HR1710-119

What This Bill Does

The PLO and PA Terror Payments Accountability Act targets the Palestinian Authority and Palestine Liberation Organization system of compensation for terrorists and families of terrorists. Its findings say the system provides hundreds of millions of dollars per year and includes payments tied to members of designated foreign terrorist organizations such as Hamas and Islamic Jihad. The bill defines acts of terrorism, foreign persons, foreign financial institutions, and the covered compensation system. It requires the President within 90 days, and on an ongoing basis, to impose sanctions on foreign persons who served in or assisted PLO, PA, or related entities responsible for the system, and on entities such as the Commission of Prisoners and Released Prisoners' Affairs. It also sanctions foreign financial institutions that process or facilitate payment transactions or significant transactions with sanctioned persons, including prohibiting or strictly conditioning U.S. correspondent or payable-through accounts. The Act ends only if the Secretary of State certifies to Congress that the compensation system has ceased.

Who Benefits and How

Israeli terror victims' families benefit because the bill targets foreign officials and institutions tied to payments for attacks. Counterterrorism sanctions offices benefit from explicit statutory targets and ongoing sanctions duties. U.S. banks benefit from clearer correspondent-account prohibitions for foreign institutions tied to the compensation system. Taylor Force Act enforcement advocates benefit from a stronger sanctions mechanism aimed at the same payment system.

Who Bears the Burden and How

Palestinian Authority officials tied to compensation payments face blocking sanctions and U.S. financial restrictions. Palestine Liberation Organization representatives involved in the system face sanctions exposure. Foreign financial institutions processing covered payments risk losing or receiving strict conditions on U.S. correspondent accounts. State Department staff must assess and certify whether the PLO and PA compensation system has ceased before termination.

Key Provisions

• Requires sanctions on foreign persons facilitating PLO or Palestinian Authority terror-payment compensation.
• Requires sanctions on entities operating or directing the covered compensation system.
• Restricts U.S. correspondent and payable-through accounts for foreign financial institutions that facilitate covered transactions.
• Defines termination by State Department certification that the payment system has ceased.
• Uses the Taylor Force Act payment system as the core statutory target.