Ofac Licensure for Investigators Act
Floor Speech
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Mr. HILL of Arkansas. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 1450) to require the Office of Foreign Assets Control to develop a program under which private-sector firms may receive a license to conduct nominal financial transactions in furtherance of the firms' investigations, and for other purposes.
The Clerk read the title of the bill.
The text of the bill is as follows: H.R. 1450
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 ``OFAC Licensure for Investigators Act''. SEC. 2. SENDING AND RECEIVING OF NOMINAL AMOUNTS.
(a) In General.--The Director of the Office of Foreign Assets Control shall, not later than 1 year after the date of the enactment of this section, establish a pilot program under which a private sector firm may receive a license to conduct nominal financial transactions in furtherance of the firm's investigations.
(b) Coordination.--When establishing and carrying out the pilot program required under subsection (a), the Director of the Office of Foreign Assets Control shall coordinate with the Director of the Financial Crimes Enforcement Network for the purposes of supporting activities of the Financial Crimes Enforcement Network Exchange, as described in section 310(d) of title 31 of the United States Code.
(c) Reporting on Activities.--Each private sector firm that receives a license described under subsection (a) shall submit a detailed monthly report to the Director of the Office of Foreign Assets Control on the activities of the firm conducted under such license.
(d) Report to Congress.--
(1) In general.--On the date that is 1 year after the date on which the pilot program is established under this section, and annually thereafter until the end of the 1-year period beginning on the date the pilot program is terminated, the Director of the Office of Foreign Assets Control shall submit a report to the Committees on Financial Services and Foreign Affairs of the House of Representatives and the Committees on Banking, Housing, and Urban Affairs and Foreign Relations of the Senate containing--
(A) the number of licenses requested under the pilot program;
(B) the number of licenses granted under the pilot program; and
(C) a broad discussion of the utility of the pilot program.
(2) Classified briefing.--After submission of each report required under paragraph (1), the Director of the Office of Foreign Assets Control shall provide the Committees on Financial Services and Foreign Affairs of the House of Representatives and the Committees on Banking, Housing, and Urban Affairs and Foreign Relations of the Senate with a classified briefing containing--
(A) additional detail on the applicants for a license under the pilot program;
(B) identification of the firms granted a license;
(C) information on the operation of the pilot program, including how long each license lasted and the personnel needed to manage the pilot program;
(D) information gleaned by the Office of Foreign Assets Control from running the pilot program;
(E) the utility of that information;
(F) any obstacles to the operation or utility of the pilot program; and
(G) any recommendations for improving or extending the pilot program.
(e) Termination.--The pilot program established by the Director of the Office of Foreign Assets Control under subsection (a) shall terminate on the date that is 5 years after the date on which the Director of the Office of Foreign Assets Control establishes such program.
Mr. Speaker, I rise in strong support of H.R. 1450, the OFAC Licensure for Investigators Act.
When it comes to combating illicit finance, effective public-private partnerships are critical. Tracking and disrupting sophisticated crime networks requires cooperation between our government and private-sector experts.
These partnerships play an integral role in our ability to safeguard the U.S. financial system and our national security.
Mrs. Beatty's commonsense bill authorizes private-sector firms, operating under an OFAC license, to conduct nominal transactions with sanctioned entities, allowing them to more effectively trace funds and uncover illicit networks during financial crime investigations.
The gentlewoman and I agree that while the private sector can provide a helping hand in tracking down bad actors, it is ultimately the government's responsibility to provide clear legal guidance and guardrails to support their efforts.
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Mr. HILL of Arkansas. Mr. Speaker, I include the Congressional Budget Office estimate for this bill in the Record. H.R. 1450, OFAC LICENSURE FOR INVESTIGATORS ACT, AS REPORTED BY THE HOUSE COMMITTEE ON FINANCIAL SERVICES ON MARCH 27, 2025 ------------------------------------------------------------------------ By fiscal year, millions of dollars-- ------------------------------- 2025 2025-2030 2025-2035 ------------------------------------------------------------------------ Direct Spending (Outlays)............... 0 0 0 Revenues................................ 0 0 0 Increase or Decrease (-) in the Deficit. 0 0 0 Spending Subject to Appropriation 0 4 5 (Outlays).............................. ------------------------------------------------------------------------
Increases net direct spending in any of the four consecutive 10-year periods beginning in 2036? No.
Increases on-budget deficits in any of the four consecutive 10-year periods beginning in 2036? No.
Statutory pay-as-you-go procedures apply? No.
Mandate Effects:
Contains intergovernmental mandate? No.
Contains private-sector mandate? No.
H.R. 1450 would require the Office of Foreign Assets Control (OFAC) to establish a pilot program under which it could license private firms to conduct small financial transactions with sanctioned entities in order to collect data and intelligence on those entities. Those transactions might otherwise be prohibited because some parties to the transactions are subject to sanctions. The bill would require OFAC to report to the Congress on its implementation of that program. The authority to issue licenses and the reporting requirement would expire five years after OFAC begins issuing those licenses.
Based on information from OFAC, CBO expects the office would need five employees to implement and administer the pilot program starting in fiscal year 2026. CBO estimates the compensation and operating expenses for those employees and the cost of the reporting requirements would amount to $5 million over the 2025-2035 period. Such spending would be subject to the availability of appropriated funds.
The CBO staff contact for this estimate is Emma Uebelhor. The estimate was reviewed by Christina Hawley Anthony, Deputy Director of Budget Analysis. Phillip L. Swagel, Director, Congressional Budget Office.
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Mr. HILL of Arkansas. Mr. Speaker, I urge a ``yes'' vote, and I yield back the balance of my time.
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