Countering Atrocities through Currency Accountability Act of 2022
This bill requires financial institutions and agencies to take specified special measures regarding foreign financial activity if the Department of the Treasury concludes that the measures are necessary to address human rights violations. These measures are applied upon a finding that a jurisdiction (or a financial institution, transaction, or type of account involving a jurisdiction) is of primary humanitarian concern.
The measures include additional recordkeeping and reporting of transactions, beneficial ownership information, and information relating to payable-through accounts and correspondent accounts. If Treasury finds a payable-through or correspondent account involves foreign human rights violations, then Treasury is allowed to prohibit or impose conditions on that account.
The bill establishes additional due diligence requirements for financial institutions managing a bank account or a correspondent account of a foreign person.
Finally, Treasury must determine if the Xinjiang Uyghur Autonomous Region in China qualifies as a jurisdiction subject to the additional measures established by the bill.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8001 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 8001
To amend title 31, United States Code, to ensure the United States
currency market does not support egregious human rights violations.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 9, 2022
Mr. Buck (for himself, Mr. Gooden of Texas, Mr. Banks, Ms. Herrell, Mr.
Hern, Mr. Long, Mr. Steube, Mr. Wilson of South Carolina, Mr. Cawthorn,
Mr. Burchett, and Mr. Torres of New York) 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 amend title 31, United States Code, to ensure the United States
currency market does not support egregious human rights violations.
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 ``Countering Atrocities through
Currency Accountability Act of 2022''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) The United States dollar composes nearly two-thirds of
the world's currency reserves, with more than one trillion
dollars being owned by the Government of China as of October
2020.
(2) It is the policy of the United States to advance
freedom and human rights globally, a policy that is
incompatible with egregious human rights violations, and as
such has a responsibility to ensure that the United States
currency market does not complicitly support perpetrators of
these abuses.
(3) In regions of the world where political, governmental,
or other realities preclude humanitarian due diligence
practices from ensuring the currency market of the United
States is not interwoven with entities' egregious human rights
violations, additional measures must be taken to separate the
economy of the United States from these violations, as well as
to apply pressure on relevant actors to uphold their
humanitarian responsibilities.
SEC. 3. SPECIAL MEASURES FOR JURISDICTIONS, FINANCIAL INSTITUTIONS, OR
INTERNATIONAL TRANSACTIONS OF PRIMARY HUMANITARIAN
CONCERN.
(a) In General.--Chapter 53 of title 31, United States Code, is
amended by inserting after section 5318A the following:
``Sec. 5318B. Special measures for jurisdictions, financial
institutions, or international transactions of primary
humanitarian concern
``(a) International Humanitarian Requirements.--
``(1) In general.--The Secretary of the Treasury shall
require domestic financial institutions and domestic financial
agencies to take 1 or more of the special measures described in
subsection (b) if the Secretary finds that reasonable grounds
exist for concluding that a jurisdiction outside of the United
States, 1 or more financial institutions operating outside of
the United States, 1 or more classes of transactions within, or
involving, a jurisdiction outside of the United States, or 1 or
more types of accounts is of primary humanitarian concern, in
accordance with subsection (c).
``(2) Form of requirement.--The special measures described
in--
``(A) subsection (b) shall be imposed in such
sequence or combination as the Secretary shall
determine; and
``(B) paragraphs (1) through (5) of subsection (b)
shall be imposed by regulation, order, or otherwise as
permitted by law.
``(3) Duration of orders; rulemaking.--Any order by which a
special measure described in paragraphs (1) through (5) of
subsection (b) is imposed--
``(A) shall be issued together with a notice of
proposed rulemaking relating to the imposition of such
special measure; and
``(B) may not be terminated unless the Secretary--
``(i) certifies to Congress that the
applicable jurisdiction, financial institution,
class of transaction, or type of account is no
longer of primary humanitarian concern; and
``(ii) not more than 30 days before the
date of such termination, notifies, in writing,
the Committees on Financial Services and
Foreign Affairs of the House of Representatives
and the Committees on Banking, Housing, and
Urban Affairs and Foreign Relations of the
Senate of such termination.
``(4) National security waiver.--
``(A) In general.--The Secretary shall waive the
application of any special measure required by the
Secretary under paragraph (1) with respect to a
transaction related to the production, manufacture, or
commerce related to rare earth minerals if the
Secretary determines such waiver is necessary on
national security grounds.
``(B) Time limit.--A waiver issued under
subparagraph (A) may not be for longer than one year,
but such a waiver may be renewed.
``(C) Written justification.--If the Secretary
issues (or renews) a waiver under this paragraph, the
Secretary shall provide the Committees on Financial
Services and Foreign Affairs of the House of
Representatives and the Committees on Banking, Housing,
and Urban Affairs and Foreign Relations of the Senate
with a written justification for such waiver. Such
justification shall be submitted in unclassified form,
but may include a classified annex.
``(D) Information for the public.--If the Secretary
issues a waiver under this paragraph, the Secretary, in
consultation with the Secretary of Commerce and the
Secretary of the Interior, shall provide the following
information to the public, including on the website of
the Department of the Treasury:
``(i) Opportunities for public-private
partnerships to increase domestic production of
rare earth elements and intermediate and
finished products containing rare earth
elements, including permanent magnets.
``(ii) Information regarding the
relationship between the reason the applicable
jurisdiction, financial institution, class of
transaction, or type of account was found to be
of primary humanitarian concern and the
production, manufacture, or commerce related to
rare earth minerals.
``(5) No limitation on other authority.--This section shall
not be construed as superseding or otherwise restricting any
other authority granted to the Secretary, or to any other
agency, by this subchapter or otherwise.
``(b) Special Measures.--The special measures referred to in
subsection (a), with respect to a jurisdiction outside of the United
States, financial institution operating outside of the United States,
class of transaction within, or involving, a jurisdiction outside of
the United States, or 1 or more types of accounts are as follows:
``(1) Recordkeeping and reporting of certain financial
transactions.--
``(A) In general.--The Secretary of the Treasury
may require any domestic financial institution or
domestic financial agency to maintain records, file
reports, or both, concerning the aggregate amount of
transactions, or concerning each transaction, with
respect to a jurisdiction outside of the United States,
1 or more financial institutions operating outside of
the United States, 1 or more classes of transactions
within, or involving, a jurisdiction outside of the
United States, or 1 or more types of accounts if the
Secretary finds any such jurisdiction, institution,
class of transactions, or type of account to be of
primary humanitarian concern.
``(B) Form of records and reports.--Such records
and reports shall be made and retained at such time, in
such manner, and for such period of time, as the
Secretary shall determine, and shall include such
information as the Secretary may determine, including--
``(i) the identity and address of the
participants in a transaction or relationship,
including the identity of the originator of any
funds transfer;
``(ii) the legal capacity in which a
participant in any transaction is acting;
``(iii) the identity of the beneficial
owner of the funds involved in any transaction,
in accordance with such procedures as the
Secretary determines to be reasonable and
practicable to obtain and retain the
information; and
``(iv) a description of any transaction.
``(2) Information relating to beneficial ownership.--In
addition to any other requirement under any other provision of
law, the Secretary shall require any domestic financial
institution or domestic financial agency to take such steps as
the Secretary may determine to be reasonable and practicable to
obtain and retain information concerning the beneficial
ownership of any account opened or maintained in the United
States by a foreign person, or a representative of such a
foreign person, that involves a jurisdiction outside of the
United States, 1 or more financial institutions operating
outside of the United States, 1 or more classes of transactions
within, or involving, a jurisdiction outside of the United
States, or 1 or more types of accounts if the Secretary finds
any such jurisdiction, institution, or transaction or type of
account to be of primary humanitarian concern.
``(3) Information relating to certain payable-through
accounts.--If the Secretary finds a jurisdiction outside of the
United States, 1 or more financial institutions operating
outside of the United States, or 1 or more classes of
transactions within, or involving, a jurisdiction outside of
the United States to be of primary humanitarian concern, the
Secretary shall require any domestic financial institution or
domestic financial agency that opens or maintains a payable-
through account in the United States for a foreign financial
institution involving any such jurisdiction or any such
financial institution operating outside of the United States,
or a payable through account through which any such transaction
may be conducted, as a condition of opening or maintaining such
account--
``(A) to identify each customer (and representative
of such customer) of such financial institution who is
permitted to use, or whose transactions are routed
through, such payable-through account; and
``(B) to obtain, with respect to each such customer
(and each such representative), information that is
substantially comparable to that which the depository
institution obtains in the ordinary course of business
with respect to its customers residing in the United
States.
``(4) Information relating to certain correspondent
accounts.--If the Secretary finds a jurisdiction outside of the
United States, 1 or more financial institutions operating
outside of the United States, or 1 or more classes of
transactions within, or involving, a jurisdiction outside of
the United States to be of primary humanitarian concern, the
Secretary shall require any domestic financial institution or
domestic financial agency that opens or maintains a
correspondent account in the United States for a foreign
financial institution involving any such jurisdiction or any
such financial institution operating outside of the United
States, or a correspondent account through which any such
transaction may be conducted, as a condition of opening or
maintaining such account--
``(A) to identify each customer (and representative
of such customer) of any such financial institution who
is permitted to use, or whose transactions are routed
through, such correspondent account; and
``(B) to obtain, with respect to each such customer
(and each such representative), information that is
substantially comparable to that which the depository
institution obtains in the ordinary course of business
with respect to its customers residing in the United
States.
``(5) Prohibitions or conditions on opening or maintaining
certain correspondent or payable-through accounts.--If the
Secretary finds a jurisdiction outside of the United States, 1
or more financial institutions operating outside of the United
States, or 1 or more classes of transactions within, or
involving, a jurisdiction outside of the United States to be of
primary humanitarian concern, the Secretary, in consultation
with the Secretary of State, the Attorney General, and the
Chairman of the Board of Governors of the Federal Reserve
System, shall prohibit, or impose conditions upon, the opening
or maintaining in the United States of a correspondent account
or payable-through account by any domestic financial
institution or domestic financial agency, if such correspondent
account or payable-through account involves any such
jurisdiction or institution, or if any such transaction may be
conducted through such correspondent account or payable-through
account.
``(c) Consultations and Information To Be Considered in Finding
Jurisdictions, Institutions, Types of Accounts, or Transactions To Be
of Primary Humanitarian Concern.--
``(1) In general.--In making a finding that reasonable
grounds exist for concluding that a jurisdiction outside of the
United States, 1 or more financial institutions operating
outside of the United States, 1 or more classes of transactions
within, or involving, a jurisdiction outside of the United
States, or 1 or more types of accounts is of primary
humanitarian concern so as to authorize the Secretary of the
Treasury to take 1 or more of the special measures described in
subsection (b), the Secretary shall consult with the Secretary
of State, the Attorney General, and the Secretary of Commerce.
``(2) Additional considerations.--In making a finding
described in paragraph (1), the Secretary shall consider in
addition such information as the Secretary determines to be
relevant, including the following potentially relevant factors:
``(A) Jurisdictional factors.--In the case of a
particular jurisdiction--
``(i) covered human rights violations have
been or are being committed by an individual,
group of individuals, corporation,
organization, government, or other state or
non-state actor, and that they have transacted
business in that jurisdiction;
``(ii) the extent to which covered human
rights violations in that jurisdiction enable,
support, or are connected to transacted
business therein;
``(iii) the substance and quality of
administration of the human rights laws of that
jurisdiction pertaining to covered human rights
violations;
``(iv) the jurisdiction is characterized as
committing covered human rights violations by
credible international organizations or
multilateral expert groups;
``(v) the jurisdiction is characterized by
a disregard for human rights; or
``(vi) whether the United States has issued
or maintained formal genocide or crimes against
humanity determinations covering that
jurisdiction within the previous 5 years.
``(B) Institutional factors.--In the case of a
decision to apply 1 or more of the special measures
described in subsection (b) only to a financial
institution or institutions, or to a transaction or
class of transactions, or to a type of account, or to
all 3, within or involving a particular jurisdiction--
``(i) such financial institutions, classes
of transactions, or types of accounts are used
to facilitate or promote covered human rights
violations in or through the jurisdiction; and
``(ii) whether such action is sufficient to
ensure, with respect to transactions involving
the jurisdiction and institutions operating in
the jurisdiction, that the purposes of this
subchapter continue to be fulfilled, and to
guard against covered human rights violations.
``(d) Notification of Special Measures Invoked by the Secretary.--
Not later than 10 days after the date of any action taken by the
Secretary of the Treasury under subsection (a)(1), the Secretary shall
notify, in writing, the Committee on Financial Services of the House of
Representatives, the Committee on Foreign Affairs of the House of
Representatives, the Committee on Banking, Housing, and Urban Affairs
of the Senate, and the Committee on Foreign Relations of the Senate of
any such action.
``(e) Due Diligence for United States Private Banking and
Correspondent Bank Accounts Involving Foreign Persons.--
``(1) In general.--Each financial institution that
establishes, maintains, administers, or manages a private
banking account or a correspondent account in the United States
for a non-United States person, including a foreign individual
visiting the United States, or a representative of a non-United
States person shall establish appropriate, specific, and, where
necessary, enhanced, due diligence policies, procedures, and
controls that are reasonably designed to detect and report
instances of covered human rights violations through those
accounts.
``(2) Additional standards for certain correspondent
accounts.--
``(A) In general.--Subparagraph (B) shall apply if
a correspondent account is requested or maintained by,
or on behalf of, a foreign bank operating--
``(i) under an offshore banking license; or
``(ii) under a banking license issued by a
foreign country that has been designated--
``(I) as noncooperative with
international human rights principles
or procedures by the United States or
an intergovernmental group or
organization of which the United States
is a member, with which designation the
United States representative to the
group or organization concurs; or
``(II) by the Secretary as
warranting special measures due to
concerns with covered human rights
violations.
``(B) Policies, procedures, and controls.--The
enhanced due diligence policies, procedures, and
controls required under paragraph (1) shall, at a
minimum, ensure that the financial institution in the
United States takes reasonable steps--
``(i) to ascertain for any such foreign
bank, the shares of which are not publicly
traded, the identity of each of the owners of
the foreign bank, and the nature and extent of
the ownership interest of each such owner;
``(ii) to conduct enhanced scrutiny of such
account to ensure the account is not associated
with covered human rights violations and report
any suspicious transactions under section
5318(g); and
``(iii) to ascertain whether such foreign
bank provides correspondent accounts to other
foreign banks and, if so, the identity of those
foreign banks and related due diligence
information, as appropriate under paragraph
(1).
``(3) Minimum standards for private banking accounts.--If a
private banking account is requested or maintained by, or on
behalf of, a non-United States person, then the due diligence
policies, procedures, and controls required under paragraph (1)
shall, at a minimum, ensure that the financial institution
takes reasonable steps--
``(A) to ascertain the identity of the nominal and
beneficial owners of, and the source of funds deposited
into, such account as needed to guard against
supporting covered human rights violations and report
any suspicious transactions under section 5318(g); and
``(B) to conduct enhanced scrutiny of any such
account that is requested or maintained by, or on
behalf of, a senior foreign political figure, or any
immediate family member or close associate of a senior
foreign political figure, that is reasonably designed
to detect and report transactions that may involve the
proceeds of covered human rights violations.
``(4) Definitions.--In this subsection:
``(A) Offshore banking license.--The term `offshore
banking license' means a license to conduct banking
activities which, as a condition of the license,
prohibits the licensed entity from conducting banking
activities with the citizens of, or with the local
currency of, the country which issued the license.
``(B) Private banking account.--The term `private
banking account' means an account (or any combination
of accounts) that--
``(i) requires a minimum aggregate deposit
of funds or other assets of not less than
$500,000;
``(ii) is established on behalf of 1 or
more individuals who have a direct or
beneficial ownership interest in the account;
and
``(iii) is assigned to, or is administered
or managed by, in whole or in part, an officer,
employee, or agent of a financial institution
acting as a liaison between the financial
institution and the direct or beneficial owner
of the account.
``(f) Definitions.--In this section:
``(1) Covered human rights violation.--The term `covered
human rights violation' means--
``(A) an offense described under chapter 50A of
title 18, United States Code; and
``(B) crimes against humanity.
``(2) Xinjiang.--The term `Xinjiang' means the Xinjiang
Uyghur Autonomous Region, People's Republic of China.
``(3) Other definitions.--The definitions under section
5318A(e) shall apply to this section.''.
(b) Clerical Amendment.--The table of contents for chapter 53 of
title 31, United States Code, is amended by inserting after the item
relating to section 5318A the following:
``5318B. Special measures for jurisdictions, financial institutions, or
international transactions of primary
humanitarian concern.''.
SEC. 4. ASSESSING XINJIANG AS A JURISDICTION OF PRIMARY HUMANITARIAN
CONCERN.
(a) Determination.--Not later than 180 days after the date of
enactment of this Act, the Secretary of the Treasury, in consultation
with the Secretary of State and the Secretary of Commerce, shall
determine whether reasonable grounds exist to determine that Xinjiang
Uyghur Autonomous Region, People's Republic of China, is a jurisdiction
of primary humanitarian concern under section 5318B of title 31, United
States Code.
(b) Report.--As soon as practicable after the determination
required under subsection (a), the Secretary of the Treasury shall
issue a report to the Congress containing the following:
(1) Whether the Secretary determines that reasonable
grounds exist to determine that Xinjiang is a jurisdiction of
primary humanitarian concern.
(2) If so, which special measures described under
subsection (b) of such section 5318B, if any, the Secretary of
the Treasury shall require domestic financial institutions and
domestic financial agencies to take with respect to Xinjiang.
(3) If not, a detailed explanation of the Secretary's
reasoning in making such determination and evidence supporting
that determination.
(c) Classification.--The report submitted pursuant to subsection
(a) shall be submitted in unclassified form, but may include a
classified annex.
SEC. 5. REPORT ON POLYSILICATE PRODUCTION AND TRADE.
Not later than 120 days after the date of enactment of this Act,
the Secretary of State shall issue a report to the Congress containing
a description of the following:
(1) Polysilicate production in Xinjiang.
(2) The use of forced labor in polysilicate production and
trade.
(3) The role of the Chinese Government and its affiliated
actors, including the Xinjiang Production and Construction
Corps, in polysilicate production and trade.
(4) The impacts of Chinese polysilicate production on
international markets and ethical implications thereof.
<all>
Introduced in House
Introduced in House
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.
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.
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