Said hearing will come to order. We will hear testimony on the nomination to read the undersecretary of the treasury and if confirmed would be the third undersecretary of the treasury with the responsibility for the office of tourism and Financial Intelligence the undersecretary reports directly to the secretary. This is responsible for executing for moneylaundering while overseeing enforcement of the constantly evolving sanctions program. Also receiving regulatory and enforcement opportunities such as the office of terrorism in Financial Crimes for foreign assets to control the office of intelligence and announce analysis and the Financial Crimes enforcement network. Mr. Szubin comes over 14 years of government experience. With the recent deal that is considered here in the senate. And to help assemble with the architecture gives the worlds leading state sponsor terrorism. Given the context it is important and timely. I appreciate your willingness to allow the nominee the acting treasury and the senior positions relating to economic sanctions it is eminently qualified to his children and wife and parents. , taiwans to underscore a point that my colleagues and i have been making to the chairman and for nine months the committee has failed to kerry noted study to act upon the president s nominees we have not held a single nomination hearings i am grateful for today. For this seventh year of the Bush Administration and white house control was divided the Banking Committee held three nominations in the senate nominated more than a dozen coming of the with think this would be a priority. In the past it has ben. Led just three weeks after the nomination was sent to the committee. His immediate predecessor took two 1 2 months to consider some pending nominees have been waiting since june here they deserve hearings and votes hoping the chairman would move them through the Committee Process for consideration. That said i am delighted undersecretary mr. Szubin is forced to discuss that Critical Role of the Treasury Department and the broader approach that marshalls the intelligence functions with a delayed to safeguard the Financial System to combat road nations with weapons of mass destruction proliferators moneylaundering and other National Security threats. Over the last 15 years he has distinguished itself for the sanctions law is and against many loggers and terrorist and narco traffickers. A fulbright scholar in israel and served as consul to the Deputy Attorney general and was on the tears some litigation taskforce receiving special accommodation were for his work. And the assets control with many first came to know as a policy maker and a superb lawyer. Endorsing the letter that the intellectual heavyweight with Global Partners to amplify the u. S. Sanctions. I could not agree more. I look forward to your testimony today. To you swear or affirm the testimony youre about to give is the truth so help you god . As you testified before any committee in the senate. Me your written testimony is part of the record in its entirety you may introduce your family members in attendance. First my amazing life wife and my sons and my fatherinlaw and in particular my wife for her unwavering support. It could have been difficult but i could not do any part without her. Distinguished members of the committee it is an honor to be appearing today. To serve as undersecretary of the treasury for terrorism in Financial Crime to thank president obama for the confidence he has placed in me and secretary to for his strong support and recommendation. I do not take this for granted that i have been allowed to serve my comment government to allow 60 years born in poland 1933 his parents fled the nazis that the outbreak of gold were to capture the soviet army where they lived out the war years siberia was a place of great hardship but it turned out there capture in exile save their life. And nearly all of my fathers family was wiped out by the nazis. Today there is just a few remnants of a family that should have been in the thousands. My parents were vigilant not an abstract concept better real threat they have seen in their lifetime. We were not raised in the environment of fear or acre or sadness but to save her life seek out a joy and be aware of very grateful for our guests we enjoy. But the golden land to never stop marveling at this country. With though work ethic that we can improve the world to leave a little better for our children. Mission is not a surprise resawed a career in Government Service to be amazed they have allowed the child of an immigrant to participate shaping the National Security policy. It is a country like know whether. I appreciate the significant responsibilities of this office. 11 years ago followed my mentor from the Justice Department as said director of the office to see the Exceptional Individuals who may get what it is. With an array of capabilities to confront and challenge adversaries for the battlefield is also challenging to execute when i started the conventional wisdom did not or could not work. That they would always find ways to circumvent to find its way downhill. Thanks to the remarkable and dedicated men and women i dont hear that conventional wisdom much anymore. With the support of u. S. Intelligence committee can strangle the list of organizations and change behavior. Against murderous groups like hamas and acis and continue to have so much critical work ahead of us. Every Procurement Company strikes a blow against these groups. If i work with governments and Financial Institutions around the world to stop the illicit money flow. More than 10 years ago we do sanctions but there is still much to be done in narcotics trafficking rebuilt once powerful cartels with a major setback by bankrupting Many Companies hitting them in their wallets. Sanctions to combat north korea to launder their regime for a cut. To devise a powerful sanction with a key cronies from the things they depend depend on. With the foreign policy. En to devise and executing a strategy to intensify the pressure of the government of iraq. The Illicit Nuclear program chief among them. With the trade in financial capabilities. So the crude oil sales down by 60 percent with the foreign reserves that it would not recover economically to close off all pathways to a nuclear weapon. This led to the election of president rouhani and that produced in the william modesto minutemen of the past decade to enforce the measures to combat every effort to circumvent them. Even now we are simultaneously sanctions against activity outside pursued through an iranian partners like syria or iraq or yemen. And in europe and israel but none of those successes would have then possible without support with committee i will build upon the close relationship to take on the challenges ahead. I also confirmed will not rest ill reread the latest intelligence we need to be vigilant and smart and aggressive as a landscape he falls we will remain at the forefront of the efforts thank you for your time and consideration of bill glad to answer any questions that you have. Acting as the undersecretary this year you agree with former National Security adviser susan rice we could expect some portion to fund other illicit activity. You conclude they need to read but their efforts for those funding streams. With the ripping up of such efforts . Thank you. As a key campaign moving forward this is a lot of aspects to this effort. We have done quite a lot over the recent years but is over 200 companies and officers that are sanctioned and thanks to congress have extraterritorial effect. And for those to do so at their own peril at a rest to be cut off from the Financial System. And then to go after the networks are the officers of the terrorist groups we have a lot to do in terms of our reach diplomatically. Talking to the officials of the gulf to take on an the proxy in there is a real opportunity and those that have been going through. Even more and beyond. November 2011 the entire iranian Financial System has been designated as their primary Money Laundering concern. The page react the reason for Nuclear Proliferation and. It is our understanding under the iran deal. To be the deceptive financial practices will continue and what your greatest concerns . First i want to know with respect to the Banking Sector to remain in place in the u. S. Sanctions with respect to the Banking Sector that no every new bank can access the Financial System not to purchase a security or a dollar transaction where a split second that remains offlimits for all iranian banks. But with respect to our ic it perform or behavior remains to be seen. We make it very clear that the there removed from the west to support hezbollah with the Ballistic Missile activity they will find themselves back we have to see how they behave but the choice will be there. So that u. S. Government think about maximizing sanctions from both a tactical and strategic bases and then to hack into a government with Contingency Planning with sanctions more effective. But to be part of since almost day one i have seen it evolves insulin greatest things is the intelligence office. Another finance ministry and to use the Financial Information to track illicit with the analysis is so much more sophisticated including the white house on a regular basis but in the world is taken notice and with that more adaptive techniques so to be judicious and how to be prepared to combat as ec and others that are trying to weaken the National Security. Thank you for joining us. You have won the most difficult jobs in the city to surtax pairs with special thanks to your children and your wifi know the you miss and have traveled the world especially during the negotiations. And those meetings that we have had with you thanks for your response with the efforts to enhance those efforts that they were expecting to do. But thats responsibilities to the portfolio like to get your priorities sanctions enforcement Money Laundering and how that fits into the broader government efforts. In terms of my popcorn dash Going Forward iran at the forefront as they appear to their commitments to turn them space but and alongside bad office of tourism and financial has to be at the forefront and in particular the efforts that pose a very serious challenge in terms of cutting off financing. Looking at a group of al qaeda verses isil with the ability to extort funds and a territory that it controls and the resources it is a massive challenge. And a huge coalition and trying to check and constrain with a threat over my time and sanctions are one part of the strategy. We have an array of tools with the issuance of the new executive order and wary of greasy malicious actors going after companies will now have the sanctions capability to prevent an the sanctions capability to prevent an beecher that activity. 01 to ask the question more parochial. We met several times to discuss the situation of somalia with the Second Largest Community in this country since columbus, ohio and we met separately to discuss the issues you have been working to ensure that terrorists financing standards are providing Technical Assistance to the Somali Government to build the capacity but i remain concerned about this issue. Can you give an update on the treasurys efforts to restoring free flow of ruminants remittance to somalis in africa . I would be happy al is a minneapolis hot last month to meet with the somali banks and ngos and other officials because obviously minneapolis hasnt issued concentration of somali americans and theyre very worried. I can say that they see a pattern and big accounts have been closed but the funds continued to go but the situation is far from ideal the concern with respect to moneylaundering that was the intensely challenging issue but there was no central bank with the regulatory system when it comes to oversight. So the ability to restore confidence will depend on the efforts of the Prime Minister i had the opportunity to speak with him who was undertaken a lot of serious steps the state department and Treasury Department doing everything they can to build strength and inspire confidence that they are safe when they go to somalia. Think feeforservice to our country i appreciate you telling us about your Family History and Family Support and i have had tremendous respect what you do with the 700 people you work with their. To spite of the great work you have done with a thankyou understand there is a by partisan majority feels the administration squandered those efforts instead of ending the Nuclear Program basically we allow the industrialization of the program and that was not your negotiation to lead, but obviously most of this year in a bipartisan way are very, very disappointed that the squandered opportunity had the president achieved what he said he wanted to do having 100 people cheering and supporting that is not what has occurred. There are some sanctions to be put in place the act that expires at the end of 2015. And i assume those provisions that were negotiated allow the fact there has to be sanctions that you would be very supportive immediately so they are there to snap back pippin and. Thank you for your kind words about tsa i and the dedication of the men and women in the office. I did not leave the talks but i had the opportunity to participate in a number of rounds to have achieved the president s objective for all the pathways for iran to close of 15 years and beyond but more. If you didnt talk about that the fact is the presiaiddent she would end their Nuclear Program and we didnt do that and someone know that they have evolved in their goals overtime and capitulated i dont want to focus on that because they do respect your service and i hope that you respect my disagreement but hoping that we can reauthorize the sanctions that were in place immediately. The administration with respect to preserving baffle leverage of snapback to be entirely aligned with your own we need to have that leverage or to punish any breaches that roper maya understanding is it doesnt expire until 2016 the Administration Position it is premature until we get to the sunset period. Why is that the case . It leaves us to believe there are concerns theyve made commitments to rand that will lead be the case. I think it is always good to have certain. Guest of the reasons people past dhave certain. Guest of the reasons people past dodd frank is to create certainty in that is not the case but back to this it would be good for the world to know that those sanctions will exist and if we would pass those over the next 60 days of those extensions taking place. The certainty is there and every aspect is what we will implement after it is due to expire but i do want to clarify that isil is in a full effect without any attempts to renew its early. Geithner you are reciting a the company line i wish you would quit which makes me believe that really in a bipartisan way we could pass it in the attempt makes me believe the administration would oppose that then we can see if that is the case. But the new sanctions i assume you have no objection whatsoever to prepare sanctions ourselves relative to terrorist acts in humanitarian human rights issues if we would impose those who have no objection you have no issue with us doing that . I am sure you would expect that it is adding to the pressure and to our tools to effectively combat them is something the administration is seriously want to look at. The it through the back door is to take away the deal and that is a different story. Obviously to be involved with terrorism and again just to be looked back had to designate that as a Foreign Organization . And is involved in almost every aspect whether Ballistic Missile procurement or regional destabilization the alarm that the use to support terrorist groups because the most likely to rule late with the terrorist groups and has humanrights abuses that label is not coming off knee there are the sanctions. You understand the huge gaping hole that yes they are accompanied will benefit issued the permit is getting ready to happen. So again with a Holding Company me looking at the Foreign Terrorist Organization and would be crippling to their terrorist activities. So all of those concerns are currently prohibited, and any Foreign Company that does business with an algerian seminary, those are i rgc sounds that remain on our list and are not coming off. There are extraterritorial consequences which is the same as a terrorist organization. The effects are in place right now. You would not object . I cannot comment on congress doing that. In my experience it is the state department. A lot of people that easily qualify for terror support. I am commenting from a legal perspective, but i dont think think it would affect the outcome either way. In spite of the fact that we disagree, i t