The Chinese government’s efforts to steal sensitive personal and financial data, most recently from U.S. government employees and particularly those with security clearances, is a national security concern and the reason Congressman Chris Smith (R-NJ) introduced legislation (H.R. 4235) to strictly review efforts by Chinese companies to acquire U.S. financial service firms specializing in money transfer or other forms of payment.
The Chinese government’s efforts to steal sensitive personal and financial data, most recently from U.S. government employees and particularly those with security clearances, is a national security concern and the reason Congressman Chris Smith (R-NJ) introduced legislation (H.R. 4235) to strictly review efforts by Chinese companies to acquire U.S. financial service firms specializing in money transfer or other forms of payment.
“Protecting the personal privacy of U.S. military service members and Federal employees has to be a national security priority, particularly as Chinese firms are expanding efforts to acquire U.S. financial services companies” Smith, co-chair of the Congressional-Executive Commission on China, stated.
“The hacking of the electronic files at Office of Personnel Management (OPM) and Equifax exposed sensitive personnel and financial information of U.S. government employees, providing Chinese and other foreign intelligence agencies information that could be used to target Federal workers with security clearances. The U.S. government must look more closely at proposed acquisitions of U.S. financial services companies for their national security implications,” Smith said.
H.R. 4235 authorizes a full review of the acquisitions of U.S. financial services companies by Chinese-owned firms, or those that are primarily based in China and require a report to Congress and the President about the implications of such acquisitions on the national security and economic interests of the United States.
The bills also requires investigating potential threats to the sensitive personal and financial data of “United States military service members or Federal employees or contractors with security clearances” who use money transfer or other forms of payment. The review would also examine whether the Chinese government limits U.S. domestic corporations to invest in financial services inside China.
Smith has urged the Committee on Foreign Investment in the United State (CFIUS) to strictly scrutinize the proposed acquisition of MoneyGram by the Chinese firm Ant Financial, which reportedly has a record of lax security of customer data and deep cooperation with the Chinese government and Communist Party. (Link to WSJ op-ed).
“The U.S. is a great place for foreign investment, but we should not be fooled into thinking that Chinese firms are free of Chinese government control and oversight,” said Smith, who also held a hearing in 2013 on Chinese hacking and cyberattacks on U.S. businesses. “This is true of Ant Financial and other major tech firms in China. The U.S. should scrutinize Chinese investment rigorously for its impact on our economic future and national security.”
NWS Earle and Joint Base McGuire-Dix-Lakehurst are military facilities based in Smith’s home district, and are home to military personnel and security contractors. As MoneyGram is used by many military personnel, and which operates several locations near both bases, sensitive personnel data of MoneyGram customers could be affected if the company is acquired by Ant Financial.
“MoneyGram is the world’s second largest financial services firm with millions of U.S. customers, a disproportionate number of whom are U.S. military personnel,” Smith said. “This legislation is designed to safeguard sensitive personal information and to protect individuals, especially and including our service personnel, when they send needed monies to their loved ones.”
