text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Counter Terrorism Financing 
  Coordination Act''.
  
  SEC. 2. FINDINGS.
  
      The Congress finds as follows:
              (1) In an October 2005 report to the Congress, the 
          Comptroller General reviewed the United States Government's 
          interagency efforts to coordinate the delivery of training and 
          technical assistance to countries vulnerable to terrorist 
          financing, and issues of accountability in the blocking of 
          terrorist assets held in the United States by the Secretary of 
          the Treasury.
              (2) In April 2006, the Comptroller General of the United 
          States testified before the Congress on the findings of the 
          October 2005 report and, among other things, the Comptroller 
          General testified that ``Although the United States Government 
          provides a range of training and technical assistance to 
          countries it deems vulnerable to terrorist financing, it does 
          not have a strategic and integrated plan to coordinate the 
          delivery of this assistance.''.
              (3) The Terrorist Financing Working Group, an interagency 
          entity established by the National Security Council and chaired 
          by the Secretary of State, coordinates the delivery of training 
          and technical assistance to nearly two dozen countries the 
          Working Group considers to be priority countries, as well as to 
          other countries the Working Group considers to be nonpriority 
          countries, that are vulnerable to terrorist financing.
              (4) The Comptroller General testified that the Secretary of 
          State and the Secretary of the Treasury disagree about the 
          roles and procedures of each agency within the Terrorist 
          Financing Working Group for the delivery of counterterrorism 
          financing training and technical assistance, thereby causing 
          the overall effort to lack effective leadership.
              (5) An example of how this disagreement has impacted the 
          delivery of training and technical assistance to countries 
          vulnerable to terrorist financing is as follows:
                      (A) In May 2005, the Department of State denied a 
                  Department of the Treasury employee official entry into 
                  a priority country in response to a request from the 
                  central bank of that country to set up a financial 
                  intelligence unit.
                      (B) The Secretary of State told the Comptroller 
                  General that the Department wanted to conduct a 
                  Terrorist Financing Working Group assessment before 
                  allowing the Department of the Treasury to continue its 
                  work.
                      (C) According to the report of the Government 
                  Accountability Office, the United States Ambassador to 
                  the country requested a delay in the assessment and the 
                  work of the Department of the Treasury was allowed to 
                  proceed.
                      (D) However, as a result of this disagreement, the 
                  entry of the Department of the Treasury official into 
                  the country and the work itself was delayed by several 
                  months.
              (6) The Comptroller General testified that the interagency 
          coordinating effort on terrorist financing training and 
          technical assistance lacked other key elements that are 
          critical to effective strategic planning, such as the strategic 
          alignment of resources with needs and risks, and a process to 
          measure results.
              (7) The October 2005 report of the Comptroller General 
          found that the Attorney General, who provides technical 
          assistance in the drafting of anti-terrorist financing 
          legislation for priority countries, concluded that ``having 
          procedures and practices for Terrorist Financing Working Group 
          priority countries that differ from those for other vulnerable 
          countries creates problems''.
              (8) The October 2005, report of the Comptroller General 
          cited several instances of interagency disagreements on whether 
          it is appropriate for contractors for the United States to 
          provide legislative drafting assistance for counterterrorism 
          financing legislation.
              (9) In connection with this disagreement, the Secretary of 
          State and the Attorney General believe that legislative 
          drafting should be conducted by officials of the Department of 
          Justice, while the Secretary of the Treasury, in some 
          instances, advocated the use of contractors for nonpriority 
          countries.
              (10) The Attorney General objected to the use of 
          contractors and indicated that previous contractor work on 
          legislative drafting did not meet international standards for 
          effective counterterrorism financing legislation, citing as an 
          example the work of a contractor to the Agency for 
          International Development who assisted in drafting legislation 
          which officials of the Department of Justice had to complete 
          because the draft included substantial deficiencies, in the 
          opinion of the Attorney General.
              (11) In April 2006, officials representing the Secretary of 
          State and the Secretary of the Treasury testified before the 
          Financial Services Committee of the House of Representatives 
          that they did not act on the Comptroller General's 
          recommendations to develop a strategic and integrated plan for 
          the delivery of counterterrorism financing training and 
          technical assistance and to enter into an interagency 
          Memorandum of Agreement that clarifies each agency's roles and 
          responsibilities.
              (12) The officials testified that both the Secretary of 
          State and the Secretary of the Treasury believe that an 
          integrated strategic plan already exists and that ``There is no 
          desire among the Terrorist Financing Working Group agencies to 
          reinvent a process that has worked well for several years and 
          worked even better since the issuance of the General 
          Accountability Office report.''.
              (13) The Comptroller General recommended in his 
          congressional testimony that Congress require ``the Secretary 
          of State and the Secretary of the Treasury to submit an annual 
          report to Congress showing the status of interagency efforts to 
          develop and implement an integrated strategic plan and 
          Memorandum of Agreement to ensure Terrorist Financing Working 
          Group's seamless functioning, particularly with respect to 
          Terrorist Financing Working Group roles and procedures''.
  
  SEC. 3. MEMORANDUM OF AGREEMENT REQUIRED.
  
      (a) In General.--The Secretary of State and the Secretary of the 
  Treasury shall negotiate and enter into a Memorandum of Agreement 
  (hereafter in this section referred to as the ``Agreement'') specifying 
  the role of each of the Secretary's respective Department in the 
  delivery of counterterrorism financing training and technical 
  assistance provided to countries abroad (without regard to whether any 
  country is designated as a priority country or a nonpriority country by 
  the Terrorist Financing Working Group).
      (b) Specific Subject to Be Included.--In addition to such other 
  matters as the Secretary of State and the Secretary of the Treasury 
  determine to be appropriate for inclusion in the Agreement, the 
  Agreement shall include the following:
              (1) Leadership and role.--The specific designation of 
          leadership, and the role of each agency, in the delivery of 
          counterterrorism financing training and technical assistance to 
          all countries (without regard to whether any country is 
          designated as a priority country or a nonpriority country by 
          the Terrorist Financing Working Group).
              (2) Dispute resolution methodology.--A methodology and 
          procedures for resolving interagency disputes over the delivery 
          of counterterrorism financing training and technical 
          assistance, which shall include specific and reasonable 
          timeframes for seeking such resolution before elevating 
          unresolved disagreements to the next level of decision-making, 
          up to and including the Secretaries, and a process for 
          submitting any disputes the Secretaries are unable to resolve 
          within a specific and reasonable timeframe to the National 
          Security Council for resolution.
              (3) Coordination of funding and resources.--The 
          coordination of funding and resources for counterterrorism 
          financing and anti-money laundering training and technical 
          assistance delivered to all countries (without regard to 
          whether any country is designated as a priority country or a 
          nonpriority country by the Terrorist Financing Working Group), 
          including the means for providing a transparent assessment of 
          United States Government resources and a method for aligning 
          those resources with the needs of vulnerable countries.
              (4) Private contractors.--A procedure for determining the 
          appropriateness of any use of contractors by the Secretary of 
          the Treasury in the delivery of counterterrorism financing 
          training and technical assistance in any country (without 
          regard to whether the country is designated as a priority 
          country or a nonpriority country by the Terrorist Financing 
          Working Group), including a system for evaluating, in 
          consultation with the Secretary of State, the Attorney General 
          and other appropriate officers, the quality of work performed 
          by such contractors.
              (5) Performance evaluation.--A process to measure the 
          performance and results of counterterrorism training and 
          technical assistance.
  
  SEC. 4. ANNUAL REPORT.
  
      (a) In General.--The Secretary of the Treasury shall include in the 
  annual report to the Congress on terrorist assets complete information 
  on the nature and extent of activities, during the period covered by 
  the report, in blocking access of owners or account holders to 
  financial assets due to the connection of such owners or accountholders 
  to terrorism.
      (b) Contents.--The report under subsection (a) shall include the 
  following:
              (1) The results of the performance evaluation under 
          Memorandum of Agreement entered into pursuant to section 3 for 
          the period covered by the report.
              (2) Differences in amounts blocked between the period 
          covered by the report and preceding periods.
              (3) When and why blocks were removed from financial assets 
          during period covered by the report.
              (4) The achievements and obstacles faced by the United 
          States Government with respect to locating and blocking 
          terrorist assets or in the delivery of counterterrorism 
          financing training and technical assistance.
              (5) A classified index.
target: Counter Terrorism Financing Coordination Act - Directs The Secretary of State and the Secretary of the Treasury to negotiate and enter into a Memorandum of Agreement specifying each Department's role in providing foreign counterterrorism financing training and technical assistance. Requires such Agreement to include provisions respecting: (1) leadership and role designations; (2) dispute resolution methodology; (3) funding and resource coordination; (4) private contractor determinations; and (5) performance evaluation criteria.
  
  Directs the Secretary of the Treasury to include in the annual congressional report on terrorist assets information on the nature and extent of activities to block the financial asset access of owners or account holders with terrorism connections.
feat_title: To improve the delivery of counterterrorism financing training and technical assistance by providing for greater interagency coordination and cooperation, and for other purposes.