In Africa, a human tragedy is unfolding on a scale terrifyingly reminiscent of the plagues that swept through Europe during the Middle Ages. Roughly 70 percent of the people who have contracted the human immunodeficiency virus (HIV) are in Sub-Saharan Africa, although it has less than 10 percent of the world's population. An estimated 13 million Africans have died from acquired immune deficiency syndrome (AIDS) and many of the 23 million Africans now living with the disease will die in the next decade. Already, the disease has orphaned some 10 million African children.

Globally, an estimated 34 million people have contracted HIV and over 16 million people have died from AIDS. Approximately 2.6 million people died from AIDS in 1999 alone. Each day about 8,500 people, including 1,000 children, become newly infected. About 90 percent of these infections occur in developing countries in Africa, Asia, and the Caribbean - where the spread of AIDS is undermining economic development by striking down working adults in the prime of their lives.

Due to the enormity of this crisis, the Committee intends to consider legislation directing the U.S. to seek the establishment of a new AIDS Prevention Trust Fund at the World Bank. The goal is to raise $1 billion a year for five years, with the U.S. contributing 10 percent annually in order to leverage additional governmental and private sector contributions. The proceeds of the trust fund would support AIDS education, prevention, treatment, and vaccine development efforts in the world's hardest-hit developing countries, such as those in SubSaharan Africa, the Caribbean, and Asia.

THE EXPORT-IMPORT BANK OF THE UNITED STATES

Eximbank is an independent U.S. government agency established in 1945. Eximbank provides loan guarantees, export credit insurance and direct loans to finance U.S. exports whenever (1) U.S. exporters are faced with government-sponsored competition or (2) commercial banks are unable to provide financing. Eximbank also supports U.S. government efforts in multilateral negotiations to restrict foreign-government use of tradedistorting export financing, and plays an important role as a member of the interagency Trade Promotion Coordinating Committee in formulating the President's National Export Strategy.

During the 105th Congress, Congress reauthorized Eximbank through September 30, 2001. The Administration is proposing an increase of over $200 million in FY 2001 for Eximbank's loan and guarantee programs, from $759 million to $963 million. It is also requesting $63 million for the Bank's administrative expenses.

Anti-Money Laundering Initiatives

FINANCIAL CRIMES ENFORCEMENT NETWORK

The Administration has proposed a 25 percent increase in funding for the Financial Crimes Enforcement Network (FinCEN), the Treasury Department unit responsible for administering the Bank Secrecy Act and providing case support to Federal, State, and local law enforcement agencies engaged in money laundering investigations. The Committee has held a series of oversight hearings since 1997 on various aspects of FinCEN's regulatory and enforcement efforts. In studies commissioned by the Committee, the General Accounting Office has criticized FinCEN for its failure to meet statutory deadlines when promulgating anti-money laundering regulations, and for its significant delays in processing civil penalty cases for Bank Secrecy Act violations.

A substantial portion of the requested increase in FinCEN's funding relates to the agency's implementation of a final rule issued in August 1999, requiring the national registration of so-called Money Services Businesses (MSBs), which include money transmitters, money order businesses, traveler's check companies, stored value providers, check cashers, and currency exchangers. The regulation, mandated by the Money Laundering Suppression Act of 1994 (31 U.S.C. 5330), will require an estimated 5,000 to 8,000 MSBs nationwide to register with FinCEN by December 31, 2001. The Committee closely monitored the development of the MSB regulation, holding hearings on the subject in 1997 and 1999, and will continue its oversight efforts as FinCEN now moves to implement the rule.

NATIONAL MONEY LAUNDERING STRATEGY

The Administration has requested $15 million to implement the National Money Laundering Strategy mandated by the Money Laundering and Financial Crimes Strategy Act of 1998 (P.L. 105-310). The Treasury Department issued the first of five annual anti-money laundering strategies required by the law in September 1999; the second national strategy, due on February 1, 2000, is expected to be released shortly. Among the items covered by the Administration's $15 million request are a grant program designed to fund anti-money laundering initiatives at the State and local levels; additional Treasury personnel to implement the strategy and perform other anti-money laundering enforcement and analytical functions; and technological enhancements to the system for filing Currency Transaction

One of the principal goals of the Treasury Department's anti-money laundering strategy is the "strengthening of international cooperation to disrupt the global flow of illicit money." The Committee has held a series of hearings in this and previous Congresses on the related issue of international crime and corruption, with particular emphasis on the importance of transparency in the global payments system. In this regard, the Committee hopes to work collaboratively with the Treasury Department on legislation designed to combat the money laundering vulnerabilities associated with so-called offshore secrecy havens, and discuss with the appropriate agencies realistic approaches to combat bulk cash smuggling.

FINAL

Committee on Banking and Financial Services

Minority Views on the Administration's HUD budget request for FY 2001

The President's budget request for fiscal year 2001 represents a reinforced commitment to continue the progress made by the Department of Housing and Urban Development over recent years toward meeting the growing demands on this Nation's affordable housing supply and community development programs. Although Committee Democrats believe that the budget continues to reflect the insufficient priority the Administration has given to public housing, we applaud the Administration's clear interest in including affordable housing and community development programs and the economically vulnerable residents they serve among the beneficiaries of a thriving domestic economy. We note that the President's HUD budget includes substantial increases in most core programs, and we especially commend HUD for proposing the means -- however modest -- for it to return to one of its essential functions, that of producing affordable housing for very low income people. The budget's housing production provisions, along with American Private Investment Companies proposal, which is a cornerstone of the President's New Markets Initiative, and the proposal for 120,000 housing vouchers constitute critical parts of the Administration's effort to continue to expand affordable housing opportunities and develop and renovate economically troubled communities; Committee Democrats strongly support these proposals. While we would argue for an even higher overall budget for this critical federal responsibility, we believe the Administration has generally made appropriate funding choices toward increasing affordable housing and creating jobs and economic opportunity.

History

Five years ago, a majority of the House Republican leadership proposed the elimination of HUD. This would have threatened the housing safety net for millions of poor elderly, disabled, and families struggling to emerge out of welfare and poverty. It would have gutted the Federal Housing Administration, a primary source of mortgage credit for lower-income and minority first time homebuyers who are denied credit in conventional mortgage markets. And it would have threatened ongoing HUD strategies to rejuvenate our urban communities, and attack blight and concentrations of poverty.

Fortunately, after rescissions and devastating budget cuts to housing programs during the initial period of Republican control, the House majority reversed its course, electing to work with Democrats to reform and modernize our public and assisted housing programs, and to expand affordable housing opportunities. Since then, although funding levels have remained far from adequate, Congress and the Administration have collaborated successfully in drafting and passing important legislation as part of a renewed effort to help the most vulnerable in our society cope with spiraling housing costs. Most recently, VA-HUD appropriations conferees agreed to include critical sections of HR 202, which the House had passed by a vote of 405-5, in the FY 2000 Appropriations bill. As a result, the President signed into law provisions codifying HUD's mark-up-to-market initiative to encourage owners of Section 8 to renew their expiring contracts and reduce the loss of affordable housing in high-cost areas. This legislation also authorized the

issuance of enhanced vouchers to protect residents of developments that do opt out of the Section 8 program, and it expanded resources and flexibility to utilize assisted living facilities and service coordinators to help senior citizens age in place and maintain a healthy quality of living. In addition, we are pleased that the VA-HUD appropriations bill included one of HUD Secretary Cuomo's major budget initiatives, the provision of 60,000 new incremental Section 8 vouchers.

We should continue to build on these achievements, rather than returning to gratuitous attacks on HUD. This Administration and this HUD Secretary have been committed to fundamental reforms of HUD designed to reduce staffing and administrative costs, improve responsiveness to the public, and provide more accountability for fund recipients. HUD's management and administration of programs are not perfect. But, we have seen significant progress in these efforts- a far cry from the neglect of the department of previous administrations. Instead of rhetoric and finger pointing, the goal of Congressional oversight should be to enable a continuation of this progress and act as a positive force in the implementation of the public and assisted housing legislation of the last two years.

Job Creation

As we head into the 8th year of economic expansion, Committee Democrats are pleased that the Administration continues to emphasize policy initiatives and funding levels which are designed to extend our economic recovery to all Americans, and to all neighborhoods and communities. We also note the agreement late last year between President Clinton and Speaker Hastert to act on such legislation this year, and therefore, we urge the committee to act.

Specifically, the Banking Committee should immediately mark up the America's Private Investment Companies (APIC] proposal, which is the component of the President's New Market initiative over which the Banking Committee has jurisdiction. The Subcommittee on Capital Markets, Securities and Government Sponsored Enterprises held a hearing on this bill last year, and it was positively received by members. Moreover, a credit subsidy has already been approved through last year's VA-HUD Appropriations bill to authorize over $500 million in APIC loan guarantees - subject only to Congressional authorization of the program. Unfortunately, this loan approval expires on June 30th of this year if such authorizing legislation is not enacted. It would be most unfortunate if such authorization lapses merely because the Banking Committee did not take up the bill for consideration.

We also note that the Administration is proposing a new Round III of Empowerment Zones [EZ's], under which 10 new urban EZ's would be created, and that the Administration is proposing additional funding for the fifteen EZ's created in Round II. Though neither of these proposals are within the jurisdiction of the Banking Committee, they would further our goal of extending the economic recovery to all parts of the nation, and they ought to be enacted.

Finally, Committee Democrats support the proposed funding increases for HUD economic development programs, including a doubling of funding for Brownfields redevelopment from