H.R. 1716 — Taiwan Conflict Deterrence Act of 2025

This section requires the Secretary of the Treasury, not later than 90 days after the President informs Congress under section 3302(c) of the Taiwan Relations Act (22 U.S.C. 3302(c))—which directs notification of threats to Taiwan or U.S. interests—of a threat from actions by the People's Republic of China and any related danger to U.S. interests, and annually thereafter for three years, to submit to appropriate congressional members a report identifying (1) for at least 10 natural persons who are members of the Chinese Communist Party Politburo Standing Committee, other Politburo members, or Central Committee members performing duties affecting Taiwan (with at least one from the Standing Committee and one other Politburo member), the estimated total funds under their direct or indirect control in financial institutions and a description of such funds; and (2) financial institutions maintaining accounts connected to significant such funds or providing significant financial services to those persons. Not later than 30 days after submitting the report, the Secretary must provide Congress an unclassified or classified briefing (as appropriate) on the funds, including how they were acquired and any illicit or corrupt means used. (Thus, the provision enables public and congressional scrutiny of assets held by senior Chinese officials potentially linked to threats against Taiwan.) The President may exempt persons or institutions if funds were acquired legally and noncorruptly, the person provides significant cooperation on China-related national security matters, or the institution ceases relevant accounts/services or cooperates similarly; the President may also waive requirements upon congressional notification if the waiver promotes ending the threat, the threat has ended, or it is essential to U.S. national security. Reports must be unclassified (with possible classified annexes), and unclassified portions must be publicly posted on the Department of the Treasury's website and social media in English, Chinese, and other appropriate languages in easily downloadable formats.

This section requires the Secretary of the Treasury to prohibit a United States financial institution, or any person owned or controlled by such an institution, from engaging in a significant transaction with (1) a natural person covered by a report under section 2(a) or (2) the immediate family of such a person if the Secretary determines the family benefits from funds described in the report. The section provides exceptions for any intelligence, law enforcement, or national security activity of the United States; authorizes the President to waive the prohibition upon reporting to specified Members of Congress that the waiver promotes ending the threat under section 2(a)(1), the threat is no longer present, or the waiver is vital to U.S. national security interests (with reports submitted unclassified and potentially including a classified annex); and excludes the importation of goods from the prohibition. The President may implement this section using authorities under the International Emergency Economic Powers Act (IEEPA; 50 U.S.C. 1702, 1704), must notify Congress within 60 days of issuing any related license, and subjects violators to IEEPA civil and criminal penalties (50 U.S.C. 1705(b), (c)). This section terminates on the earlier of (1) 30 days after the President reports to Congress that the threat under section 2(a)(1) is no longer present or (2) 25 years after the Secretary submits the final report under section 2(a)(1).

This section defines terms for purposes of the Act, including: (1) appropriate Members of Congress (i.e., specified House and Senate leaders and the chair and ranking member of the House Committee on Financial Services and the Senate Committee on Banking, Housing, and Urban Affairs); (2) financial institution (i.e., a U.S. financial institution or foreign financial institution); (3) foreign financial institution (as defined in 31 CFR 561.308); (4) funds (as defined by the Secretary of the Treasury); (5) immediate family of a natural person (i.e., spouse, parents, children, siblings, grandchildren, and specified in-laws); and (6) United States financial institution (as defined in 31 CFR 561.309).