[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. ____________________