Title: Special Measures to Fight Modern Threats Act
Policy area: Finance and Financial Sector

Summary:
Special Measures to Fight Modern Threats Act
This bill expands the special measures available to the Financial Crimes Enforcement Network (FinCEN) to combat money laundering regarding
Specifically, FinCEN may prohibit or impose conditions upon the opening or maintaining in the United States of a correspondent account or payable-through account by any domestic financial institution or domestic financial agency without requiring, as under current law, that such account be for or on behalf of a foreign banking institution.
Further, FinCEN may prohibit or impose conditions upon certain transmittals of funds to or from any domestic financial institution or domestic financial agency if such transmittal of funds involves any such jurisdiction, institution, class of transaction, or type of account.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 3876 Introduced in Senate (IS)]

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117th CONGRESS
  2d Session
                                S. 3876

 To amend title 31, United States Code, to authorize the Secretary of 
      the Treasury to place prohibitions or conditions on certain 
   transmittals of funds in connection with jurisdictions, financial 
   institutions, international transactions, or types of accounts of 
                   primary money laundering concern.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 17, 2022

  Mr. Warner introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To amend title 31, United States Code, to authorize the Secretary of 
      the Treasury to place prohibitions or conditions on certain 
   transmittals of funds in connection with jurisdictions, financial 
   institutions, international transactions, or types of accounts of 
                   primary money laundering concern.

    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 ``Special Measures to Fight Modern 
Threats Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The Financial Crimes Enforcement Network (in this 
        section referred to as ``FinCEN'') is the financial 
        intelligence unit of the United States tasked with safeguarding 
        the financial system from illicit use, combating money 
        laundering and its related crimes, including terrorism, and 
        promoting national security.
            (2) Under law, FinCEN may require domestic financial 
        institutions and financial agencies to take certain ``special 
        measures'' against jurisdictions, institutions, classes of 
        transactions, or types of accounts determined to be of primary 
        money laundering concern, providing the Secretary with a range 
        of options, such as enhanced record-keeping, that can be 
        adapted to target specific money laundering and terrorist 
        financing and to bring pressure on those that pose money 
        laundering threats.
            (3) This special-measures authority was granted in 2001, 
        when most cross-border transactions occurred through 
        correspondent or payable-through accounts held with large 
        financial institutions that serve as intermediaries to 
        facilitate financial transactions on behalf of other banks.
            (4) Innovations in financial services have transformed and 
        expanded methods of cross-border transactions that could not 
        have been envisioned 20 years ago when FinCEN was given its 
        special-measures authority.
            (5) These innovations, particularly through digital assets 
        and informal value transfer systems, while useful to legitimate 
        consumers and law enforcement, can be tools abused by bad 
        actors like sanctions evaders, fraudsters, money launderers, 
        and those who commit ransomware attacks on victimized United 
        States companies and that abuse the financial system to move 
        and obscure the proceeds of their crimes.
            (6) Ransomware attacks on United States companies requiring 
        payments in cryptocurrencies have increased in recent years, 
        with the Treasury estimating that ransomware payments in the 
        United States reached $590,000,000 in just the first half of 
        2021, compared to a total of $416,000,000 in 2020.
            (7) In July 2021, the White House, with support of United 
        States allies, asserted that the People's Republic of China was 
        responsible for ransomware operations against private companies 
        that included demands of millions of dollars, including the 
        2021 ransomware attacks that breached Microsoft email systems 
        and affected thousands of consumers, State and local 
        municipalities, and government contractors attributed to a 
        cyber espionage group with links to the Ministry of State 
        Security of the People's Republic of China.
            (8) As ransomware attacks organized by Chinese and other 
        foreign bad actors continue to grow in size and scope, 
        modernizing the special-measure authorities of FinCEN will 
        empower FinCEN to adapt its existing tools, monitor and 
        obstruct global financial threats, and meet the challenges of 
        combating 21st century financial crime.

SEC. 3. 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, or class of transaction.''.
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