Directs the Secretary of the Treasury to identify and report annually on countries of concern whose governments, nationals, or entities finance domestic or international terrorism.
Requires with respect to such countries: (1) withholding of 50 percent of bilateral assistance; and (2) withholding of access to financial institution multilateral assistance.
Authorizes the Secretary to require domestic financial institutions to take special measures with respect to a country of concern, including financial institutions operating outside the United States engaging in financial transactions in such country to the same extent as if such country or financial institution were of primary money laundering concern.
Exempts a country from such prohibitions if the President certifies to Congress that: (1) during the previous year the country has cooperated fully with the United States or has taken adequate steps to terminate financial support for terrorism; or (2) for a country that would not otherwise qualify for such certification, vital U.S. national interests apply.