II 117th CONGRESS 2d Session S. 3877 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.

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 . 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).