I 

108TH CONGRESS 

2D SESSION H. R. 5124

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

concern regarding terrorist financing. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 22, 2004

Mrs. KELLY (for herself, 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 Not later than March 1 of each year, the Secretary 

6 of the Treasury shall submit to the Congress a report that 

7 identifies each country that is a country of concern be8 cause the government of that country, or persons or enti-
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1 ties that are in, or are nationals of, that country, are pro2 viding financial support for domestic terrorism or inter3 national terrorism. The report shall include the informa4 tion on which the Secretary relied in determining whether 

5 or not each country is such a country of concern. 

6 SEC. 2. WITHHOLDING OF ASSISTANCE; WITHHOLDING OF 

7 ACCESS TO FINANCIAL INSTITUTIONS; SPE8 CIAL MEASURES. 

9 (a) WITHHOLDING OF BILATERAL ASSISTANCE; OP10 POSITION TO MULTILATERAL DEVELOPMENT ASSIST11 ANCE; SPECIAL MEASURES.—

12 (1) BILATERAL ASSISTANCE.—Fifty percent of 

13 the United States assistance allocated each fiscal 

14 year in the report required by section 653 of the 

15 Foreign Assistance Act of 1961 for each country of 

16 concern listed in the report submitted to Congress 

17 under section 1 shall be withheld from obligation 

18 and expenditure, except as provided in subsection 

19 (c). This paragraph shall not apply with respect to 

20 a country if the President determines that its appli21 cation to that country would be contrary to the na22 tional interest of the United States, except that any 

23 such determination shall not take effect until at 

24 least 15 days after the President submits written no25 tification of that determination to the appropriate 
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1 congressional committees in accordance with the 

2 procedures applicable to reprogramming notifications 

3 under section 634A of the Foreign Assistance Act of 

4 1961. 

5 (2) MULTILATERAL ASSISTANCE.—The Sec6 retary of the Treasury shall instruct the United 

7 States Executive Director of each multilateral devel8 opment bank to vote, on and after March 1 of each 

9 year, against any loan or other utilization of the 

10 funds of their respective institution to or for any 

11 country of concern listed in the report submitted 

12 under section 1, except as provided in subsection (c). 

13 For purposes of this paragraph, the term ‘‘multilat14 eral development bank’’ means the International 

15 Bank for Reconstruction and Development, the 

16 International Development Association, the Inter17 American Development Bank, the Asian Develop18 ment Bank, the African Development Bank, and the 

19 European Bank for Reconstruction and Develop20 ment. 

21 (3) SPECIAL MEASURES.—The Secretary of the 

22 Treasury may require domestic financial agencies to 

23 take 1 or more of the special measures described in 

24 section 5318A(c) of title 31, United States Code, 

25 with respect to a country of concern identified in the 
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1 most recent report submitted under section 1, in2 cluding financial institutions operating outside the 

3 United States engaging in financial transactions in 

4 that country with nationals or entities of that coun5 try, to the same extent as if such country or finan6 cial institution were of primary money laundering 

7 concern under such section 5318A. 

8 (b) CERTIFICATION PROCEDURES.—

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

10 subsection (c), the assistance withheld from a coun11 try pursuant to subsection (a)(1) may be obligated 

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

13 to vote against multilateral development bank assist14 ance to a country shall not apply, and subsection 

15 (a)(3) shall not apply, if the President determines 

16 and certifies to the Congress, at the time of the sub17 mission of the report required by section 1, that—

18 (A) during the previous year the country 

19 has cooperated fully with the United States, or 

20 has taken adequate steps on its own, to termi21 nate the provision of financial support for do22 mestic terrorism or international terrorism, as 

23 the case may be, by the government of that 

24 country or by persons or entities that are in, or 

25 are nationals of, that country; 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 interests of the United 

4 States require that the assistance withheld pur5 suant to subsection (a)(1) be provided, that the 

6 United States not vote against multilateral de7 velopment bank assistance for that country pur8 suant to subsection (a)(2), and that subsection 

9 (a)(3) not apply to that country. 

10 (2) INFORMATION TO BE INCLUDED IN NA11 TIONAL INTEREST CERTIFICATION.—If the President 

12 makes a certification with respect to a country pur13 suant to paragraph (1)(B), the President shall in14 clude in such certification—

15 (A) a full and complete description of the 

16 vital national interests placed at risk if United 

17 States bilateral assistance to that country is 

18 terminated pursuant to this section, multilateral 

19 development bank assistance is not provided to 

20 such country, and special measures are imposed 

21 under subsection (a)(3) with respect to that 

22 country; and 

23 (B) a statement weighing the risk de24 scribed in subparagraph (A) against the risks 

25 posed to the vital national interests of the 
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1 United States by the failure of such country to 

2 cooperate fully with the United States, or to 

3 take adequate steps on its own, to terminate 

4 the provision of financial support for domestic 

5 terrorism or international terrorism, as the case 

6 may be. 

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

8 apply if, within 30 calendar days after receipt of a certifi9 cation submitted under subsection (b) at the time of sub10 mission of the report required by section 1, the Congress 

11 enacts a joint resolution disapproving the determination 

12 of the President contained in such certification. 

13 (d) CONSEQUENCES FOR COUNTRIES DECERTI14 FIED.—If the President does not make a certification 

15 under subsection (b) with respect to a country or the Con16 gress enacts a joint resolution disapproving such certifi17 cation, then until such time as the conditions specified in 

18 subsection (e) are satisfied—

19 (1) funds may not be obligated for United 

20 States assistance for that country, and funds pre21 viously obligated for United States assistance for 

22 that country may not be expended for the purpose 

23 of providing assistance for that country; 

24 (2) the requirement to vote against multilateral 

25 development bank assistance pursuant to subsection 
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1 (a)(2) shall apply with respect to that country, with2 out regard to the date specified in that subsection; 

3 and 

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

5 that country. 

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

7 a country described in that subsection until—

8 (1) the President, at the time of submission of 

9 the report required by section 1, makes a certifi10 cation under subsection (b)(1)(A) or (b)(1)(B) with 

11 respect to that country, and the Congress does not 

12 enact a joint resolution under subsection (d) dis13 approving the determination of the President con14 tained in that certification; or 

15 (2) the President, at any other time, makes the 

16 certification described in subsection (b)(1)(B) with 

17 respect to that country, except that this paragraph 

18 applies only if either—

19 (A) the President also certifies that—

20 (i) that country has undergone a fun21 damental change in government; or 

22 (ii) there has been a fundamental 

23 change in the conditions that were the rea24 son—
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1 (I) why the President had not 

2 made a certification with respect to 

3 that country under subsection 

4 (b)(1)(A); or 

5 (II) if the President had made 

6 such a certification and the Congress 

7 enacted a joint resolution dis8 approving the determination contained 

9 in the certification, why the Congress 

10 enacted that joint resolution; or 

11 (B) the Congress enacts a joint resolution 

12 approving the determination contained in the 

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

14 Any certification under subparagraph (A) of paragraph 

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

16 (f) SENATE PROCEDURES.—Any joint resolution 

17 under this section shall be considered in the Senate in ac18 cordance with the provisions of section 601(b) of the Inter19 national Security Assistance and Arms Export Control Act 

20 of 1976. 

21 SEC. 3. DEFINITIONS. 

22 In this Act: 

23 (1) FINANCIAL SUPPORT.—The term ‘‘financial 

24 support’’ includes funds, currency or monetary in-
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1 struments or financial securities, and financial 

2 sources. 

3 (2) TERRORISM.—The terms ‘‘domestic ter4 rorism’’ and ‘‘international terrorism’’ have the 

5 meanings given those terms in section 2331 of title 

6 18, United States Code.

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