IB 

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] 


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•HR 554 RH

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. 


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•HR 554 RH

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Taiwan Conflict Deter5 rence Act of 2023’’. 

6 SEC. 2. REPORT ON FINANCIAL INSTITUTIONS AND AC7 COUNTS CONNECTED TO CERTAIN CHINESE 

8 GOVERNMENT OFFICIALS. 

9 (a) FINANCIAL INSTITUTIONS REPORT.— 

10 (1) IN GENERAL.—Not later than 90 days after 

11 the date that the President, pursuant to section 3(c) 

12 of the Taiwan Relations Act (22 U.S.C. 3302(c)), in13 forms the Congress of a threat resulting from actions 

14 of the People’s Republic of China and any danger to 

15 the interests of the United States arising therefrom, 

16 and annually thereafter for 3 years, the Secretary of 

17 the Treasury shall submit a report to the appropriate 

18 Members of Congress containing the following: 

19 (A) With respect to each of at least 10 nat20 ural persons described under subsection (b), at 

21 least 1 of whom is a natural person listed under 

22 paragraph (1) of such subsection (b) and at least 

23 1 of whom is a natural person listed under para24 graph (2) of such subsection (b), the estimated 

25 total funds that are held in financial institutions 


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1 and are under direct or indirect control by such 

2 natural person and a description of such funds. 

3 (B) A list of any financial institutions 

4 that— 

5 (i) maintain an account in connection 

6 with significant funds described in subpara7 graph (A); or 

8 (ii) otherwise provide significant fi9 nancial services to a natural person covered 

10 by the report. 

11 (2) BRIEFING REQUIRED.—Not later than 30 

12 days after submitting a report described under para13 graph (1), the Secretary of the Treasury, or a des14 ignee of the Secretary, shall provide to the appro15 priate Members of Congress an unclassified or classi16 fied briefing (as determined appropriate by the Sec17 retary) on the funds covered by the report, including 

18 a description of how the funds were acquired, and 

19 any illicit or corrupt means employed to acquire or 

20 use the funds. 

21 (3) EXEMPTIONS.—The requirements described 

22 under paragraph (1) may not be applied with respect 

23 to a natural person or a financial institution, as the 

24 case may be, if the President determines: 


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•HR 554 RH

1 (A) The funds described under paragraph 

2 (1)(A) were primarily acquired through legal 

3 and noncorrupt means. 

4 (B) The natural person has agreed to pro5 vide significant cooperation to the United States 

6 for an important national security purpose with 

7 respect to China. 

8 (C) A financial institution has agreed to— 

9 (i) no longer maintain an account de10 scribed under paragraph (1)(B)(i); 

11 (ii) no longer provide significant fi12 nancial services to a natural person covered 

13 by the report; or 

14 (iii) provide significant cooperation to 

15 the United States for an important national 

16 security purpose with respect to China. 

17 (4) WAIVER.—The President may waive any re18 quirement described under paragraph (1) with respect 

19 to a natural person or a financial institution upon 

20 reporting to the appropriate Members of Congress 

21 that— 

22 (A) the waiver would substantially promote 

23 the objective of ending the threat described under 

24 paragraph (1); 


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1 (B) the threat described under paragraph 

2 (1) is no longer present; or 

3 (C) the waiver is essential to the national 

4 security interests of the United States. 

5 (b) NATURAL PERSONS DESCRIBED.—The natural 

6 persons described in this subsection are persons who, at the 

7 time of a report, are the following: 

8 (1) A member of the Politburo Standing Com9 mittee of the Chinese Communist Party. 

10 (2) A member of the Politburo of the Chinese 

11 Communist Party that is not described under para12 graph (1). 

13 (3) A member of the Central Committee of the 

14 Chinese Communist Party that— 

15 (A) is none of the foregoing; and 

16 (B) performs any official duty that directly 

17 or indirectly affects Taiwan. 

18 (c) FORM OF REPORTS; PUBLIC AVAILABILITY.— 

19 (1) FORM.—The reports required under para20 graphs (1) and (4) of subsection (a) shall be sub21 mitted in unclassified form but may contain a classi22 fied annex. 

23 (2) PUBLIC AVAILABILITY.—The Secretary of the 

24 Treasury shall make the unclassified portion of the re25 port required under subsection (a)(1) available to the 


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1 public on the website and social media accounts of the 

2 Department of the Treasury— 

3 (A) in English, Chinese, and any other lan4 guage that the Secretary finds appropriate; and 

5 (B) in precompressed, easily downloadable 

6 versions that are made available in all appro7 priate formats. 

8 SEC. 3. PROHIBITION ON FINANCIAL SERVICES FOR CER9 TAIN IMMEDIATE FAMILY. 

10 (a) IN GENERAL.—The Secretary of the Treasury shall 

11 prohibit a United States financial institution, and any per12 son owned or controlled by a United States financial insti13 tution, from engaging in a significant transaction with— 

14 (1) a natural person covered by a report made 

15 under section 2(a); and 

16 (2) the immediate family of a person described 

17 under paragraph (1), if the Secretary finds that such 

18 immediate family benefits from funds described in the 

19 report. 

20 (b) EXCEPTIONS.— 

21 (1) EXCEPTION FOR INTELLIGENCE, LAW EN22 FORCEMENT, AND NATIONAL SECURITY ACTIVITIES.— 

23 Subsection (a) shall not apply with respect to any in24 telligence, law enforcement, or national security activ25 ity of the United States. 


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•HR 554 RH

1 (2) WAIVER.—The President may waive the ap2 plication of subsection (a) with respect to a person 

3 upon reporting to the appropriate Members of Con4 gress that— 

5 (A) the waiver would substantially promote 

6 the objective of ending the threat described under 

7 section 2(a)(1); 

8 (B) the threat described under section 

9 2(a)(1) is no longer present; or 

10 (C) the waiver is essential to the national 

11 security interests of the United States. 

12 (3) FORM OF REPORTS.—The reports required 

13 under paragraph (2) shall be submitted in unclassi14 fied form but may contain a classified annex. 

15 (4) RULE OF CONSTRUCTION.— 

16 (A) IN GENERAL.—Nothing in this section 

17 shall be construed as authorizing or requiring 

18 any sanction with respect to the importation of 

19 any good. 

20 (B) GOOD DEFINED.—In this paragraph, 

21 the term ‘‘good’’ means any article, natural or 

22 manmade substance, material, supply or manu23 factured product, including inspection and test 

24 equipment, and excluding technical data. 

25 (c) IMPLEMENTATION; PENALTIES.— 


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1 (1) IMPLEMENTATION.—The President may exer2 cise all authorities provided to the President under 

3 sections 203 and 205 of the International Emergency 

4 Economic Powers Act (50 U.S.C. 1702 and 1704) to 

5 carry out this section. Not later than 60 days after 

6 issuing a license pursuant to this section, the Presi7 dent shall submit a copy of the license to the appro8 priate Members of Congress. 

9 (2) PENALTIES.—A person that violates, at10 tempts to violate, conspires to violate, or causes a vio11 lation of this section or any regulation, license, or 

12 order issued to carry out this section shall be subject 

13 to the penalties set forth in subsections (b) and (c) of 

14 section 206 of the International Emergency Economic 

15 Powers Act (50 U.S.C. 1705) to the same extent as a 

16 person that commits an unlawful act described in 

17 subsection (a) of that section 206. 

18 (d) TERMINATION.—This section shall have no force or 

19 effect on the earlier of— 

20 (1) the date that is 30 days after the date that 

21 the President reports to the appropriate Members of 

22 Congress that the threat described under section 

23 2(a)(1) is no longer present; or 


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1 (2) the date that is 25 years after the date that 

2 the Secretary of the Treasury submits the final report 

3 required under section 2(a)(1). 

4 SEC. 4. DEFINITIONS. 

5 For purposes of this Act: 

6 (1) APPROPRIATE MEMBERS OF CONGRESS.—The 

7 term ‘‘appropriate Members of Congress’’ means the 

8 Speaker and minority leader of the House of Rep9 resentatives, the majority leader and minority leader 

10 of the Senate, the Chairman and Ranking Member of 

11 the Committee on Financial Services of the House of 

12 Representatives, and the Chairman and Ranking 

13 Member of the Committee on Banking, Housing, and 

14 Urban Affairs of the Senate. 

15 (2) FINANCIAL INSTITUTION.—The term ‘‘finan16 cial institution’’ means a United States financial in17 stitution or a foreign financial institution. 

18 (3) FOREIGN FINANCIAL INSTITUTION.—The term 

19 ‘‘foreign financial institution’’ has the meaning given 

20 that term in section 561.308 of title 31, Code of Fed21 eral Regulations. 

22 (4) FUNDS.—The term ‘‘funds’’ has the meaning 

23 given to such term by the Secretary of the Treasury. 


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1 (5) IMMEDIATE FAMILY.—The term ‘‘immediate 

2 family’’ of any natural person means the following 

3 (whether by the full or half blood or by adoption): 

4 (A) Such person’s spouse, father, mother, 

5 children, brothers, sisters, and grandchildren. 

6 (B) The father, mother, brothers, and sisters 

7 of such person’s spouse. 

8 (C) The spouse of a child, brother, or sister 

9 of such person. 

10 (6) UNITED STATES FINANCIAL INSTITUTION.— 

11 The term ‘‘United States financial institution’’ has 

12 the meaning given the term ‘‘U.S. financial institu13 tion’’ under section 561.309 of title 31, Code of Fed14 eral Regulations. 


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Union Calendar No. 236 

118TH CONGRESS 

1ST SESSION H. R. 554 

[Report No. 118–292] 

A BILL 

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

DECEMBER 1, 2023 

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


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