Title: National Strategy for Combating Terrorist, Underground, and Other Illicit Financing Act
Policy area: Finance and Financial Sector

Summary:
National Strategy for Combating Terrorist, Underground, and Other Illicit Financing Act
This bill directs the Department of the Treasury to develop a national strategy to combat the financing of terrorism and related forms of illicit finance.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3321 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 3321

 To require the establishment of a national strategy for combating the 
  financing of terrorism and related financial crimes, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 20, 2017

   Mr. Budd (for himself, Ms. Sinema, and Mr. Pearce) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
 To require the establishment of a national strategy for combating the 
  financing of terrorism and related financial crimes, 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 ``National Strategy for Combating 
Terrorist, Underground, and Other Illicit Financing Act''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) The financing of terrorism and related forms of illicit 
        finance present a direct threat to national security and a 
        threat to global stability.
            (2) New terrorist groups or threats can form quickly, and 
        other groups change tactics to adapt, creating a constantly 
        changing terrorist environment, presenting ever-changing risks 
        and challenges to programs to disrupt the financing of 
        terrorism and related forms of illicit finance.
            (3) Terrorists in some instances have formed symbiotic 
        relationships with, or are taking over, transnational crime 
        syndicates, so that funding for both terrorism and profits from 
        crime flow in the same fashion and often are indistinguishable.
            (4) Methods of concealing the movement of illicit funding 
        change quickly in a globalized economy, and rapid technological 
        changes and financial innovation pose new risks that may be 
        increasingly difficult for governments to stay abreast of 
        without an agile, constantly adjusted strategy to spot, 
        disrupt, and prevent the financing of terrorism and related 
        forms of illicit finance.
            (5) A bipartisan requirement to create a national anti-
        money laundering strategy enacted in 1998 expired in 2007. 
        Given the rapid globalization and rapid technology changes of 
        the financial sector, an updated strategy focused on the 
        financing of terrorism is necessary.
            (6) It is important for the Government to have a unified 
        strategy to fight financial crime and to update it annually, 
        both to accommodate new and developing threats and to help 
        Congress develop legislative and funding priorities.
            (7) An effective strategy to counter terrorism financing is 
        a critical component of the broader counter terrorism strategy 
        of the United States.

SEC. 3. DEVELOPMENT OF NATIONAL STRATEGY.

    (a) In General.--The President, acting through the Secretary shall, 
in consultation with the Attorney General, the Secretary of State, the 
Secretary of Homeland Security, the Director of National Intelligence, 
and the appropriate Federal banking agencies, develop a national 
strategy for combating the financing of terrorism and related forms of 
illicit finance.
    (b) Transmittal to Congress.--
            (1) In general.--Not later than 1 year after the date of 
        the enactment of this Act, the President shall submit to the 
        appropriate congressional committees a comprehensive national 
        strategy developed in accordance with subsection (a).
            (2) Updates.--Every 2 years following the initial 
        submission under paragraph (1), the President shall submit to 
        the appropriate congressional committees updated versions of 
        the national strategy.
    (c) Separate Presentation of Classified Material.--Any part of the 
national strategy that involves information that is properly classified 
under criteria established by the President shall be submitted to the 
Congress separately in a classified annex and, if requested by the 
chairman or ranking Member of one of the appropriate congressional 
committees, as a briefing at an appropriate level of security.

SEC. 4. CONTENTS.

    (a) In General.--The strategy described in section 3 shall contain 
the following:
            (1) Evaluation of existing efforts.--An assessment of the 
        effectiveness of and ways in which the United States is 
        currently addressing the highest levels of risk of various 
        forms of illicit finance, including those identified in the 
        documents entitled ``2015 National Money Laundering Risk 
        Assessment'' and ``2015 National Terrorist Financing Risk 
        Assessment'', published by the Department of the Treasury and a 
        description of how the strategy is integrated into, and 
        supports, the broader counter terrorism strategy of the United 
        States.
            (2) Goals, objectives, and priorities.--A comprehensive, 
        research-based, long-range, quantifiable discussion of goals, 
        objectives, and priorities for disrupting and preventing 
        illicit finance activities within and transiting the financial 
        system of the United States that outlines priorities to reduce 
        the incidence, dollar value, and effects of illicit finance.
            (3) Threats.--An identification of the most significant 
        illicit finance threats to the financial system of the United 
        States.
            (4) Reviews and proposed changes.--Reviews of enforcement 
        efforts, relevant regulations and relevant provisions of law 
        and, if appropriate, discussions of proposed changes determined 
        to be appropriate to ensure that the United States pursues 
        coordinated and effective efforts at all levels of government, 
        and with international partners of the United States, in the 
        fight against illicit finance.
            (5) Detection and prosecution initiatives.--A description 
        of efforts to improve detection and prosecution of illicit 
        finance, including efforts to ensure that--
                    (A) subject to legal restrictions, all appropriate 
                data collected by the Federal Government that is 
                relevant to the efforts described in this section be 
                available in a timely fashion to--
                            (i) all appropriate Federal departments and 
                        agencies; and
                            (ii) as appropriate and consistent with 
                        section 314 of the International Money 
                        Laundering Abatement and Financial Anti-
                        Terrorism Act of 2001 (31 U.S.C. 5311 note), 
                        financial institutions to assist the financial 
                        institutions in efforts to comply with laws 
                        aimed at curbing illicit finance; and
                    (B) appropriate efforts are undertaken to ensure 
                that Federal departments and agencies charged with 
                reducing and preventing illicit finance make thorough 
                use of publicly available data in furtherance of this 
                effort.
            (6) The role of the private financial sector in prevention 
        of illicit finance.--A discussion of ways to enhance 
        partnerships between the private financial sector and Federal 
        departments and agencies with regard to the prevention and 
        detection of illicit finance, including--
                    (A) efforts to facilitate compliance with laws 
                aimed at stopping such illicit finance while 
                maintaining the effectiveness of such efforts; and
                    (B) providing guidance to strengthen internal 
                controls and to adopt on an industry-wide basis more 
                effective policies.
            (7) Enhancement of intergovernmental cooperation.--A 
        discussion of ways to combat illicit finance by enhancing--
                    (A) cooperative efforts between and among Federal, 
                State, and local officials, including State regulators, 
                State and local prosecutors, and other law enforcement 
                officials; and
                    (B) cooperative efforts with and between 
                governments of countries and with and between 
                multinational institutions, including the Financial 
                Action Task Force, with expertise in fighting illicit 
                finance.
            (8) Trend analysis of emerging illicit finance threats.--A 
        discussion of and data regarding trends in illicit finance, 
        including evolving forms of value transfer such as so-called 
        cryptocurrencies, other methods that are computer, 
        telecommunications, or Internet-based, cyber crime, or any 
        other threats that the Secretary may choose to identify.
            (9) Budget priorities.--A multiyear budget plan that 
        identifies sufficient resources needed to successfully execute 
        the full range of missions called for in this section.
            (10) Technology enhancements.--An analysis of current and 
        developing ways to leverage technology to improve the 
        effectiveness of efforts to stop the financing of terrorism and 
        other forms of illicit finance, including better integration of 
        open-source data.

SEC. 5. DEFINITIONS.

    In this Act--
            (1) the term ``appropriate congressional committees'' 
        means--
                    (A) the Committee on Financial Services, the 
                Committee on Foreign Affairs, the Committee on Armed 
                Services, the Committee on the Judiciary, the Committee 
                on Homeland Security, and the Permanent Select 
                Committee on Intelligence of the House of 
                Representatives; and
                    (B) the Committee on Banking, Housing, and Urban 
                Affairs, the Committee on Foreign Relations, the 
                Committee on Armed Services, the Committee on the 
                Judiciary, the Committee on Homeland Security and 
                Governmental Affairs, and the Select Committee on 
                Intelligence of the Senate;
            (2) the term ``illicit finance'' means the financing of 
        terrorism, money laundering, or other forms of illicit 
        financing domestically or internationally, as defined by the 
        President;
            (3) the term ``Secretary'' means the Secretary of the 
        Treasury; and
            (4) the term ``State'' means each of the several States, 
        the District of Columbia, and each territory or possession of 
        the United States.
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