Sec. 5. IDENTIFICATION OF FOREIGN PERSONS INVOLVED IN THE EROSION OF THE OBLIGATIONS OF CHINA UNDER THE JOINT DECLARATION OR THE BASIC LAW AND FOREIGN FINANCIAL INSTITUTIONS THAT CONDUCT SIGNIFICANT TRANSACTIONS WITH THOSE PERSONS
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## SEC. 5 IDENTIFICATION OF FOREIGN PERSONS INVOLVED IN THE EROSION OF THE OBLIGATIONS OF CHINA UNDER THE JOINT DECLARATION OR THE BASIC LAW AND FOREIGN FINANCIAL INSTITUTIONS THAT CONDUCT SIGNIFICANT TRANSACTIONS WITH THOSE PERSONS ###
(a)In General Not later than 90 days after the date of the enactment of this Act, if the Secretary of State, in consultation with the Secretary of the Treasury, determines that a foreign person is materially contributing to, has materially contributed to, or attempts to materially contribute to the failure of the Government of China to meet its obligations under the Joint Declaration or the Basic Law, the Secretary of State shall submit to the appropriate congressional committees and leadership a report that includes— ####
(1)an identification of the foreign person; and ####
(2)a clear explanation for why the foreign person was identified and a description of the activity that resulted in the identification. ###
(b)Identifying Foreign Financial Institutions Not earlier than 30 days and not later than 60 days after the Secretary of State submits to the appropriate congressional committees and leadership the report under subsection (a), the Secretary of the Treasury, in consultation with the Secretary of State, shall submit to the appropriate congressional committees and leadership a report that identifies any foreign financial institution that knowingly conducts a significant transaction with a foreign person identified in the report under subsection (a). ###
(c)Exclusion of Certain Information ####
(1)Intelligence The Secretary of State shall not disclose the identity of a person in a report submitted under subsection
(a)or (b), or an update under subsection (e), if the Director of National Intelligence determines that such disclosure could compromise an intelligence operation, activity, source, or method of the United States. ####
(2)Law enforcement The Secretary of State shall not disclose the identity of a person in a report submitted under subsection
(a)or (b), or an update under subsection (e), if the Attorney General, in coordination, as appropriate, with the Director of the Federal Bureau of Investigation, the head of any other appropriate Federal law enforcement agency, and the Secretary of the Treasury, determines that such disclosure could reasonably be expected— #####
(A)to compromise the identity of a confidential source, including a State, local, or foreign agency or authority or any private institution that furnished information on a confidential basis; #####
(B)to jeopardize the integrity or success of an ongoing criminal investigation or prosecution; #####
(C)to endanger the life or physical safety of any person; or #####
(D)to cause substantial harm to physical property. ####
(3)Notification required If the Director of National Intelligence makes a determination under paragraph
(1)or the Attorney General makes a determination under paragraph (2), the Director or the Attorney General, as the case may be, shall notify the appropriate congressional committees and leadership of the determination and the reasons for the determination. ###
(d)Exclusion or Removal of Foreign Persons and Foreign Financial Institutions ####
(1)Foreign persons The President may exclude a foreign person from the report under subsection (a), or an update under subsection (e), or remove a foreign person from the report or update prior to the imposition of sanctions under section 6(a) if the material contribution (as described in subsection (g)) that merited inclusion in that report or update— #####
(A)does not have a significant and lasting negative effect that contravenes the obligations of China under the Joint Declaration and the Basic Law; #####
(B)is not likely to be repeated in the future; and #####
(C)has been reversed or otherwise mitigated through positive countermeasures taken by that foreign person. ####
(2)Foreign financial institutions The President may exclude a foreign financial institution from the report under subsection (b), or an update under subsection (e), or remove a foreign financial institution from the report or update prior to the imposition of sanctions under section 7(a) if the significant transaction or significant transactions of the foreign financial institution that merited inclusion in that report or update— #####
(A)does not have a significant and lasting negative effect that contravenes the obligations of China under the Joint Declaration and the Basic Law; #####
(B)is not likely to be repeated in the future; and #####
(C)has been reversed or otherwise mitigated through positive countermeasures taken by that foreign financial institution. ####
(3)Notification required If the President makes a determination under paragraph
(1)or
(2)to exclude or remove a foreign person or foreign financial institution from a report under subsection
(a)or (b), as the case may be, the President shall notify the appropriate congressional committees and leadership of the determination and the reasons for the determination. ###
(e)Update of Reports ####
(1)In general Each report submitted under subsections
(a)and
(b)shall be updated in an ongoing manner and, to the extent practicable, updated reports shall be resubmitted with the annual report under section 301 of the United States-Hong Kong Policy Act of 1992 (22 U.S.C. 5731). ####
(2)Rule of construction Nothing in this subsection shall be construed to terminate the requirement to update the reports under subsections
(a)and
(b)upon the termination of the requirement to submit the annual report under section 301 of the United States-Hong Kong Policy Act of 1992 (22 U.S.C. 5731). ###
(f)Form of Reports ####
(1)In general Each report under subsection
(a)or
(b)(including updates under subsection (e)) shall be submitted in unclassified form and made available to the public. ####
(2)Classified annex The explanations and descriptions included in the report under subsection (a)(2) (including updates under subsection (e)) may be expanded on in a classified annex. ###
(g)Material Contributions Related to Obligations of China Described For purposes of this section, a foreign person materially contributes to the failure of the Government of China to meet its obligations under the Joint Declaration or the Basic Law if the person— ####
(1)took action that resulted in the inability of the people of Hong Kong— #####
(A)to enjoy freedom of assembly, speech, press, or independent rule of law; or #####
(B)to participate in democratic outcomes; or ####
(2)otherwise took action that reduces the high degree of autonomy of Hong Kong.
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Sec. 5
IDENTIFICATION OF FOREIGN PERSONS INVOLVED IN THE EROSION OF THE OBLIGATIONS OF CHINA UNDER THE JOINT DECLARATION OR THE BASIC LAW AND FOREIGN FINANCIAL INSTITUTIONS THAT CONDUCT SIGNIFICANT TRANSACTIONS WITH THOSE PERSONS
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