Banking Transparency for Sanctioned Persons Act of 2021

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 2710) to increase transparency with respect to financial services benefitting state sponsors of terrorism, human rights abusers, and corrupt officials, and for other purposes, as amended.

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and insert extraneous material thereon.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise in support of H.R. 2710, the Banking Transparency for Sanctioned Persons Act of 2021.

This legislation requires the Secretary of the Treasury to report to Congress semiannually with a copy of any license Treasury issues in the preceding 180 days that authorizes a U.S. financial institution to provide services benefiting a state sponsor of terrorism and certain other sanctioned entities, including human rights abusers and corrupt officials. It would sunset 7 years after enactment of the act.

I am supportive of the disclosure requirements in this bill because I believe that this after-the-fact reporting to congressional committees regarding these specific licenses can serve as a useful oversight tool.

When the Office of Foreign Assets Control, or OFAC, issues a specific license, it allows a particular individual or entity to engage in a transaction that would otherwise be prohibited under a United States sanctions program. Typically, specific licenses are granted by OFAC when the person or entity requesting such a license makes clear that allowing for the permitted transactions serves a compelling public policy goal. But currently, Treasury does not release specific licenses granted to individuals or entities or any information about them.

OFAC's licensing authority is an important part of an effective administration of United States sanctions, and disclosure is an important part of Congress' ability to conduct effective oversight.

Now, there is a risk that if some licenses were to become public, they would disclose commercially sensitive information to potential market competitors, introducing issues of corporate theft and unfair competition. That is why the bill allows for sensitive information in these licenses to be included in a classified annex to the report. Moving forward, we may want to examine whether this provides sufficient protection for proprietary or commercially sensitive information submitted by private-sector representatives which may not be classified and, if publicly released, would allow potential market competitors to gain an unfair competitive advantage. We certainly do not want to create a chilling effect and a wariness on behalf of companies about continuing to file for licenses moving forward, and we should guard against that.

Mr. Speaker, ultimately, I support the underlying goal and the disclosure requirements of H.R. 2710 because I believe they will increase congressional oversight of United States' sanctions activity. I urge my colleagues to do the same, and I reserve the balance of my time.

Mr. Speaker, I have no further speakers, and I am prepared to close.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield myself the balance of my time.

Mr. Speaker, the Banking Transparency for Sanctioned Persons Act of 2021 will help ensure that Members of Congress have the information they need to provide more effective oversight of the decisions made by Treasury and OFAC and the impact that those decisions have on sanctioned persons.

I thank Mr. Steil for bringing this measure forward, and I urge my colleagues to join me in supporting this bill.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, I yield myself such time as I may consume.

I thank the Chairwoman of the Financial Services Committee, the gentlewoman from California (Ms. Waters), for bringing the bill to the floor today.

I rise in strong support of H.R. 2710, the Banking Transparency for Sanctioned Persons Act. This bill that I authored represents an important step forward for oversight of the Treasury Department's sanctions program.

Under current law, Treasury may issue licenses through its Office of Foreign Assets Control, authorizing U.S. financial institutions to engage in transactions that would otherwise be prohibited. These licenses typically allow for the facilitation of trade in humanitarian and agricultural goods such as medicines and food.

H.R. 2710 requires the administration to inform Congress that certain financial services-related licenses have been improved when they involve state sponsors of terrorism or others sanctioned for human rights abuses.

While OFAC may have good reasons to issue a license, it is essential for Congress to be aware of bad actors' access to our financial system. Though some OFAC licenses are made public, others are not disclosed or even their existence may be unknown to Congress.

By requiring a semiannual report on these licenses, my bill would make the disclosure of OFAC's actions more consistent with congressional notification procedures for other sanctions waivers. Without this knowledge, Congress is limited in its ability to oversee the implementation of sanctions.

I am pleased to note that our colleagues on the other side of the aisle have long supported this oversight, and they have provided helpful input as we have developed this important legislation.

Mr. Speaker, let me conclude by noting that our majority support for this measure is reflective of a strong spirit of bipartisanship on the Committee on Financial Services when it comes to safeguarding our national security.

While we may not agree on everything, our Members have been extremely productive in advancing our national security interests while maintaining a vibrant financial system. It is important to have a government that is accountable, and this bill brings needed accountability to our sanctions enforcement efforts.

Mr. Speaker, I urge my colleagues to support H.R. 2710, and I reserve the balance of my time.

Mr. Speaker, I simply close by urging my colleagues to support this bill, and I yield back the balance of my time.