[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1716 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 1716
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.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 27, 2025
Mrs. McClain (for herself and Mr. Sherman) introduced the following
bill; which was referred to the Committee on Financial Services, and in
addition to the Committee on Foreign Affairs, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
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.
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 ``Taiwan Conflict Deterrence Act of
2025''.
SEC. 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.
SEC. 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).
SEC. 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.
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