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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 554 Reported in House (RH)]

<DOC>

                                                 Union Calendar No. 236
118th CONGRESS
  1st Session
                                H. R. 554

                          [Report No. 118-292]

 To deter Chinese aggression towards Taiwan by requiring the Secretary 
   of the Treasury to publish a report on financial institutions and 
  accounts connected to senior officials of the People's Republic of 
 China, to restrict financial services for certain immediate family of 
                such officials, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 26, 2023

 Mr. Hill (for himself and Mr. Sherman) introduced the following bill; 
       which was referred to the Committee on Financial Services

                            December 1, 2023

   Additional sponsors: Mr. Lawler, Ms. Lee of Nevada, Mr. Ryan, Mr. 
    Pappas, Mrs. Kim of California, Ms. De La Cruz, and Mrs. Wagner

                            December 1, 2023

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
[For text of introduced bill, see copy of bill as introduced on January 
                               26, 2023]

_______________________________________________________________________

                                 A BILL

 
 To deter Chinese aggression towards Taiwan by requiring the Secretary 
   of the Treasury to publish a report on financial institutions and 
  accounts connected to senior officials of the People's Republic of 
 China, to restrict financial services for certain immediate family of 
                such officials, and for other purposes.

 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Taiwan Conflict Deterrence Act of 
2023''.

SEC. 2. REPORT ON FINANCIAL INSTITUTIONS AND ACCOUNTS CONNECTED TO 
              CERTAIN CHINESE GOVERNMENT OFFICIALS.

    (a) Financial Institutions Report.--
            (1) In general.--Not later than 90 days after the date that 
        the President, pursuant to section 3(c) of the Taiwan Relations 
        Act (22 U.S.C. 3302(c)), informs the Congress of a threat 
        resulting from actions of the People's Republic of China and 
        any danger to the interests of the United States arising 
        therefrom, and annually thereafter for 3 years, the Secretary 
        of the Treasury shall submit a report to the appropriate 
        Members of Congress containing the following:
                    (A) With respect to each of at least 10 natural 
                persons described under subsection (b), at least 1 of 
                whom is a natural person listed under paragraph (1) of 
                such subsection (b) and at least 1 of whom is a natural 
                person listed under paragraph (2) of such subsection 
                (b), the estimated total funds that are held in 
                financial institutions and are under direct or indirect 
                control by such natural person and a description of 
                such funds.
                    (B) A list of any financial institutions that--
                            (i) maintain an account in connection with 
                        significant funds described in subparagraph 
                        (A); or
                            (ii) otherwise provide significant 
                        financial services to a natural person covered 
                        by the report.
            (2) Briefing required.--Not later than 30 days after 
        submitting a report described under paragraph (1), the 
        Secretary of the Treasury, or a designee of the Secretary, 
        shall provide to the appropriate Members of Congress an 
        unclassified or classified briefing (as determined appropriate 
        by the Secretary) on the funds covered by the report, including 
        a description of how the funds were acquired, and any illicit 
        or corrupt means employed to acquire or use the funds.
            (3) Exemptions.--The requirements described under paragraph 
        (1) may not be applied with respect to a natural person or a 
        financial institution, as the case may be, if the President 
        determines:
                    (A) The funds described under paragraph (1)(A) were 
                primarily acquired through legal and noncorrupt means.
                    (B) The natural person has agreed to provide 
                significant cooperation to the United States for an 
                important national security purpose with respect to 
                China.
                    (C) A financial institution has agreed to--
                            (i) no longer maintain an account described 
                        under paragraph (1)(B)(i);
                            (ii) no longer provide significant 
                        financial services to a natural person covered 
                        by the report; or
                            (iii) provide significant cooperation to 
                        the United States for an important national 
                        security purpose with respect to China.
            (4) Waiver.--The President may waive any requirement 
        described under paragraph (1) with respect to a natural person 
        or a financial institution upon reporting to the appropriate 
        Members of Congress that--
                    (A) the waiver would substantially promote the 
                objective of ending the threat described under 
                paragraph (1);
                    (B) the threat described under paragraph (1) is no 
                longer present; or
                    (C) the waiver is essential to the national 
                security interests of the United States.
    (b) Natural Persons Described.--The natural persons described in 
this subsection are persons who, at the time of a report, are the 
following:
            (1) A member of the Politburo Standing Committee of the 
        Chinese Communist Party.
            (2) A member of the Politburo of the Chinese Communist 
        Party that is not described under paragraph (1).
            (3) A member of the Central Committee of the Chinese 
        Communist Party that--
                    (A) is none of the foregoing; and
                    (B) performs any official duty that directly or 
                indirectly affects Taiwan.
    (c) Form of Reports; Public Availability.--
            (1) Form.--The reports required under paragraphs (1) and 
        (4) of subsection (a) shall be submitted in unclassified form 
        but may contain a classified annex.
            (2) Public availability.--The Secretary of the Treasury 
        shall make the unclassified portion of the report required 
        under subsection (a)(1) available to the public on the website 
        and social media accounts of the Department of the Treasury--
                    (A) in English, Chinese, and any other language 
                that the Secretary finds appropriate; and
                    (B) in precompressed, easily downloadable versions 
                that are made available in all appropriate formats.

SEC. 3. PROHIBITION ON FINANCIAL SERVICES FOR CERTAIN IMMEDIATE FAMILY.

    (a) In General.--The Secretary of the Treasury shall prohibit a 
United States financial institution, and any person owned or controlled 
by a United States financial institution, from engaging in a 
significant transaction with--
            (1) a natural person covered by a report made under section 
        2(a); and
            (2) the immediate family of a person described under 
        paragraph (1), if the Secretary finds that such immediate 
        family benefits from funds described in the report.
    (b) Exceptions.--
            (1) Exception for intelligence, law enforcement, and 
        national security activities.--Subsection (a) shall not apply 
        with respect to any intelligence, law enforcement, or national 
        security activity of the United States.
            (2) Waiver.--The President may waive the application of 
        subsection (a) with respect to a person upon reporting to the 
        appropriate Members of Congress that--
                    (A) the waiver would substantially promote the 
                objective of ending the threat described under section 
                2(a)(1);
                    (B) the threat described under section 2(a)(1) is 
                no longer present; or
                    (C) the waiver is essential to the national 
                security interests of the United States.
            (3) Form of reports.--The reports required under paragraph 
        (2) shall be submitted in unclassified form but may contain a 
        classified annex.
            (4) Rule of construction.--
                    (A) In general.--Nothing in this section shall be 
                construed as authorizing or requiring any sanction with 
                respect to the importation of any good.
                    (B) Good defined.--In this paragraph, the term 
                ``good'' means any article, natural or manmade 
                substance, material, supply or manufactured product, 
                including inspection and test equipment, and excluding 
                technical data.
    (c) Implementation; Penalties.--
            (1) Implementation.--The President may exercise all 
        authorities provided to the President under sections 203 and 
        205 of the International Emergency Economic Powers Act (50 
        U.S.C. 1702 and 1704) to carry out this section. Not later than 
        60 days after issuing a license pursuant to this section, the 
        President shall submit a copy of the license to the appropriate 
        Members of Congress.
            (2) Penalties.--A person that violates, attempts to 
        violate, conspires to violate, or causes a violation of this 
        section or any regulation, license, or order issued to carry 
        out this section shall be subject to the penalties set forth in 
        subsections (b) and (c) of section 206 of the International 
        Emergency Economic Powers Act (50 U.S.C. 1705) to the same 
        extent as a person that commits an unlawful act described in 
        subsection (a) of that section 206.
    (d) Termination.--This section shall have no force or effect on the 
earlier of--
            (1) the date that is 30 days after the date that the 
        President reports to the appropriate Members of Congress that 
        the threat described under section 2(a)(1) is no longer 
        present; or
            (2) the date that is 25 years after the date that the 
        Secretary of the Treasury submits the final report required 
        under section 2(a)(1).

SEC. 4. DEFINITIONS.

    For purposes of this Act:
            (1) Appropriate members of congress.--The term 
        ``appropriate Members of Congress'' means the Speaker and 
        minority leader of the House of Representatives, the majority 
        leader and minority leader of the Senate, the Chairman and 
        Ranking Member of the Committee on Financial Services of the 
        House of Representatives, and the Chairman and Ranking Member 
        of the Committee on Banking, Housing, and Urban Affairs of the 
        Senate.
            (2) Financial institution.--The term ``financial 
        institution'' means a United States financial institution or a 
        foreign financial institution.
            (3) Foreign financial institution.--The term ``foreign 
        financial institution'' has the meaning given that term in 
        section 561.308 of title 31, Code of Federal Regulations.
            (4) Funds.--The term ``funds'' has the meaning given to 
        such term by the Secretary of the Treasury.
            (5) Immediate family.--The term ``immediate family'' of any 
        natural person means the following (whether by the full or half 
        blood or by adoption):
                    (A) Such person's spouse, father, mother, children, 
                brothers, sisters, and grandchildren.
                    (B) The father, mother, brothers, and sisters of 
                such person's spouse.
                    (C) The spouse of a child, brother, or sister of 
                such person.
            (6) United states financial institution.--The term ``United 
        States financial institution'' has the meaning given the term 
        ``U.S. financial institution'' under section 561.309 of title 
        31, Code of Federal Regulations.
                                                 Union Calendar No. 236

118th CONGRESS

  1st Session

                               H. R. 554

                          [Report No. 118-292]

_______________________________________________________________________

                                 A BILL

 To deter Chinese aggression towards Taiwan by requiring the Secretary 
   of the Treasury to publish a report on financial institutions and 
  accounts connected to senior officials of the People's Republic of 
 China, to restrict financial services for certain immediate family of 
                such officials, and for other purposes.

_______________________________________________________________________

                            December 1, 2023

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
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