Stop Fentanyl Money Laundering Act of 2023

Bill: 118-hr-3244
Sponsor: full_name: Rep. Luetkemeyer, Blaine [R-MO-3]
Introduced: 2023-05-11
Policy area: Finance and Financial Sector
Subjects: Asia

China

Civil actions and liability

Congressional oversight

Currency

Drug trafficking and controlled substances

Fraud offenses and financial crimes

Government studies and investigations

International monetary system and foreign exchange

Latin America

Mexico

Organized crime

Terrorism
Latest action: action_date: 2024-12-19
text: Placed on the Union Calendar, Calendar No. 780.

Summaries:
action_date: 2023-05-11
action_desc: Introduced in House
text: <p><b>Stop Fentanyl Money Laundering Act of 2023 </b></p> <p>This bill expands efforts to prevent money laundering related to international fentanyl and narcotics distribution.</p> <p>The bill allows the Department of the Treasury to impose restrictions on an entity or activity determined to be of primary money-laundering concern in connection with illicit fentanyl and narcotics trafficking. Specifically, if Treasury determines that a foreign financial institution, class of transaction, or type of account is of such concern, Treasury may require domestic financial institutions and agencies to take special measures, such as reporting certain financial transactions involving that entity or activity. </p> <p>The Financial Crimes Enforcement Network (FinCEN) must issue advisories to financial institutions about how to identify Chinese money laundering that facilitates the trafficking of fentanyl and other synthetic opioids. FinCEN must also issue guidance to financial institutions for filing suspicious transaction reports related to suspected narcotics trafficking by transnational criminal organizations.</p> <p>The Government Accountability Office must report on the implications of the Department of State designating Mexican drug cartels as foreign terrorist organizations.</p>

tv_txt: IB Union Calendar No. 780 118th CONGRESS 2d Session H. R. 3244 [Report No. 118–783, Part I] 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 November 29, 2024 Reported from the Committee on Financial Services with an amendment Strike out all after the enacting clause and insert the part printed in italic November 29, 2024 Referral to the Committee on the Judiciary extended for a period ending not later than December 19, 2024 December 19, 2024 Additional sponsors: Ms. Pettersen , Mr. Lawler , Mr. LaLota , Mr. Meuser , and Ms. De La Cruz December 19, 2024 Committee on the Judiciary discharged; committed to the Committee of the Whole House on the State of the Union and ordered to be printed For text of introduced bill, see copy of bill as introduced on May 11, 2023 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.

1. Short title This Act may be cited as the Stop Fentanyl Money Laundering Act of 2023 . 2. 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). 3. 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 . 4. 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).

December 19, 2024 Committee on the Judiciary discharged; committed to the Committee of the Whole House on the State of the Union and ordered to be printed

tv_txt: I 118th CONGRESS 1st Session H. R. 3244 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.

1. Short title This Act may be cited as the Stop Fentanyl Money Laundering Act of 2023 . 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. 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). 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 . 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).