Taiwan Conflict Deterrence Act of 2023
What changed between versions
The prohibition on U.S. financial institutions engaging in significant transactions with covered persons changed from 'may prohibit' (discretionary) to 'shall prohibit' (mandatory), making it an automatic requirement rather than one the Secretary can choose to enforce.
The congressional briefing requirement changed from a mandatory in-person brief to providing 'an unclassified or classified briefing (as determined appropriate by the Secretary),' giving the Secretary discretion over classification.
The conjunction between the two categories of covered persons (the natural person and their immediate family) changed from 'or' to 'and,' meaning both must be covered by a report for the prohibition to apply, rather than either one being sufficient.
A new exceptions subsection was added providing: (1) an exemption for U.S. intelligence, law enforcement, and national security activities; (2) presidential waiver authority if the waiver promotes ending the threat, the threat is no longer present, or it is essential to national security interests, with reporting to Congress required; and (3) a rule of construction clarifying the section does not authorize sanctions on importation of goods.
Public availability of reports was narrowed from covering all reports under subsection (a) to only the report under subsection (a)(1), and the form-of-report provision now specifically references paragraphs (1) and (4) of subsection (a) rather than the entire subsection.
A new implementation and penalties subsection was added, authorizing the President to use IEEPA sections 203 and 205 to carry out the prohibition, requiring submission of licenses to Congress within 60 days, and imposing IEEPA section 206 penalties for violations.
