Maxine Waters

Ms. WATERS

Ms. WATERS. Mr. Speaker, I cannot describe how pleased I am working with Mr. McHenry and the way that he has expressed to you in his presentation how we have worked together, and I thank him for that. I am very appreciative of that, and I will continue to work on those issues that the gentleman alluded to. Mr. Speaker, I yield 2 minutes to the gentlewoman from New York (Mrs. Carolyn B. Maloney), the chair of the Subcommittee on Investor Protection, Entrepreneurship, and Capital Markets.

Ms. WATERS. Mr. Speaker, I yield myself the balance of my time. I include in the Record the following letter of general support for H. Res. 206 from the Fraternal Order of Police. National Fraternal Order of Police Washington, DC, March 13, 2019. Hon. Maxine M. Waters, Chairman, Committee on Financial Services, House of Representatives, Washington, DC. Hon. Emanuel Cleaver II, Chairman, Subcommittee on National Security, International Development and Monetary Policy, Committee on Financial Services, House of Representatives, Washington, DC. Hon. Patrick T. McHenry, Ranking Member, Committee on Financial Services, House of Representatives, Washington, DC. Hon. Steven E. Stivers, Ranking Member, Subcommittee on National Security, International Development and Monetary Policy, Committee on Financial Services, House of Representatives, Washington, DC. Dear Madam Chairman, Mr. Chairman and Representatives McHenry and Stivers: I am writing on behalf of the members of the Fraternal Order of Police to advise you of our continued support for the collection of beneficial ownership information to combat terrorist financing, money laundering and other criminal activities. We strongly agree with many of the points raised in H. Res 206 as they pertain to the collection of this information and we look forward to working with the Committee on Financial Services and the Subcommittee on National Security, International Development and Monetary Policy to address these issues, in the months ahead. For years, the FOP has supported the collection of beneficial ownership information and we've been proud to partner with Representatives Carolyn B. Maloney (D-NY) and Peter T. King (R-NY) on legislation entitled the ``Corporate Transparency Act `` A discussion draft sharing that same title is being considered by the committee today and the FOP is once again prepared to support this important legislation. Transnational criminal organizations and terrorist operations are using our banks, financial institutions and other means to profit from their illegal activity This is a well-documented problem for our financial institutions and for law enforcement as we work together to shut down these sophisticated criminal enterprises. Congress and this committee have played a leadership role in identifying the problem and working with law enforcement to develop legislation like the ``Corporation Transparency Act.'' In addition, this Administration also agrees with this approach--last July U.S. Secretary of the Treasury Steven T. Mnuchin testified before this committee and stated that there is a real need to ``have access to beneficial ownership information for law enforcement and for combating terrorist financing.'' The Secretary's remarks were very clear that this is a pressing issue and the vulnerability of our financial institutions poses a genuine threat to public safety and national security. Under current laws, shell corporations may be used as front organizations by criminals conducting illegal activity such as money laundering, fraud, and tax evasion. Legislation like the ``Corporation Transparency Act'' and other measures identified in H. Res. 206, propose to combat this misuse of U.S. corporations by requiring the U.S. Department of the Treasury, specifically the Financial Crimes Enforcement Network (FinCEN), to collect beneficial ownership information for corporations and limited liability companies formed under State laws unless the State is already collecting this information. It is vital that such information, once collected, be available to law enforcement at every level--local, State, tribal and Federal--upon a lawful request. The sharing of this information will help speed the ability of law enforcement to investigate any possible connection between these corporations and terrorist funding. All too often, investigations will hit a dead end when we encounter a company with hidden ownership. Just as robbers or burglars wear masks to hide their faces and make identifying them more difficult; the criminals we are chasing in these cases use shell corporations as masks, concealing themselves while still profiting from their crimes. When we are able to expose the link between shell companies and drug trafficking, corruption, organized crime and terrorist finance, law enforcement will be able to bring these criminals to justice and make our citizens and our nation safer. We would also like to raise our concerns about proposals that would increase the monetary threshold for filing Currency Transaction Reports and Suspicious Activity Reports, thereby reducing the information law enforcement currently receives. It is not clear what policy or public safety aim such a change is intended to accomplish. Organized criminal enterprises are already aware of the current thresholds and often take steps to avoid triggering these alerts and bringing scrutiny to their operations. Increasing these thresholds may negatively impact law enforcement and investigations into money laundering and other financial crimes. On behalf of the more than 345,000 members of the Fraternal Order of Police, I want to thank this committee for its leadership on this issue and most of all, for its willingness to engage and work with the law enforcement community on the collection of beneficial ownership information. By working together, I believe we can make our financial system and our nation safer from criminal and terrorist organizations. If I can provide any additional information on this matter, please do not hesitate to contact me or my Executive Director, Jim Pasco, in my Washington office. Sincerely, Chuck Canterbury, National President.

Ms. WATERS. Mr. Speaker, as we join together during this Sunshine Week to highlight the importance of transparency in our economy and our national security, and the preservation of our rule of law, we cannot ignore the insidious harm that is being done by institutions like Deutsche Bank, Danske Bank, and others that facilitate money laundering and financial crime. Kleptocracy and corruption around the world and here at home, as the Trump family and its companies have proven, can only thrive with the cooperation or willful blindness from financial institutions that move, hide, and launder their ill-gotten money, money that can come in and out of the financial system through investments in real estate, art, and other luxury markets across America. I hope my colleagues on both sides of the aisle would agree that we need to close loopholes that allow criminals and terrorists to hide from sunlight and scrutiny, and I urge the House to support H. Res. 206, as amended. Mr. Speaker, I yield back the balance of my time.

Ms. WATERS

Ms. WATERS. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 1122) to authorize the Secretary of Housing and Urban Development to carry out a housing choice voucher mobility demonstration to encourage families receiving such voucher assistance to move to lower-poverty areas and expand access to opportunity areas.

Ms. WATERS. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks on this legislation and to insert extraneous material thereon.

Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, rigorous studies have demonstrated that giving a low- income family an opportunity to move to a lower-poverty neighborhood can have a profound impact, particularly for children. For example, one study found that young boys and girls in families that used a voucher to move to lower-poverty neighborhoods were 32 percent more likely to attend college and earned 31 percent more, or nearly $3,500 a year, compared to their counterparts in families who did not receive a voucher. Unfortunately, families with housing choice vouchers who want to move to a better neighborhood can face significant challenges, particularly if it involves moving from one public housing agency jurisdiction to another. In fact, data shows that only one in eight families with children with a housing choice voucher use their vouchers to live in lower-poverty areas. Mr. Speaker, H.R. 1122 would help reduce barriers to mobility by establishing a demonstration program that would enable and incentivize public housing agencies to come together to come up with a regional plan to increase mobility across their jurisdictions. This is a bipartisan proposal that was included in HUD budget requests under the Obama administration. Further, $25 million in funding for this demonstration was included in fiscal year 2019 funding bill for HUD programs, and a version of this bill passed the House last Congress 368 to 19. This demonstration will not only provide thousands of families with opportunities to move to better neighborhoods, but it will also lay the foundation for how successful outcomes can be replicated at a larger scale across the country. I congratulate the gentleman from Missouri (Mr. Cleaver) and the gentleman from Wisconsin (Mr. Duffy) for introducing this initiative. Mr. Speaker, I urge all Members to vote ``yes'' on H.R. 1122, and I reserve the balance of my time.

Ms. WATERS. Mr. Speaker, I yield 5 minutes to the gentleman from Missouri (Mr. Cleaver), the chair of the Subcommittee on National Security, International Development and Monetary Policy.

Ms. WATERS. Mr. Speaker, I yield an additional 1 minute to the gentleman from Missouri.

Ms. WATERS. Mr. Speaker, I am pleased that we were able to work in a bipartisan manner on this initiative. This bill shows that we can foster new ideas and help improve services and flexibility for our citizens who are receiving housing assistance. Mr. Speaker, I thank the gentleman from Missouri (Mr. Luetkemeyer) for his engagement on the bill, and I urge my colleagues to join me in supporting this important piece of legislation. Mr. Speaker, I yield back the balance of my time.

Ms. WATERS. Mr. Speaker, on that I demand the yeas and nays.

Ms. WATERS

Ms. WATERS. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 974) to amend the Federal Reserve Act to require the Vice Chairman for Supervision of the Board of Governors of the Federal Reserve System to provide a written report, and for other purposes, as amended.

Ms. WATERS. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks on this legislation and to insert extraneous material thereon.

Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, this is a very straightforward piece of legislation. It clarifies that the Vice Chairman for Supervision is required to provide testimony along with his appearance before the committee. Additionally, if the position is vacant, the bill makes clear that the Chair of the Board shall appear and provide testimony on supervision and regulation efforts. I think it makes good sense to codify who at the Board will testify before Congress on the status of the Fed's supervisory efforts regardless of whether there is a person confirmed for the Vice Chairman for Supervision or not. When Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act, it created the position of Vice Chairman for Supervision so that there was one Fed Board Governor who was responsible for ensuring robust rules for the Nation's largest financial institutions. We now have a Vice Chairman for Supervision at the Fed, but the position had previously been vacant since its creation in 2010, so it is helpful to clarify how Congress will continue to be informed about developments at the Fed. This bill already passed the House last year on a voice vote. I thank the gentleman from New Jersey (Mr. Gottheimer) and the gentleman from Oklahoma (Mr. Lucas) for introducing this legislation. I urge all Members to vote ``yes'' on H.R. 974. Mr. Speaker, I reserve the balance of my time.

Ms. WATERS. Mr. Speaker, I am pleased with the bipartisan cooperation shown by this legislation and fully support the efforts of the sponsors to increase accountability and transparency. I want to thank the gentleman from Missouri (Mr. Luetkemeyer) for his engagement on the bill and, again, urge my colleagues to join me in supporting this important legislation, H.R. 974. Mr. Speaker, I yield back the balance of my time.

Ms. WATERS

Ms. WATERS. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 1414) to amend the duties of the Financial Crimes Enforcement Network (FinCEN) to ensure FinCEN works with Tribal law enforcement agencies, protects against all forms of terrorism, and focuses on virtual currencies.

Ms. WATERS. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks on this legislation and to insert extraneous material thereon.

Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, the FinCEN Improvement Act is a bill that will strengthen the Financial Crimes Enforcement Network, FinCEN, our national security, and our financial system. A form of this bipartisan bill was introduced last year with the exact same language, and it unanimously passed the House on suspension by voice vote. Currently, FinCEN works with Federal, State, local, and foreign law enforcement authorities in its anti-money laundering/counter terror financing objectives. Although Tribal law enforcement is a strong partner in fighting crime and safeguarding our country's national security, they are not yet listed in the FinCEN statute alongside their law enforcement partners. Though FinCEN voluntarily works with Tribal law enforcement in these objectives, this legislation will make FinCEN's assistance to Tribal law enforcement mandatory. This bill will also amend FinCEN's statute to protect against all forms of terrorism. As written, the underlying statute only requires the protection against international terrorism. While the United States faces a serious threat from foreign terrorist organizations, the threat from both homegrown violent extremists and domestic terrorists has sharply increased within the past several years. Although this type of terrorism has been less discussed in the news cycle, these terrorists are equally as dangerous as international terrorist organizations, if not more. In fact, a survey of 382 law enforcement agencies, conducted with the Police Executive Research Forum with funding from the National Institute of Justice, found that 74 percent of the law enforcement agencies reported antigovernment extremism, such as sovereign citizen extremism, as one of the top terrorist threats in their jurisdictions. This part of the bill will ensure that a proper focus be paid to all forms of terrorism. Additionally, this bill will require FinCEN to work with foreign financial intelligence units on anti-money laundering and counter terror financing initiatives with respect to emerging technologies such as cryptocurrencies, which are increasingly used by terrorists and transnational criminals. As the threat environment has changed with the birth and prominence of cryptocurrencies, online marketplaces, and the dark web, FinCEN needs to coordinate with and support our international partners that share our common anti-money laundering/counter terror financing goals. For these reasons, I am proud to support this legislation, and I congratulate Congresswoman Wexton and Congressman Riggleman for introducing this bill. Mr. Speaker, I urge all Members to vote ``yes'' on this important legislation, and I reserve the balance of my time.

Ms. WATERS. Mr. Speaker, I yield 3 minutes to the gentlewoman from Virginia (Ms. Wexton).

Ms. WATERS. Mr. Speaker, I have no further speakers, and I am prepared to close. I reserve the balance of my time.

Ms. WATERS. Mr. Speaker, I am pleased that Ms. Wexton and Mr. Riggleman have brought this issue to the full House. It addresses key gaps in our efforts to fight financial crime, something we all should support. I urge my colleagues to join me in supporting this important piece of legislation, and I yield back the balance of my time.

Ms. WATERS

Ms. WATERS. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 758) to provide a safe harbor for financial institutions that maintain a customer account or customer transaction at the request of a Federal or State law enforcement agency, as amended.

Ms. WATERS. Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days within which to revise and extend their remarks on this legislation and to insert extraneous material thereon.

Ms. WATERS. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, H.R. 758 would strengthen cooperation between financial institutions and law enforcement agencies to better detect, deter, and combat terrorism and financial crimes. With respect to the Bank Secrecy Act anti-money laundering, referred to as BSA/AML, supervisory actions, this bill would carve out a narrow safe harbor for financial institutions to keep a customer's account open at the written request of a law enforcement agency, including those at the Federal, State, local, and Tribal levels. This cooperation will enable law enforcement agencies to follow the money in the bank accounts of terrorists, human traffickers, corrupt officials, and those involved with organized crime. Of equal importance, the legislation provides an assurance to financial institutions, clarifying that they will not be held liable for their cooperation and collaboration with law enforcement in helping to thwart illicit finance. I will note that law enforcement agencies are currently expected to provide a written notice to financial institutions, requesting that the accounts of bad actors remain open to monitor transactions and build stronger criminal cases. However, this practice does not always happen and exposes financial institutions to enforcement actions from their banking regulators. Banks should not be put in a position to choose whether or not to help law enforcement out of concern about regulatory consequences. We simply cannot allow bad actors to launder money and finance terror through our banks. H.R. 758 will encourage financial institutions to maintain a strong partnership with law enforcement. In the 115th Congress, this bill was unanimously approved by the Financial Services Committee. The House passed the bill by a vote of 379-4. I thank the gentleman from Arkansas (Mr. Hill) and the gentleman from Illinois (Mr. Foster) for introducing this bipartisan piece of legislation. This bill is one example of our committee's efforts to fight terrorism, corruption, and financial crime. I urge all Members to vote ``yes'' on H.R. 758. I reserve the balance of my time.

Ms. WATERS. Mr. Speaker, I yield 3 minutes to the gentleman from Illinois (Mr. Foster).

Ms. WATERS. Mr. Speaker, I am pleased that Mr. Hill and Mr. Foster have brought this measure to the House on a bipartisan basis. It will help provide law enforcement more access to the critical information it needs and in a timely manner. Mr. Speaker, I urge my colleagues to join me in supporting this important piece of legislation, and I yield back the balance of my time.