Have five legislative days in which to submit material to the chair for inclusion in the record. This series hearing is entitled evaluating the effectiveness of us section programs and i recognize myself for a opening statement. Im pleased to welcome our colleagues and witnesses to the subcommittee hearing on us sanctions. From iran to north korea to russia and venezuela got sanctions are used as the instrument in our foreignpolicy toolkits and Congress Must ensure that they be held accountable for results. This hearing will examine major Sanction Program as we seek to evaluate their effectiveness. Let me highlight three points that may provide context. First, sanctions are key to bringing about behavioral change abroad and in this committee its designed accordingly. That means calibrating sanctions and the sanctions relief based on specific and achievable actions we wish to see from a foreign actor. Tailoring sanctions in this way is especially important for secondary sanctions given how banking restrictions tend to have broader and less predicable effects than primary measures work in october, Financial Services committee reported in the full house overwhelmingly passed north Korea Nuclear stations act from a piece of legislation i was proud to sponsor with our Ranking Member from wisconsin took the bill would impose financial sanctions targeting every area of north koreas economy including all Petroleum Imports at any deployment of labor abroad. This week test launch of an icbm that can reach a part of the us underlines the maximum pressure is needed. Our bill outlines the principles that the majority and minority consider essential for the use of secondary sanctions, not only with respect to north korea, but other countries as well, namely we should strike with as much strength as possible, provide the president with stability and determination of sanctions to a narrow set of realistic objectives. This kind of approach is distinguished from what way my call quote symbolic sanctions that is devoting of scarce resources with no real impact on force objectives. For sanctions to retain their credibility we must guard against such half measures. Is sanctions are antibiotics than we should ask what indiscriminate use will do for antibiotic resistance and at the same time if we want to preserve the trust that the world continues to hold in the us Financial System, we must think clearly about what it means to restrict access to that system and communicate with equal clarity so others understand the rationale that governs about the imposition and lifting of our sanctions work of the second. 2 is the need for continuous engagement with congress when the executive chooses to wield it sanctions power and as we know that executive possesses Broad Authority under the International Emergency economic power and maybe less well known is that its laid out exclusively with provisions for regular congressional concentration and reports so that these authorities are exercised with appropriate oversight. The committee would encourage witnesses to examine whether the office is upholding the letter and spirit of these provisions see if i has been that recipient of goodwill and using Emergency Powers countably will help ensure that such goodwill is the same. This brings me to. 3 and as our country becomes more relying on economic sanctions to carry out his foreignpolicy the Treasury Department will be called upon to make its voice heard on the substance of that policy. We have seen bureaucratic changes that reflect a shift, in august for instance the president signed into law that advocating through sanctions act including secretary of the treasury as a member of the National Security council. In light of this trend we should expect congress to look more and more to the department in particular they to t a fight to implement sanctions and help shape their goals, scope and strategy and to answer for sanctions shortcoming if they fail to meet objections here treasury undertakes these things to a certain extent already, but its accountability will only grow with these debates and i want to think i witnesses were testifying today and look forward to working with them so our sanctions program are coherent, realistic and impactful. The chair now recognizes the Ranking Member of the subcommittee the gentle lady from wisconsin for five minutes for an opening statement. Thank you. Before i begin my comments let me thank our guests from the Treasury Department. I always look forward to hearing from these experts and information is a powerful tool. Lets me begin by thanking our chairman for calling this hearing and as indicated before im a part of the bipartisan work on the north korea sanctions and proud to have worked on that in a bipartisan manner and i do believe that we passed a strong bill and i hope the administration does the hard work of implementing this bill. With that said, can pretend im not concerned about the general state of us Foreign Policy and this Administration Commitment to implementing our sanctions program. I can tell you that as an american i think there are many other people who join me in feeling we are isolated and week and was the british even debating whether or not the president of the us is welcome and england, i mean, this is stunning. My constituents are very concerned about the extent and depth of the relationship with human rights violators, Vladimir Putin, a relationship that has the president and many of his cabinet incisors mired in the scandals related to connection im concerned with reports that the department of state eliminated the coordinator for sanctions policy and we did the hard work in this committee. Im sure our witnesses are where the us currently is sanctioned and congress recently passed sanctions against russia so its puzzling to me why the department of state would eliminates the office that would coordinate these sanction policies. I think you can catch my drift and perhaps even empathize with me, cutting out some people who could help you. Im sure you are also aware that the administration seems not to be implementing these russian sanctions. Forgive me, but i grew up in a time where as a Public School student and a little girl we were diving under our desk we were so afraid of russia and so its puzzling to me why we are not implementing those sanctions at this point. Im worried that the administration is more interested in implementing the goal of the kremlin to not have sanctions with the statutory mandate. I really am interested in hearing about the treasury efforts to make sure its implementing congressional intent and vigorously enforcing sanctions against russia. Im going to apologize in advance for bowing out of the meeting someone early because i have a conflict of another meeting that is extremely important as well, but its to look forward to hearing your testimony and i will be here to hear your testimony and answer some of these questions. I yield back. The gentle lady yields a back. Thank you. Today we welcome the testimony of marshall billingslea, assistant secretary of the treasury for terrorist financing. He helps oversee the ministration efforts in administering economic Sanction Programs globally and prior to joining he served as managing director for Business Intelligence services. He previously held positions at the department of defense where he served as deputy under secretary of the navy and principal secretary assistant secretary for special operations and low intensity conflict. He has also worked as a nato assistant secretarygeneral for defense investment and as a staff member on the senate floor Relations Committee hes a recipient of the defense medal for distinguished Public Service at john smith is the director of the Treasury Department office of foreign asset control which is responsible for administering economic and trade sanction to advance us National Security and foreignpolicy goals work he has previously served as the acting director. Prior to joining he served as an expert to the United Nations al qaeda and Taliban Sanction Committee from 2004 to may 2007 and is a trial that attorney in 1999 to may 2004. Each of you will be recognized for five minutes to give an oral presentation of your testimony. Without objection or written statements will be made part of the record. Mr. Billingsley you are recognized for five minutes. If you could pull your microphone closer that would be great. Thank you for inviting me today to offer testimony on the effectiveness of sanctions and to talk about a number of the matters that you chairman and you Ranking Member have raised in your opening statements. The Treasury Department has pioneered the use of targeted sanctions as a tool of statecraft we continually refine how we employ financial pressure in the interest of time we will skip to the bottom line up front which is that i believe there are several reasons why sanctions are effective tools. I do actually agree with the way you laid out the overall context of sanctions, but i believe i can name and will name numerous examples in which sanctions have been affected and i would like to provide for specific reasons or for specific matters which i think affect the effectiveness of sanctions when which is to employ them. This administration has aggressively targeted isis leaders and operatives for their operational and Financial Support around the world and the result has been that we have engaged in over 70 actions against isis leaders, facilitators, recruiters, affiliated Money Services and businesses worldwide. Us and un designation along with close cooperation between the us and iraqi authorities in particular. I just came back from baghdad a little more than a week ago and have effectively shutdown a number of Exchange Houses functioning and as key knowns for isis and daesh. Separately we continue the effort against al qaeda and other terrorist groups through unilateral and multilateral actions and secretary of the new chin as you may know recently announced the opening of a rather significant and innovative breakthrough which is the creation of a multinational terrorist Financing Targeting Center that is housed in saudi arabia and in conjunction with that announcement six Council Member states, so seven of us together seven nations impose sanctions on a network of al other isis financiers and weapons trafficker in yemen. This was one of the biggest multinational designations are outside the us. We have also targeted and im sure you will hear more about the way we have gone after dozens of north korean individuals and entities including a bank, banks financial facilitators and any revenue that could be used to support the various weapon programs that the regime has and will cut that off. Finally and i know we want to talk more about iran, sanctions were the dominant factor in forcing iran to the negotiating table over their Nuclear Weapons program. We are committed the administration is committed to combating irans behavior around the globe. Their leader has admitted their donors are scared to remit funds as a result of sanctions. I mentioned for specific reasons i think sanctions are effective. First, we employ these against the backdrop of an International Financial system that we continuously work to improve to create enforceability to create standards through the Financial Action pass force to cause the us Financial System to embrace anti Money Laundering and encountering the financing of terrorism standards and to create regimes enforceable across the. Its been a patient and longstanding effort of the Treasury Department. Is a bipartisan endeavor that has stretched across multiple generations and its because of this backdrop of driving this regime that we are able to cause our partner nations to work with us and to embrace and enforce these measures. I would say in the interest of time a second reason sanctions are so effective is because of the financial diplomacy that goes with the actions we undertake, specific treasury action is often preceded by an almost always followed up with engagement by the treasury and state department with our allies, partners in the public and private sectors and i was a general proposition sanctions are most effective as the Ranking Member indicated when they are implemented multilaterally. This administration and no administration would hesitate to take action and a lot unilaterally to defend the us people. When we do work with other nations travel five our message and we of course pursue financial diplomacy through multinational organizations such as the United Nations and i also mentioned the tft seat as another example. Im out of time, but to summarize the final two reasons which i can come back upon as you wish the third reason and 34 criteria that we have to be clear and consistent in her message when we sanction what is it we are thinking to achieve and i suggest how we approach as venezuela is a good example. Mr. Chairman, you mentioned the specifically that the extent to which the targeted individual their finances do they touch that Financial System and i would agree with you that symbolic sanctions probably are not worth the candle, so there are times and places where its worthwhile trick again, appreciate the chance to appear before the committee. Director smith, you are recognized for five minutes. Thank you. Thank you for inviting me to discuss the Important Role of sanctions and addressing some of our nations most prominent National Security and foreignpolicy challenges to the director the Treasury Department , i will speak to the sanctions my office has imposed against the supporters of destabilizing and provocative action of government such as north korea, iran and russia as well as a range of other actors engaged in conduct of the ideals and interest. When deployed strategically and with precision, sanctions are highly effective way of pressuring regimes and malign actors to change their behavior. Of these regimes and actors ultimately rely on funding to operate and by freezing their assets, cutting them off from the us Financial System and restricting their inability ability to interface in the International Financial system the choice becomes clear, either modify your behavior or accept isolation and negative economic effects of our financial. What of our highest priorities is targeting the north korean regime and its key financial vulnerabilities. This year zero pack has issued a grounds of sanctions related to north korea adding 112 entities to our specially designated National Block person list. The regime requires revenue to maintain and expand its nuclear and Ballistic Missile program and we focused our efforts on areas where we can have the maximum disruptive impact. Just last week we sanctioned several Chinese Trading Companies read responsible for hundreds of millions of dollars of imports and exports to north korea over the last two years. Earlier this year we designated Chinese Companies that have imported nearly half a billion dollars worth of north korean call between 2013 and 2016. That action combined with diplomatic pressure and multilateral sanctions helped pressure china to announce that it would hold all imports from north korea represented a blow to the regimes revenuegenerating keep abilities. Iran is another top priority and since january zero pack has issued a charges of sanctions involving iran designating 70 targets around the globe in connection with the Islamic Revolutionary guard and irans Ballistic MissileProgram Support for terrorism, human rights abuses, cyber attacks, National Criminal activity and other destabilizing regional activity. We recently designated the irg seat under the global terrorism executive order pursuant to the adversaries through sanctions act and pass legislation you mention. Just last week we sanctioned and irg seat force countering that work to get advanced equipment and material to print counterfeit banknotes potentially worth hundreds of millions of dollars. Another significant priority is addressing russias destabilizing activity in ukraine. This summer we continued our regular pattern of sanctions and designated 38 individuals and entities involved in the ongoing conflict in ukraine and more recently we have an hard at work implementing requirement and publishing guidance relates to the legislation passed by congress or, to be clear and emphasizing the treasury is fully implemented every requirement delegated to it within the statutory deadline. We have also used our sanctions this year to address the erosion of democracy in minnesota. Disrupt major narcotic travel