The Task Force shall 
carry out the following activities:
            (1) Coordinate the implementation of this division.
            (2) Measure and evaluate progress of the United 
        States and other countries in the areas of trafficking 
        prevention, protection, and assistance to victims of 
        trafficking, and prosecution and enforcement against 
        traffickers, including the role of public corruption in 
        facilitating trafficking. The Task Force shall have 
        primary responsibility for assisting the Secretary of 
        State in the preparation of the reports described in 
        section 110.
            (3) Expand interagency procedures to collect and 
        organize data, including significant research and 
        resource information on domestic and international 
        trafficking. Any data collection procedures established 
        under this subsection shall respect the confidentiality 
        of victims of trafficking.
            (4) Engage in efforts to facilitate cooperation 
        among countries of origin, transit, and destination. 
        Such efforts shall aim to strengthen local and regional 
        capacities to prevent trafficking, prosecute 
        traffickers and assist trafficking victims, and shall 
        include initiatives to enhance cooperative efforts 
        between destination countries and countries of origin 
        and assist in the appropriate reintegration of 
        stateless victims of trafficking.
            (5) Examine the role of the international ``sex 
        tourism'' industry in the trafficking of persons and in 
        the sexual exploitation of women and children around 
        the world.
            (6) Engage in consultation and advocacy with 
        governmental and nongovernmental organizations, among 
        other entities, to advance the purposes of this 
        division, and make reasonable efforts to distribute 
        information to enable all relevant Federal Government 
        agencies to publicize the National Human Trafficking 
        Resource Center Hotline on their websites, in all 
        headquarters offices, and in all field offices 
        throughout the United States.
            (7) Not later than May 1, 2004, and annually 
        thereafter, the Attorney General shall submit to the 
        Committee on Ways and Means, the Committee on Foreign 
        Affairs, and the Committee on the Judiciary of the 
        House of Representatives and the Committee on Finance, 
        the Committee on Foreign Relations, and the Committee 
        on the Judiciary of the Senate, a report on Federal 
        agencies that are implementing any provision of this 
        division, or any amendment made by this division, which 
        shall include, at a minimum, information on--
                    (A) the number of persons who received 
                benefits or other services under subsections 
                (b) and (f) of section 107 in connection with 
                programs or activities funded or administered 
                by the Secretary of Health and Human Services, 
                the Secretary of Labor, the Attorney General, 
                the Board of Directors of the Legal Services 
                Corporation, and other appropriate Federal 
                agencies during the preceding fiscal year;
                    (B) the number of persons who have been 
                granted continued presence in the United States 
                under section 107(c)(3) during the preceding 
                fiscal year and the mean and median time taken 
                to adjudicate applications submitted under such 
                section, including the time from the receipt of 
                an application by law enforcement to the 
                issuance of continued presence, and a 
                description of any efforts being taken to 
                reduce the adjudication and processing time 
                while ensuring the safe and competent 
                processing of the applications;
                    (C) the number of persons who have applied 
                for, been granted, or been denied a visa or 
                otherwise provided status under subparagraph 
                (T)(i) or (U)(i) of section 101(a)(15) of the 
                Immigration and Nationality Act (8 U.S.C. 
                1101(a)(15)) during the preceding fiscal year;
                    (D) the number of persons who have applied 
                for, been granted, or been denied a visa or 
                status under clause (ii) of section 
                101(a)(15)(T) of the Immigration and 
                Nationality Act (8 U.S.C. 1101(a)(15)(T)) 
                during the preceding fiscal year, broken down 
                by the number of such persons described in 
                subclauses (I), (II), and (III) of such clause 
                (ii);
                    (E) the amount of Federal funds expended in 
                direct benefits paid to individuals described 
                in subparagraph (D) in conjunction with T visa 
                status;
                    (F) the number of persons who have applied 
                for, been granted, or been denied a visa or 
                status under section 101(a)(15)(U)(i) of the 
                Immigration and Nationality Act (8 U.S.C. 
                1101(a)(15)(U)(i)) during the preceding fiscal 
                year;
                    (G) the mean and median time in which it 
                takes to adjudicate applications submitted 
                under the provisions of law set forth in 
                subparagraph (C), including the time between 
                the receipt of an application and the issuance 
                of a visa and work authorization;
                    (H) any efforts being taken to reduce the 
                adjudication and processing time, while 
                ensuring the safe and competent processing of 
                the applications;
                    (I) the number of persons who have been 
                charged or convicted under one or more of 
                sections 1581, 1583, 1584, 1589, 1590, 1591, 
                1592, or 1594 of title 18, United States Code, 
                during the preceding fiscal year and the 
                sentences imposed against each such person;
                    (J) the amount, recipient, and purpose of 
                each grant issued by any Federal agency to 
                carry out the purposes of sections 106 and 107 
                of this Act, or section 134 of the Foreign 
                Assistance Act of 1961, during the preceding 
                fiscal year;
                    (K) the nature of training conducted 
                pursuant to section 107(c)(4) during the 
                preceding fiscal year;
                    (L) the amount, recipient, and purpose of 
                each grant under section 202 and 204 of the 
                Trafficking Victims Protection Act of 2005;
                    (M) activities by the Department of Defense 
                to combat trafficking in persons, including--
                            (i) educational efforts for, and 
                        disciplinary actions taken against, 
                        members of the United States Armed 
                        Forces;
                            (ii) the development of materials 
                        used to train the armed forces of 
                        foreign countries;
                            (iii) all known trafficking in 
                        persons cases reported to the Under 
                        Secretary of Defense for Personnel and 
                        Readiness;
                            (iv) efforts to ensure that United 
                        States Government contractors and their 
                        employees or United States Government 
                        subcontractors and their employees do 
                        not engage in trafficking in persons; 
                        and
                            (v) all trafficking in persons 
                        activities of contractors reported to 
                        the Under Secretary of Defense for 
                        Acquisition, Technology, and Logistics;
                    (N) activities or actions by Federal 
                departments and agencies to enforce--
                            (i) section 106(g) and any similar 
                        law, regulation, or policy relating to 
                        United States Government contractors 
                        and their employees or United States 
                        Government subcontractors and their 
                        employees that engage in severe forms 
                        of trafficking in persons, the 
                        procurement of commercial sex acts, or 
                        the use of forced labor, including debt 
                        bondage;
                            (ii) section 307 of the Tariff Act 
                        of 1930 (19 U.S.C. 1307; relating to 
                        prohibition on importation of convict-
                        made goods), including any 
                        determinations by the Secretary of 
                        Homeland Security to waive the 
                        restrictions of such section; and
                            (iii) prohibitions on the 
                        procurement by the United States 
                        Government of items or services 
                        produced by slave labor, consistent 
                        with Executive Order 13107 (December 
                        10, 1998);
                    (O) the activities undertaken by the Senior 
                Policy Operating Group to carry out its 
                responsibilities under subsection (g); and
                    (P) the activities undertaken by Federal 
                agencies to train appropriate State, tribal, 
                and local government and law enforcement 
                officials to identify victims of severe forms 
                of trafficking, including both sex and labor 
                trafficking;
                    (Q) the activities undertaken by Federal 
                agencies in cooperation with State, tribal, and 
                local law enforcement officials to identify, 
                investigate, and prosecute offenses under 
                sections 1581, 1583, 1584, 1589, 1590, 1591, 
                1592, 1594, 2251, 2251A, 2421, 2422, and 2423 
                of title 18, United States Code, or equivalent 
                State offenses, including, in each fiscal 
                year--
                            (i) the number, age, gender, 
                        country of origin, and citizenship 
                        status of victims identified for each 
                        offense;
                            (ii) the number of individuals 
                        charged, and the number of individuals 
                        convicted, under each offense;
                            (iii) the number of individuals 
                        referred for prosecution for State 
                        offenses, including offenses relating 
                        to the purchasing of commercial sex 
                        acts;
                            (iv) the number of victims granted 
                        continued presence in the United States 
                        under section 107(c)(3);
                            (v) the number of victims granted a 
                        visa or otherwise provided status under 
                        subparagraph (T)(i) or (U)(i) of 
                        section 101(a)(15) of the Immigration 
                        and Nationality Act (8 U.S.C. 
                        1101(a)(15));
                            (vi) the number of individuals 
                        required by a court order to pay 
                        restitution in connection with a 
                        violation of each offense under title 
                        18, United States Code, the amount of 
                        restitution required to be paid under 
                        each such order, and the amount of 
                        restitution actually paid pursuant to 
                        each such order; and
                            (vii) the age, gender, race, 
                        country of origin, country of 
                        citizenship, and description of the 
                        role in the offense of individuals 
                        convicted under each offense; and
                    (R) the activities undertaken by the 
                Department of Justice and the Department of 
                Health and Human Services to meet the specific 
                needs of minor victims of domestic trafficking, 
                including actions taken pursuant to subsection 
                (f) and section 202(a) of the Trafficking 
                Victims Protection Reauthorization Act of 2005 
                (42 U.S.C. 14044(a)), and the steps taken to 
                increase cooperation among Federal agencies to 
                ensure the effective and efficient use of 
                programs for which the victims are eligible.
    (e) Office To Monitor and Combat Trafficking.--
            (1) In general.--The Secretary of State shall 
        establish within the Department of State an Office to 
        Monitor and Combat Trafficking, which shall provide 
        assistance to the Task Force. Any such Office shall be 
        headed by a Director, who shall be appointed by the 
        President, by and with the advice and consent of the 
        Senate, with the rank of Ambassador-at-Large. The 
        Director shall have the primary responsibility for 
        assisting the Secretary of State in carrying out the 
        purposes of this division and may have additional 
        responsibilities as determined by the Secretary. The 
        Director shall consult with nongovernmental 
        organizations and multilateral organizations, and with 
        trafficking victims or other affected persons. The 
        Director shall have the authority to take evidence in 
        public hearings or by other means. The agencies 
        represented on the Task Force are authorized to provide 
        staff to the Office on a nonreimbursable basis.
            (2) United states assistance.--The Director shall 
        be responsible for--
                    (A) all policy, funding, and programming 
                decisions regarding funds made available for 
                trafficking in persons programs that are 
                centrally controlled by the Office to Monitor 
                and Combat Trafficking; and
                    (B) coordinating any trafficking in persons 
                programs of the Department of State or the 
                United States Agency for International 
                Development that are not centrally controlled 
                by the Director.
    (f) Regional Strategies for Combating Trafficking in 
Persons.--Each regional bureau in the Department of State shall 
contribute to the realization of the anti-trafficking goals and 
objectives of the Secretary of State. Each year, in cooperation 
with the Office to Monitor and Combat Trafficking in Persons, 
each regional bureau shall submit a list of anti-trafficking 
goals and objectives to the Secretary of State for each country 
in the geographic area of responsibilities of the regional 
bureau. Host governments shall be informed of the goals and 
objectives for their particular country and, to the extent 
possible, host government officials should be consulted 
regarding the goals and objectives.
    (g) Senior Policy Operating Group.--
            (1) Establishment.--There shall be established 
        within the executive branch a Senior Policy Operating 
        Group.
            (2) Membership; related matters.--
                    (A) In general.--The Operating Group shall 
                consist of the senior officials designated as 
                representatives of the appointed members of the 
                Task Force (pursuant to Executive Order No. 
                13257 of February 13, 2002).
                    (B) Chairperson.--The Operating Group shall 
                be chaired by the Director of the Office to 
                Monitor and Combat Trafficking of the 
                Department of State.
                    (C) Meetings.--The Operating Group shall 
                meet on a regular basis at the call of the 
                Chairperson.
            (3) Duties.--The Operating Group shall coordinate 
        activities of Federal departments and agencies 
        regarding policies (including grants and grant 
        policies) involving the international trafficking in 
        persons and the implementation of this division.
            (4) Availability of information.--Each Federal 
        department or agency represented on the Operating Group 
        shall fully share all information with such Group 
        regarding the department or agency's plans, before and 
        after final agency decisions are made, on all matters 
        relating to grants, grant policies, and other 
        significant actions regarding the international 
        trafficking in persons and the implementation of this 
        division.
            (5) Regulations.--Not later than 90 days after the 
        date of the enactment of the Trafficking Victims 
        Protection Reauthorization Act of 2003, the President 
        shall promulgate regulations to implement this section, 
        including regulations to carry out paragraph (4).

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               TRAFFICKING VICTIMS PROTECTION ACT OF 2000



           *       *       *       *       *       *       *
DIVISION A--TRAFFICKING VICTIMS PROTECTION ACT OF 2000

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SEC. 108. MINIMUM STANDARDS FOR THE ELIMINATION OF TRAFFICKING.

    (a) Minimum Standards.--For purposes of this division, the 
minimum standards for the elimination of trafficking applicable 
to the government of a country of origin, transit, or 
destination for victims of severe forms of trafficking are the 
following:
            (1) The government of the country should prohibit 
        severe forms of trafficking in persons and punish acts 
        of such trafficking.
            (2) For the knowing commission of any act of sex 
        trafficking involving force, fraud, coercion, or in 
        which the victim of sex trafficking is a child 
        incapable of giving meaningful consent, or of 
        trafficking which includes rape or kidnapping or which 
        causes a death, the government of the country should 
        prescribe punishment commensurate with that for grave 
        crimes, such as forcible sexual assault.
            (3) For the knowing commission of any act of a 
        severe form of trafficking in persons, the government 
        of the country should prescribe punishment that is 
        sufficiently stringent to deter and that adequately 
        reflects the heinous nature of the offense.
            (4) The government of the country should make 
        serious and sustained efforts to eliminate severe forms 
        of trafficking in persons.
    (b) Criteria.--In determinations under subsection (a)(4), 
the following factors should be considered as indicia of 
serious and sustained efforts to eliminate severe forms of 
trafficking in persons:
            (1) Whether the government of the country 
        vigorously investigates and prosecutes acts of severe 
        forms of trafficking in persons, and convicts and 
        sentences persons responsible for such acts, that take 
        place wholly or partly within the territory of the 
        country, including, as appropriate, requiring 
        incarceration of individuals convicted of such acts. 
        For purposes of the preceding sentence, suspended or 
        significantly-reduced sentences for convictions of 
        principal actors in cases of severe forms of 
        trafficking in persons shall be considered, on a case-
        by-case basis, whether to be considered an indicator of 
        serious and sustained efforts to eliminate severe forms 
        of trafficking in persons. After reasonable requests 
        from the Department of State for data regarding 
        investigations, prosecutions, convictions, and 
        sentences, a government which does not provide such 
        data, consistent with the capacity of such government 
        to obtain such data, shall be presumed not to have 
        vigorously investigated, prosecuted, convicted or 
        sentenced such acts. During the periods prior to the 
        annual report submitted on June 1, 2004, and on June 1, 
        2005, and the periods afterwards until September 30 of 
        each such year, the Secretary of State may disregard 
        the presumption contained in the preceding sentence if 
        the government has provided some data to the Department 
        of State regarding such acts and the Secretary has 
        determined that the government is making a good faith 
        effort to collect such data.
            (2) Whether the government of the country protects 
        victims of severe forms of trafficking in persons and 
        encourages their assistance in the investigation and 
        prosecution of such trafficking, including provisions 
        for legal alternatives to their removal to countries in 
        which they would face retribution or hardship, and 
        ensures that victims are not inappropriately 
        incarcerated, fined, or otherwise penalized solely for 
        unlawful acts as a direct result of being trafficked, 
        including by providing training to law enforcement and 
        immigration officials regarding the identification and 
        treatment of trafficking victims using approaches that 
        focus on the needs of the victims.
            (3) Whether the government of the country has 
        adopted measures to prevent severe forms of trafficking 
        in persons, such as measures to inform and educate the 
        public, including potential victims, about the causes 
        and consequences of severe forms of trafficking in 
        persons, measures to establish the identity of local 
        populations, including birth registration, citizenship, 
        and nationality, measures to ensure that its nationals 
        who are deployed abroad as part of a diplomatic, 
        peacekeeping, or other similar mission do not engage in 
        or facilitate severe forms of trafficking in persons or 
        exploit victims of such trafficking, a transparent 
        system for remediating or punishing such public 
        officials as a deterrent, measures to prevent the use 
        of forced labor or child labor in violation of 
        international standards, effective bilateral, 
        multilateral, or regional information sharing and 
        cooperation arrangements with other countries, and 
        effective policies or laws regulating foreign labor 
        recruiters and holding them civilly and criminally 
        liable for fraudulent recruiting.
            (4) Whether the government of the country 
        cooperates with other governments in the investigation 
        and prosecution of severe forms of trafficking in 
        persons and has entered into bilateral, multilateral, 
        or regional law enforcement cooperation and 
        coordination arrangements with other countries.
            (5) Whether the government of the country 
        extradites persons charged with acts of severe forms of 
        trafficking in persons on substantially the same terms 
        and to substantially the same extent as persons charged 
        with other serious crimes (or, to the extent such 
        extradition would be inconsistent with the laws of such 
        country or with international agreements to which the 
        country is a party, whether the government is taking 
        all appropriate measures to modify or replace such laws 
        and treaties so as to permit such extradition).
            (6) Whether the government of the country monitors 
        immigration and emigration patterns for evidence of 
        severe forms of trafficking in persons and whether law 
        enforcement agencies of the country respond to any such 
        evidence in a manner that is consistent with the 
        vigorous investigation and prosecution of acts of such 
        trafficking, as well as with the protection of human 
        rights of victims and the internationally recognized 
        human right to leave any country, including one's own, 
        and to return to one's own country.
            (7) Whether the government of the country 
        vigorously investigates, prosecutes, convicts, and 
        sentences public officials, including diplomats and 
        soldiers, who participate in or facilitate severe forms 
        of trafficking in persons, including nationals of the 
        country who are deployed abroad as part of a 
        diplomatic, peacekeeping, or other similar mission who 
        engage in or facilitate severe forms of trafficking in 
        persons or exploit victims of such trafficking, and 
        takes all appropriate measures against officials who 
        condone such trafficking. A government's failure to 
        appropriately address public allegations against such 
        public officials, especially once such officials have 
        returned to their home countries, shall be considered 
        inaction under these criteria. After reasonable 
        requests from the Department of State for data 
        regarding such investigations, prosecutions, 
        convictions, and sentences, a government which does not 
        provide such data consistent with its resources shall 
        be presumed not to have vigorously investigated, 
        prosecuted, convicted, or sentenced such acts. During 
        the periods prior to the annual report submitted on 
        June 1, 2004, and on June 1, 2005, and the periods 
        afterwards until September 30 of each such year, the 
        Secretary of State may disregard the presumption 
        contained in the preceding sentence if the government 
        has provided some data to the Department of State 
        regarding such acts and the Secretary has determined 
        that the government is making a good faith effort to 
        collect such data.
            (8) Whether the percentage of victims of severe 
        forms of trafficking in the country that are non-
        citizens of such countries is insignificant.
            (9) Whether the government has entered into 
        effective, transparent partnerships, cooperative 
        arrangements, or agreements that have resulted in 
        concrete and measurable outcomes with--
                    (A) domestic civil society organizations, 
                private sector entities, or international 
                nongovernmental organizations, or into 
                multilateral or regional arrangements or 
                agreements, to assist the government's efforts 
                to prevent trafficking, protect victims, and 
                punish traffickers; or
                    (B) the United States toward agreed goals 
                and objectives in the collective fight against 
                trafficking.
            (10) Whether the government of the country, 
        consistent with the capacity of such government, 
        systematically monitors its efforts to satisfy the 
        criteria described in paragraphs (1) through (8) and 
        makes available publicly a periodic assessment of such 
        efforts.
            (11) Whether the government of the country achieves 
        appreciable progress in eliminating severe forms of 
        trafficking when compared to the assessment in the 
        previous year.
            (12) Whether the government of the country has made 
        serious and sustained efforts to reduce the demand 
        for--
                    (A) commercial sex acts; and
                    (B) participation in international sex 
                tourism by nationals of the country.
            (13) Whether the government of the country, 
        consistent with the capacity of the country, has in 
        effect a framework to prevent financial transactions 
        involving the proceeds of severe forms of trafficking 
        in persons, and is taking steps to implement such a 
        framework, including by investigating, prosecuting, 
        convicting, and sentencing individuals who attempt or 
        conduct such transactions.

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SEC. 110. ACTIONS AGAINST GOVERNMENTS FAILING TO MEET MINIMUM 
                    STANDARDS.

    (a) Statement of Policy.--It is the policy of the United 
States not to provide nonhumanitarian, nontrade-related foreign 
assistance to any government that--
            (1) does not comply with minimum standards for the 
        elimination of trafficking; and
            (2) is not making significant efforts to bring 
        itself into compliance with such standards.
    (b) Reports to Congress.--
            (1) Annual report.--Not later than June 1 of each 
        year, the Secretary of State shall submit to the 
        appropriate congressional committees a report 
        describing the anti-trafficking efforts of the United 
        States and foreign governments according to the minimum 
        standards and criteria enumerated in section 108, and 
        the nature and scope of trafficking in persons in each 
        country and analysis of the trend lines for individual 
        governmental efforts. The report should include--
                    (A) a list of those countries, if any, to 
                which the minimum standards for the elimination 
                of trafficking are applicable and whose 
                governments fully comply with such standards;
                    (B) a list of those countries, if any, to 
                which the minimum standards for the elimination 
                of trafficking are applicable and whose 
                governments do not yet fully comply with such 
                standards but are making significant efforts to 
                bring themselves into compliance;
                    (C) a list of those countries, if any, to 
                which the minimum standards for the elimination 
                of trafficking are applicable and whose 
                governments do not fully comply with such 
                standards and are not making significant 
                efforts to bring themselves into compliance;
                    (D) information on the measures taken by 
                the United Nations, the Organization for 
                Security and Cooperation in Europe, the North 
                Atlantic Treaty Organization and, as 
                appropriate, other multilateral organizations 
                in which the United States participates, to 
                prevent the involvement of the organization's 
                employees, contractor personnel, and 
                peacekeeping forces in trafficking in persons 
                or the exploitation of victims of trafficking;
                    (E) reporting and analysis on the emergence 
                or shifting of global patterns in human 
                trafficking, including data on the number of 
                victims trafficked to, through, or from major 
                source and destination countries, disaggregated 
                by nationality, gender, and age, to the extent 
                possible;
                    (F) emerging issues in human trafficking; 
                and
                    (G) a section entitled ``Promising 
                Practices in the Eradication of Trafficking in 
                Persons'' to highlight effective practices and 
                use of innovation and technology in prevention, 
                protection, prosecution, and partnerships, 
                including by foreign governments, the private 
                sector, and domestic civil society actors.
            (2) Special watch list.--
                    (A) Submission of list.--Not later than the 
                date on which the determinations described in 
                subsections (c) and (d) are submitted to the 
                appropriate congressional committees in 
                accordance with such subsections, the Secretary 
                of State shall submit to the appropriate 
                congressional committees a list of countries 
                that the Secretary determines requires special 
                scrutiny during the following year. The list 
                shall be composed of the following countries:
                            (i) Countries that have been listed 
                        pursuant to paragraph (1)(A) in the 
                        current annual report and were listed 
                        pursuant to paragraph (1)(B) in the 
                        previous annual report.
                            (ii) Countries that have been 
                        listed pursuant to paragraph (1)(B) 
                        pursuant to the current annual report 
                        and were listed pursuant to paragraph 
                        (1)(C) in the previous annual report.
                            (iii) Countries that have been 
                        listed pursuant to paragraph (1)(B) 
                        pursuant to the current annual report, 
                        where--
                                    (I) the absolute number of 
                                victims of severe forms of 
                                trafficking is very significant 
                                or is significantly increasing;
                                    (II) there is a failure to 
                                provide evidence of increasing 
                                efforts to combat severe forms 
                                of trafficking in persons from 
                                the previous year, including 
                                increased investigations, 
                                prosecutions and convictions of 
                                trafficking crimes, increased 
                                assistance to victims, and 
                                decreasing evidence of 
                                complicity in severe forms of 
                                trafficking by government 
                                officials; or
                                    (III) the determination 
                                that a country is making 
                                significant efforts to bring 
                                themselves into compliance with 
                                minimum standards was based on 
                                commitments by the country to 
                                take additional future steps 
                                over the next year.
                    (B) Interim assessment.--Not later than 
                February 1st of each year, the Secretary of 
                State shall provide to the appropriate 
                congressional committees an assessment of the 
                progress that each country on the special watch 
                list described in subparagraph (A) has made 
                since the last annual report.
                    (C) Relation of special watch list to 
                annual trafficking in persons report.--A 
                determination that a country shall not be 
                placed on the special watch list described in 
                subparagraph (A) shall not affect in any way 
                the determination to be made in the following 
                year as to whether a country is complying with 
                the minimum standards for the elimination of 
                trafficking or whether a country is making 
                significant efforts to bring itself into 
                compliance with such standards.
                    (D) Countries on special watch list for 2 
                consecutive years.--
                            (i) In general.--Except as provided 
                        under clause (ii), a country that is 
                        included on the special watch list 
                        described in subparagraph (A) for 2 
                        consecutive years after the date of the 
                        enactment of this subparagraph, shall 
                        be included on the list of countries 
                        described in paragraph (1)(C).
                            (ii) Exercise of waiver 
                        authority.--The President may waive the 
                        application of clause (i) for up to 2 
                        years if the President determines, and 
                        reports credible evidence to the 
                        Committee on Foreign Relations of the 
                        Senate and the Committee on Foreign 
                        Affairs of the House of 
                        Representatives, that such a waiver is 
                        justified because--
                                    (I) the country has a 
                                written plan to begin making 
                                significant efforts to bring 
                                itself into compliance with the 
                                minimum standards for the 
                                elimination of trafficking;
                                    (II) the plan, if 
                                implemented, would constitute 
                                making such significant 
                                efforts; and
                                    (III) the country is 
                                devoting sufficient resources 
                                to implement the plan.
                    (E) Public notice.--Not later than 30 days 
                after notifying Congress of each country 
                determined to have met the requirements under 
                subclauses (I) through (III) of subparagraph 
                (D)(ii), the Secretary of State shall provide a 
                detailed description of the credible evidence 
                supporting such determination on a publicly 
                available website maintained by the Department 
                of State.
            (3) Significant efforts.--In determinations under 
        paragraph (1) or (2) as to whether the government of a 
        country is making significant efforts to bring itself 
        into compliance with the minimum standards for the 
        elimination of trafficking, the Secretary of State 
        shall consider--
                    (A) the extent to which the country is a 
                country of origin, transit, or destination for 
                severe forms of trafficking;
                    (B) the extent of noncompliance with the 
                minimum standards by the government and, 
                particularly, the extent to which officials or 
                employees of the government have participated 
                in, facilitated, condoned, or are otherwise 
                complicit in severe forms of trafficking; and
                    (C) what measures are reasonable to bring 
                the government into compliance with the minimum 
                standards in light of the resources and 
                capabilities of the government.
            (4) Description of efforts of united states to 
        eliminate money laundering related to human 
        trafficking.--In addition to the information required 
        in the annual report under paragraph (1) and the 
        interim report under paragraph (2), the Secretary of 
        State, in consultation with the Attorney General and 
        the Secretary of the Treasury, shall include in each 
        such report a description of efforts of the United 
        States to eliminate money laundering related to human 
        trafficking and the number of investigations, arrests, 
        indictments and convictions in money laundering cases 
        with a nexus to human trafficking.
    (c) Notification.--Not less than 45 days or more than 90 
days after the submission, on or after January 1, 2003, of an 
annual report under subsection (b)(1), or an interim report 
under subsection (b)(2), the President shall submit to the 
appropriate congressional committees a notification of one of 
the determinations listed in subsection (d) with respect to 
each foreign country whose government, according to such 
report--
            
            (A) does not comply with the minimum standards for 
        the elimination of trafficking; and
            (B) is not making significant efforts to bring 
        itself into compliance, as described in subsection 
        (b)(1)(C).
    (d) Presidential Determinations.--The determinations 
referred to in subsection (c) are the following:
            (1) Withholding of nonhumanitarian, nontrade-
        related assistance.--The President has determined 
        that--
                    (A)(i) the United States will not provide 
                nonhumanitarian, nontrade-related foreign 
                assistance to the government of the country for 
                the subsequent fiscal year until such 
                government complies with the minimum standards 
                or makes significant efforts to bring itself 
                into compliance; or
                    (ii) in the case of a country whose 
                government received no nonhumanitarian, 
                nontrade-related foreign assistance from the 
                United States during the previous fiscal year, 
                the United States will not provide such 
                assistance to the government of the country for 
                the subsequent fiscal year and will not provide 
                funding for participation by officials or 
                employees of such governments in educational 
                and cultural exchange programs for the 
                subsequent fiscal year until such government 
                complies with the minimum standards or makes 
                significant efforts to bring itself into 
                compliance; and
                    (B) the President will instruct the United 
                States Executive Director of each multilateral 
                development bank and of the International 
                Monetary Fund to vote against, and to use the 
                Executive Director's best efforts to deny, any 
                loan or other utilization of the funds of the 
                respective institution to that country (other 
                than for humanitarian assistance, for trade-
                related assistance, or for development 
                assistance which directly addresses basic human 
                needs, is not administered by the government of 
                the sanctioned country, and confers no benefit 
                to that government) for the subsequent fiscal 
                year until such government complies with the 
                minimum standards or makes significant efforts 
                to bring itself into compliance.
            (2) Ongoing, multiple, broad-based restrictions on 
        assistance in response to human rights violations.--The 
        President has determined that such country is already 
        subject to multiple, broad-based restrictions on 
        assistance imposed in significant part in response to 
        human rights abuses and such restrictions are ongoing 
        and are comparable to the restrictions provided in 
        paragraph (1). Such determination shall be accompanied 
        by a description of the specific restriction or 
        restrictions that were the basis for making such 
        determination.
            (3) Subsequent compliance.--The Secretary of State 
        has determined that the government of the country has 
        come into compliance with the minimum standards or is 
        making significant efforts to bring itself into 
        compliance.
            (4) Continuation of assistance in the national 
        interest.--Notwithstanding the failure of the 
        government of the country to comply with minimum 
        standards for the elimination of trafficking and to 
        make significant efforts to bring itself into 
        compliance, the President has determined that the 
        provision to the country of nonhumanitarian, nontrade-
        related foreign assistance or funding for participation 
        in educational and cultural exchange programs, or the 
        multilateral assistance described in paragraph (1)(B), 
        or both, would promote the purposes of this division or 
        is otherwise in the national interest of the United 
        States.
            (5) Exercise of waiver authority.--
                    (A) In general.--The President may exercise 
                the authority under paragraph (4) with respect 
                to--
                            (i) all nonhumanitarian, nontrade-
                        related foreign assistance or funding 
                        for participation in educational and 
                        cultural exchange programs to a 
                        country;
                            (ii) all multilateral assistance 
                        described in paragraph (1)(B) to a 
                        country; or
                            (iii) one or more programs, 
                        projects, or activities of such 
                        assistance.
                    (B) Avoidance of significant adverse 
                effects.--The President shall exercise the 
                authority under paragraph (4) when necessary to 
                avoid significant adverse effects on vulnerable 
                populations, including women and children.
            (6) Definition of multilateral development bank.--
        In this subsection, the term ``multilateral development 
        bank'' refers to any of the following institutions: the 
        International Bank for Reconstruction and Development, 
        the International Development Association, the 
        International Finance Corporation, the Inter-American 
        Development Bank, the Asian Development Bank, the 
        Inter-American Investment Corporation, the African 
        Development Bank, the African Development Fund, the 
        European Bank for Reconstruction and Development, and 
        the Multilateral Investment Guaranty Agency.
    (e) Certification.--Together with any notification under 
subsection (c), the President shall provide a certification by 
the Secretary of State that, with respect to any assistance 
described in clause (ii), (iii), or (v) of section 103(8)(A), 
or with respect to any assistance described in section 
103(8)(B), no assistance is intended to be received or used by 
any agency or official who has participated in, facilitated, or 
condoned a severe form of trafficking in persons.
    (f) After the President has made a determination described 
in subsection (d)(1) with respect to the government of a 
country, the President may at any time make a determination 
described in paragraphs (4) and (5) of subsection (d) to waive, 
in whole or in part, the measures imposed against the country 
by the previous determination under subsection (d)(1).

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