Banking Transparency For Sanctioned Persons Act Of 2018
Mr. Speaker, I rise in support of H.R. 6751, the Banking Transparency for Sanctioned Persons Act, which is a commonsense reporting requirement that will allow our Congress to better oversee financial sanctions against state sponsors of…
Mr. Speaker, I rise in support of H.R. 6751, the Banking Transparency for Sanctioned Persons Act, which is a commonsense reporting requirement that will allow our Congress to better oversee financial sanctions against state sponsors of terrorism, human rights abusers, and perpetrators of corruption around the world.
This bill is simple but important. Every 180 days, the Treasury Department would be required to send Congress a report with two sets of information. The first is a copy of any license issued by Treasury's Office of Foreign Assets Control that authorizes a financial institution to provide services benefitting a state sponsor of terrorism--such as Iran, North Korea, Syria, and Sudan--that would otherwise be prohibited.
Second, Treasury would have to provide a list of any foreign banks that conduct significant transactions for persons we have sanctioned for serious human rights abuses and corruption, a group that includes Russian Government officials behind the imprisonment and death of Sergei Magnitsky, Burmese military officers responsible for ethnic cleansing, and individuals in Latin America responsible for beating and killing of peaceful protesters.
Such a report would be a tremendous asset for Congress, and sharing this kind of information with Congress should be automatic, because licenses represent exemptions to our sanction programs. Some of those exemptions may be controversial, while others may enjoy broad support. The point is that congressional oversight of sanctions is limited without visibility into transactions Treasury is authorizing.
As for foreign banks' dealings with perpetrators of corruption and human rights abuses, Congress can use this information not only to better oversee existing sanctions, but to design a more effective program in the future.
Some of the questions we can begin to answer by having greater awareness of sanctioned persons' access to foreign financial services include: Are foreign banks exposing themselves to money laundering risk or facilitating activities that run counter to our national interests? And should our diplomats be exerting stronger pressure on those banks' governments in order to cut off bad actors?
Finally, I would like to note that we have been very deliberate in ensuring that the reporting required by this bill is as easy to administer as possible because we don't want to impose reporting requirements that could keep Treasury from the day-to-day work of designating bad actors. Therefore, this is a twice-a-year submission that entails no analysis and no narrative. It is as straightforward as scanning licenses and assembling a list to Treasury that that they already have components of, after which we could then follow up with questions in hearings, briefings, and the like.
I would like to thank the chairman for his support on this bill and thank all the members of the Financial Services Committee on both sides of the aisle for supporting this.
I urge my colleagues to support H.R. 6751.