Willing, at least initially, until they find out theyre in a trap and become literally enslaved. Are you aware of Victim Services program that are particularly useful in dealing with the victim cooperation . Is there any social science, any experience out there that would help us do a better job of getting cooperation from the victims of trafficking . Well, of the 15 programs that we looked at, those grant programs, we also conducted sight visits to various places within the u. S. We talked to a number of Victim Service providers, as well as a number of Law Enforcement officials. They told us that while victims cooperation can be difficult, part of the reason its difficult because the victim fears talking to the Police Officer or to the Law Enforcement official but fear retaliation by the trafficker. In some cases, you could have a case where its not just the victim. Its not just the person that is being trafficked, but the trafficker might actually have someone from their family, for lack of a better word, being held hostage and holding it over their head in an effort to enforce them to engage in the trafficking. Some of the Victim Service providers have done a lot of training for the Police Officers. There are cases where theyre working in tandem to help them, when you see someone who is being trafficked, how do you have a conversation with that individual to help them, you know, talk to the Law Enforcement person. But you also to have to take care of what is happening to the rest of the individuals family. So Human Trafficking is frequently engaged in by organized criminal networks, right . Its not just an individual pimp or somebody who has decided to target one person. Its organized crime, isnt it . It could be, yes. It could be transnational, as well. Yes, thats another reason why it would be so difficult to get the victims cooperation. That particular victim might be being trafficked within the u. S. , they might have other family members that are being held outside of the u. S. So at trafficking cases, not typically a oneoff or isolated instance, its these are part of Human Smuggling Networks and sometimes fuelled by drug cartels and people who transact in other illicit activities as well, isnt that right . That was beyond the scope of the work we did. I imagine doj is probably better positioned to answer that question. Okay. Im going to ask miss steinberg to answer that. Thank you for the question. Our experience is that it happens in a wide variety of ways. There are more complicated Trafficking Networks and also might involve smuggling individuals over a border. But then there are also individuals who have, you know, one or two victims they might be trafficking. We actually see wide range of activity that relates to trafficking. Some of which is as complicated as you describe. Some of which is fairly straightforward. It might involve one or two victims. So within that range, though, you do agree that the international Human Trafficking networks are part of the problem. Yes. Senator tillis, do you have any other questions . I know we have a vote coming up. You have been great. Thank you for your testimony today. We appreciate your good work. What were hoping for, miss steinberg, we get that fund up. Because there are a lot of victims and a lot of organizations could use the grand funding to help provide services to victims. My friend former judge ted poe from houston in the house pointed out we have more funding for our pets than we do for victims of Human Trafficking, which is just a terrible contrast. We need to do much better, and fortunately the justice trafficking act was brought bipartisan support and created the new funding mechanism that would make more funds available. So we hope more doj prosecutors prosecute these cases and seek their restitution, and seek the assessments so we can get that fund up. Not only because they deserve to pay it, but also because the victims deserve the benefits of the fund. Thank you very much. The hearing will be adjourned. Reminder if you missed any of this hearing on Human Trafficking, you can watch it online in our Video Library at cspan. Org. Were back on capitol hill later this afternoon for the hearing examining the use of the term radical slam in combatting terrorism. Witnesses include officials from the justice department, fbi, and former customs and Border Protection officer. The Senate Judiciary subcommittee hearing begins live 2 30 p. M. Eastern on cspan3. Over on cspan this afternoon, republican president ial candidate donald trump gives an Economic Policy speech today in monessenw, pennsylvania. Following his remarks well open our phone lines and get your reaction to what he had to say. That gets underway at 2 30 p. M. Eastern on cspan. On june 1st, 1976, the space Museum Opened the doors to the public. Friday marks the 40th anniversary of the museum and American History live tv starts at 6 30 p. M. Eastern on cspan3. Well tour the museum. Well see art tickets including the spirit of st. Louis. Plus, live events a the front of the building. Learn more about the museum as we talk with its director general jr jack daily, valerie neil chair of the department. You can join the conversation as we take your phone calls, emails, and tweets. The 40th anniversary of the Smithsonian National air and Space Museum Live friday evening beginning at 6 00 p. M. Eastern on cspan3 American History tv. Senator richard sell by chairs the committee. This morning we will receive testimony mary jo white. Oversight of the commissions and part of the committees jurisdiction. The sec is an independent agency tasked with protecting investors, maintaining fair, orderly, and efficient markets, and facilitating Capital Formation. The s. E. C. Is responsible for ensuring transparency so investors have adequate information to make Investment Decisions and mitigate conflicts of interest, fraud and manipulation. This regulatory paradigm is one reason why our Capital Markets have long been the envy of the world and the lifeblood of our economy. Excessive and unnecessary regulation however may endanger americas status as the worlds preferred financial center. First and foremost, i believe the s. E. C. Should focus on the core mission. This has become more difficult as the commission has come under increased pressure to expand the mission and cater to special interest. Examples of such efforts include attempts to force the s. E. C. To mandate disclosure on Climate Change and political contributions. These efforts arent new. Its my expectation that it will continue to do so in the future. Chair white, as you pointed out in the 2013 speech, and i will quote you, we make our decisions based on an impartial assessment of the law and the facts. What we believe will further our mission and never in response to political pressure, lobbying or even public clamor. The s. E. C. Must, i believe, continue to adhere to those principles and uphold its fundamental mission. It should also periodically review the appropriateness of its existing rules. For example, while the commission is undertaken work to review equity Market Structure, it is not engaged in a comprehensive review of its rules, even in light of the socalled flash crash which happened over six years ago. I also hope the s. E. C. Will continue to take seriously the importance of strong Economic Analysis when promulgating rules. As we have seen, agencies that fail to undertake sump an analysis in rule making are vulnerable for legal challenges as well as they should be. An agency with thousands of employees like the s. E. C. Should be able to analyze in detail the impact of the rules on the markets, investors, Financial Products and the broader economy. If the cost of the rule outweighs the benefit the rule should be eliminated. If a rule passes cost benefit muster, it should then be implemented by the appropriate agency. The s. E. C. Has a primary expertise in Capital Markets and should be the lead agency in regulating them. Specifically, im concerned that attempts by other federal agencies to erode the s. E. C. s jurisdiction could under mine the integrity and function of these markets. Recent examples of this include the department of labors fiduciary duty rule. The continued focus on asset managers. The sec has 88 decades of specific expertise in these matters. This should outweigh desires of other regulators at the expense of the markets. Chairman white, i look forward to hearing your thoughts on the issues and the future agenda of the s. E. C. Senator brown. Thank you, mr. Chairman. Welcome, madam chair. Good to see you again. Over three years ago, you were confirmed as chair of the s. E. C. And assumed the task of guiding under the wall street reform act about jobs act. They completed the wall street reform rule makings and evaluating how to finish the implementation of the rest. When you last appeared before the committee in september of 2014, you said the staff was proceeding on the outstanding rules. We can expect to see additional rules shortly. Several rules have been proposed and some finalized, many are still incomplete. And particularly the commission is not finished the derivatives rules under title vii of the wall street reform act and the path seems unclear. These rules are important because title vii is a key part of reform to the financial markets. And would do less damage. In isnt entirely on your shoulders or the s. E. C. s shoulders there are certain markets such as credit default swaps that depend on s. E. C. Until the rules are completed, the s. E. C. And other regulators wont have the benefit of a framework that provides transparency and access to market data. Another wall street reform act rule that remains outstanding would prohibit incentive compensation that could lead to excessive risk tacking or significant losses in financial firms. We know what happened during the financial crisis in that regard. The multiagency rule was proposed in 2011, and reproposed last month. Six years after wall street reform became law, this rule still isnt finished. A final rule would provide the market and the public with some assurance that Senior Executives and Financial Institutions wont be rewarded for taking inappropriate risks that could harm the markets and could harm their employees, could harm the economy. I urge you and ore regulators to finish that rule as quickly as possible. At your confirmation hearing you stated you would make strengthening enforcement a high priority throughout your tenure. You said then, and i agree, that, quote, investors in Market Participants need to know that the Playing Field for markets is lemm. And the wrong doughers individual and constitutional whatever position or size will be aggressively and successfully called into account. We see repeat offenders enter into settlement after settlement that seem to have effect. The question isnt what time at what point is the s. E. C. Going to stop handing out warnings and start giving tickets. Finally, i would like to return to an issue that has been discussed many times in this committee. Democrats in the senate have repeatedly asked you to begin work on a Corporate Political Spending Disclosure rule. This is not a plea from a special interest as some on the other side of the aisle might say. This is Good Government policy. When you were last year, you acknowledged the interest of investors and others, unquote, on the issue but you pointed to the low priority of mandatory rule making. I realize this years appropriate limits the work on the rule but shouldnt prevent you from doing anything at all. I hope you begin work. Im interested in hearing your update. Thank you. Madam chair, your written testimony in its entirety will be made part of the hearing record. Youve been here many times. Thank you, mr. Chairman, Ranking Member brown and other members. Let me, before i start, express im sorry to speexps for everyone, my thoughts and prayers are with the victims and their families on the orlando shootings. The commission has been busy since i last testified in 2014. The last three years has been marked by a vigorous enforcement and examination program. Empowered with new tools and methods to protect investors and hold wrong doughers accountable. In fiscal year 2015 alone, the commission brought over 800 Enforcement Actions, an unprecedented number. Secured over 4 billion in orders directing the payment of penalties at an all time high. Performed approximately 2,000 exams of four year high. And more importantly continued to develop cuttingedge cases and smarter, more efficient exams. The strength of our program can be seen in the kinds, complexity, and importance of the cases we bring that span the securities industry include numerous first of their kind actions, and focussed heightened attention on market gate keepers like accountants and lawyers. Significantly approximately twothirds of our staubstantiate actions in 2013 involve charges against individuals. We continue to obtain admissions and in certain indications which we have done in over 40 instances since we changed our settlement protocol. The commission over the last three years pursued consequential rules and other initiatives to protect investors, strengthen markets, and open navenues. Since i last testified, advanced major rules addressing key equity Market Structure issues including controls on the Technology Used by key Market Participants. A transparency of alternative Trading Systems and the consolidated audit trail. We issued a series of proposals. We adopted new rules for crowd funding and smaller securities offerings under regulation a. While also proposing additional avenues for Small Business to raise capital. We finallized major components of the Regulatory Regime for securitybased swaps and we continue to execute a comprehensive review of the effectiveness of our disclosure regime. This work marks the latest phase of extraordinary regulatory efforts by the agency. Both before and after i became chair enlisting all of our policy divisions and offices. The initiatives the Commission Adopted final rules for 66 of the mandatory rule makings of the doddfrank act. The majority of them since i became chair. And senator brown title vii is a major priority for 2016, which im sure well get into. We completed all of the rule makings directed by the jobs act. And we have made significant progress on the rule makings required of us last year under the fast act. While our work enforcement and rule making are perhaps the most prominent examples of the agencys achievements. The i want pmperatives of our m are moved forward each day. The division of Corporation Finance reviews the annual and periodic reports of thousands of issuers each year helping to ensure that investors receive full and fair disclosure about the Public Companies in which they invest. Last year the division of trading and markets reviewed more than 2100 filings from exchanges and other selfregulatory organizations to preserve a fair and orderly marketplace for all investors. The division of Investment Management reviewed filings last year covering more than 12,500 mutual funds and other inve Investment Companies. For many individuals, as you know, invest their hardearned money to save for retirement, college, and other important goals. Our economists in the division of economic and risk analysis produce more than 030 incisive papers and publications in 2015 including two major analysis to help inform our work on Asset Management. This afternoon i will have the privilege to participate in our annual awards ceremony at the commission where we recognize some of the tremendous work from some of our staff. The commission today is a stronger and more Effective Agency and im honored to lead the agency during this time. Never the less, significant challenges remain if were to address the growing size and complexity of the securities market. Its critical that the s. E. C. Has the resources required to discharge our responsibilities. The new ones and the many others we have long held in the face of a growing and ever more sophisticated Financial Services industry. I deeply appreciate that we must be prudent stewarts of the funds we are appropriated, and we strive to demonstrate how seriously we take that obligation by the work that we do. At the same time, our resources are insufficient, and the cuts and limitations to the s. E. C. s budget that the house bill proposes would seriously imperil the progress we have made and diminish our ability to fulfill our mission. More remains to be done, and achieved, im proud of the agencys impressive accomplishments across the ra