II 

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. 

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 ‘‘Terrorist Financing 

5 Prevention Act of 2023’’. 


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1 TITLE I—PREVENTION OF AC2 CESS TO FINANCIAL AND 

3 OTHER INSTITUTIONS OF THE 

4 UNITED STATES BY FOREIGN 

5 TERRORIST ORGANIZATIONS 

6 AND THEIR ENABLERS 

7 SEC. 101. DEFINITIONS. 

8 In this title: 

9 (1) DIGITAL ASSET.—The term ‘‘digital asset’’ 

10 means any digital representation of value that is re11 corded on a cryptographically secured distributed 

12 ledger or any similar technology, or another imple13 mentation which was designed and built as part of 

14 a system to leverage or replace blockchain or distrib15 uted ledger technology or their derivatives. 

16 (2) DIGITAL ASSET PROTOCOL.—The term 

17 ‘‘digital asset protocol’’ means any communication 

18 protocol, smart contract, or other software— 

19 (A) deployed through the use of distributed 

20 ledger or similar technology; and 

21 (B) that provides a mechanism for users to 

22 interact and agree to the terms of a trade for 

23 digital assets. 

24 (3) FOREIGN DIGITAL ASSET TRANSACTION

25 FACILITATOR.—The term ‘‘foreign digital asset 


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1 transaction facilitator’’ means any foreign person or 

2 group of foreign persons that, as determined by the 

3 Secretary, controls, operates, or makes available a 

4 digital asset protocol or similar facility, or otherwise 

5 materially assists in the purchase, sale, exchange, 

6 custody, or other transaction involving an exchange 

7 or transfer of value using digital assets. 

8 (4) FOREIGN FINANCIAL INSTITUTION.—The 

9 term ‘‘foreign financial institution’’ has the meaning 

10 given that term under section 561.308 of title 31, 

11 Code of Federal Regulations. 

12 (5) FOREIGN PERSON.—The term ‘‘foreign per13 son’’ means an individual or entity that is not a 

14 United States person. 

15 (6) FOREIGN TERRORIST ORGANIZATION.—The 

16 term ‘‘Foreign Terrorist Organization’’ means an or17 ganization that has been designated as a Foreign 

18 Terrorist Organization by the Secretary of State, 

19 pursuant to section 219 of the Immigration and Na20 tionality Act (8 U.S.C. 1189). 

21 (7) SECRETARY.—The term ‘‘Secretary’’ means 

22 the Secretary of the Treasury. 

23 (8) SPECIALLY DESIGNATED GLOBAL TER24 RORIST ORGANIZATION.—The term ‘‘specially des25 ignated global terrorist organization’’ means an orVerDate Sep 11 2014 20:47 Dec 15, 2023 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3441.IS S3441

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1 ganization that has been designated as a specially 

2 designated global terrorist by the Secretary of State 

3 or the Secretary, pursuant to Executive Order 

4 13224 (50 U.S.C. 1701 note; relating to blocking 

5 property and prohibiting transactions with persons 

6 who commit, threaten to commit, or support ter7 rorism). 

8 (9) UNITED STATES PERSON.—The term 

9 ‘‘United States person’’ means— 

10 (A) an individual who is a United States 

11 citizen or an alien lawfully admitted for perma12 nent residence to the United States; 

13 (B) an entity organized under the laws of 

14 the United States or any jurisdiction within the 

15 United States, including a foreign branch of 

16 such an entity; or 

17 (C) any person in the United States. 

18 SEC. 102. SANCTIONS WITH RESPECT TO FOREIGN FINAN19 CIAL INSTITUTIONS AND FOREIGN DIGITAL 

20 ASSET TRANSACTION FACILITATORS THAT 

21 ENGAGE IN CERTAIN TRANSACTIONS. 

22 (a) MANDATORY IDENTIFICATION.—Not later than 

23 60 days after the date of enactment of this Act, and peri24 odically thereafter, the Secretary shall identify and submit 

25 to the President a report identifying any foreign financial 


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1 institution or foreign digital asset transaction facilitator 

2 that has knowingly— 

3 (1) facilitated a significant financial transaction 

4 with— 

5 (A) a Foreign Terrorist Organization; 

6 (B) a specially designated global terrorist 

7 organization; or 

8 (C) a person identified on the list of spe9 cially designated nationals and blocked persons 

10 maintained by the Office of Foreign Assets 

11 Control of the Department of the Treasury, the 

12 property and interests in property of which are 

13 blocked pursuant to the International Emer14 gency Economic Powers Act (50 U.S.C. 1701 et 

15 seq.) for acting on behalf of or at the direction 

16 of, or being owned or controlled by, a Foreign 

17 Terrorist Organization or a specially designated 

18 global terrorist organization; or 

19 (2) engaged in money laundering to carry out 

20 an activity described in paragraph (1). 

21 (b) IMPOSITION OF SANCTIONS.— 

22 (1) FOREIGN FINANCIAL INSTITUTIONS.—The 

23 President shall prohibit, or impose strict conditions 

24 on, the opening or maintaining of a correspondent 

25 account or a payable-through account in the United 


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1 States by a foreign financial institution identified 

2 under subsection (a). 

3 (2) FOREIGN DIGITAL ASSET TRANSACTION

4 FACILITATORS.—The President, pursuant to such 

5 regulations as the President may prescribe, shall 

6 prohibit any transactions between any person subject 

7 to the jurisdiction of the United States with a for8 eign digital asset transaction facilitator identified 

9 under subsection (a). 

10 (c) IMPLEMENTATION AND PENALTIES.— 

11 (1) IMPLEMENTATION.—The President may ex12 ercise all authorities provided under sections 203 

13 and 205 of the International Emergency Economic 

14 Powers Act (50 U.S.C. 1702, 1704) to the extent 

15 necessary to carry out this Act. 

16 (2) PENALTIES.—The penalties set forth in 

17 subsections (b) and (c) of section 206 of the Inter18 national Emergency Economic Powers Act (50 

19 U.S.C. 1705) shall apply to a person that violates, 

20 attempts to violate, conspires to violate, or causes a 

21 violation of regulations prescribed under this section 

22 to the same extent that such penalties apply to a 

23 person that commits an unlawful act described in 

24 subsection (a) of such section 206. 


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1 (d) PROCEDURES FOR JUDICIAL REVIEW OF CLASSI2 FIED INFORMATION.— 

3 (1) IN GENERAL.—If a finding under this sec4 tion, or a prohibition, condition, or penalty imposed 

5 as a result of any such finding, is based on classified 

6 information (as defined in section 1(a) of the Classi7 fied Information Procedures Act (18 U.S.C. App.)), 

8 the Secretary may submit to a court reviewing the 

9 finding or the imposition of the prohibition, condi10 tion, or penalty such classified information ex parte 

11 and in camera. 

12 (2) RULE OF CONSTRUCTION.—Nothing in this 

13 subsection shall be construed to confer or imply any 

14 right to judicial review of any finding under this 

15 subsection or any prohibition, condition, or penalty 

16 imposed as a result of any such finding. 

17 (e) WAIVER FOR NATIONAL SECURITY.—The Sec18 retary may waive the imposition of sanctions under this 

19 section with respect to a person if the Secretary— 

20 (1) determines that such a waiver is in the na21 tional interests of the United States; and 

22 (2) submits to Congress a notification of the 

23 waiver and the reasons for the waiver. 

24 (f) EXCEPTION FOR INTELLIGENCE ACTIVITIES.— 

25 This section shall not apply with respect to any activity 


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1 subject to the reporting requirements under title V of the 

2 National Security Act of 1947 (50 U.S.C. 3091 et seq.) 

3 or any authorized intelligence activities of the United 

4 States. 

5 (g) EXCEPTION RELATING TO IMPORTATION OF

6 GOODS.— 

7 (1) IN GENERAL.—The authorities and require8 ments under this section shall not include the au9 thority or a requirement to impose sanctions on the 

10 importation of goods. 

11 (2) GOOD DEFINED.—In this section, the term 

12 ‘‘good’’ means any article, natural or manmade sub13 stance, material, supply, or manufactured product, 

14 including inspection and test equipment, and exclud15 ing technical data. 

16 TITLE II—SPECIAL MEASURES 

17 FOR MODERN THREATS 

18 SEC. 201. PROHIBITIONS OR CONDITIONS ON CERTAIN 

19 TRANSMITTALS OF FUNDS. 

20 Section 5318A of title 31, United States Code, is 

21 amended— 

22 (1) in subsection (a)(2)(C), by striking ‘‘sub23 section (b)(5)’’ and inserting ‘‘paragraphs (5) and 

24 (6) of subsection (b)’’; and 

25 (2) in subsection (b)— 


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1 (A) in paragraph (5), by striking ‘‘for or 

2 on behalf of a foreign banking institution’’; and 

3 (B) by adding at the end the following: 

4 ‘‘(6) PROHIBITIONS OR CONDITIONS ON CER5 TAIN TRANSMITTALS OF FUNDS.—If the Secretary 

6 finds a jurisdiction outside of the United States, 1 

7 or more financial institutions operating outside of 

8 the United States, 1 or more types of accounts with9 in, or involving, a jurisdiction outside of the United 

10 States, or 1 or more classes of transactions within, 

11 or involving, a jurisdiction outside of the United 

12 States to be of primary money laundering concern, 

13 the Secretary, in consultation with the Secretary of 

14 State, the Attorney General, and the Chairman of 

15 the Board of Governors of the Federal Reserve Sys16 tem, may prohibit, or impose conditions upon, cer17 tain transmittals of funds (as such term may be de18 fined by the Secretary in a special measure issuance, 

19 by regulation, or as otherwise permitted by law), to 

20 or from any domestic financial institution or domes21 tic financial agency if such transmittal of funds in22 volves any such jurisdiction, institution, type of ac23 count, class of transaction, or type of account.’’. 


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1 TITLE III—FUNDING 

2 SEC. 301. ADEQUATE FUNDING TO PREVENT EVASION OF 

3 COUNTER-TERRORISM SANCTIONS AND FI4 NANCIAL CRIME ENFORCEMENT. 

5 There are authorized to be appropriated to the Sec6 retary of the Treasury such funds as are necessary to 

7 carry out the purposes of this Act. 

Æ 


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