H.R. 4765

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4765 Reported in House (RH)]

<DOC>

Union Calendar No. 267
118th CONGRESS
1st Session
H. R. 4765

[Report No. 118-328]

To require the Secretary of the Treasury to carry out a study on 
Chinese support for Afghan illicit finance, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

July 20, 2023

Mr. Lynch (for himself and Mr. Nunn of Iowa) introduced the following 
bill; which was referred to the Committee on Financial Services

December 19, 2023

Additional sponsor: Mr. Molinaro

December 19, 2023

Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed 
in italic]
[For text of introduced bill, see copy of bill as introduced on July 
20, 2023]

_______________________________________________________________________

A BILL

To require the Secretary of the Treasury to carry out a study on 
Chinese support for Afghan illicit finance, and for other purposes.

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 ``Exposing China's Support for the 
Taliban Act''.

SEC. 2. STUDY ON CHINESE SUPPORT FOR AFGHAN ILLICIT FINANCE.

(a) Findings.--Congress finds the following:
(1) Though China and Afghanistan share only a small land 
border, when it comes to illicit financial activity between the 
two countries, China has a demonstrated history of 
permissiveness regarding trafficking and money laundering that 
could support both the Taliban and its associates.
(2) A 2014 Financial Action Task Force report titled, 
``Financial Flows Linked to the Production and Trafficking of 
Afghan Opiates'' found evidence of import/export companies 
registered in China that were transferring funds to 
Afghanistan, likely as part of trade-based money laundering 
schemes centered around illicit opium production and 
trafficking, which, per the United Nations Office on Drugs and 
Crime (UNODC), is one of the Taliban's main sources of income.
(3) Since the U.S. withdrawal from Afghanistan in August 
2021, China has announced its willingness to lend financial 
support and legitimacy to the Taliban-led government in 
Afghanistan, including Afghan Interior Minister, Sirajuddin 
Haqqani, a member of the U.S.-sanctions designated Foreign 
Terrorist Organization, the Haqqani Network.
(4) China's permissive policies regarding Afghan illicit 
finance run counter to the strategic interests of the United 
States with respect to countering trafficking and preventing 
terrorist groups from accessing the international financial 
system.
(5) China's role as a critical source of financial 
wherewithal for the Taliban and its associates to process and 
implement drug and other illicit-activity transactions warrants 
further study as these actions pose a threat both to the safety 
and security of the people of Afghanistan and the international 
community.
(6) Congress needs to better understand how China could 
leverage its relationships and resources within Afghanistan and 
how these activities could directly or indirectly provide 
financial support to terrorist organizations, including the 
Taliban and its associates.
(b) Study.--
(1) Requirement.--Not later than one year after the date of 
the enactment of this Act, the Secretary of the Treasury shall 
provide to the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate a report on the financial 
activities of the Government of China and Chinese entities in 
connection with the finances of Afghanistan and the Taliban.
(2) Matters included.--The report under paragraph (1) shall 
include the following:
(A) An assessment of the activities undertaken by 
the Government of China and Chinese-registered 
companies to support illicit financial networks in 
Afghanistan, particularly such networks involved in 
narcotics trafficking, illicit financial transactions, 
official corruption, natural resources exploitation, 
and terrorist networks.
(B) An assessment of financial, commercial, and 
economic activities undertaken by the Government of 
China and Chinese companies in Afghanistan to support 
Chinese policies counter to American strategic 
interests.
(C) Any recommendations to Congress regarding 
legislative or regulatory improvements necessary to 
support the identification and disruption of Chinese-
supported illicit financial networks in Afghanistan.
(3) Form.--The report under paragraph (1) may include a 
classified annex.
Union Calendar No. 267

118th CONGRESS

1st Session

H. R. 4765

[Report No. 118-328]

_______________________________________________________________________

A BILL

To require the Secretary of the Treasury to carry out a study on 
Chinese support for Afghan illicit finance, and for other purposes.

_______________________________________________________________________

December 19, 2023

Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed