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Cmte Financial Services (R)
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FSC Majority | Week in Review

Washington, Apr 24 -

Task Force Holds First Hearing on Terrorism Financing

The Task Force to Investigate Terrorism Financing held its first hearing on Wednesday to examine the global terrorist threat and the methods by which terror groups finance their operations. 

In its coverage of the hearing, The Hill quoted Task Force Chairman Michael Fitzpatrick (R-PA) as saying that members will make sure "the federal government is using every tool at its disposal to deprive groups like the Islamic State, Boko Haram and other terrorist organizations of the funds they rely on to advance their warped ideology."

Members and hearing witnesses expressed concern that lifting sanctions against Iran as part of President Obama’s nuclear deal “could ease the flow of funding to terrorist groups around the world,” the Boston Herald reported.

The U.S. is ceding $11.9 billion in cash transfers to Iran as the Obama administration looks to finalize a nuclear deal with Tehran.

Juan Zarate with the Center for Strategic and International Studies testified that effectively fighting terrorists requires choking off their money supply.  “Whether it is Al Qaeda, the Islamic State, or Hizballah, the reality is that terrorist groups need money to operate their networks, implement logistics, maintain territory or influence, and to plan strategically against the United States,” he said. "Money is their enabler, but it’s also their Achilles’ heel."

For more on the Task Force, be sure to watch this week’s Sunday Video Message with Task Force Co-Chairman Rep. Robert Pittenger (R-NC). 

The Financial Institutions and Consumer Credit Subcommittee continued examining the detrimental effect the regulatory burden on community financial institutions has on consumers at its hearing on Thursday. 

As Bloomberg reported in its coverage of the hearing, “Smaller banks have been complaining for years of the compliance costs of post-crisis regulations, particularly those implementing the Dodd-Frank Act.”

Members shared their concerns about the shrinking number of local banks and credit unions due to burdensome and duplicative regulations.

Subcommittee Chairman Randy Neugebauer (R-TX) shared that "In the 19th District of Texas, we need relationship banking. My constituents want to know their banker. The local banker wants to be flexible and find ways to help his neighbor realize their dream and reach financial independence."

Members also discussed how their constituents struggle when one-size-fits-all Washington regulations impact their hometown banks and credit unions.  Rep. Andy Barr (R-KY) said consumers in his area are not able to have their needs met by their local financial institutions because they are no longer in the “business of lending,” he said, but rather the “business of paperwork and compliance.”

Overregulation has limited choices for consumers, increased costs and made it harder for Americans, especially those with low and middle incomes, to achieve financial independence, said Rep. Frank Guinta (R-NJ).

Rep. Scott Tipton (R-CO) said in his rural district community financial institutions are "about to give up" due to the unmanageable amount of regulations.