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