Stop Fentanyl Money Laundering Act of 2023

Subjects: Finance and Financial Sector


<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3244 Introduced in House (IH)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                H. R. 3244

 To provide authority to the Secretary of the Treasury to take special 
   measures against certain entities outside of the United States of 
 primary money laundering concern in connection with illicit fentanyl 
            and narcotics financing, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 11, 2023

Mr. Luetkemeyer (for himself, Mr. Nunn of Iowa, Mr. Barr, and Mrs. Kim 
of California) introduced the following bill; which was referred to the 
 Committee on Financial Services, and in addition to the Committee on 
   the Judiciary, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To provide authority to the Secretary of the Treasury to take special 
   measures against certain entities outside of the United States of 
 primary money laundering concern in connection with illicit fentanyl 
            and narcotics financing, 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 ``Stop Fentanyl Money Laundering Act 
of 2023''.

SEC. 2. GAO STUDY ON DESIGNATION OF MEXICAN CARTELS AS FOREIGN 
              TERRORIST ORGANIZATIONS.

    (a) Findings.--The Congress finds the following:
            (1) Entities placed on the list of Foreign Terrorist 
        Organizations maintained by the Secretary of State are 
        suspected of engaging in terrorism-related activities.
            (2) By designating an entity to be placed on the list of 
        Foreign Terrorist Organizations, the United States seeks to 
        limit the entity's financial, property, and travel interests.
            (3) Per section 219 of the Immigration and Nationality Act, 
        as amended by section 302 of the Antiterrorism and Effective 
        Death Penalty Act of 1996, the Secretary of State must 
        demonstrate that an entity of concern has met the following 
        three criteria to allow the Secretary to designate the entity 
        as a Foreign Terrorist Organization:
                    (A) The entity is a foreign organization.
                    (B) The entity engages in or retains the capability 
                and intent to engage in terrorism.
                    (C) The entity threatens the security of U.S. 
                nationals or the national defense, foreign relations, 
                or the economic interests of the United States.
    (b) Study.--The Comptroller General of the United States, in 
consultation with the Secretary of State, shall carry out a study on 
the implications of the Secretary of State designating Mexican drug 
cartels as foreign terrorist organizations under section 219 of the 
Immigration and Nationality Act (8 U.S.C. 1189).
    (c) Contents.--In carrying out the study required under subsection 
(b), the Comptroller General shall--
            (1) review any analyses conducted by Federal agencies 
        pertaining to designating Mexican drug cartels as foreign 
        terror organizations; and
            (2) consider how such a determination would bolster the 
        Foreign Narcotics Kingpin Designation Act.
    (d) Report.--Not later than the end of the 1-year period beginning 
on the date of enactment of this Act, the Comptroller General shall 
issue a report to the Congress containing--
            (1) all findings and determinations made in carrying out 
        the study required under subsection (b); and
            (2) a comprehensive analysis of the strategic benefits and 
        potential risks that designating Mexican drug cartels as 
        foreign terrorist organizations would provide in thwarting the 
        current fentanyl crisis, and how the United States could 
        alleviate possible downsides of the designation.

SEC. 3. DETERMINATION WITH RESPECT TO PRIMARY MONEY LAUNDERING CONCERN 
              OF ILLICIT FENTANYL AND NARCOTICS FINANCING.

    (a) In General.--If the Secretary of the Treasury determines that 
one or more financial institutions operating outside of the United 
States, or one or more classes of transactions within, or involving, a 
jurisdiction outside of the United States, or one or more types of 
accounts within, or involving, a jurisdiction outside of the United 
States is of primary money laundering concern in connection with 
illicit fentanyl and narcotics financing, the Secretary of the Treasury 
may, by order, regulation, or otherwise as permitted by law, require 
domestic financial institutions and domestic financial agencies to take 
one or more of the special measures described in section 5318A(b) of 
title 31, United States Code.
    (b) Classified Information.--In any judicial review of a finding of 
the existence of a primary money laundering concern, or of the 
requirement for 1 or more special measures with respect to a primary 
money laundering concern made under this section, if the designation or 
imposition, or both, were based on classified information (as defined 
in section 1(a) of the Classified Information Procedures Act (18 U.S.C. 
App.)), such information may be submitted by the Secretary of the 
Treasury to the reviewing court ex parte and in camera. This subsection 
does not confer or imply any right to judicial review of any finding 
made or any requirement imposed under this section.
    (c) Availability of Information.--The exemptions from, and 
prohibitions on, search and disclosure referred to in section 9714(c) 
of the National Defense Authorization Act for Fiscal Year 2021 (Public 
Law 116-283; 31 U.S.C. 5318A note) shall apply to any report or record 
of report filed pursuant to a requirement imposed under subsection (a). 
For purposes of section 552 of title 5, United States Code, this 
section shall be considered a statute described in subsection (b)(3)(B) 
of that section.
    (d) Penalties.--The penalties referred to in section 9714(d) of the 
National Defense Authorization Act for Fiscal Year 2021 (Public Law 
116-283; 31 U.S.C. 5318A note) shall apply to violations of any order, 
regulation, special measure, or other requirement imposed under 
subsection (a), in the same manner and to the same extent as described 
in such section 9714(d).
    (e) Injunctions.--The Secretary of the Treasury may bring a civil 
action to enjoin a violation of any order, regulation, special measure, 
or other requirement imposed under subsection (a) in the same manner 
and to the same extent as described in section 9714(e) of the National 
Defense Authorization Act for Fiscal Year 2021 (Public Law 116-283; 31 
U.S.C. 5318A note).
    (f) Definitions.--In this section, the terms ``domestic financial 
agency'', ``domestic financial institution'', ``financial agency'', and 
``financial institution'' have the meanings given those terms as used 
in section 9714 of the National Defense Authorization Act for Fiscal 
Year 2021 (Public Law 116-283; 31 U.S.C. 5318A note).

SEC. 4. TRADE-BASED MONEY LAUNDERING ADVISORY.

    Not later than one year following the date of the enactment of this 
Act, the Financial Crimes Enforcement Network shall update and issue a 
new advisory to financial institutions on identifying Chinese 
professional money laundering facilitating the trafficking of fentanyl 
and other synthetic opioids. Such advisory shall incorporate the 
following advisories:
            (1) FIN-2014-A005, entitled ``Update on U.S. Currency 
        Restrictions in Mexico: Funnel Accounts and TBML'';
            (2) FIN-2010-A001, entitled ``Advisory to Financial 
        Institutions on Filing Suspicious Activity Reports regarding 
        Trade-Based Money Laundering''; and
            (3) FIN-2019-A006, entitled ``Advisory to Financial 
        Institutions on Illicit Financial Schemes and Methods Related 
        to the Trafficking of Fentanyl and Other Synthetic Opioids''.

SEC. 5. TREATMENT OF TRANSNATIONAL CRIMINAL ORGANIZATIONS IN SUSPICIOUS 
              TRANSACTIONS.

    (a) Filing Instructions.--Not later than 180 days after the date of 
the enactment of this Act, the Director of the Financial Crimes 
Enforcement Network shall issue guidance or instructions to United 
States financial institutions for filing reports on suspicious 
transactions required by section 5318(g) of title 31, United States 
Code, related to suspected narcotics trafficking by transnational 
criminal organizations.
    (b) Prioritization of Reports Relating to Narcotics Trafficking or 
Transnational Criminal Organizations.--The Director shall prioritize 
research into reports described in subsection (a) that indicate a 
connection to trafficking of narcotics.
    (c) Briefing to Congress.--Not later than one year after the date 
of enactment of this Act, the Director shall brief the Committees on 
Financial Services and Foreign Affairs of the House of Representatives 
and the Committees on Banking, Housing, and Urban Affairs and Foreign 
Relations of the Senate on the usefulness of the guidance or 
instructions issued under subsection (a).
                                 &lt;all&gt;
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