Taiwan Conflict Deterrence Act of 2023

Subjects: Finance and Financial Sector, Asia, Bank accounts, deposits, capital, Banking and financial institutions regulation, China, Congressional oversight, Diplomacy, foreign officials, Americans abroad, Foreign and international banking, Fraud offenses and financial crimes, Military operations and strategy, Taiwan

Summary:  <p><strong>Taiwan Conflict Deterrence Act of 2023</strong></p> <p>This bill requires additional reporting regarding the domestic and foreign financial activity of specified Chinese officials. </p> <p>Specifically, the bill requires the Department of the Treasury, upon a determination by the President that a threat to the interests of the United States exists resulting from actions by China, to (1) report to Congress on funds held by certain members of the Chinese Communist Party, including the total amount of funds, a description of the funds, and a list of related financial institutions; and (2) brief Congress on how these funds were acquired and any illicit or corrupt means employed to acquire or use the funds. </p> <p>The bill also allows Treasury to prohibit significant transactions between U.S. financial institutions and these individuals. </p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 554 Introduced in House (IH)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                H. R. 554

 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

_______________________________________________________________________

                                 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 brief the appropriate Members of Congress 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 Report; Public Availability.--
            (1) Form.--The report required under 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) 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 may 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); or
            (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) Termination.--Subsection (a) 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.
                                 &lt;all&gt;
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