SEFIT Act

I 118TH CONGRESS 1ST SESSION H. R. 3088 To direct the Secretary of the Treasury to provide for a determination on the activities on certain foreign financial institutions. IN THE HOUSE OF REPRESENTATIVES MAY 5, 2023 Mr. FALLON (for himself and Mr. HERN) introduced the following bill; which was referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, the Judiciary, Ways and Means, and Oversight and Accountability, 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 direct the Secretary of the Treasury to provide for a determination on the activities on certain foreign finan- cial institutions. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Sanctions Enforcement 4 and Financial Institutions Transparency Act’’ or the 5 ‘‘SEFIT Act’’. 6 VerDate Sep 11 2014 21:46 May 17, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3088.IH H3088 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 3088 IH SEC. 2. DETERMINATION ON CERTAIN FOREIGN FINANCIAL 1 INSTITUTIONS. 2 (a) DETERMINATION.— 3 (1) IN GENERAL.—Not later than 180 days 4 after the date of the enactment of the this Act, and 5 every 180 days thereafter for a period not to exceed 6 5 years, the Secretary of the Treasury shall submit 7 to the appropriate congressional committees a deter- 8 mination on whether each foreign financial institu- 9 tion described in subsection (b) engages in, or has 10 engaged in or attempted to engage in one or more 11 activities described in subsection (c) and provides a 12 detailed description of each such activity. 13 (2) APPROPRIATE CONGRESSIONAL COMMIT- 14 TEES DEFINED.—In this subsection, the term ‘‘ap- 15 propriate congressional committees’’ means— 16 (A) the Committee on Foreign Affairs and 17 the Committee on Armed Services of the House 18 of Representatives; and 19 (B) the Committee on Foreign Relations 20 and the Committee on Armed Services of the 21 Senate. 22 (b) FOREIGN FINANCIAL INSTITUTION DE- 23 SCRIBED.— 24 VerDate Sep 11 2014 21:46 May 17, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3088.IH H3088 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 3088 IH (1) IN GENERAL.—A foreign financial institu- 1 tion described in this subsection is a foreign finan- 2 cial institution that, wherever located, is— 3 (A) organized under the laws of a state 4 sponsor of terrorism or any jurisdiction within 5 a state sponsor of terrorism; 6 (B) owned or controlled, directly or indi- 7 rectly by the government of a state sponsor of 8 terrorism; 9 (C) located in the territory of a state spon- 10 sor of terrorism; or 11 (D) owned or controlled by a foreign finan- 12 cial institution described in subparagraph (A), 13 (B), or (C); and 14 (E) the capitalization of which exceeds 15 $10,000,000. 16 (2) STATE SPONSOR OF TERRORISM DE- 17 FINED.—In this subsection, the term ‘‘state sponsor 18 of terrorism’’ means a country the government of 19 which the Secretary of State has determined is a 20 government that has repeatedly provided support for 21 acts of international terrorism for purposes of— 22 (A) section 1754(c) of the Export Control 23 Reform Act of 2018; 24 VerDate Sep 11 2014 21:46 May 17, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3088.IH H3088 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 3088 IH (B) section 620A of the Foreign Assistance 1 Act of 1961 (22 U.S.C. 2371); 2 (C) section 40 of the Arms Export Control 3 Act (22 U.S.C. 2780); or 4 (D) any other provision of law. 5 (3) FOREIGN FINANCIAL INSTITUTION DE- 6 FINED.—A foreign financial institution in this sub- 7 section includes— 8 (A) the meaning given that term in section 9 1010.605 of title 31, Code of Federal Regula- 10 tions; or 11 (B) a foreign central bank. 12 (c) ACTIVITIES DESCRIBED.— 13 (1) IN GENERAL.—The activities described in 14 this subsection include any act that engages in, or 15 has engaged in or attempted to engage in conduct 16 that would be sanctionable under covered Executive 17 Orders described in paragraph (2) or covered provi- 18 sions of law described in paragraph (3). 19 (2) COVERED EXECUTIVE ORDERS.—In this 20 subsection, the term ‘‘covered executive orders’’ in- 21 cludes the following: 22 (A) Executive Order 14071 (Prohibiting 23 New Investment In And Certain Services To 24 The Russian Federation In Response To Con- 25 VerDate Sep 11 2014 21:46 May 17, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3088.IH H3088 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 3088 IH tinued Russian Federation Aggression (April 6, 1 2022)). 2 (B) Executive Order 14068 (Prohibiting 3 Certain Imports, Exports, and New Investment 4 with Respect to Continued Russian Federation 5 Aggression (March 11, 2022)). 6 (C) Executive Order 14066 (Prohibiting 7 Certain Imports And New Investments With 8 Respect To Continued Russian Federation Ef- 9 forts To Undermine the Sovereignty And Terri- 10 torial Integrity Of Ukraine (March 8, 2022)). 11 (D) Executive Order 14039 (Blocking 12 Property with Respect to Certain Russian En- 13 ergy Export Pipelines (August 20, 2021)). 14 (E) Executive Order 14024 (Blocking 15 Property With Respect To Specified Harmful 16 Foreign Activities Of The Government Of The 17 Russian Federation (April 15, 2021)). 18 (F) Executive Order 14065 (Blocking 19 Property Of Certain Persons And Prohibiting 20 Certain Transactions With Respect To Contin- 21 ued Russian Efforts To Undermine The Sov- 22 ereignty And Territorial Integrity Of Ukraine 23 (February 21, 2022)). 24 VerDate Sep 11 2014 21:46 May 17, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3088.IH H3088 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 3088 IH (G) Executive Order 13883 (Administra- 1 tion of Proliferation Sanctions and Amendment 2 of Executive Order 12851 (August 3, 2019)). 3 (H) Executive Order 13849 (Authorizing 4 the Implementation of Certain Sanctions Set 5 Forth in the Countering America’s Adversaries 6 Through Sanctions Act (September 20, 2018)). 7 (I) Executive Order 13685 (Blocking Prop- 8 erty of Certain Persons and Prohibiting Certain 9 Transactions with Respect to the Crimea Re- 10 gion of Ukraine (December 19, 2014)). 11 (J) Executive Order 13662 (Blocking 12 Property of Additional Persons Contributing to 13 the Situation in Ukraine (March 20, 2014)). 14 (K) Executive Order 13661 (Blocking 15 Property of Additional Persons Contributing to 16 the Situation in Ukraine (March 17, 2014)). 17 (L) Executive Order 13660 (Blocking 18 Property of Certain Persons Contributing to the 19 Situation in Ukraine (March 6, 2014)). 20 (M) Any directive issued pursuant to the 21 Executive orders described in subparagraphs 22 (A) through (L). 23 VerDate Sep 11 2014 21:46 May 17, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H3088.IH H3088 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 3088 IH (N) Any other Executive order or directive 1 imposing sanctions against the Russian Federa- 2 tion. 3 (3) COVERED LEGISLATION DEFINED.—In this 4 subsection the term ‘‘covered legislation’’ includes 5 the following: 6 (A) The Countering America’s Adversaries 7 Through Sanctions Act (22 U.S.C. 9401 et 8 seq.). 9 (B) The Ukraine Freedom Support Act of 10 2014 (22 U.S.C. 8921 et seq.). 11 (C) The Support for the Sovereignty, In- 12 tegrity, Democracy, and Economic Stability of 13 Ukraine Act of 2014 (22 U.S.C. 8901 et seq.). 14 (D) The Protecting Europe’s Energy Secu- 15 rity Act of 2019 (title LXXV of division F of 16 Public Law 116–92). 17 (E) Any other law imposing sanctions 18 against the Russian Federation. 19 Æ VerDate Sep 11 2014 21:46 May 17, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6301 E:\BILLS\H3088.IH H3088 kjohnson on DSK79L0C42PROD with BILLS