Banking Transparency for Sanctioned Persons Act of 2019

IIB 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 Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 03:08 May 16, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1037.RFS H1037 pbinns on DSK79D2C42PROD with BILLS 2 HR 1037 RFS SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Banking Transparency 2 for Sanctioned Persons Act of 2019’’. 3 SEC. 2. REPORT ON FINANCIAL SERVICES BENEFITTING 4 STATE SPONSORS OF TERRORISM, HUMAN 5 RIGHTS ABUSERS, AND CORRUPT OFFICIALS. 6 (a) IN GENERAL.—Not later than 180 days after the 7 date of the enactment of this Act, and every 180 days 8 thereafter, the Secretary of the Treasury shall issue a re- 9 port to the Committees on Financial Services and Foreign 10 Affairs of the House of Representatives and the Commit- 11 tees on Banking, Housing, and Urban Affairs and Foreign 12 Relations of the Senate that includes— 13 (1) a copy of any license issued by the Sec- 14 retary in the preceding 180 days that authorizes a 15 financial institution to provide financial services ben- 16 efitting a state sponsor of terrorism; and 17 (2) a list of any foreign financial institutions 18 that, in the preceding 180 days, knowingly con- 19 ducted a significant transaction or transactions, di- 20 rectly or indirectly, for a sanctioned person included 21 on the Department of the Treasury’s Specially Des- 22 ignated Nationals And Blocked Persons List who— 23 (A) is owned or controlled by, or acts on 24 behalf of, the government of a state sponsor of 25 terrorism; or 26 VerDate Sep 11 2014 03:08 May 16, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1037.RFS H1037 pbinns on DSK79D2C42PROD with BILLS 3 HR 1037 RFS (B) is designated pursuant to any of the 1 following: 2 (i) Section 404 of the Russia and 3 Moldova Jackson-Vanik Repeal and Sergei 4 Magnitsky Rule of Law Accountability Act 5 of 2012 (Public Law 112208). 6 (ii) Subtitle F of title XII of the Na- 7 tional Defense Authorization Act for Fiscal 8 Year 2017 (Public Law 114–328, the 9 Global Magnitsky Human Rights Account- 10 ability Act). 11 (iii) Executive Order No. 13818. 12 (b) FORM OF REPORT.—The report required under 13 subsection (a) shall be submitted in unclassified form but 14 may contain a classified annex. 15 SEC. 3. WAIVER. 16 The Secretary of the Treasury may waive the require- 17 ments of section 2 with respect to a foreign financial insti- 18 tution described in paragraph (2) of such section— 19 (1) upon receiving credible assurances that the 20 foreign financial institution has ceased, or will immi- 21 nently cease, to knowingly conduct any significant 22 transaction or transactions, directly or indirectly, for 23 a person described in subparagraph (A) or (B) of 24 such paragraph (2); or 25 VerDate Sep 11 2014 03:08 May 16, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1037.RFS H1037 pbinns on DSK79D2C42PROD with BILLS 4 HR 1037 RFS (2) upon certifying to the Committees on Fi- 1 nancial Services and Foreign Affairs of the House of 2 Representatives and the Committees on Banking, 3 Housing, and Urban Affairs and Foreign Relations 4 of the Senate that the waiver is important to the na- 5 tional interest of the United States, with an expla- 6 nation of the reasons therefor. 7 SEC. 4. DEFINITIONS. 8 For purposes of this Act: 9 (1) FINANCIAL INSTITUTION.—The term ‘‘fi- 10 nancial institution’’ means a United States financial 11 institution or a foreign financial institution. 12 (2) FOREIGN FINANCIAL INSTITUTION.—The 13 term ‘‘foreign financial institution’’ has the meaning 14 given that term under section 561.308 of title 31, 15 Code of Federal Regulations. 16 (3) KNOWINGLY.—The term ‘‘knowingly’’ with 17 respect to conduct, a circumstance, or a result, 18 means that a person has actual knowledge, or should 19 have known, of the conduct, the circumstance, or the 20 result. 21 (4) UNITED STATES FINANCIAL INSTITUTION.— 22 The term ‘‘United States financial institution’’ has 23 the meaning given the term ‘‘U.S. financial institu- 24 VerDate Sep 11 2014 03:08 May 16, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1037.RFS H1037 pbinns on DSK79D2C42PROD with BILLS 5 HR 1037 RFS tion’’ under section 561.309 of title 31, Code of 1 Federal Regulations. 2 SEC. 5. SUNSET. 3 The reporting requirement under this Act shall termi- 4 nate on the date that is the end of the 7-year period begin- 5 ning on the date of the enactment of this Act. 6 Passed the House of Representatives May 14, 2019. Attest: CHERYL L. JOHNSON, Clerk. VerDate Sep 11 2014 03:08 May 16, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1037.RFS H1037 pbinns on DSK79D2C42PROD with BILLS