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) intro-
duced the following bill; which was referred to the Committee on Finan-
cial Services, and in addition to the Committee on International Rela-
tions, 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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. ANNUAL REPORT BY SECRETARY OF THE 
TREASURY. 
(a) IN GENERAL.—Not later than March 1 of each 
year, the Secretary of the Treasury shall submit to the 
Congress a report that identifies each country that is a 
country of concern because the government of that country
is not complying with the requirements of the Inter-
national Convention for the Suppression of the Financing 
of Terrorism, regardless of whether the country is a State 
party to the Convention. The report shall include the in-
formation on which the Secretary relied in determining 
whether or not each country is such a country of concern. 
The report shall also include the efforts made by the 
United States to provide to that government technical as-
sistance to comply with such requirements. 
(b) APPLICATION.—For purposes of subsection (a), 
paragraph 1(a) of article 2 of the Convention shall be ap-
plied to a country as if that country were a party to each 
of the treaties listed in the annex to the Convention. 
SEC. 2. WITHHOLDING OF ASSISTANCE; WITHHOLDING OF 
ACCESS TO FINANCIAL INSTITUTIONS; SPE-
CIAL MEASURES. 
(a) WITHHOLDING OF BILATERAL ASSISTANCE; OP-
POSITION
TO MULTILATERAL DEVELOPMENT ASSIST-
ANCE; SPECIAL MEASURES.—
(1) BILATERAL ASSISTANCE.—Fifty percent of 
the United States assistance allocated each fiscal 
year in the report required by section 653 of the 
Foreign Assistance Act of 1961 for each country of 
concern listed in the report submitted to Congress 
under section 1 shall be withheld from obligation
and expenditure, except as provided in subsection 
(c). 
(2) MULTILATERAL
ASSISTANCE.—The Sec-
retary of the Treasury shall instruct the United 
States Executive Director of each multilateral devel-
opment bank to vote, on and after March 1 of each 
year, against any loan or other utilization of the 
funds of their respective institution to or for any 
country of concern listed in the report submitted 
under section 1(a), except as provided in subsection 
(c). For purposes of this paragraph, the term ‘‘mul-
tilateral development bank’’ means the International 
Bank for Reconstruction and Development, the 
International Development Association, the Inter-
American Development Bank, the Asian Develop-
ment Bank, the African Development Bank, and the 
European Bank for Reconstruction and Develop-
ment. 
(3) SPECIAL MEASURES.—Except as provided 
in subsection (c), the Secretary of the Treasury may 
require domestic financial agencies to take 1 or more 
of the special measures described in section 
5318A(c) of title 31, United States Code, with re-
spect to a country of concern identified in the most 
recent report submitted under section 1(a), including
financial institutions operating outside the United 
States engaging in financial transactions in that 
country with nationals or entities of that country, to 
the same extent as if such country or financial insti-
tution were of primary money laundering concern 
under such section 5318A. 
(b) CERTIFICATION PROCEDURES.—
(1) WHAT
MUST
BE
CERTIFIED.—Subject to 
subsection (c), the assistance withheld from a coun-
try pursuant to subsection (a)(1) may be obligated 
and expended, the requirement of subsection (a)(2) 
to vote against multilateral development bank assist-
ance to a country shall not apply, and subsection 
(a)(3) shall not apply, if the Secretary of the Treas-
ury determines and certifies to the Congress, at the 
time of the submission of the report required by sec-
tion 1(a), that—
(A) during the previous year—
(i) the United States offered technical 
assistance to the country to assist the 
country in complying with the require-
ments of the Convention; and 
(ii) the country has taken adequate 
steps to comply with the requirements of 
the Convention and to cooperate fully with
the United States in efforts to comply with 
such requirements, including by—
(I) establishing laws and regula-
tions to prohibit offenses under the 
Convention and enforcing those laws 
and regulations; 
(II) identifying and freezing or 
seizing assets used in the commission 
of offenses referred to in subclause 
(I); 
(III) investigating, prosecuting, 
or extraditing persons committing, or 
suspected of committing, any such of-
fense; and 
(IV) regulating and monitoring 
public an private charitable entitie, 
transmissions of funds, formal and in-
formal financial systems and institu-
tions such as banks, financial mar-
kets, the insurance sector, financial 
and high-value commodity markets, 
and remittance services, for purposes 
of identifying persons committing any 
such offense; or
(B) for a country that would not otherwise 
qualify for certification under subparagraph 
(A), the vital national security interests of the 
United States require that the assistance with-
held pursuant to subsection (a)(1) be provided, 
that the United States not vote against multi-
lateral development bank assistance for that 
country pursuant to subsection (a)(2), and that 
subsection (a)(3) not apply to that country, ex-
cept that any such determination shall not take 
effect until at least 15 days after the Secretary 
of the Treasury submits written notification of 
that determination to the appropriate congres-
sional committees in accordance with the proce-
dures applicable to reprogramming notifications 
under section 634A of the Foreign Assistance 
Act of 1961. 
(2) INFORMATION
TO
BE
INCLUDED
IN
NA-
TIONAL INTEREST CERTIFICATION.—If the President 
makes a certification with respect to a country pur-
suant to paragraph (1)(B), the President shall in-
clude in such certification—
(A) a full and complete description of the 
vital national security interests placed at risk if 
United States bilateral assistance to that coun-
try is terminated pursuant to this section, mul-
tilateral development bank assistance is not 
provided to such country, and special measures 
are imposed under subsection (a)(3) with re-
spect to that country; and 
(B) a statement weighing the risk de-
scribed in subparagraph (A) against the risks 
posed to the vital national security interests of 
the United States by the failure of such country 
to meet the requirements of paragraph (1)(A). 
(c) CONGRESSIONAL REVIEW.—Subsection (d) shall 
apply if, within 30 calendar days after receipt of a certifi-
cation submitted under subsection (b) at the time of sub-
mission of the report required by section 1(a), the Con-
gress enacts a joint resolution disapproving the determina-
tion of the President contained in such certification. 
(d) CONSEQUENCES
FOR
COUNTRIES
DECERTI-
FIED.—If the Secretary of the Treasury does not make 
a certification under subsection (b) with respect to a coun-
try or the Congress enacts a joint resolution disapproving 
such certification, then until such time as the conditions 
specified in subsection (e) are satisfied—
(1) funds may not be obligated for United 
States assistance for that country, and funds pre-
viously obligated for United States assistance for
that country may not be expended for the purpose 
of providing assistance for that country; 
(2) the requirement to vote against multilateral 
development bank assistance pursuant to subsection 
(a)(2) shall apply with respect to that country, with-
out regard to the date specified in that subsection; 
and 
(3) subsection (a)(3) shall apply with respect to 
that country. 
(e) RECERTIFICATION.—Subsection (d) shall apply to 
a country described in that subsection until—
(1) the Secretary of the Treasury, at the time 
of submission of the report required by section 1(a), 
makes a certification under subsection (b)(1)(A) or 
(b)(1)(B) with respect to that country, and the Con-
gress does not enact a joint resolution under sub-
section (d) disapproving the determination of the 
President contained in that certification; or 
(2) the Secretary of the Treasury, at any other 
time, makes the certification described in subsection 
(b)(1)(B) with respect to that country, except that 
this paragraph applies only if either—
(A) the Secretary also certifies that—
(i) that country has undergone a fun-
damental change in government; or
(ii) there has been a fundamental 
change in the conditions that were the rea-
son—
(I) why the Secretary had not 
made a certification with respect to 
that 
country 
under 
subsection 
(b)(1)(A); or 
(II) if the Secretary had made 
such a certification and the Congress 
enacted 
a 
joint 
resolution 
dis-
approving the determination contained 
in the certification, why the Congress 
enacted that joint resolution; or 
(B) the Congress enacts a joint resolution 
approving the determination contained in the 
certification under subsection (b)(1)(B). 
Any certification under subparagraph (A) of paragraph 
(2) shall discuss the justification for the certification. 
(f) SENATE
PROCEDURES.—Any joint resolution 
under this section shall be considered in the Senate in ac-
cordance with the provisions of section 601(b) of the Inter-
national Security Assistance and Arms Export Control Act 
of 1976. 
SEC. 3. DEFINITIONS. 
In this Act:
(1) CONVENTION.—The term ‘‘Convention’’ 
means the International Convention for the Suppres-
sion of the Financing of Terrorism. 
(2) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury.
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