Sec. 7. SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL INSTITUTIONS THAT CONDUCT SIGNIFICANT TRANSACTIONS WITH FOREIGN PERSONS THAT CONTRAVENE THE OBLIGATIONS OF CHINA UNDER THE JOINT DECLARATION OR THE BASIC LAW
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## SEC. 7 SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL INSTITUTIONS THAT CONDUCT SIGNIFICANT TRANSACTIONS WITH FOREIGN PERSONS THAT CONTRAVENE THE OBLIGATIONS OF CHINA UNDER THE JOINT DECLARATION OR THE BASIC LAW ###
(a)Imposition of Sanctions ####
(1)Initial sanctions Not later than one year after the date on which a foreign financial institution is included in the report under section 5(b) or an update to that report under section 5(e), the President shall impose not fewer than 5 of the sanctions described in subsection
(b)with respect to that foreign financial institution. ####
(2)Expanded sanctions Not later than two years after the date on which a foreign financial institution is included in the report under section 5(b) or an update to that report under section 5(e), the President shall impose each of the sanctions described in subsection (b). ###
(b)Sanctions Described The sanctions described in this subsection with respect to a foreign financial institution are the following: ####
(1)Loans from united states financial institutions The United States Government may prohibit any United States financial institution from making loans or providing credits to the foreign financial institution. ####
(2)Prohibition on designation as primary dealer 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. ####
(3)Prohibition on service as a repository of government funds The foreign financial institution may not serve as agent of the United States Government or serve as repository for United States Government funds. ####
(4)Foreign exchange 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 involve the foreign financial institution. ####
(5)Banking transactions 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 the foreign financial institution. ####
(6)Property transactions The President may, pursuant to such regulations as the President may prescribe, prohibit any person from— #####
(A)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; #####
(B)dealing in or exercising any right, power, or privilege with respect to such property; or #####
(C)conducting any transaction involving such property. ####
(7)Restriction on exports, reexports, and transfers The President, in consultation with the Secretary of Commerce, may restrict or prohibit exports, reexports, and transfers (in-country) by any person (as defined in section 4801(8) of title 50, United States Code)2 of commodities, software, and technology subject to the jurisdiction of the United States directly or indirectly to the foreign financial institution. 2The amendment made by section 1252(b)(2) of Public Law 116-283 was executed to reflect the probably intent of Congress. ####
(8)Ban on investment in equity or debt 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. ####
(9)Exclusion of corporate officers The President may direct the Secretary of State, in consultation with the Secretary of the Treasury and the Secretary of Homeland Security, to exclude from the United States any alien that is determined to be a corporate officer or principal of, or a shareholder with a controlling interest in, the foreign financial institution, subject to regulatory exceptions to permit the United States to comply with the Agreement regarding the Headquarters of the United Nations, signed at Lake Success June 26, 1947, and entered into force November 21, 1947, between the United Nations and the United States, or other applicable international obligations. ####
(10)Sanctions on principal executive officers 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. ###
(c)Timing of Sanctions The President may impose sanctions required under subsection
(a)with respect to a financial institution included in the report under section 5(b) or an update to that report under section 5(e) beginning on the day on which the financial institution is included in that report or update.
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Sec. 7
SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL INSTITUTIONS THAT CONDUCT SIGNIFICANT TRANSACTIONS WITH FOREIGN PERSONS THAT CONTRAVENE THE OBLIGATIONS OF CHINA UNDER THE JOINT DECLARATION OR THE BASIC LAW
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