Given they said it works over video conferencing links, the exploit should be possible without any malware being present on the victim's PC, nor any physical intrusion of their space.
It'd be interesting if you could cite this legislation. I don't believe it exists.
On this point, the NSA has previously been scolded for "hoarding" back doors they've discovered and not informing the hardware or software vendors about them. The NSA has a dual mandate to spy on foreign adversaries and protect the US and its citizens. By not informing vendors of backdoors, they were neglecting their second mandate. Since then, I think they've gotten better about reporting security flaws they've discovered, but I could still believe they might sometimes drag their feet before reporting them.
At the point where you're spreading something controversial you think you remember reading but don't even know if there's a credible source, you probably shouldn't. This claim doesn't seem credible to me.
The article mentions the sound of keystrokes being recorded, so, one means of doing that is via recording equipment on site. Video conferencing was another means of getting that information.
The U.S. National Security Agency is rebuffing efforts by a leading Congressional critic to determine whether it is continuing to place so-called back doors into commercial technology products, in a controversial practice that critics say damages both U.S. industry and national security.
www.reuters.com
"The U.S. National Security Agency is rebuffing efforts by a leading Congressional critic to determine whether it is continuing to place so-called back doors into commercial technology products".
Ignoring the word "place", the key word there is "continuing". I'm not from the US and don't know what's going on there intimately but it seems like the government can be doing things without scrutiny via concealing things in obscure budgets items or what have you.
One story made global news a few years ago, about Australia mandating tech companies to allow access to encrypted messages.:
Tech firms say the controversial laws could weaken overall security for users of messenger apps.
www.bbc.com
Global companies can't tailor products exclusively for Australia. If Australian authorities can unencrypt messages, others can too.
This article says that 7 other nations want to be able to do this too, including the US:
Platforms like Apple’s iMessage and Facebook’s WhatsApp use end-to-end encryption to ensure user privacy and prevent snooping from hackers, governments and even themselves.
www.forbes.com
There have been stories from major news sites in the past about Germany and other countries banning US tech from government agencies over concerns about the US spying on them. Germany is an ally of the US.
I didn't say that I think I remember reading an article about co-opted PCs being a thing. I read it. It didn't seem like an obviously dubious site providing that information but I don't think that it was a major news site either. Haven't had much luck now trying to chase it down but maybe I'm just using the wrong key words in my search. It's entirely possible that the story was bunk, I'll concede. The point of mentioning it was to see if someone knew of this story and could flesh out the details.