[Congressional Record Volume 168, Number 78 (Tuesday, May 10, 2022)]
[House]
[Pages H4748-H4750]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           RUSSIA AND BELARUS FINANCIAL SANCTIONS ACT OF 2022

  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.

[[Page H4749]]

       (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.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Illinois (Mr. Garcia) and the gentleman from Arkansas (Mr. Hill) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Illinois.


                             General Leave

  Mr. GARCIA of Illinois. Madam Speaker, I ask unanimous consent that 
all Members may have 5 legislative days within which to revise and 
extend their remarks on this legislation and include extraneous 
material thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Illinois?
  There was no objection.
  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.

                              {time}  1615

  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.
  Madam Speaker, I reserve the balance of my time.

                                         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.

  Mr. HILL. Madam Speaker, I yield myself such time as I may consume.
  Madam Speaker, I thank my friend from Illinois for managing the bill. 
It is also good to be on this House floor again talking on an issue 
that we share in common, and that is the importance of sanctions being 
successful as a part of our strategy to get Mr. Putin out of Ukraine. 
So it has been very good to partner with my friend from California (Mr. 
Sherman) on H.R. 7066, the Russia and Belarus Financial Sanctions Act.
  Madam Speaker, U.S. financial institutions are already prohibited 
from engaging in transactions with sanctioned Russian entities, but 
H.R. 7066 extends that prohibition to entities owned or controlled by 
U.S. financial institutions as well. This is a commonsense provision, 
and it has helped other sanctions programs be more successful, and I 
cite particularly the efforts to isolate Iran and North Korea.
  Under the President's ongoing Russia measures, anyone providing 
support to a sanctioned person runs the risk of being sanctioned 
themselves. We know that U.S. financial institutions are fully aware of 
us. Congress expects their full compliance and to be watchful on their 
affiliates that may also do business with Russia.
  As the U.S. continues to pressure the Putin regime, we must seek and 
prevent opportunities for Russia to find loopholes for non-U.S. 
financial institutions.

[[Page H4750]]

  I am glad to see that our current sanctions on Russia are making it 
more difficult for Moscow to find alternatives to Western banks. 
However, opportunities remain for us to tighten these multilateral 
sanctions and increase pressure on Russia, particularly in Russia's 
energy exports. Both the United States and Europe continue to provide 
carve-outs for energy transactions, and the next step on the sanctions 
ladder is to close these loopholes so that Russia cannot receive hard 
currency by selling oil and gas.
  I hope that Republicans and Democrats can work together to pursue 
this kind of policy and continue to collaborate on how to tighten the 
financial noose around Putin. Just as we worked on this bill together, 
I hope Members on both sides of the aisle will come together and 
support the work of my friend from California.
  Madam Speaker, I urge my colleagues to support this bill, and I 
reserve the balance of my time.
  Mr. GARCIA of Illinois. Madam Speaker, I yield 3 minutes to the 
gentleman from California (Mr. Sherman).
  Mr. SHERMAN. Madam Speaker, I rise in support of H.R. 7066, the 
Russia and Belarus Financial Sanctions Act.
  I thank Chairwoman Waters, Ranking Member McHenry, and my co-lead on 
this bill, the gentleman from Arkansas (Mr. Hill), for their work in 
bringing forward this legislation.
  This bill passed unanimously in the Financial Services Committee in 
March. The Russia and Belarus Financial Sanctions Act represents a 
significant step forward in imposing sanctions on Russia and on Belarus 
for their historic aggression.
  I have spent 26 years on the Foreign Affairs Committee and well over 
a decade on the Congressional Ukrainian Caucus. I understand the 
importance of financial sanctions in changing Russia's behavior in part 
through my discussions with President Zelenskyy and other Ukrainian 
leaders who have pointed out that that is their Achilles' heel.
  Chairwoman Waters and I have for several years been pushing to 
prohibit Americans from purchasing all new Russian sovereign debt and 
have passed that through the House several times. But that was before 
the invasion.
  As has been explained by my colleagues who have spoken, we now have 
effective sanctions prohibiting U.S. financial institutions from 
engaging in a wide range of transactions with Russian and Belarusian 
individuals and entities--particularly the Russian Central Bank--many 
of the state-owned enterprises and financial institutions, and 
oligarchs.
  But what people have not focused on is that these sanctions apply 
only to U.S. persons and do not apply to the over 1,000 foreign 
subsidiaries of American financial institutions. As we meet here today, 
foreign subsidiaries owned by U.S. financial institutions are engaging 
in the very financial transactions that we have prohibited if engaged 
by a U.S. institution. It is time to deal with this gaping loophole. 
That is why this bill requires all U.S. financial institutions to 
prevent their foreign subsidiaries from engaging in transactions 
prohibited to U.S.-based financial institutions.
  Madam Speaker, I think it is important that this bill has acquired 
bipartisan support and shows that Congress comes together to deal with 
this outrageous invasion, and I urge my colleagues to support this 
timely legislation.
  Mr. HILL. Madam Speaker, I yield myself the balance of my time.
  I thank my good friend, Mr. Sherman, on this bill, and let me remind 
the leaders of the Kremlin that Americans on both sides of this aisle 
are unified in our efforts to cut off the economic flow to the Kremlin, 
and we share that objective with our friends in Europe. When I was in 
Europe a few weeks ago, just before Easter, leaders in both Poland and 
Romania reiterated that they are prepared to go further in economic 
sanctions against the Putin regime and Moscow.
  So it needs to be clear that Americans, while we are fully on board 
with our transatlantic friends in constraining Mr. Putin, the announced 
sanctions by President Biden and the sanctions that we are talking 
about today are just a beginning point as this Congress works to 
provide lethal assistance with 31 countries to help the Ukrainians 
defend themselves. This Congress helps provide humanitarian assistance, 
along with countries from all around the world and the United Nations, 
to help the Ukrainians have the medicine, food, and material that they 
need to survive in this really outrageous and unprecedented attack by 
the Russians on the sovereign nation of Ukraine.
  So it is important to note here that we are here not for the last 
time to talk about how to fine-tune, how to tighten, and how to direct 
our economic sanctions more successfully.
  Madam Speaker, I thank my friend from California for our 
collaboration on this. I encourage all Members on both sides of the 
aisle to support it, and I yield back the balance of my time.
  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.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Illinois (Mr. Garcia) that the House suspend the rules 
and pass the bill, H.R. 7066, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. ROY. Madam Speaker, on that I demand the yeas and nays.
  The SPEAKER pro tempore. Pursuant to section 3(s) of House Resolution 
8, the yeas and nays are ordered.
  Pursuant to clause 8 of rule XX, further proceedings on this motion 
are postponed.

                          ____________________