SEFIT Act

To direct the Secretary of the Treasury to provide for a determination on the activities on certain foreign financial institutions. 1. Short title This Act may be cited as the Sanctions Enforcement and Financial Institutions Transparency Act SEFIT Act 2. Determination On Certain Foreign Financial Institutions (a) Determination (1) In general Not later than 180 days after the date of the enactment of the this Act, and every 180 days thereafter for a period not to exceed 5 years, the Secretary of the Treasury shall submit to the appropriate congressional committees a determination on whether each foreign financial institution described in subsection (b) engages in, or has engaged in or attempted to engage in one or more activities described in subsection (c) and provides a detailed description of each such activity. (2) Appropriate congressional committees defined In this subsection, the term appropriate congressional committees (A) the Committee on Foreign Affairs and the Committee on Armed Services of the House of Representatives; and (B) the Committee on Foreign Relations and the Committee on Armed Services of the Senate. (b) Foreign financial institution described (1) In general A foreign financial institution described in this subsection is a foreign financial institution that, wherever located, is— (A) organized under the laws of a state sponsor of terrorism or any jurisdiction within a state sponsor of terrorism; (B) owned or controlled, directly or indirectly by the government of a state sponsor of terrorism; (C) located in the territory of a state sponsor of terrorism; or (D) owned or controlled by a foreign financial institution described in subparagraph (A), (B), or (C); and (E) the capitalization of which exceeds $10,000,000. (2) State sponsor of terrorism defined In this subsection, the term state sponsor of terrorism (A) section 1754(c) of the Export Control Reform Act of 2018; (B) section 620A of the Foreign Assistance Act of 1961 ( 22 U.S.C. 2371 (C) section 40 of the Arms Export Control Act ( 22 U.S.C. 2780 (D) any other provision of law. (3) Foreign financial institution defined A foreign financial institution in this subsection includes— (A) the meaning given that term in section 1010.605 of title 31, Code of Federal Regulations; or (B) a foreign central bank. (c) Activities described (1) In general The activities described in this subsection include any act that engages in, or has engaged in or attempted to engage in conduct that would be sanctionable under covered Executive Orders described in paragraph (2) or covered provisions of law described in paragraph (3). (2) Covered Executive Orders In this subsection, the term covered executive orders (A) Executive Order 14071 (Prohibiting New Investment In And Certain Services To The Russian Federation In Response To Continued Russian Federation Aggression (April 6, 2022)). (B) Executive Order 14068 (Prohibiting Certain Imports, Exports, and New Investment with Respect to Continued Russian Federation Aggression (March 11, 2022)). (C) Executive Order 14066 (Prohibiting Certain Imports And New Investments With Respect To Continued Russian Federation Efforts To Undermine the Sovereignty And Territorial Integrity Of Ukraine (March 8, 2022)). (D) Executive Order 14039 (Blocking Property with Respect to Certain Russian Energy Export Pipelines (August 20, 2021)). (E) Executive Order 14024 (Blocking Property With Respect To Specified Harmful Foreign Activities Of The Government Of The Russian Federation (April 15, 2021)). (F) Executive Order 14065 (Blocking Property Of Certain Persons And Prohibiting Certain Transactions With Respect To Continued Russian Efforts To Undermine The Sovereignty And Territorial Integrity Of Ukraine (February 21, 2022)). (G) Executive Order 13883 (Administration of Proliferation Sanctions and Amendment of Executive Order 12851 (August 3, 2019)). (H) Executive Order 13849 (Authorizing the Implementation of Certain Sanctions Set Forth in the Countering America’s Adversaries Through Sanctions Act (September 20, 2018)). (I) Executive Order 13685 (Blocking Property of Certain Persons and Prohibiting Certain Transactions with Respect to the Crimea Region of Ukraine (December 19, 2014)). (J) Executive Order 13662 (Blocking Property of Additional Persons Contributing to the Situation in Ukraine (March 20, 2014)). (K) Executive Order 13661 (Blocking Property of Additional Persons Contributing to the Situation in Ukraine (March 17, 2014)). (L) Executive Order 13660 (Blocking Property of Certain Persons Contributing to the Situation in Ukraine (March 6, 2014)). (M) Any directive issued pursuant to the Executive orders described in subparagraphs (A) through (L). (N) Any other Executive order or directive imposing sanctions against the Russian Federation. (3) Covered legislation defined In this subsection the term covered legislation (A) The Countering America’s Adversaries Through Sanctions Act ( 22 U.S.C. 9401 et seq. (B) The Ukraine Freedom Support Act of 2014 ( 22 U.S.C. 8921 et seq. (C) The Support for the Sovereignty, Integrity, Democracy, and Economic Stability of Ukraine Act of 2014 ( 22 U.S.C. 8901 et seq. (D) The Protecting Europe’s Energy Security Act of 2019 (title LXXV of division F of Public Law 116–92 (E) Any other law imposing sanctions against the Russian Federation.

Summary: Sanctions Enforcement and Financial Institutions Transparency Act or the SEFIT ActThis bill requires the Department of the Treasury to notify Congress as to whether certain foreign financial institutions have engaged in sanctionable conduct.The foreign financial institutions targeted by this bill are those that have a capitalization of over $10 million and are (1) organized under the laws of a state sponsor of terrorism, (2) owned or controlled by the government of a state sponsor of terrorism, (3) located in the territory of a state sponsor of terrorism, or (4) owned or controlled by a foreign financial institution that falls into one of the preceding categories.Treasury must submit a determination to Congress as to whether any such foreign financial institution has engaged in, or attempted to engage in, conduct that would be sanctionable under certain laws, executive orders, or directives.