Aligning SEC Regulations for the World Bank’s International Development Association Act

This bill would grant securities issued by the International Development Association (IDA) the same exemption from U.S. securities laws as other multilateral development banks in which the United States participates. In practice, that means IDA securities (and any IDA guarantees, including guarantees of principal and interest) would be treated as exempt from registration under the Securities Act of 1933 and the Securities Exchange Act of 1934. The Securities and Exchange Commission (SEC) would still be able to require appropriate annual and other reports about these securities. The SEC could suspend the exemption in consultation with the National Advisory Council on International Monetary and Financial Problems, and such suspension would be reflected in annual Congressional reporting. The exemption would take effect 30 days after enactment, unless the Treasury Secretary reports to relevant committees that IDA is providing financial assistance to a government repeatedly linked to acts of international terrorism under specified statutes, in which case the exemption would not take effect.