H.R. 5469, To require the Secretary of the Treasury to direct the United States Executive Director at the International Monetary Fund to support the capacity of the International Monetary Fund to prevent money laundering and financing of terrorism

H.R. 5469

To require the Secretary of the Treasury to direct the United States Executive Director at the International Monetary Fund to support the capacity of the International Monetary Fund to prevent money laundering and financing of terrorism

Date
July 11, 2016 (114th Congress, 2nd Session)

Staff Contact
John Huston

Floor Situation

On Monday, July 11, 2016, the House will consider H.R. 5469, to require the Secretary of the Treasury to direct the United States Executive Director at the International Monetary Fund to support the capacity of the International Monetary Fund to prevent money laundering and financing of terrorism, under suspension of the rules. H.R. 5469 was introduced on June 14, 2016, by Rep. Stevan Pearce (R-NM), and was referred to the Committee on Financial Services.

Bill Summary

H.R.5469 directs the U.S. Executive Director at the IMF to support the use of the IMF’s budget to prevent money laundering and the financing of terrorism. The bill also requires Treasury to report to Congress on efforts to combat terrorist related money laundering.

Background

Money laundering is a process by which the illicit source of assets obtained or generated by criminal activity is concealed to obscure the link between the funds and the original criminal activity. Terrorist financing involves the raising and processing of assets to supply terrorists with resources to pursue their activities. While these two phenomena differ in many ways, they often exploit the same vulnerabilities in financial systems that allow for an inappropriate level of anonymity and non-transparency in the execution of financial transactions.

According to the IMF, “in 2000, the Fund responded to calls from the international community to expand its work in the area of anti-money laundering (AML). After the tragic events of September 11, 2001, the IMF intensified its AML activities and extended them to include combating the financing of terrorism (CFT). In March 2014, the IMF’s Executive Board reviewed the Fund’s AML/CFT strategy and gave strategic directions for the work ahead (see below). In May 2014, the IMF started the second 5-year phase of a donor-supported trust fund that complements existing accounts financing AML/CFT capacity development activities in its member countries.”[1]

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[1] See IMF Website, “The IMF and the Fight Against Money Laundering and the Financing of Terrorism,” March 21, 2016.

Cost

A Congressional Budget Office (CBO) cost estimate is currently not available. However, CBO provided a preliminary estimate to the Committee; estimating that enacting the bill would not affect direct spending or revenues.

Additional Information

For questions or further information please contact John Huston with the House Republican Policy Committee by email or at 6-5539.