HR 7440 IH1S 
(B) is not likely to be repeated in the fu-
ture; and 
(C) has been reversed or otherwise miti-
gated through positive countermeasures taken 
by that foreign financial institution. 
(3) NOTIFICATION
REQUIRED.—If the Presi-
dent makes a determination under paragraph (1) or 
(2) to exclude or remove a foreign person or foreign 
financial institution from a report under subsection 
(a) or (b), as the case may be, the President shall 
notify the appropriate congressional committees and 
leadership of the determination and the reasons for 
the determination. 
(e) UPDATE OF REPORTS.— 
(1) IN
GENERAL.—Each report submitted 
under subsections (a) and (b) shall be updated in an 
ongoing manner and, to the extent practicable, up-
dated reports shall be resubmitted with the annual 
report under section 301 of the United States-Hong 
Kong Policy Act of 1992 (22 U.S.C. 5731). 
(2) RULE OF CONSTRUCTION.—Nothing in this 
subsection shall be construed to terminate the re-
quirement to update the reports under subsections 
(a) and (b) upon the termination of the requirement 
to submit the annual report under section 301 of the 
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HR 7440 IH1S 
United States-Hong Kong Policy Act of 1992 (22 
U.S.C. 5731). 
(f) FORM OF REPORTS.— 
(1) IN
GENERAL.—Each report under sub-
section (a) or (b) (including updates under sub-
section (e)) shall be submitted in unclassified form 
and made available to the public. 
(2) CLASSIFIED ANNEX.—The explanations and 
descriptions included in the report under subsection 
(a)(2) (including updates under subsection (e)) may 
be expanded on in a classified annex. 
(g) MATERIAL CONTRIBUTIONS RELATED TO OBLI-
GATIONS OF CHINA DESCRIBED.—For purposes of this 
section, a foreign person materially contributes to the fail-
ure of the Government of China to meet its obligations 
under the Joint Declaration or the Basic Law if the per-
son— 
(1) took action that resulted in the inability of 
the people of Hong Kong— 
(A) to enjoy freedom of assembly, speech, 
press, or independent rule of law; or 
(B) to participate in democratic outcomes; 
or 
(2) otherwise took action that reduces the high 
degree of autonomy of Hong Kong. 
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SEC. 6. SANCTIONS WITH RESPECT TO FOREIGN PERSONS 
THAT CONTRAVENE THE OBLIGATIONS OF 
CHINA UNDER THE JOINT DECLARATION OR 
THE BASIC LAW. 
(a) IMPOSITION OF SANCTIONS.— 
(1) IN GENERAL.—On and after the date on 
which a foreign person is included in the report 
under section 5(a) or an update to that report under 
section 5(e), the President may impose sanctions de-
scribed in subsection (b) with respect to that foreign 
person. 
(2) MANDATORY SANCTIONS.—Not later than 
one year after the date on which a foreign person is 
included in the report under section 5(a) or an up-
date to that report under section 5(e), the President 
shall impose sanctions described in subsection (b) 
with respect to that foreign person. 
(b) SANCTIONS
DESCRIBED.—The sanctions de-
scribed in this subsection with respect to a foreign person 
are the following: 
(1) PROPERTY TRANSACTIONS.—The President 
may, pursuant to such regulations as the President 
may prescribe, prohibit any person from— 
(A) acquiring, holding, withholding, using, 
transferring, withdrawing, transporting, or ex-
porting any property that is subject to the ju-
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risdiction of the United States and with respect 
to which the foreign person has any interest; 
(B) dealing in or exercising any right, 
power, or privilege with respect to such prop-
erty; or 
(C) conducting any transaction involving 
such property. 
(2) EXCLUSION
FROM
THE
UNITED
STATES 
AND REVOCATION OF VISA OR OTHER DOCUMENTA-
TION.—In the case of a foreign person who is an in-
dividual, the President may direct the Secretary of 
State to deny a visa to, and the Secretary of Home-
land Security to exclude from the United States, the 
foreign person, subject to regulatory exceptions to 
permit the United States to comply with the Agree-
ment regarding the Headquarters of the United Na-
tions, signed at Lake Success June 26, 1947, and 
entered into force November 21, 1947, between the 
United Nations and the United States, or other ap-
plicable international obligations. 
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SEC. 7. SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL 
INSTITUTIONS THAT CONDUCT SIGNIFICANT 
TRANSACTIONS 
WITH 
FOREIGN 
PERSONS 
THAT CONTRAVENE THE OBLIGATIONS OF 
CHINA UNDER THE JOINT DECLARATION OR 
THE BASIC LAW. 
(a) IMPOSITION OF SANCTIONS.— 
(1) INITIAL SANCTIONS.—Not later than one 
year after the date on which a foreign financial in-
stitution is included in the report under section 5(b) 
or an update to that report under section 5(e), the 
President shall impose not fewer than 5 of the sanc-
tions described in subsection (b) with respect to that 
foreign financial institution. 
(2) EXPANDED
SANCTIONS.—Not later than 
two years after the date on which a foreign financial 
institution is included in the report under section 
5(b) or an update to that report under section 5(e), 
the President shall impose each of the sanctions de-
scribed in subsection (b). 
(b) SANCTIONS
DESCRIBED.—The sanctions de-
scribed in this subsection with respect to a foreign finan-
cial institution are the following: 
(1) LOANS FROM UNITED STATES FINANCIAL 
INSTITUTIONS.—The United States Government 
may prohibit any United States financial institution 
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from making loans or providing credits to the for-
eign financial institution. 
(2) PROHIBITION ON DESIGNATION AS PRIMARY 
DEALER.—Neither the Board of Governors of the 
Federal Reserve System nor the Federal Reserve 
Bank of New York may designate, or permit the 
continuation of any prior designation of, the foreign 
financial institution as a primary dealer in United 
States Government debt instruments. 
(3) PROHIBITION
ON
SERVICE
AS
A
REPOSI-
TORY OF GOVERNMENT FUNDS.—The foreign finan-
cial institution may not serve as agent of the United 
States Government or serve as repository for United 
States Government funds. 
(4) FOREIGN EXCHANGE.—The President may, 
pursuant to such regulations as the President may 
prescribe, prohibit any transactions in foreign ex-
change that are subject to the jurisdiction of the 
United States and involve the foreign financial insti-
tution. 
(5) BANKING
TRANSACTIONS.—The President 
may, pursuant to such regulations as the President 
may prescribe, prohibit any transfers of credit or 
payments between financial institutions or by, 
through, or to any financial institution, to the extent 
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