[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6069 Reported in House (RH)]

<DOC>





                                                 Union Calendar No. 607
115th CONGRESS
  2d Session
                                H. R. 6069

                      [Report No. 115-781, Part I]

To require the Comptroller General of the United States to carry out a 
  study on how virtual currencies and online marketplaces are used to 
buy, sell, or facilitate the financing of goods or services associated 
   with sex trafficking or drug trafficking, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 12, 2018

Mr. Vargas (for himself and Mr. Rothfus) introduced the following bill; 
   which was referred to the Committee on Financial Services, and in 
 addition to the Committee on Energy and Commerce, 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

                             June 25, 2018

                     Additional sponsor: Ms. Sinema

                             June 25, 2018

  Reported from the Committee on Financial Services with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                             June 25, 2018

Committee on Energy and Commerce 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 June 
                               12, 2018]


_______________________________________________________________________

                                 A BILL


 
To require the Comptroller General of the United States to carry out a 
  study on how virtual currencies and online marketplaces are used to 
buy, sell, or facilitate the financing of goods or services associated 
   with sex trafficking or drug trafficking, 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 ``Fight Illicit Networks and Detect 
Trafficking Act'' or the ``FIND Trafficking Act''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) According to the Drug Enforcement Administration (DEA) 
        2017 National Drug Threat Assessment, transnational criminal 
        organizations are increasingly using virtual currencies.
            (2) The Treasury Department has recognized that: ``The 
        development of virtual currencies is an attempt to meet a 
        legitimate market demand. According to a Federal Reserve Bank 
        of Chicago economist, U.S. consumers want payment options that 
        are versatile and that provide immediate finality. No U.S. 
        payment method meets that description, although cash may come 
        closest. Virtual currencies can mimic cash's immediate finality 
        and anonymity and are more versatile than cash for online and 
        cross-border transactions, making virtual currencies vulnerable 
        for illicit transactions.''.
            (3) Virtual currencies have become a prominent method to 
        pay for goods and services associated with illegal sex 
        trafficking and drug trafficking, which are two of the most 
        detrimental and troubling illegal activities facilitated by 
        online marketplaces.
            (4) Online marketplaces, including the darkweb, have become 
        a prominent platform to buy, sell, and advertise for illicit 
        goods and services associated with sex trafficking and drug 
        trafficking.
            (5) According to the International Labour Organization, in 
        2016, 4.8 million people in the world were victims of forced 
        sexual exploitation, and in 2014, the global profit from 
        commercial sexual exploitation was $99 billion.
            (6) In 2016, within the United States, the Center for 
        Disease Control estimated that there were 64,000 deaths related 
        to drug overdose, and the most severe increase in drug 
        overdoses were those associated with fentanyl and fentanyl 
        analogs (synthetic opioids), which amounted to over 20,000 
        overdose deaths.
            (7) According to the U.S. Department of the Treasury 2015 
        National Money Laundering Risk Assessment, an estimated $64 
        billion is generated annually from U.S. drug trafficking sales.
            (8) Illegal fentanyl in the United States originates 
        primarily from China, and it is readily available to purchase 
        through online marketplaces.

SEC. 3. GAO STUDY.

    (a) Study Required.--The Comptroller General of the United States 
shall conduct a study on how virtual currencies and online marketplaces 
are used to facilitate sex and drug trafficking. The study shall 
consider--
            (1) how online marketplaces, including the darkweb, are 
        being used as platforms to buy, sell, or facilitate the 
        financing of goods or services associated with sex trafficking 
        or drug trafficking (specifically, opioids and synthetic 
        opioids, including fentanyl, fentanyl analogs, and any 
        precursor chemicals associated with manufacturing fentanyl or 
        fentanyl analogs) destined for, originating from, or within the 
        United States;
            (2) how financial payment methods, including virtual 
        currencies and peer-to-peer mobile payment services, are being 
        utilized by online marketplaces to facilitate the buying, 
        selling, or financing of goods and services associated with sex 
        or drug trafficking destined for, originating from, or within 
        the United States;
            (3) how virtual currencies are being used to facilitate the 
        buying, selling, or financing of goods and services associated 
        with sex or drug trafficking, destined for, originating from, 
        or within the United States, when an online platform is not 
        otherwise involved;
            (4) how illicit funds that have been transmitted online and 
        through virtual currencies are repatriated into the formal 
        banking system of the United States through money laundering or 
        other means;
            (5) the participants (state and non-state actors) 
        throughout the entire supply chain that participate in or 
        benefit from the buying, selling, or financing of goods and 
        services associated with sex or drug trafficking (either 
        through online marketplaces or virtual currencies) destined 
        for, originating from, or within the United States;
            (6) Federal and State agency efforts to impede the buying, 
        selling, or financing of goods and services associated with sex 
        or drug trafficking destined for, originating from, or within 
        the United States, including efforts to prevent the proceeds 
        from sex or drug trafficking from entering the United States 
        banking system;
            (7) how virtual currencies and their underlying 
        technologies can be used to detect and deter these illicit 
        activities; and
            (8) to what extent can the immutable and traceable nature 
        of virtual currencies contribute to the tracking and 
        prosecution of illicit funding.
    (b) Scope.--For the purposes of the study required under subsection 
(a), the term ``sex trafficking'' means the recruitment, harboring, 
transportation, provision, obtaining, patronizing, or soliciting of a 
person for the purpose of a commercial sex act that is induced by 
force, fraud, or coercion, or in which the person induced to perform 
such act has not attained 18 years of age.
    (c) Report to Congress.--Not later than 1 year after the date of 
enactment of this Act, the Comptroller General of the United States 
shall submit to the Committee on Banking, Housing, and Urban Affairs of 
the Senate and the Committee on Financial Services of the House of 
Representatives a report summarizing the results of the study required 
under subsection (a), together with any recommendations for legislative 
or regulatory action that would improve the efforts of Federal agencies 
to impede the use of virtual currencies and online marketplaces in 
facilitating sex and drug trafficking.
                                                 Union Calendar No. 607

115th CONGRESS

  2d Session

                               H. R. 6069

                      [Report No. 115-781, Part I]

_______________________________________________________________________

                                 A BILL

To require the Comptroller General of the United States to carry out a 
  study on how virtual currencies and online marketplaces are used to 
buy, sell, or facilitate the financing of goods or services associated 
   with sex trafficking or drug trafficking, and for other purposes.

_______________________________________________________________________

                             June 25, 2018

  Reported from the Committee on Financial Services with an amendment

                             June 25, 2018

Committee on Energy and Commerce discharged; committed to the Committee 
 of the Whole House on the State of the Union and ordered to be printed