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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3441 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  1st Session
                                S. 3441

    To prevent Foreign Terrorist Organizations and their financial 
    enablers, whether in currency or digital assets, from accessing 
 financial and other institutions of the United States, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            December 7, 2023

    Mr. Warner (for himself, Mr. Rounds, Mr. Reed, and Mr. Romney) 
introduced the following bill; which was read twice and referred to the 
            Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL

 
    To prevent Foreign Terrorist Organizations and their financial 
    enablers, whether in currency or digital assets, from accessing 
 financial and other institutions of the United States, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Terrorist Financing Prevention Act 
of 2023''.

 TITLE I--PREVENTION OF ACCESS TO FINANCIAL AND OTHER INSTITUTIONS OF 
THE UNITED STATES BY FOREIGN TERRORIST ORGANIZATIONS AND THEIR ENABLERS

SEC. 101. DEFINITIONS.

    In this title:
            (1) Digital asset.--The term ``digital asset'' means any 
        digital representation of value that is recorded on a 
        cryptographically secured distributed ledger or any similar 
        technology, or another implementation which was designed and 
        built as part of a system to leverage or replace blockchain or 
        distributed ledger technology or their derivatives.
            (2) Digital asset protocol.--The term ``digital asset 
        protocol'' means any communication protocol, smart contract, or 
        other software--
                    (A) deployed through the use of distributed ledger 
                or similar technology; and
                    (B) that provides a mechanism for users to interact 
                and agree to the terms of a trade for digital assets.
            (3) Foreign digital asset transaction facilitator.--The 
        term ``foreign digital asset transaction facilitator'' means 
        any foreign person or group of foreign persons that, as 
        determined by the Secretary, controls, operates, or makes 
        available a digital asset protocol or similar facility, or 
        otherwise materially assists in the purchase, sale, exchange, 
        custody, or other transaction involving an exchange or transfer 
        of value using digital assets.
            (4) Foreign financial institution.--The term ``foreign 
        financial institution'' has the meaning given that term under 
        section 561.308 of title 31, Code of Federal Regulations.
            (5) Foreign person.--The term ``foreign person'' means an 
        individual or entity that is not a United States person.
            (6) Foreign terrorist organization.--The term ``Foreign 
        Terrorist Organization'' means an organization that has been 
        designated as a Foreign Terrorist Organization by the Secretary 
        of State, pursuant to section 219 of the Immigration and 
        Nationality Act (8 U.S.C. 1189).
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
            (8) Specially designated global terrorist organization.--
        The term ``specially designated global terrorist organization'' 
        means an organization that has been designated as a specially 
        designated global terrorist by the Secretary of State or the 
        Secretary, pursuant to Executive Order 13224 (50 U.S.C. 1701 
        note; relating to blocking property and prohibiting 
        transactions with persons who commit, threaten to commit, or 
        support terrorism).
            (9) United states person.--The term ``United States 
        person'' means--
                    (A) an individual who is a United States citizen or 
                an alien lawfully admitted for permanent residence to 
                the United States;
                    (B) an entity organized under the laws of the 
                United States or any jurisdiction within the United 
                States, including a foreign branch of such an entity; 
                or
                    (C) any person in the United States.

SEC. 102. SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL INSTITUTIONS AND 
              FOREIGN DIGITAL ASSET TRANSACTION FACILITATORS THAT 
              ENGAGE IN CERTAIN TRANSACTIONS.

    (a) Mandatory Identification.--Not later than 60 days after the 
date of enactment of this Act, and periodically thereafter, the 
Secretary shall identify and submit to the President a report 
identifying any foreign financial institution or foreign digital asset 
transaction facilitator that has knowingly--
            (1) facilitated a significant financial transaction with--
                    (A) a Foreign Terrorist Organization;
                    (B) a specially designated global terrorist 
                organization; or
                    (C) a person identified on the list of specially 
                designated nationals and blocked persons maintained by 
                the Office of Foreign Assets Control of the Department 
                of the Treasury, the property and interests in property 
                of which are blocked pursuant to the International 
                Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) 
                for acting on behalf of or at the direction of, or 
                being owned or controlled by, a Foreign Terrorist 
                Organization or a specially designated global terrorist 
                organization; or
            (2) engaged in money laundering to carry out an activity 
        described in paragraph (1).
    (b) Imposition of Sanctions.--
            (1) Foreign financial institutions.--The President shall 
        prohibit, or impose strict conditions on, the opening or 
        maintaining of a correspondent account or a payable-through 
        account in the United States by a foreign financial institution 
        identified under subsection (a).
            (2) Foreign digital asset transaction facilitators.--The 
        President, pursuant to such regulations as the President may 
        prescribe, shall prohibit any transactions between any person 
        subject to the jurisdiction of the United States with a foreign 
        digital asset transaction facilitator identified under 
        subsection (a).
    (c) Implementation and Penalties.--
            (1) Implementation.--The President may exercise all 
        authorities provided under sections 203 and 205 of the 
        International Emergency Economic Powers Act (50 U.S.C. 1702, 
        1704) to the extent necessary to carry out this Act.
            (2) Penalties.--The penalties set forth in subsections (b) 
        and (c) of section 206 of the International Emergency Economic 
        Powers Act (50 U.S.C. 1705) shall apply to a person that 
        violates, attempts to violate, conspires to violate, or causes 
        a violation of regulations prescribed under this section to the 
        same extent that such penalties apply to a person that commits 
        an unlawful act described in subsection (a) of such section 
        206.
    (d) Procedures for Judicial Review of Classified Information.--
            (1) In general.--If a finding under this section, or a 
        prohibition, condition, or penalty imposed as a result of any 
        such finding, is based on classified information (as defined in 
        section 1(a) of the Classified Information Procedures Act (18 
        U.S.C. App.)), the Secretary may submit to a court reviewing 
        the finding or the imposition of the prohibition, condition, or 
        penalty such classified information ex parte and in camera.
            (2) Rule of construction.--Nothing in this subsection shall 
        be construed to confer or imply any right to judicial review of 
        any finding under this subsection or any prohibition, 
        condition, or penalty imposed as a result of any such finding.
    (e) Waiver for National Security.--The Secretary may waive the 
imposition of sanctions under this section with respect to a person if 
the Secretary--
            (1) determines that such a waiver is in the national 
        interests of the United States; and
            (2) submits to Congress a notification of the waiver and 
        the reasons for the waiver.
    (f) Exception for Intelligence Activities.--This section shall not 
apply with respect to any activity subject to the reporting 
requirements under title V of the National Security Act of 1947 (50 
U.S.C. 3091 et seq.) or any authorized intelligence activities of the 
United States.
    (g) Exception Relating to Importation of Goods.--
            (1) In general.--The authorities and requirements under 
        this section shall not include the authority or a requirement 
        to impose sanctions on the importation of goods.
            (2) Good defined.--In this section, the term ``good'' means 
        any article, natural or manmade substance, material, supply, or 
        manufactured product, including inspection and test equipment, 
        and excluding technical data.

             TITLE II--SPECIAL MEASURES FOR MODERN THREATS

SEC. 201. PROHIBITIONS OR CONDITIONS ON CERTAIN TRANSMITTALS OF FUNDS.

    Section 5318A of title 31, United States Code, is amended--
            (1) in subsection (a)(2)(C), by striking ``subsection 
        (b)(5)'' and inserting ``paragraphs (5) and (6) of subsection 
        (b)''; and
            (2) in subsection (b)--
                    (A) in paragraph (5), by striking ``for or on 
                behalf of a foreign banking institution''; and
                    (B) by adding at the end the following:
            ``(6) Prohibitions or conditions on certain transmittals of 
        funds.--If the Secretary finds a jurisdiction outside of the 
        United States, 1 or more financial institutions operating 
        outside of the United States, 1 or more types of accounts 
        within, or involving, a jurisdiction outside of the United 
        States, or 1 or more classes of transactions within, or 
        involving, a jurisdiction outside of the United States to be of 
        primary money laundering concern, the Secretary, in 
        consultation with the Secretary of State, the Attorney General, 
        and the Chairman of the Board of Governors of the Federal 
        Reserve System, may prohibit, or impose conditions upon, 
        certain transmittals of funds (as such term may be defined by 
        the Secretary in a special measure issuance, by regulation, or 
        as otherwise permitted by law), to or from any domestic 
        financial institution or domestic financial agency if such 
        transmittal of funds involves any such jurisdiction, 
        institution, type of account, class of transaction, or type of 
        account.''.

                           TITLE III--FUNDING

SEC. 301. ADEQUATE FUNDING TO PREVENT EVASION OF COUNTER-TERRORISM 
              SANCTIONS AND FINANCIAL CRIME ENFORCEMENT.

    There are authorized to be appropriated to the Secretary of the 
Treasury such funds as are necessary to carry out the purposes of this 
Act.
                                 <all>
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