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 fol-
lowing 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 consider-
ation 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. 
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 be-
cause the government of that country, or persons or enti-
ties that are in, or are nationals of, that country, are pro-
viding financial support for domestic terrorism or inter-
national terrorism. The report shall include the informa-
tion on which the Secretary relied in determining whether 
or not each country is such a country of concern. 
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). This paragraph shall not apply with respect to 
a country if the President determines that its appli-
cation to that country would be contrary to the na-
tional interest of the United States, except that any 
such determination shall not take effect until at 
least 15 days after the President submits written no-
tification of that determination to the appropriate
congressional committees in accordance with the 
procedures applicable to reprogramming notifications 
under section 634A of the Foreign Assistance Act of 
1961. 
(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, except as provided in subsection (c). 
For purposes of this paragraph, the term ‘‘multilat-
eral 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.—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 respect to a country of concern identified in the
most recent report submitted under section 1, in-
cluding financial institutions operating outside the 
United States engaging in financial transactions in 
that country with nationals or entities of that coun-
try, to the same extent as if such country or finan-
cial institution 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 President determines 
and certifies to the Congress, at the time of the sub-
mission of the report required by section 1, that—
(A) during the previous year the country 
has cooperated fully with the United States, or 
has taken adequate steps on its own, to termi-
nate the provision of financial support for do-
mestic terrorism or international terrorism, as 
the case may be, by the government of that 
country or by persons or entities that are in, or 
are nationals of, that country; or