II 

118TH CONGRESS 

2D SESSION S. 3603 

To establish an information-sharing pilot program to combat the illicit use 

of crypto assets. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 17, 2024 

Mr. HAGERTY (for himself and Ms. LUMMIS) introduced the following bill; 

which was read twice and referred to the Committee on the Judiciary 

A BILL 

To establish an information-sharing pilot program to combat 

the illicit use of crypto assets. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Preventing Illicit Fi5 nance Through Partnership Act of 2024’’. 

6 SEC. 2. INFORMATION-SHARING PILOT PROGRAM TO COM7 BAT ILLICIT USE OF CRYPTO ASSETS. 

8 (a) DEFINITIONS.—In this section: 

9 (1) COVERED AGENCY.—The term ‘‘covered 

10 agency’’ means— 


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1 (A) the Department of Justice, including 

2 the Federal Bureau of Investigation and the 

3 Drug Enforcement Administration; 

4 (B) the Financial Crimes Enforcement 

5 Network; and 

6 (C) the Department of Homeland Security. 

7 (2) CRYPTO ASSET.—The term ‘‘crypto asset’’ 

8 means a natively electronic asset that— 

9 (A) confers economic, proprietary, or ac10 cess rights or powers; and 

11 (B) is recorded using cryptographically se12 cured distributed ledger technology, or any 

13 similar analogue. 

14 (3) DESIGNATED PRIVATE SECTOR ENTITY.— 

15 The term ‘‘designated private sector entity’’ means 

16 a private sector entity designated under subsection 

17 (c). 

18 (4) DIRECTOR.—The term ‘‘Director’’ means 

19 the Director of the Financial Crimes Enforcement 

20 Network. 

21 (5) ILLICIT FINANCE VIOLATION.—The term 

22 ‘‘illicit finance violation’’ means the illicit use of 

23 crypto assets. 

24 (6) ILLICIT USE.—The term ‘‘illicit use’’ in25 cludes fraud, darknet marketplace transactions, 


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1 money laundering, the purchase and sale of illicit 

2 goods, sanctions evasion, theft of funds, funding of 

3 illegal activities, transactions related to child sexual 

4 abuse material, and any other financial transaction 

5 involving the proceeds of specified unlawful activity 

6 (as defined in section 1956(c) of title 18, United 

7 States Code). 

8 (7) MONEY SERVICES BUSINESS.—The term 

9 ‘‘money services business’’ has the meaning given 

10 the term in section 1010.100 of title 31, Code of 

11 Federal Regulations, or any successor regulation. 

12 (8) SECRETARY.—The term ‘‘Secretary’’ means 

13 the Secretary of Homeland Security. 

14 (b) ESTABLISHMENT OF PROGRAM.—The Attorney 

15 General shall establish a pilot program under which cov16 ered agencies and designated private sector entities se17 curely share information about potential illicit finance vio18 lations and threats and emerging risks relating to illicit 

19 finance violations. 

20 (c) DESIGNATION OF PRIVATE SECTOR ENTITIES.— 

21 (1) REQUIRED DESIGNATION.— 

22 (A) INITIAL DESIGNATION.—Not later 

23 than 90 days after the date of enactment of 

24 this Act, the Attorney General, in consultation 

25 with the Director and the Secretary, shall desVerDate Sep 11 2014 01:05 Jan 20, 2024 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3603.IS S3603

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1 ignate 10 private sector entities that are money 

2 services businesses and 10 private sector enti3 ties from the crypto asset industry to partici4 pate in the pilot program established under 

5 subsection (b). 

6 (B) BIANNUAL REVIEW.—Not less fre7 quently than once every 6 months, the Attorney 

8 General, in consultation with the Director and 

9 the Secretary, shall review and, as appropriate, 

10 replace the private sector entities designated 

11 under this paragraph. 

12 (2) OPTIONAL DESIGNATION.—In addition to 

13 the 20 private sector entities designated under para14 graph (1), the Attorney General, in consultation 

15 with the Director and the Secretary, may designate 

16 1 or more information sharing and analysis centers 

17 to participate in the pilot program. 

18 (d) INFORMATION SHARING WITH PRIVATE SECTOR

19 ENTITIES.—A covered agency that initiates an investiga20 tion into a potential illicit finance violation, or identifies 

21 a threat or emerging risk relating to illicit finance viola22 tions, may share with any designated private sector entity 

23 such information about the investigation, threat, or 

24 emerging risk as the covered agency determines appro25 priate. 


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1 (e) USE OF INFORMATION BY PRIVATE SECTOR EN2 TITIES.—Information received by a designated private sec3 tor entity under this section may not be used for any pur4 pose other than identifying and reporting on activities that 

5 may involve illicit finance violations or threats and emerg6 ing risks relating to illicit finance violations. 

7 (f) MEANS OF SHARING INFORMATION.—The covered 

8 agencies and designated private sector entities may share 

9 information about potential illicit finance violations, or 

10 threats and emerging risks relating to illicit finance viola11 tions, with each other— 

12 (1) through a portal established by the Attorney 

13 General or a similar mechanism determined appro14 priate by the Attorney General; 

15 (2) through secure email; or 

16 (3) at virtual monthly meetings, which shall be 

17 facilitated by the Attorney General. 

18 (g) LIMITATION ON LIABILITY.—A designated pri19 vate sector entity that transmits, receives, or shares infor20 mation for the purposes of identifying and reporting ac21 tivities that may constitute illicit finance violations, or 

22 threats and emerging risks relating to illicit finance viola23 tions, shall not be liable to any person under any law or 

24 regulation of the United States, any constitution, law, or 

25 regulation of any State or political subdivision thereof, or 


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1 under any contract or other legally enforceable agreement 

2 (including any arbitration agreement), for such disclosure 

3 or for any failure to provide notice of such disclosure to 

4 the person who is the subject of such disclosure, or any 

5 other person identified in the disclosure. 

6 (h) VOLUNTARY PARTICIPATION.—Participation by a 

7 designated private sector entity in the pilot program estab8 lished under subsection (b), including sharing of informa9 tion regarding potential illicit finance violations or threats 

10 and emerging risks relating to illicit finance violations, 

11 shall be voluntary. 

12 (i) SUNSET.—The pilot program established under 

13 subsection (b) shall terminate on the date that is 5 years 

14 after the date of enactment of this Act. 

Æ 


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