A June 26, 2010 House of Representatives report says  the United States Agency for International Development (USAID) is expected to engage with the charitable sector in constructing a “commonsense system” for vetting potential grantees. Related to the State, Foreign Operations, and related Programs Appropriations Bill, 2010, the report calls on USAID to provide “lessons learned” about the Partner Vetting System (PVS) used in the West Bank and Gaza to the Committee on Appropriations. PVS has been widely criticized by the charitable sector for being ineffective and potentially dangerous to aid workers in global hot spots. 

 

 

The language from the report

 

“The Committee expects USAID to work constructively with implementing organizations, including contractors and nongovernmental organizations, to frame a commonsense system, without undermining foreign policy and development goals. As the system is established, USAID is directed to consult regularly with the Committees on Appropriations and to provide a quarterly status report on implementing a comprehensive partner vetting system.
 

The Committee is aware of the partner vetting system in the West Bank and Gaza that strengthens USAID’s ability to prevent any United States financial assistance from being provided to a private entity, educational institution, or nongovernmental organization that provides financial support for terrorist activity. USAID is directed to report to the Committees on Appropriations not later than 120 days after enactment of this Act on lessons learned from the partner vetting system’s implementation in the West Bank and Gaza.”
 

The report also directs USAID to identify aspects from Know Your Customer (KYC), a commonly used due diligence practice by U.S. financial institutions, for any future vetting system “that is being considered.”