Russia and Belarus Financial Sanctions Act of 2022
Floor Speech
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Mr. GARCIA of Illinois. Madam Speaker, I move to suspend the rules and pass the bill (H.R. 7066) to require United States financial institutions to ensure entities and persons owned or controlled by the institution comply with financial sanctions on the Russian Federation and the Republic of Belarus to the same extent as the institution itself, and for other purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows: H.R. 7066
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 ``Russia and Belarus Financial Sanctions Act of 2022''. SEC. 2. REQUIREMENTS.
(a) In General.--A United States financial institution shall take all actions necessary and available to cause any entity or person owned or controlled by the institution to comply with any provision of law described in subsection (b) to the same extent as required of a United States financial institution.
(b) Provision of Law Described.--A provision of law described in this subsection is any prohibition or limitation described in a sanctions-related statute, regulation or order applicable to a United States financial institution concerning the Russian Federation or the Republic of Belarus, involving--
(1) the conduct of transactions;
(2) the acceptance of deposits;
(3) the making, granting, transferring, holding, or brokering of loans or credits;
(4) the purchasing or selling of foreign exchange, securities, commodity futures, or options;
(5) the procuring of purchasers and sellers described under paragraph (4) as principal or agent; or
(6) any other good or service provided by a United States financial institution.
(c) Penalty.--A United States financial institution that violates subsection (a) shall be subject to the penalties described in the applicable statute, regulation or order applicable to a United States financial Institution.
(d) United States Financial Institution Defined.--In this section, the term ``United States financial institution'' means any U.S. entity (including its foreign branches) that is engaged in the business of accepting deposits, making, granting, transferring, holding, or brokering loans or credits, or purchasing or selling foreign exchange, securities, futures or options, or procuring purchasers and sellers thereof, as principal or agent. It includes depository institutions, banks, savings banks, money services businesses, operators of credit card systems, trust companies, insurance companies, securities brokers and dealers, futures and options brokers and dealers, forward contract and foreign exchange merchants, securities and commodities exchanges, clearing corporations, investment companies, employee benefit plans, dealers in precious metals, stones, or jewels, and U.S. holding companies, U.S. affiliates, or U.S. subsidiaries of any of the foregoing. This term includes those branches, offices, and agencies of foreign financial institutions that are located in the United States, but not such institutions' foreign branches, offices, or agencies. SEC. 3. DETERMINATION OF BUDGETARY EFFECTS.
The budgetary effects of this Act, for the purpose of complying with the Statutory Pay-As-You-Go Act of 2010, shall be determined by reference to the latest statement titled ``Budgetary Effects of PAYGO Legislation'' for this Act, submitted for printing in the Congressional Record by the Chairman of the House Budget Committee, provided that such statement has been submitted prior to the vote on passage.
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Mr. GARCIA of Illinois. Madam Speaker, I yield myself such time as I may consume.
Madam Speaker, I rise in support of H.R. 7066, the Russia and Belarus Financial Sanctions Act, sponsored by Congressman Brad Sherman.
Within days of Russia's unjustified and inhumane invasion of Ukraine, President Biden demonstrated strong leadership when he brought our allies together to impose the toughest set of sanctions ever against a major world economy.
The effectiveness of these sanctions will depend in large part on strong enforcement of these restrictions and prohibitions by the U.S. and by our allies.
U.S. financial institutions, including banks, credit card companies, broker-dealers, money service businesses, cryptocurrency exchanges, and mobile wallets, play a pivotal role in the implementation of U.S. sanctions. There is some ambiguity, however, as to whether compliance by U.S. financial institutions extends to foreign entities that they own or control.
Congressman Sherman's bill will clarify that all foreign operations of U.S. financial institutions, including any subsidiaries domiciled outside the United States, must fully comply with all existing sanctions imposed in response to Russia's brutal war against Ukraine.
I thank Congressman Sherman for his good work on this bipartisan bill, as well as Congressman Hill for partnering with him. This is a commonsense clarification to ensure that we are doing all that we can to degrade the Russian economy until it is no longer able to fund its incursion into Ukraine and to show Russia that there are consequences for its actions. For these reasons, I urge my colleagues to support this bill.
House of Representatives, Committee on Agriculture, Washington, DC, May 6, 2022. Hon. Maxine Waters, Chairwoman, Committee on Financial Services, Washington, DC.
Dear Chairwoman Waters: This letter confirms our mutual understanding regarding H.R. 7066, the Russia and Belarus Financial Sanctions Act. Thank you for collaborating with the Committee on Agriculture on the matters within our jurisdiction.
The Committee on Agriculture will forego any further consideration of this bill so that it may proceed expeditiously to the House floor for consideration. However, by foregoing consideration at this time, we do not waive any jurisdiction over any subject matter contained in this or similar legislation. We request that our Committee be consulted and involved as this bill moves forward so that we may address any remaining issues in our jurisdiction. The Committee on Agriculture also reserves the right to seek appointment of an appropriate number of conferees to any House-Senate conference involving this or similar legislation and ask that you support any such request.
We would appreciate a response to this letter confirming this understanding with respect to H.R. 7066, and request that a copy of our letters on this matter be published in the Congressional Record during Floor consideration. Sincerely, David Scott, Chairman. ____ House of Representatives, Committee on Financial Services, Washington, DC, May 9, 2022. Hon. David Scott, Chairman, Committee on Agriculture, Washington, DC.
Dear Mister Chairman: I am writing to acknowledge your letter dated May 9, 2022, regarding the waiver by the Committee on Agriculture of any jurisdictional claims over the matters contained in H.R. 7066, the ``Russian and Belarus Financial Sanctions Act.'' The Committee on Financial Services confirms our mutual understanding that your Committee does not waive any jurisdiction over the subject matter contained in this or similar legislation, and your Committee will be appropriately consulted and involved as this bill or similar legislation moves forward so that we may address any remaining issues within your jurisdiction.
The Committee on Financial Services further recognizes your interest in appointment of outside conferees from the Committee on Agriculture should this bill or similar language be considered in a conference with the Senate.
Pursuant to your request, I will ensure that this exchange of letters is included in the Congressional Record during Floor consideration of the bill. I appreciate your cooperation regarding this legislation and look forward to continuing to work with you as this measure moves through the legislative process. Sincerely, Maxine Waters, Chairwoman.
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Mr. GARCIA of Illinois. Madam Speaker, I yield 3 minutes to the gentleman from California (Mr. Sherman).
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Mr. GARCIA of Illinois. Madam Speaker, I yield myself the balance of my time. The Russia and Belarus Financial Sanctions Act was passed by our committee with bipartisan support. It provides an important clarification to ensure financial institutions follow the law and implement sanctions on Russia and Belarus.
Madam Speaker, I urge Members to support this bill, and I yield back the balance of my time.
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