Bill Summary
The "Banking Transparency for Sanctioned Persons Act of 2019" is a legislation that aims to increase transparency in the financial services industry. It requires the Secretary of the Treasury to issue a report every 180 days to the relevant congressional committees, which includes a list of any licenses issued for financial services benefiting state sponsors of terrorism, human rights abusers, and corrupt officials. It also requires the report to contain a list of any foreign financial institutions that have knowingly conducted significant transactions for sanctioned individuals or entities. The legislation also allows for the Secretary of the Treasury to waive these requirements under certain conditions. It includes definitions for key terms such as "financial institution" and "knowingly" and has a sunset clause, meaning that the reporting requirement will end after 7 years.
Possible Impacts
1) The "Banking Transparency for Sanctioned Persons Act of 2019" increases transparency about financial services that benefit state sponsors of terrorism, human rights abusers, and corrupt officials. This could affect people who are involved in illegal or unethical financial activities and those who rely on these financial services.
2) The Act requires a report to be issued every 180 days on any licenses issued by the Secretary of Treasury that authorize financial institutions to provide services to sanctioned persons. This could affect the reputation and business practices of these financial institutions and potentially the individuals who work for them.
3) The Act includes a sunset clause, meaning that the reporting requirement will end after 7 years. This could affect the ability of the government to continue monitoring and taking action against financial institutions and individuals who are involved in illegal or unethical activities.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1037 Referred in Senate (RFS)]
<DOC>
116th CONGRESS
1st Session
H. R. 1037
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 15, 2019
Received; read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
AN ACT
To increase transparency with respect to financial services benefitting
state sponsors of terrorism, human rights abusers, and corrupt
officials, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Banking Transparency for Sanctioned
Persons Act of 2019''.
SEC. 2. REPORT ON FINANCIAL SERVICES BENEFITTING STATE SPONSORS OF
TERRORISM, HUMAN RIGHTS ABUSERS, AND CORRUPT OFFICIALS.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, and every 180 days thereafter, the Secretary of
the Treasury shall issue a report to the Committees on Financial
Services and Foreign Affairs of the House of Representatives and the
Committees on Banking, Housing, and Urban Affairs and Foreign Relations
of the Senate that includes--
(1) a copy of any license issued by the Secretary in the
preceding 180 days that authorizes a financial institution to
provide financial services benefitting a state sponsor of
terrorism; and
(2) a list of any foreign financial institutions that, in
the preceding 180 days, knowingly conducted a significant
transaction or transactions, directly or indirectly, for a
sanctioned person included on the Department of the Treasury's
Specially Designated Nationals And Blocked Persons List who--
(A) is owned or controlled by, or acts on behalf
of, the government of a state sponsor of terrorism; or
(B) is designated pursuant to any of the following:
(i) Section 404 of the Russia and Moldova
Jackson-Vanik Repeal and Sergei Magnitsky Rule
of Law Accountability Act of 2012 (Public Law
112208).
(ii) Subtitle F of title XII of the
National Defense Authorization Act for Fiscal
Year 2017 (Public Law 114-328, the Global
Magnitsky Human Rights Accountability Act).
(iii) Executive Order No. 13818.
(b) Form of Report.--The report required under subsection (a) shall
be submitted in unclassified form but may contain a classified annex.
SEC. 3. WAIVER.
The Secretary of the Treasury may waive the requirements of section
2 with respect to a foreign financial institution described in
paragraph (2) of such section--
(1) upon receiving credible assurances that the foreign
financial institution has ceased, or will imminently cease, to
knowingly conduct any significant transaction or transactions,
directly or indirectly, for a person described in subparagraph
(A) or (B) of such paragraph (2); or
(2) upon certifying to the Committees on Financial Services
and Foreign Affairs of the House of Representatives and the
Committees on Banking, Housing, and Urban Affairs and Foreign
Relations of the Senate that the waiver is important to the
national interest of the United States, with an explanation of
the reasons therefor.
SEC. 4. DEFINITIONS.
For purposes of this Act:
(1) Financial institution.--The term ``financial
institution'' means a United States financial institution or a
foreign financial institution.
(2) Foreign financial institution.--The term ``foreign
financial institution'' has the meaning given that term under
section 561.308 of title 31, Code of Federal Regulations.
(3) Knowingly.--The term ``knowingly'' with respect to
conduct, a circumstance, or a result, means that a person has
actual knowledge, or should have known, of the conduct, the
circumstance, or the result.
(4) United states financial institution.--The term ``United
States financial institution'' has the meaning given the term
``U.S. financial institution'' under section 561.309 of title
31, Code of Federal Regulations.
SEC. 5. SUNSET.
The reporting requirement under this Act shall terminate on the
date that is the end of the 7-year period beginning on the date of the
enactment of this Act.
Passed the House of Representatives May 14, 2019.
Attest:
CHERYL L. JOHNSON,
Clerk.