I 

109TH CONGRESS 

1ST SESSION H. R. 1952

To require that certain measures be taken with respect to countries of 

concern regarding terrorist financing. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 28, 2005

Mrs. KELLY (for herself, Ms. BERKLEY, Mr. ROYCE, and Mr. FEENEY) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on International Relations, for a period to be subsequently determined by the Speaker, in each 

case for consideration of such provisions as fall within the jurisdiction of 

the committee concerned 

A BILL

To require that certain measures be taken with respect to 

countries of concern regarding terrorist financing.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. ANNUAL REPORT BY SECRETARY OF THE 

4 TREASURY. 

5 (a) IN GENERAL.—Not later than March 1 of each 

6 year, the Secretary of the Treasury shall submit to the 

7 Congress a report that identifies each country that is a 

8 country of concern because the government of that country 
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1 is not complying with the requirements of the Inter2 national Convention for the Suppression of the Financing 

3 of Terrorism, regardless of whether the country is a State 

4 party to the Convention. The report shall include the in5 formation on which the Secretary relied in determining 

6 whether or not each country is such a country of concern. 

7 The report shall also include the efforts made by the 

8 United States to provide to that government technical as9 sistance to comply with such requirements. 

10 (b) APPLICATION.—For purposes of subsection (a), 

11 paragraph 1(a) of article 2 of the Convention shall be ap12 plied to a country as if that country were a party to each 

13 of the treaties listed in the annex to the Convention. 

14 SEC. 2. WITHHOLDING OF ASSISTANCE; WITHHOLDING OF 

15 ACCESS TO FINANCIAL INSTITUTIONS; SPE16 CIAL MEASURES. 

17 (a) WITHHOLDING OF BILATERAL ASSISTANCE; OP18 POSITION TO MULTILATERAL DEVELOPMENT ASSIST19 ANCE; SPECIAL MEASURES.—

20 (1) BILATERAL ASSISTANCE.—Fifty percent of 

21 the United States assistance allocated each fiscal 

22 year in the report required by section 653 of the 

23 Foreign Assistance Act of 1961 for each country of 

24 concern listed in the report submitted to Congress 

25 under section 1 shall be withheld from obligation 
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1 and expenditure, except as provided in subsection 

2 (c). 

3 (2) MULTILATERAL ASSISTANCE.—The Sec4 retary of the Treasury shall instruct the United 

5 States Executive Director of each multilateral devel6 opment bank to vote, on and after March 1 of each 

7 year, against any loan or other utilization of the 

8 funds of their respective institution to or for any 

9 country of concern listed in the report submitted 

10 under section 1(a), except as provided in subsection 

11 (c). For purposes of this paragraph, the term ‘‘mul12 tilateral development bank’’ means the International 

13 Bank for Reconstruction and Development, the 

14 International Development Association, the Inter15 American Development Bank, the Asian Develop16 ment Bank, the African Development Bank, and the 

17 European Bank for Reconstruction and Develop18 ment. 

19 (3) SPECIAL MEASURES.—Except as provided 

20 in subsection (c), the Secretary of the Treasury may 

21 require domestic financial agencies to take 1 or more 

22 of the special measures described in section 

23 5318A(c) of title 31, United States Code, with re24 spect to a country of concern identified in the most 

25 recent report submitted under section 1(a), including 
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1 financial institutions operating outside the United 

2 States engaging in financial transactions in that 

3 country with nationals or entities of that country, to 

4 the same extent as if such country or financial insti5 tution were of primary money laundering concern 

6 under such section 5318A. 

7 (b) CERTIFICATION PROCEDURES.—

8 (1) WHAT MUST BE CERTIFIED.—Subject to 

9 subsection (c), the assistance withheld from a coun10 try pursuant to subsection (a)(1) may be obligated 

11 and expended, the requirement of subsection (a)(2) 

12 to vote against multilateral development bank assist13 ance to a country shall not apply, and subsection 

14 (a)(3) shall not apply, if the Secretary of the Treas15 ury determines and certifies to the Congress, at the 

16 time of the submission of the report required by sec17 tion 1(a), that—

18 (A) during the previous year—

19 (i) the United States offered technical 

20 assistance to the country to assist the 

21 country in complying with the require22 ments of the Convention; and 

23 (ii) the country has taken adequate 

24 steps to comply with the requirements of 

25 the Convention and to cooperate fully with 
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1 the United States in efforts to comply with 

2 such requirements, including by—

3 (I) establishing laws and regula4 tions to prohibit offenses under the 

5 Convention and enforcing those laws 

6 and regulations; 

7 (II) identifying and freezing or 

8 seizing assets used in the commission 

9 of offenses referred to in subclause 

10 (I); 

11 (III) investigating, prosecuting, 

12 or extraditing persons committing, or 

13 suspected of committing, any such of14 fense; and 

15 (IV) regulating and monitoring 

16 public an private charitable entitie, 

17 transmissions of funds, formal and in18 formal financial systems and institu19 tions such as banks, financial mar20 kets, the insurance sector, financial 

21 and high-value commodity markets, 

22 and remittance services, for purposes 

23 of identifying persons committing any 

24 such offense; or 
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1 (B) for a country that would not otherwise 

2 qualify for certification under subparagraph 

3 (A), the vital national security interests of the 

4 United States require that the assistance with5 held pursuant to subsection (a)(1) be provided, 

6 that the United States not vote against multi7 lateral development bank assistance for that 

8 country pursuant to subsection (a)(2), and that 

9 subsection (a)(3) not apply to that country, ex10 cept that any such determination shall not take 

11 effect until at least 15 days after the Secretary 

12 of the Treasury submits written notification of 

13 that determination to the appropriate congres14 sional committees in accordance with the proce15 dures applicable to reprogramming notifications 

16 under section 634A of the Foreign Assistance 

17 Act of 1961. 

18 (2) INFORMATION TO BE INCLUDED IN NA19 TIONAL INTEREST CERTIFICATION.—If the President 

20 makes a certification with respect to a country pur21 suant to paragraph (1)(B), the President shall in22 clude in such certification—

23 (A) a full and complete description of the 

24 vital national security interests placed at risk if 

25 United States bilateral assistance to that coun-
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1 try is terminated pursuant to this section, mul2 tilateral development bank assistance is not 

3 provided to such country, and special measures 

4 are imposed under subsection (a)(3) with re5 spect to that country; and 

6 (B) a statement weighing the risk de7 scribed in subparagraph (A) against the risks 

8 posed to the vital national security interests of 

9 the United States by the failure of such country 

10 to meet the requirements of paragraph (1)(A). 

11 (c) CONGRESSIONAL REVIEW.—Subsection (d) shall 

12 apply if, within 30 calendar days after receipt of a certifi13 cation submitted under subsection (b) at the time of sub14 mission of the report required by section 1(a), the Con15 gress enacts a joint resolution disapproving the determina16 tion of the President contained in such certification. 

17 (d) CONSEQUENCES FOR COUNTRIES DECERTI18 FIED.—If the Secretary of the Treasury does not make 

19 a certification under subsection (b) with respect to a coun20 try or the Congress enacts a joint resolution disapproving 

21 such certification, then until such time as the conditions 

22 specified in subsection (e) are satisfied—

23 (1) funds may not be obligated for United 

24 States assistance for that country, and funds pre25 viously obligated for United States assistance for 
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1 that country may not be expended for the purpose 

2 of providing assistance for that country; 

3 (2) the requirement to vote against multilateral 

4 development bank assistance pursuant to subsection 

5 (a)(2) shall apply with respect to that country, with6 out regard to the date specified in that subsection; 

7 and 

8 (3) subsection (a)(3) shall apply with respect to 

9 that country. 

10 (e) RECERTIFICATION.—Subsection (d) shall apply to 

11 a country described in that subsection until—

12 (1) the Secretary of the Treasury, at the time 

13 of submission of the report required by section 1(a), 

14 makes a certification under subsection (b)(1)(A) or 

15 (b)(1)(B) with respect to that country, and the Con16 gress does not enact a joint resolution under sub17 section (d) disapproving the determination of the 

18 President contained in that certification; or 

19 (2) the Secretary of the Treasury, at any other 

20 time, makes the certification described in subsection 

21 (b)(1)(B) with respect to that country, except that 

22 this paragraph applies only if either—

23 (A) the Secretary also certifies that—

24 (i) that country has undergone a fun25 damental change in government; or 
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1 (ii) there has been a fundamental 

2 change in the conditions that were the rea3 son—

4 (I) why the Secretary had not 

5 made a certification with respect to 

6 that country under subsection 

7 (b)(1)(A); or 

8 (II) if the Secretary had made 

9 such a certification and the Congress 

10 enacted a joint resolution dis11 approving the determination contained 

12 in the certification, why the Congress 

13 enacted that joint resolution; or 

14 (B) the Congress enacts a joint resolution 

15 approving the determination contained in the 

16 certification under subsection (b)(1)(B). 

17 Any certification under subparagraph (A) of paragraph 

18 (2) shall discuss the justification for the certification. 

19 (f) SENATE PROCEDURES.—Any joint resolution 

20 under this section shall be considered in the Senate in ac21 cordance with the provisions of section 601(b) of the Inter22 national Security Assistance and Arms Export Control Act 

23 of 1976. 

24 SEC. 3. DEFINITIONS. 

25 In this Act: 
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1 (1) CONVENTION.—The term ‘‘Convention’’ 

2 means the International Convention for the Suppres3 sion of the Financing of Terrorism. 

4 (2) SECRETARY.—The term ‘‘Secretary’’ means 

5 the Secretary of the Treasury.

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