Exposing China’s Support for the Taliban Act

Bill: 118-hr-4765
Sponsor: full_name: Rep. Lynch, Stephen F. [D-MA-8]
Introduced: 2023-07-20
Policy area: Finance and Financial Sector
Subjects: Afghanistan

Asia

China

Foreign and international corporations

Government studies and investigations

Middle East

Terrorism
Latest action: action_date: 2023-12-19
text: Placed on the Union Calendar, Calendar No. 267.

Summaries:
action_date: 2023-07-20
action_desc: Introduced in House
text: <p><strong>Exposing China’s Support for the Taliban Act</strong></p><p>This bill requires the Department of the Treasury to report on the financial activities of China and Chinese entities in connection with the finances of Afghanistan and the Taliban, including activities to support illicit financial networks. &nbsp;</p>

action_date: 2023-12-19
action_desc: Reported to House
text: <p><strong>Exposing China’s Support for the Taliban Act</strong></p><p>This bill requires the Department of the Treasury to report on the financial activities of China and Chinese entities in connection with the finances of Afghanistan and the Taliban, including activities to support illicit financial networks. &nbsp;</p>

tv_txt: IB Union Calendar No. 267 118th CONGRESS 1st Session H. R. 4765 [Report No. 118–328] IN THE HOUSE OF REPRESENTATIVES July 20, 2023 Mr. Lynch (for himself and Mr. Nunn of Iowa ) introduced the following bill; which was referred to the Committee on Financial Services December 19, 2023 Additional sponsor: Mr. Molinaro December 19, 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 July 20, 2023 A BILL To require the Secretary of the Treasury to carry out a study on Chinese support for Afghan illicit finance, and for other purposes.

1. Short title This Act may be cited as the Exposing China’s Support for the Taliban Act . 2. Study on Chinese support for Afghan illicit finance (a) Findings Congress finds the following: (1) Though China and Afghanistan share only a small land border, when it comes to illicit financial activity between the two countries, China has a demonstrated history of permissiveness regarding trafficking and money laundering that could support both the Taliban and its associates. (2) A 2014 Financial Action Task Force report titled, Financial Flows Linked to the Production and Trafficking of Afghan Opiates found evidence of import/export companies registered in China that were transferring funds to Afghanistan, likely as part of trade-based money laundering schemes centered around illicit opium production and trafficking, which, per the United Nations Office on Drugs and Crime (UNODC), is one of the Taliban’s main sources of income. (3) Since the U.S. withdrawal from Afghanistan in August 2021, China has announced its willingness to lend financial support and legitimacy to the Taliban-led government in Afghanistan, including Afghan Interior Minister, Sirajuddin Haqqani, a member of the U.S.-sanctions designated Foreign Terrorist Organization, the Haqqani Network. (4) China’s permissive policies regarding Afghan illicit finance run counter to the strategic interests of the United States with respect to countering trafficking and preventing terrorist groups from accessing the international financial system. (5) China’s role as a critical source of financial wherewithal for the Taliban and its associates to process and implement drug and other illicit-activity transactions warrants further study as these actions pose a threat both to the safety and security of the people of Afghanistan and the international community. (6) Congress needs to better understand how China could leverage its relationships and resources within Afghanistan and how these activities could directly or indirectly provide financial support to terrorist organizations, including the Taliban and its associates. (b) Study (1) Requirement Not later than one year after the date of the enactment of this Act, the Secretary of the Treasury shall provide to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report on the financial activities of the Government of China and Chinese entities in connection with the finances of Afghanistan and the Taliban. (2) Matters included The report under paragraph (1) shall include the following: (A) An assessment of the activities undertaken by the Government of China and Chinese-registered companies to support illicit financial networks in Afghanistan, particularly such networks involved in narcotics trafficking, illicit financial transactions, official corruption, natural resources exploitation, and terrorist networks. (B) An assessment of financial, commercial, and economic activities undertaken by the Government of China and Chinese companies in Afghanistan to support Chinese policies counter to American strategic interests. (C) Any recommendations to Congress regarding legislative or regulatory improvements necessary to support the identification and disruption of Chinese-supported illicit financial networks in Afghanistan. (3) Form The report under paragraph (1) may include a classified annex.

December 19, 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. 4765 IN THE HOUSE OF REPRESENTATIVES July 20, 2023 Mr. Lynch (for himself and Mr. Nunn of Iowa ) introduced the following bill; which was referred to the Committee on Financial Services A BILL To require the Secretary of the Treasury to carry out a study on Chinese support for Afghan illicit finance, and for other purposes.

1. Short title This Act may be cited as the Exposing China’s Support for the Taliban Act . 2. Study on Chinese support for Afghan illicit finance (a) Findings Congress finds the following: (1) Though China and Afghanistan share only a small land border, when it comes to illicit financial activity between the two countries, China has a demonstrated history of permissiveness regarding trafficking and money laundering that could support both the Taliban and its associates. (2) A 2014 Financial Action Task Force report titled, Financial Flows Linked to the Production and Trafficking of Afghan Opiates found evidence of import/export companies registered in China that were transferring funds to Afghanistan, likely as part of trade-based money laundering schemes centered around illicit opium production and trafficking, which, per the United Nations Office on Drugs and Crime (UNODC), is one of the Taliban’s main sources of income. (3) Since the U.S. withdrawal from Afghanistan in August 2021, China has announced its willingness to lend financial support and legitimacy to the Taliban-led Government in Afghanistan, including Afghan Interior Minister, Sirajuddin Haqqani, a member of the U.S.-sanctions designated Foreign Terrorist Organization, the Haqqani Network. (4) China’s permissive policies regarding Afghan illicit finance run counter to the strategic interests of the United States with respect to countering trafficking and preventing terrorist groups from accessing the international financial system. (5) China’s role as a critical source of financial wherewithal for the Taliban and its associates to process and implement drug and other illicit-activity transactions warrants further study as these actions pose a threat both to the safety and security of the people of Afghanistan and the international community. (6) Congress needs to better understand how China could leverage its relationships and resources within Afghanistan and how these activities could directly or indirectly provide financial support to terrorist organizations, including the Taliban and its associates. (b) Study (1) Requirement Not later than one year after the date of the enactment of this Act, the Secretary of the Treasury shall provide to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report on the financial activities of China and Chinese entities in connection with the finances of Afghanistan and the Taliban. (2) Matters included The report under paragraph (1) shall include the following: (A) An assessment of the activities undertaken by the People’s Republic of China and Chinese-registered companies to support illicit financial networks in Afghanistan, particularly such networks involved in narcotics trafficking, illicit financial transactions, official corruption, natural resources exploitation, and terrorist networks. (B) An assessment of financial, commercial, and economic activities undertaken by China and Chinese companies in Afghanistan to support Chinese policies counter to American strategic interests. (C) Any recommendations to Congress regarding legislative or regulatory improvements necessary to support the identification and disruption of Chinese-supported illicit financial networks in Afghanistan. (3) Form The report under paragraph (1) may include a classified annex.