U.S. Rep. Mia Love (R-NY) introduced legislation last week that would improve congressional oversight of banks and financial institutions providing services to state sponsors of terrorism.
The Banking Transparency for Sanctioned Persons Act of 2018 (H.R. 6751) would require the Treasury Secretary to provide Congress a copy of any license given to firms that provide financial services to state sponsors of terrorism – including Iran, North Korea, Syria, and Sudan. The bill would also require a list of any foreign financial institutions that knowingly conducted a transaction with a person sanctioned under the Sergei Magnitsky Act, the Global Magnitsky Act, or U.S. sanctions against human rights abusers and corrupt foreign officials.
“Sharing this kind of information with Congress should be automatic, as licenses represent exemptions to our sanctions programs,” Love said. “Congressional oversight of sanctions is limited without visibility into the transactions Treasury is authorizing.”
Love explained that even though U.S. banks are prohibited from doing business with a sanctioned person, banks in other countries can do business with them without penalty. This bill puts foreign banks on alert that Congress will be watching their dealings with human rights abusers and corrupt officials.
The bill was unanimously approved, 48-0, by the Financial Services Committee last week.