Title: CURB CIPS Act of 2022
Policy area: International Affairs

Summary:
Crippling Unhinged Russian Belligerence and Chinese Involvement in Putin's Schemes Act of 2022 or the CURB CIPS Act of 2022
This bill imposes sanctions on any Chinese financial institution that uses China's Cross-Border Interbank Payment System or Russia's System for Transfer of Financial Messages to conduct transactions with any Russian financial institution or financial institution affiliated with an entity holding itself out to be the government of (1) the Republic of South Ossetia- the State of Alania, (2) the Donetsk People's Republic, (3) the Luhansk People's Republic, (4) the Republic of Abkhazia, or (5) the Pridnestrovian Moldavian Republic.
For the purposes of this bill, a Chinese or Russian financial institution is one organized under the laws of, located in, or owned or controlled by China or Russia. Similarly, a financial institution is affiliated with one of the named entities if it is organized under the laws of, located in territory controlled by, or owned or controlled by such an entity.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 3877 Introduced in Senate (IS)]

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117th CONGRESS
  2d Session
                                S. 3877

    To require the imposition of sanctions with respect to Chinese 
financial institutions that clear, verify, or settle transactions with 
         Russian or Russian-controlled financial institutions.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 17, 2022

Mr. Rubio (for himself, Mr. Young, and Mr. Scott of Florida) introduced 
the following bill; which was read twice and referred to the Committee 
                 on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
    To require the imposition of sanctions with respect to Chinese 
financial institutions that clear, verify, or settle transactions with 
         Russian or Russian-controlled financial institutions.

    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 ``Crippling Unhinged Russian 
Belligerence and Chinese Involvement in Putin's Schemes Act of 2022'' 
or the ``CURB CIPS Act of 2022''.

SEC. 2. IMPOSITION OF SANCTIONS WITH RESPECT TO CHINESE FINANCIAL 
              INSTITUTIONS THAT CLEAR, VERIFY, OR SETTLE TRANSACTIONS 
              WITH RUSSIAN OR RUSSIAN-CONTROLLED FINANCIAL 
              INSTITUTIONS.

    (a) In General.--The Secretary of the Treasury shall, in 
consultation with the Secretary of State, impose one or both of the 
sanctions described in subsection (b) with respect to each Chinese 
financial institution that uses the Cross-Border Interbank Payment 
System (commonly referred to as ``CIPS'') or the System for Transfer of 
Financial Messages (commonly referred to as ``SPFS'') to clear, verify, 
settle, or otherwise conduct transactions with any Russian financial 
institution or covered financial institution.
    (b) Sanctions Described.--The sanctions that may be imposed with 
respect to a Chinese financial institution subject to subsection (a) 
include the following:
            (1) Property blocking.--The Secretary of the Treasury may 
        block and prohibit, pursuant to the International Emergency 
        Economic Powers Act (50 U.S.C. 1701 et seq.), all transactions 
        in all property and interests in property of the Chinese 
        financial institution if such property and interests in 
        property are in the United States, come within the United 
        States, or are or come within the possession or control of a 
        United States person.
            (2) Restrictions on correspondent and payable-through 
        accounts.--The Secretary may prohibit the opening or 
        maintaining in the United States of a correspondent account or 
        a payable-through account by the Chinese financial institution.
    (c) Implementation; Penalties.--
            (1) Implementation.--The Secretary may exercise all 
        authorities provided under sections 203 and 205 of the 
        International Emergency Economic Powers Act (50 U.S.C. 1702 and 
        1704) to carry out this section.
            (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.
    (d) Exceptions.--
            (1) Exception for intelligence activities.--This section 
        shall not apply with respect to activities subject to the 
        reporting requirements under title V of the National Security 
        Act of 1947 (50 U.S.C. 3091 et seq.) or any authorized 
        intelligence activities of the United States.
            (2) Exception relating to importation of goods.--
                    (A) In general.--The authority to block and 
                prohibit all transactions in all property and interests 
                in property under subsection (b) shall not include the 
                authority or a requirement to impose sanctions on the 
                importation of goods.
                    (B) Good.--In this paragraph, the term ``good'' 
                means any article, natural or man-made substance, 
                material, supply or manufactured product, including 
                inspection and test equipment, and excluding technical 
                data.
    (e) Regulations.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary shall prescribe such regulations 
as are necessary to carry out this section.
    (f) Report Required.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary shall, in consultation 
        with the Secretary of State, submit to the appropriate 
        congressional committees a report--
                    (A) describing the scope and usage of CIPS and SPFS 
                around the world, including usage rates by country;
                    (B) assessing the risks that widespread adoption of 
                CIPS or SPFS poses to the national security of the 
                United States; and
                    (C) making recommendations to further preserve and 
                strengthen the influence of the United States in the 
                global financial system.
            (2) Form.--Each report required by paragraph (1) shall be 
        submitted in unclassified form but may include a classified 
        annex.
    (g) Definitions.--In this section:
            (1) Account; correspondent account; payable-through 
        account.--The terms ``account'', ``correspondent account'', and 
        ``payable-through account'' have the meanings given those terms 
        in section 5318A of title 31, United States Code.
            (2) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Banking, Housing, and Urban 
                Affairs, the Committee on Foreign Relations, and the 
                Select Committee on Intelligence of the Senate; and
                    (B) the Committee on Financial Services, the 
                Committee on Foreign Affairs, and the Permanent Select 
                Committee on Intelligence of the House of 
                Representatives.
            (3) Chinese financial institution.--The term ``Chinese 
        financial institution'' means a financial institution--
                    (A) organized under the laws of the People's 
                Republic of China or any jurisdiction within the 
                People's Republic of China, including a foreign branch 
                of such an institution;
                    (B) located in the People's Republic of China;
                    (C) wherever located, owned, or controlled by the 
                Government of the People's Republic of China; or
                    (D) wherever located, owned, or controlled by a 
                financial institution described in subparagraph (A), 
                (B), or (C).
            (4) Covered financial institution.--The term ``covered 
        financial institution'' means a financial institution--
                    (A) located in territory controlled by an entity 
                holding itself out to be the Government of the Republic 
                of South Ossetia--the State of Alania, the Donetsk 
                People's Republic, the Luhansk People's Republic, the 
                Republic of Abkhazia, or the Pridnestrovian Moldavian 
                Republic;
                    (B) organized under the laws of an entity described 
                in subparagraph (A);
                    (C) wherever located, owned, or controlled by such 
                an entity; or
                    (D) wherever located, owned, or controlled by a 
                financial institution described in subparagraph (A), 
                (B), or (C).
            (5) Financial institution.--The term ``financial 
        institution'' means a financial institution specified in 
        subparagraph (A), (B), (C), (D), (E), (F), (G), (H), (I), (J), 
        (M), or (Y) of section 5312(a)(2) of title 31, United States 
        Code.
            (6) Russian financial institution.--The term ``Russian 
        financial institution'' means a financial institution--
                    (A) organized under the laws of the Russian 
                Federation or any jurisdiction within the Russian 
                Federation, including a foreign branch of such an 
                institution;
                    (B) located in the Russian Federation;
                    (C) wherever located, owned, or controlled by the 
                Government of the Russian Federation; or
                    (D) wherever located, owned, or controlled by a 
                financial institution described in subparagraph (A), 
                (B), or (C).
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