Prohibition on Financial Transactions With Countries Supporting Terrorism Act of 1997

Prohibition on Financial Transactions With Countries Supporting Terrorism Act of 1997 - Amends the Federal criminal code to repeal provisions providing for exceptions, pursuant to regulations issued by Secretary of the Treasury in consultation with the Secretary of State, to the prohibition against engaging in a financial transaction with the government of a country designated as a country supporting international terrorism.

Specifies as being excluded from the definition of "financial transaction" for purposes of such prohibition any transaction ordinarily incident to: (1) routine diplomatic relations among countries; (2) an official act by a representative of, or an act authorized by and conducted on behalf of, the U.S. Government; (3) the broadcasting or reporting of news by organizations regularly engaged in such activity; (4) the provision or purchase of assistance intended to relieve human suffering, including medical services, supplies, and equipment; (5) the receipt of emergency medical services; (6) any postal, telegraphic, or other personal communication which does not involve a transfer of anything of value; (7) the protection of intellectual property rights of any U.S. person; (8) the performance of any contract or agreement that was entered into before June 12, 1997 (but not those renewed after such date); (9) the provision of hospitality or transportation services; or (10) the payment of a claim to any U.S. person.

Directs the Secretary of the Treasury to issue an annual report to the Congress on: (1) the impact of this prohibition on U.S. businesses; and (2) any means by which a negative impact might be ameliorated.