[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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