DIVISION G – Committee on Financial Services

DIVISION G – Committee on Financial Services

DIVISION G – Committee on Financial Services

The America COMPETES Act of 2022 protects U.S. financial stability and the global economy against bad actors and strengthens U.S. competitiveness abroad.

World Bank Group and Asian Development Bank Loans to the People’s Republic of China

The America COMPETES Act of 2022 instructs the United States Executive Directors at the World Bank and Asian Development Bank to use the voice and vote of the U.S. to vote against any assistance to the People’s Republic of China unless it can be certified that the PRC or PRC-controlled lenders participate in debt relief initiatives on terms comparable to other G-20 governments, and that such assistance contributes significantly to the provision of a global public good that serves the national interest of the United States.
For years, the PRC has received loans from the World Bank and the Asian Development Bank at the same time it flouts multilateral standards and principles, such as transparency in its lending practices and its refusal to participate in sovereign debt workout initiatives. The U.S. should continue to oppose World Bank and Asian Development lending to the PRC, unless certain conditions are met and such assistance provides a global public good that is in the interest of the U.S. and the world, such as mitigating the impacts of climate change.

Combatting Ransomware Attacks

In recent years, ransomware attacks against the United States by bad actors, in China and elsewhere, have increased dramatically. In order to effectively combat ransomware attacks, we must modernize the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) authorities, so it is thoroughly prepared to combat 21st Century financial crime.
This bill modernizes FinCEN authority by adding a special measure that allows it to pursue bad actors, like those laundering the proceeds of Chinese ransomware, or are declared a Primary Money Laundering Concern due to their actions to evade sanctions against North Korea.

Strengthening Protections for Investors and U.S. Markets

While most foreign jurisdictions ensure that companies seeking to list their stock in U.S. capital markets open their auditing books for U.S. inspection, the PRC consistently has not.
The America COMPETES Act shortens the grace period, from three to two years, U.S. stock exchange listed companies have to comply with the Public Company Accounting Oversight Board’s auditor inspection requirements.
Updating the Holding Foreign Company Accountable (HFCA) Act makes clear that every single foreign company issuing public securities in the U.S. must play by our rules or risk being delisted from U.S. stock exchanges.
As of May 2021, there were 248 Chinese companies, including eight national-level Chinese state-owned enterprises, listed on U.S. exchanges with a total market capitalization of $2.1 trillion. None of these companies permits the PCAOB to inspect working-documents of the U.S.-registered auditors that audit the financial statements of these China-based companies.

Combatting Wildlife Trafficking Financing and Proceeds

Right now, the PRC is one of the largest players in global wildlife trade, a practice that is driving endangered species into extinction and helping criminals turn a profit at the expense of the world’s ecosystem and America’s national security. It is critical that the Treasury and its partners adjust how they approach this problem to better collaborate and crack down on trafficking of all kinds.
The America COMPETES Act of 2022 requires the Treasury Secretary to conduct a study about global wildlife trafficking and its proceeds much of which is fueled by criminal activity and demand from the PRC.

PRC Support for Afghan Illicit Finance

With the Taliban in control of Afghanistan, it’s critical that the Treasury Department inform Congress on the nature of the economic, commercial, and financial connections between China and Afghanistan, to keep an eye on illicit activity that may have implications for our economy.
This bill directs the Treasury Department’s Office of Terrorism and Financial Intelligence to brief Congress on the PRC’s economic, commercial and financial connections to Afghanistan which fuel both Chinese and Taliban interests – including illicit financial networks involved in narcotics trafficking, official corruption, natural resource exploitation and terrorist networks.

Co-Financing Arrangements at the Multilateral Development Banks

The China-led Asian Infrastructure Investment Bank (AIIB) does not provide grants or concessional loans to poorer countries. Instead, it seeks to inject a degree of subsidy into its lending operations by co-financing projects with other multilateral development banks that do offer concessional assistance, which is paid for by the regular, ongoing contributions of its member countries, including the U.S.
This bill instructs the United States Executive Directors at the multilateral development banks to vote against any project if it includes co-financing provided by the Asian Infrastructure Investment Bank unless the Treasury Secretary has certified that the AIIB has begun to provide grants and concessional assistance on terms similar to the terms provided by the World Bank’s International Development Association.

China Financial Threat Mitigation

The size of China’s economy and financial system, along with its interconnectedness with the rest of the world, means financial risks from China could have serious implications for the United States.
This bill requires the Treasury Department issue a report analyzing risks to U.S. financial stability and the global economy from the People’s Republic of China and provide recommendations to Congress by December 31, 2022.

Support for Debt Relief for Developing Countries

The America COMPETES Act directs the Treasury Department to work with U.S. representatives at the International Monetary Fund and the World Bank to engage with the global financial community to advocate for the effective implementation of the G-20’s Common Framework aimed at easing the unsustainable debt burdens of developing countries through the establishment of clear procedures and a commitment to transparency and equitable burden-sharing through broad creditor participation.

Securing America’s Vaccines for Emergencies (SAVE Act)

As the COVD-19 pandemic continues to disrupt our nation’s supply chain, the President may need to ramp up domestic production of vaccines and other medical equipment.
This bill gives the President the flexibility to utilize the Defense Production Act of 1950 to ensure the availability of medical materials essential to our national defense.

COVID-19 Emergency Medical Supplies Enhancement Act

The COVID-19 pandemic has taken the lives of so many Americans, making it increasingly important for the federal government to work cooperatively with state and local governments to protect the lives of all Americans.
This bill streamlines engagement between the federal government, the private sector, and state, local, and tribal governments to ensure that all Americans have access to lifesaving personal protective equipment and other medical supplies.

DIVISION G – Committee on Financial Services

World Bank Group and Asian Development Bank Loans to the People’s Republic of China

Combatting Ransomware Attacks

Strengthening Protections for Investors and U.S. Markets

Combatting Wildlife Trafficking Financing and Proceeds

PRC Support for Afghan Illicit Finance

Co-Financing Arrangements at the Multilateral Development Banks

China Financial Threat Mitigation

Support for Debt Relief for Developing Countries

Securing America’s Vaccines for Emergencies (SAVE Act)

COVID-19 Emergency Medical Supplies Enhancement Act

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