Sec. 7. Sanctions with respect to foreign financial institutions that do business with foreign persons that contravene the obligations of China under the Joint Declaration or the Basic Law

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With respect to any financial institution included in a report under section 5(a)(3)— not later than one year after the submittal of the report, the President shall impose not fewer than five of the sanctions described in subsection (b); and not later than 2 years after the submittal of the report, the President shall impose each of the sanctions described in subsection (b). The sanctions that may imposed with respect to a foreign financial institution included in the report under section 5(a)(3) are the following:

The United States Government may prohibit any United States financial institution from making loans or providing credits to the foreign financial institution. Neither the Board of Governors of the Federal Reserve System nor the Federal Reserve Bank of New York may designate, or permit the continuation of any prior designation of, the foreign financial institution as a primary dealer in United States Government debt instruments. The foreign financial institution may not serve as agent of the United States Government or serve as repository for United States Government funds.

The President may, pursuant to such regulations as the President may prescribe, prohibit any transactions in foreign exchange that are subject to the jurisdiction of the United States and in which the foreign financial institution has any interest. The President may, pursuant to such regulations as the President may prescribe, prohibit any transfers of credit or payments between financial institutions or by, through, or to any financial institution, to the extent that such transfers or payments are subject to the jurisdiction of the United States and involve any interest of the foreign financial institution.

The President may, pursuant to such regulations as the President may prescribe, prohibit any person from— acquiring, holding, withholding, using, transferring, withdrawing, transporting, importing, or exporting any property that is subject to the jurisdiction of the United States and with respect to which the foreign financial institution has any interest; dealing in or exercising any right, power, or privilege with respect to such property; or conducting any transaction involving such property.

The President may restrict or prohibit exports of goods, technology, or services, directly or indirectly, from the United States to the foreign financial institution. The President may, pursuant to such regulations or guidelines as the President may prescribe, prohibit any United States person from investing in or purchasing significant amounts of equity or debt instruments of the foreign financial institution. The President may direct the Secretary of State to deny a visa to, and the Secretary of Homeland Security to exclude from the United States, any alien that the President determines is a corporate officer or principal of, or a shareholder with a controlling interest in, the foreign financial institution.

The President may impose on the principal executive officer or officers of the foreign financial institution, or on individuals performing similar functions and with similar authorities as such officer or officers, any of the sanctions described in paragraphs

(1)through

(8)that are applicable. The President may impose sanctions required under subsection

(a)with respect to a financial institution included in a report under section 5(a)(3) beginning on the day on which the financial institution is included in that report.