Washington, D.C. – Today, U.S. Representative Stephen F. Lynch (MA-08), introduced H.R. 4765, the Chinese Support for Afghan Illicit Finance Study Act, which would require the U.S. Treasury to examine and report to Congress on the financial activities of China in relation to Taliban finances. This bipartisan legislation, co-sponsored by Representative Zach Nunn (R-IA), will be considered in the House Financial Services Committee on July 26th and if passed, it will await a full vote by the U.S. House of Representatives.

“Since the United States withdrawal from Afghanistan almost two years ago, China has brazenly given financial and strategic support to the Taliban-led government in Afghanistan,” said Rep. Lynch. “China’s permissive policies regarding illicit financing pose a threat to our international security and the people of Afghanistan. This bill is critical to helping America better understand the financial activities of China and Chinese entitles in connection with the finances of the Taliban and other terrorist organizations.”  

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. This was likely 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.