Taiwan Conflict Deterrence Act of 2023

Bill: 118-hr-554
Sponsor: full_name: Rep. Hill, J. French [R-AR-2]
Introduced: 2023-01-26
Policy area: Finance and Financial Sector
Subjects: 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
Latest action: action_date: 2024-09-10
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2023-01-26
action_desc: Introduced in House
text: <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>

action_date: 2023-12-01
action_desc: Reported to House
text: <p><strong>Taiwan Conflict Deterrence Act of 2023</strong></p><p>This bill, in the event of a threat to U.S. interests by China, (1) requires additional reporting on the domestic and foreign financial activity of specified Chinese officials, and (2) prohibits certain financial transactions with specified Chinese officials.</p><p>Upon a determination by the President that such a threat exists, the bill requires the Department of the Treasury 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>After such a report is made, Treasury must prohibit significant transactions between U.S. financial institutions and these individuals (and their immediate family, if appropriate). The bill provides exceptions for intelligence, law enforcement, and national security activities. The President may waive the prohibition under certain circumstances.</p><!--tinycomments|2.1|data:application/json;base64,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-->

tv_txt: IIB 118th CONGRESS 2d Session H. R. 554 IN THE SENATE OF THE UNITED STATES September 10, 2024 Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs AN ACT 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.

1. Short title This Act may be cited as the Taiwan Conflict Deterrence Act of 2023 . 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 provide to the appropriate Members of Congress an unclassified or classified briefing (as determined appropriate by the Secretary) 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 reports; public availability (1) Form The reports required under paragraphs (1) and (4) of 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)(1) 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. 3. Prohibition on financial services for certain immediate family (a) In general The Secretary of the Treasury shall 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); and (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) Exceptions (1) Exception for intelligence, law enforcement, and national security activities Subsection (a) shall not apply with respect to any intelligence, law enforcement, or national security activity of the United States. (2) Waiver The President may waive the application of subsection (a) with respect to a person upon reporting to the appropriate Members of Congress that— (A) the waiver would substantially promote the objective of ending the threat described under section 2(a)(1); (B) the threat described under section 2(a)(1) is no longer present; or (C) the waiver is essential to the national security interests of the United States. (3) Form of reports The reports required under paragraph (2) shall be submitted in unclassified form but may contain a classified annex. (4) Rule of construction (A) In general Nothing in this section shall be construed as authorizing or requiring any sanction with respect to the importation of any good. (B) Good defined In this paragraph, the term good means any article, natural or manmade substance, material, supply or manufactured product, including inspection and test equipment, and excluding technical data. (c) Implementation; penalties (1) Implementation The President may exercise all authorities provided to the President under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) to carry out this section. Not later than 60 days after issuing a license pursuant to this section, the President shall submit a copy of the license to the appropriate Members of Congress. (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 206. (d) Termination This section 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). 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.

Passed the House of Representatives September 9, 2024. Kevin F. McCumber, Clerk.

tv_txt: IB 118th CONGRESS 2d Session H. R. 554 IN THE HOUSE OF REPRESENTATIVES AN ACT 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.

1. Short title This Act may be cited as the Taiwan Conflict Deterrence Act of 2023 . 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 provide to the appropriate Members of Congress an unclassified or classified briefing (as determined appropriate by the Secretary) 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 reports; public availability (1) Form The reports required under paragraphs (1) and (4) of 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)(1) 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. 3. Prohibition on financial services for certain immediate family (a) In general The Secretary of the Treasury shall 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); and (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) Exceptions (1) Exception for intelligence, law enforcement, and national security activities Subsection (a) shall not apply with respect to any intelligence, law enforcement, or national security activity of the United States. (2) Waiver The President may waive the application of subsection (a) with respect to a person upon reporting to the appropriate Members of Congress that— (A) the waiver would substantially promote the objective of ending the threat described under section 2(a)(1); (B) the threat described under section 2(a)(1) is no longer present; or (C) the waiver is essential to the national security interests of the United States. (3) Form of reports The reports required under paragraph (2) shall be submitted in unclassified form but may contain a classified annex. (4) Rule of construction (A) In general Nothing in this section shall be construed as authorizing or requiring any sanction with respect to the importation of any good. (B) Good defined In this paragraph, the term good means any article, natural or manmade substance, material, supply or manufactured product, including inspection and test equipment, and excluding technical data. (c) Implementation; penalties (1) Implementation The President may exercise all authorities provided to the President under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) to carry out this section. Not later than 60 days after issuing a license pursuant to this section, the President shall submit a copy of the license to the appropriate Members of Congress. (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 206. (d) Termination This section 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). 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.

Passed the House of Representatives September 9, 2024. Kevin F. McCumber, Clerk.

tv_txt: IB Union Calendar No. 236 118th CONGRESS 1st Session H. R. 554 [Report No. 118–292] 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 December 1, 2023 Additional sponsors: Mr. Lawler , Ms. Lee of Nevada , Mr. Ryan , Mr. Pappas , Mrs. Kim of California , Ms. De La Cruz , and Mrs. Wagner December 1, 2023 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in italic For text of introduced bill, see copy of bill as introduced on January 26, 2023 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.

1. Short title This Act may be cited as the Taiwan Conflict Deterrence Act of 2023 . 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 provide to the appropriate Members of Congress an unclassified or classified briefing (as determined appropriate by the Secretary) 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 reports; public availability (1) Form The reports required under paragraphs (1) and (4) of 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)(1) 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. 3. Prohibition on financial services for certain immediate family (a) In general The Secretary of the Treasury shall 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); and (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) Exceptions (1) Exception for intelligence, law enforcement, and national security activities Subsection (a) shall not apply with respect to any intelligence, law enforcement, or national security activity of the United States. (2) Waiver The President may waive the application of subsection (a) with respect to a person upon reporting to the appropriate Members of Congress that— (A) the waiver would substantially promote the objective of ending the threat described under section 2(a)(1); (B) the threat described under section 2(a)(1) is no longer present; or (C) the waiver is essential to the national security interests of the United States. (3) Form of reports The reports required under paragraph (2) shall be submitted in unclassified form but may contain a classified annex. (4) Rule of construction (A) In general Nothing in this section shall be construed as authorizing or requiring any sanction with respect to the importation of any good. (B) Good defined In this paragraph, the term good means any article, natural or manmade substance, material, supply or manufactured product, including inspection and test equipment, and excluding technical data. (c) Implementation; penalties (1) Implementation The President may exercise all authorities provided to the President under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) to carry out this section. Not later than 60 days after issuing a license pursuant to this section, the President shall submit a copy of the license to the appropriate Members of Congress. (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 206. (d) Termination This section 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). 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.

December 1, 2023 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

tv_txt: I 118th CONGRESS 1st Session H. R. 554 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.

1. Short title This Act may be cited as the Taiwan Conflict Deterrence Act of 2023 . 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. 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). 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.