War Crimes Prosecution Facilitation Act of 1997

War Crimes Prosecution Facilitation Act of 1997 - Expresses the sense of the Congress that: (1) reconciliation in Bosnia and Herzegovina cannot be achieved if indicted war criminals remain at large and refugees and displaced persons are unable to return to their homes; (2) the United States should ensure that multilateral and bilateral assistance is provided to the Dayton Agreement parties only if doing so would promote reconciliation as well as reconstruction, including the transfer of war criminals to the International Criminal Tribunal for the Former Yugoslavia, the return of refugees and displaced persons, and freedom of movement; and (3) the Tribunal should continue to investigate and bring indictments against persons who have violated international humanitarian law. Prohibits foreign assistance under the Foreign Assistance Act of 1961 or the Arms Export Control Act (except humanitarian or democratization assistance, or assistance for physical infrastructure projects) to: (1) any country whose government fails to apprehend and transfer to the Tribunal persons who have been indicted by the Tribunal and are in their territory; (2) any program or activity in such country in which an indicted war criminal has any financial interest or through any organization with which the indicted person is affiliated; and (3) any program or activity in any country (other than emergency food, medical, or demining assistance) in which local authorities are not complying with certain articles of the Dayton Agreement. Directs the Secretary of the Treasury to instruct the U.S. executive directors of the international financial institutions to oppose, and vote against, any extension of any financial assistance or grants to such a country. Provides for a waiver of such sanctions if a majority of indicted persons within the country's territory have been arrested and transferred to the Tribunal.