Foreign Affiliates Sharing Pilot Program Extension Act

Floor Speech

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Mr. NUNN of Iowa. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 5524) to amend the start date of the pilot program on sharing with foreign branches, subsidiaries and affiliates, as amended.

The Clerk read the title of the bill.

The text of the bill is as follows: H.R. 5524

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 ``Foreign Affiliates Sharing Pilot Program Extension Act''. SEC. 2. FOREIGN AFFILIATES SHARING PILOT PROGRAM.

Section 5318(g)(8)(B)(iii) of title 31, United States Code, is amended by striking ``3 years after the date of enactment of this paragraph'' and inserting ``3 years after the date on which the Secretary of the Treasury issues rules pursuant to subparagraph (A)''.

Mr. Speaker, first established in the Anti-Money Laundering Act, the Foreign Affiliates Sharing Pilot Program allows financial institutions to share Suspicious Activity Reports and related information with the institution's foreign branches, subsidiaries, and affiliates to help combat illicit finance risks.

Sharing financial intelligence is the bedrock of thwarting terrorists' financial activity and the movement of dangerous drugs like fentanyl across our southern border here in the United States. It ensures that terrorists and other criminals are not able to infiltrate the U.S. financial system.

In October of this year, an unlicensed money transmitting business admitted in court that they are illegally helping to fund foreign gamblers laundering money through the U.S. financial system to avoid scrutiny or investigation by U.S. or foreign law enforcement.

From 2012 to 2020, the business helped move money through at least 15 countries, including ones the State Department has identified as major money laundering countries like Mexico, Argentina, Switzerland, and the UAE.

This is just one example of why it matters to have the opportunity to share intelligence collected from suspicious activity reports to catch illicit financing activity.

Currently, this pilot program is nearing its 3-year completion mark without ever having been fully operational. The Foreign Affiliates Sharing Pilot Program Extension Act extends the termination date for 3 years after the Treasury issues rules for the pilot program. This extension allows Congress to adequately assess whether to make the program a permanent solution.

Mr. Speaker, I thank Representative Garcia, the gentlewoman from Texas, for her amazing work in supporting this important legislation. I urge my colleagues to join me in supporting this commonsense legislation to protect our national security.

Mr. Speaker, I thank the members of the Financial Services Committee, particularly the incredible staff that have helped to lead this effort and recognize that this is a continuation of a program that has shown remarkable success.

As a 20-year intelligence officer serving in both the military and the intelligence community, we know firsthand that the illicit use of financing is the blood that keeps terrorist, criminal, and foreign entities active on our own soil and a threat to us overseas.

We must continue to march forward not only to hold them accountable, but to be able to work with our subsidiary and overseas partners to truly combat this threat on a global scale. The leadership shown on this committee as well as within the subcommittee are a direct measure to be able to empower our team, both in the administration, but particularly at our frontline levels, our banks and financial institutions, with the tools they need to be successful.

Mr. Speaker, I thank my colleague on the other side of the aisle and recognize that together this is a bill that truly helps protect our national security.

Mr. Speaker, I would urge my colleagues to support H.R. 5224, and I yield back the balance of my time.

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