Senate Banking Committee Advances Treasury's CFIUS, Terrorist Financing Nominees
The Senate Banking Committee voted 13-11 along party lines Sept. 30 to approve the nomination of Christopher Pilkerton to be the Treasury Department's assistant secretary for investment security. The committee also voted 15-9 to support Jonathan Burke to be Treasury’s assistant secretary for terrorist financing. Sens. Mark Warner, D-Va., and Raphael Warnock, D-Ga., joined the panel’s Republicans in backing Burke. Both nominations now head to the full Senate for its consideration.
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Sen. Elizabeth Warren, D-Mass., the committee’s ranking member, criticized both nominees, who testified before the committee Sept. 4 (see 2509040041) and submitted written answers to questions. She said Pilkerton would have a “very important job, but this administration treats our economic and national security like trinkets at a fire sale ready for whichever billionaire drops by, and Mr. Pilkerton has shown no willingness to reverse course on that.”
Warren said Burke “couldn’t even acknowledge that Russia started the war against Ukraine. How can he be counted on to coordinate our sanctions against Russia?”
In response to Warren’s written questions, Pilkerton pledged to uphold the mission of the Committee on Foreign Investment in the U.S. “to protect national security while preserving the longstanding open investment policy of the United States.” He would work to facilitate greater investment from allies and partners, and would engage with them to ensure we are actively addressing collective risks to our national security, including those related to critical and emerging technologies."
Pilkerton would examine whether CFIUS has sufficient staff and resources to conduct its mission and whether it needs new authorities to review greenfield investments or real estate transactions near sensitive sites. He would scrutinize CFIUS’s ability to monitor agreements that mitigate national security risks of transactions, and he would investigate and take enforcement action against those who fail to comply with such agreements.
For Treasury’s new program restricting American outbound investment in China, Pilkerton would consider whether any updates are warranted. "The exploitation of U.S. outbound investments by countries of concern seeking to develop sensitive technologies or products that pose national security risks to the United States is a serious concern," he said. "If confirmed, I look forward to ensuring we are in the best possible position to protect America’s national security."
Burke told Warren in writing that he would ensure that “new sanctions support a well-defined national security objective, have undergone an appropriately robust assessment informed by the best available intelligence and economic analysis, are closely coordinated with allies, and are clear, implementable and enforceable.”
Asked whether he would push to restart sanctions updates on Russia to prevent evasion, Burke said he would “consider the full range of Treasury’s tools, including sanctions, that can be applied to support” President Donald Trump’s strategy to end the war in Ukraine.
Burke said he has "serious concerns" about Hong Kong's role in sanctions evasion, and he would contribute to a “coordinated government effort” to disrupt such behavior. For Venezuela, Burke would seek to implement sanctions “that are calibrated to mitigate unintended consequences on the Venezuelan people.”