Page:United States Statutes at Large Volume 103 Part 3.djvu/435

 PUBLIC LAW 101-240—DEC. 19, 1989 103 STAT. 2503 Banking, Housing, and Urban Affairs of the Senate on the merits of mark to market accounting treatment as an appropriate accounting treatment for the sovereign debt of highly indebted countries which is held by United States commercial banl^. (b) CONTENTS OF REPORT. — The report required under subsection (a) shall include— (1) a discussion of the merits of mark to market accounting treatment as the appropriate accounting treatment for the sovereign debt of highly indebted countries which is held by United States commercial banks; and (2) a description of the factors which the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Comptroller of the Currency will consider in future assessments of the applicability of mark to market accounting to such debt. SEC. 404. STUDY ON ELIMINATION OF CAPITAL PLIGHT. (a) IN GENERAL.—The Secretary of the Treasury shall instruct the United States Executive Director of the International Monetary Fund to propose that the Fund conduct a study on multilateral means by which the banking industry might help reverse capital flight from countries which are engaged in debt restructuring, including— (1) the feasibility of disclosing the names of account holders whose accounts may consist of flight capital, and the balances of such accounts; (2) the usefulness of such disclosures in deterring the creation and maintenance of such accounts, and how such deterrence would operate or be defeated; (3) the extent to which any such information is gathered and to whom such information is made avsdlable; (4) the receptiveness of such countries to the disclosure of such mformation; (5) the difn.culties in, and the cost of, collecting such informa- tion and overcoming legal obstacles used to disguise the true ownership of such deposits, including the feasibility of using the threat of confiscatory penalties to prevent the disguising of the ownership of deposits; (6) the usefiilness of using taxes as a means to encourage the repatriation of flight capital; and (7) the applicability (if any) of efforts to facilitate the identi- fication, tracing, seizure, and forfeiture of drug crime proceeds, and to prevent the use of the banking system and of financial institutions for the purpose of money laundering. (b) FLIGHT CAPITAL DEFINED. —As used in subsection (a), the term "flight capital" means any asset— (I)(A) which is deposited in a banking institution for safekeep- ing or investment purposes; or (B) for which a financial institution serves as a conduit, an agent, or a fiduciary in a transaction; and (2) the owner of which may be a legal resident of a country other than the country in which the institution is located. (c) REPORT TO THE CONGRESS. — Not later than the end of the 180- day period beginning on the date of the enactment of this Act, the Secretary of the Treasury shall submit to the Chairman of the Committee on Banking, Finance and Urban Affairs of the House of Representatives, and the Committee on Banking, Housing, and

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