No Support for Terror Act
No Support for Terror Act (H.R. 462) would (1) try to block IMF Special Drawing Rights (SDR) allocations to countries deemed by the Secretary of State to be genocide perpetrators or state sponsors of terrorism, by directing the U.S. Treasury to have the U.S. representative at the IMF oppose such allocations and push for an IMF rule banning them; and (2) tighten safeguards to prevent U.S. tax dollars from funding the Taliban or other terrorist groups or countries that harbor terrorists. The second part requires a joint review by the Treasury, State, and USAID of aid to NGOs and international organizations to ensure no funding reaches Taliban or terrorist networks, with a 90-day congressional report on findings, and a requirement that, within 180 days, prime awardees of U.S. assistance verify that all sub-awardees comply with U.S. anti-terrorism financing laws. In plain terms, the bill seeks to use U.S. influence at the IMF to keep certain countries from accessing reserve asset allocations and to tighten internal controls over how U.S. aid is distributed so that it does not flow to terrorist actors or their supporters.
Key Points
- 1Section 75 (IMF SDRs): The Secretary of the Treasury would direct the U.S. Executive Director at the IMF to (1) oppose SDR allocations to genocide perpetrators or state sponsors of terrorism, as determined by the Secretary of State, and (2) push for the IMF to adopt a rule prohibiting such allocations.
- 2Criteria for SDR opposition: The designation of genocide perpetrators or state sponsors of terrorism would be used to determine eligibility for SDR allocations.
- 3Section 3(a) Review: Treasury, State, and USAID would jointly review aid to NGOs and international organizations to ensure no support goes to the Taliban or other terrorist groups or to countries that harbor terrorists, in line with U.S. anti-terrorism financing laws.
- 4Section 3(a) Reporting: A joint report detailing the results of the review must be submitted to Congress within 90 days of enactment.
- 5Section 3(b) Recipient Requirements: By 180 days after enactment, prime awardees of U.S. assistance must require sub-awardees to show evidence of compliance with U.S. anti-terrorism financing laws.
- 6Scope of law: The bill is titled “No Support for Terror Act” and would amend the Bretton Woods Act (the statute governing U.S. participation in IMF-related matters).