[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3333 Introduced in House (IH)]

<DOC>






118th CONGRESS
  1st Session
                                H. R. 3333

To impose sanctions with respect to trafficking of illicit fentanyl and 
   its precursors by transnational criminal organizations, including 
                    cartels, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 15, 2023

    Mr. McCaul (for himself, Mr. Cuellar, and Mrs. Chavez-DeRemer) 
 introduced the following bill; which was referred to the Committee on 
    Foreign Affairs, and in addition to the Committees on Financial 
Services, the Judiciary, and Oversight and Accountability, 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 impose sanctions with respect to trafficking of illicit fentanyl and 
   its precursors by transnational criminal organizations, including 
                    cartels, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Fentanyl 
Eradication and Narcotics Deterrence Off Fentanyl Act'' or the ``FEND 
Off Fentanyl Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Sense of Congress.
Sec. 3. Definitions.
                       TITLE I--SANCTIONS MATTERS

  Subtitle A--Sanctions in Response to National Emergency Relating to 
                          Fentanyl Trafficking

Sec. 101. Finding; policy.
Sec. 102. Use of national emergency authorities; reporting.
Sec. 103. Codification of Executive order imposing sanctions with 
                            respect to foreign persons involved in 
                            global illicit drug trade.
Sec. 104. Imposition of sanctions with respect to fentanyl trafficking 
                            by transnational criminal organizations.
Sec. 105. Penalties; waivers; exceptions.
Sec. 106. Treatment of blocked property of transnational criminal 
                            organizations.
                       Subtitle B--Other Matters

Sec. 111. Eight-year statute of limitations for violations of 
                            sanctions.
Sec. 112. Repeal of prohibition on imposition of sanctions with respect 
                            to importation of goods under Fentanyl 
                            Sanctions Act.
Sec. 113. Classified report and briefing on staffing of Office of 
                            Foreign Assets Control.
Sec. 114. Report on drug transportation routes and use of vessels with 
                            mislabeled cargo.
                TITLE II--ANTI-MONEY LAUNDERING MATTERS

Sec. 201. Designation of illicit fentanyl transactions of sanctioned 
                            persons as of primary money laundering 
                            concern.
Sec. 202. Treatment of transnational criminal organizations in 
                            suspicious transactions reports of the 
                            Financial Crimes Enforcement Network.
Sec. 203. Report on trade-based money laundering in trade with Mexico, 
                            the People's Republic of China, and Burma.

SEC. 2. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) the proliferation of fentanyl is causing an 
        unprecedented surge in overdose deaths in the United States, 
        fracturing families and communities, and necessitating a 
        comprehensive policy response to combat its lethal flow and to 
        mitigate the drug's devastating consequences;
            (2) the trafficking of fentanyl into the United States is a 
        national security threat that has killed hundreds of thousands 
        of United States citizens;
            (3) transnational criminal organizations, including cartels 
        primarily based in Mexico, are the main purveyors of fentanyl 
        into the United States and must be held accountable;
            (4) precursor chemicals sourced from the People's Republic 
        of China are--
                    (A) shipped from the People's Republic of China by 
                legitimate and illegitimate means;
                    (B) transformed through various synthetic processes 
                to produce different forms of fentanyl; and
                    (C) crucial to the production of illicit fentanyl 
                by transnational criminal organizations, contributing 
                to the ongoing opioid crisis;
            (5) the United States Government must remain vigilant to 
        address all new forms of fentanyl precursors and drugs used in 
        combination with fentanyl, such as Xylazine, which attribute to 
        overdose deaths of people in the United States;
            (6) to increase the cost of fentanyl trafficking, the 
        United States Government should work collaboratively across 
        agencies and should surge analytic capability to impose 
        sanctions and other remedies with respect to transnational 
        criminal organizations (including cartels), including foreign 
        nationals who facilitate the trade in illicit fentanyl and its 
        precursors from the People's Republic of China and such 
        organizations; and
            (7) the Department of the Treasury should focus on fentanyl 
        trafficking and its facilitators as one of the top national 
        security priorities for the Department.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Banking, Housing, and Urban 
                Affairs of the Senate; and
                    (B) the Committee on Foreign Affairs and the 
                Committee on Financial Services of the House of 
                Representatives.
            (2) Foreign person.--The term ``foreign person''--
                    (A) means--
                            (i) any citizen or national of a foreign 
                        country; or
                            (ii) any entity not organized under the 
                        laws of the United States or a jurisdiction 
                        within the United States; and
                    (B) does not include the government of a foreign 
                country.
            (3) Knowingly.--The term ``knowingly'', with respect to 
        conduct, a circumstance, or a result, means that a person has 
        actual knowledge, or should have known, of the conduct, the 
        circumstance, or the result.
            (4) Trafficking.--The term ``trafficking'', with respect to 
        fentanyl, fentanyl precursors, or other related opioids, has 
        the meaning given the term ``opioid trafficking'' in section 
        7203 of the Fentanyl Sanctions Act (21 U.S.C. 2302).
            (5) Transnational criminal organization.--The term 
        ``transnational criminal organization'' includes--
                    (A) any organization designated as a significant 
                transnational criminal organization under part 590 of 
                title 31, Code of Federal Regulations;
                    (B) any of the organizations known as--
                            (i) the Sinaloa Cartel;
                            (ii) the Jalisco New Generation Cartel;
                            (iii) the Gulf Cartel;
                            (iv) the Los Zetas Cartel;
                            (v) the Juarez Cartel;
                            (vi) the Tijuana Cartel;
                            (vii) the Beltran-Leyva Cartel;
                            (viii) La Familia Michoacana, also known as 
                        the Knights Templar Cartel; or
                            (ix) La Nueva Familia Michoacan;
                    (C) any other organization that the President 
                determines is a transnational criminal organization; or
                    (D) any successor organization to an organization 
                described in subparagraph (B) or as otherwise 
                determined by the President.
            (6) United states person.--The term ``United States 
        person'' means--
                    (A) a United States citizen or an alien lawfully 
                admitted for permanent residence to the United States;
                    (B) an entity organized under the laws of the 
                United States or of any jurisdiction within the United 
                States, including a foreign branch of such an entity; 
                or
                    (C) any person in the United States.

                       TITLE I--SANCTIONS MATTERS

  Subtitle A--Sanctions in Response to National Emergency Relating to 
                          Fentanyl Trafficking

SEC. 101. FINDING; POLICY.

    (a) Finding.--Congress finds that international trafficking of 
fentanyl, fentanyl precursors, or other related opioids constitutes an 
unusual and extraordinary threat to the national security, foreign 
policy, and economy of the United States, and is a national emergency.
    (b) Policy.--It shall be the policy of the United States to apply 
economic and other financial sanctions to those who engage in the 
international trafficking of fentanyl, fentanyl precursors, or other 
related opioids to protect the national security, foreign policy, and 
economy of the United States.

SEC. 102. USE OF NATIONAL EMERGENCY AUTHORITIES; REPORTING.

    (a) In General.--The President may exercise all authorities 
provided under sections 203 and 205 of the International Emergency 
Economic Powers Act (50 U.S.C. 1702 and 1704) to carry out this 
subtitle.
    (b) Report Required.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, and annually thereafter, the 
        President shall submit to the appropriate congressional 
        committees a report on actions taken by the executive branch 
        pursuant to this subtitle and any national emergency declared 
        with respect to the trafficking of fentanyl, including--
                    (A) the issuance of any new or revised regulations, 
                policies, or guidance;
                    (B) the imposition of sanctions;
                    (C) the collection of relevant information from 
                outside parties;
                    (D) the approval or denial of licenses by the 
                Office of Foreign Assets Control;
                    (E) the initiation of enforcement cases; or
                    (F) the implementation of mitigation procedures.
            (2) Form of report.--Each report required by paragraph (1) 
        shall be submitted in unclassified form, but may include the 
        matters required by subparagraphs (C), (D), (E), and (F) of 
        that paragraph in a classified annex.

SEC. 103. CODIFICATION OF EXECUTIVE ORDER IMPOSING SANCTIONS WITH 
              RESPECT TO FOREIGN PERSONS INVOLVED IN GLOBAL ILLICIT 
              DRUG TRADE.

    United States sanctions provided for in Executive Order 14059 (50 
U.S.C. 1701 note; relating to imposing sanctions on foreign persons 
involved in the global illicit drug trade), and any amendments to or 
directives issued pursuant to such Executive orders before the date of 
the enactment of this Act, shall remain in effect.

SEC. 104. IMPOSITION OF SANCTIONS WITH RESPECT TO FENTANYL TRAFFICKING 
              BY TRANSNATIONAL CRIMINAL ORGANIZATIONS.

    (a) In General.--The President shall impose the sanctions described 
in subsection (b) with respect to any foreign person the President 
determines--
            (1) is knowingly involved in the significant trafficking of 
        fentanyl, fentanyl precursors, or other related opioids by a 
        transnational criminal organization; or
            (2) otherwise is knowingly involved in significant 
        activities of a transnational criminal organization relating to 
        the trafficking of fentanyl, fentanyl precursors, or other 
        related opioids.
    (b) Sanctions Described.--The President may, pursuant to the 
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), 
block and prohibit all transactions in property and interests in 
property of a foreign person described in subsection (a) if such 
property and interests in property are in the United States, come 
within the United States, or are or come within the possession or 
control of a United States person.
    (c) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, and annually thereafter, the President shall 
submit to the appropriate congressional committees a report on actions 
taken by the executive branch with respect to the foreign persons 
identified under subsection (a).

SEC. 105. PENALTIES; WAIVERS; EXCEPTIONS.

    (a) Penalties.--A person that violates, attempts to violate, 
conspires to violate, or causes a violation of this subtitle or any 
regulation, license, or order issued to carry out this subtitle shall 
be subject to the penalties set forth in subsections (b) and (c) of 
section 206 of the International Emergency Economic Powers Act (50 
U.S.C. 1705) to the same extent as a person that commits an unlawful 
act described in subsection (a) of that section.
    (b) Waiver Authority.--
            (1) In general.--The President may waive the imposition of 
        sanctions under this subtitle if the President determines, and 
        reports to the appropriate congressional committees, that--
                    (A) the waiver is needed for humanitarian purposes; 
                or
                    (B) the national emergency described in section 101 
                has ended.
            (2) National security waiver.--The President may waive the 
        application of sanctions under this subtitle with respect to a 
        foreign person if the President determines that the waiver is 
        in the national security interest of the United States.
    (c) Exceptions.--
            (1) Exception for intelligence activities.--This subtitle 
        shall not apply with respect to activities subject to the 
        reporting requirements under title V of the National Security 
        Act of 1947 (50 U.S.C. 3091 et seq.) or any authorized 
        intelligence activities of the United States.
            (2) Exception for compliance with international obligations 
        and law enforcement activities.--Sanctions under section 102(c) 
        shall not apply with respect to an alien if admitting or 
        paroling the alien into the United States is necessary--
                    (A) to permit the United States to comply with the 
                Agreement regarding the Headquarters of the United 
                Nations, signed at Lake Success on June 26, 1947, and 
                entered into force November 21, 1947, between the 
                United Nations and the United States, or other 
                applicable international obligations of the United 
                States; or
                    (B) to carry out or assist law enforcement activity 
                of the United States.
            (3) Exception to comply with usmca.--Sanctions under this 
        subtitle shall not apply in a case in which such sanctions 
        would conflict with provisions of the USMCA (as defined in 
        section 3 of the United States-Mexico-Canada Agreement 
        Implementation Act (19 U.S.C. 4502)).
            (4) Humanitarian exemption.--The President may not impose 
        sanctions under this subtitle with respect to any person for 
        conducting or facilitating a transaction for the sale of 
        agricultural commodities, food, medicine, or medical devices or 
        for the provision of humanitarian assistance.

SEC. 106. TREATMENT OF BLOCKED PROPERTY OF TRANSNATIONAL CRIMINAL 
              ORGANIZATIONS.

    (a) Transfer of Blocked Property to Forfeiture Funds.--
            (1) In general.--The President may transfer the proceeds of 
        any covered forfeited property to the Department of the 
        Treasury Forfeiture Fund established under section 9705 of 
        title 31, United States Code, or the Department of Justice 
        Assets Forfeiture Fund established under section 524(c) of 
        title 28, United States Code.
            (2) Report required.--Not later than 180 days after the 
        date of the enactment of this Act, and every 180 days 
        thereafter, the President shall submit to the appropriate 
        congressional committees a report on any transfers made under 
        paragraph (1) during the 180-day period preceding submission of 
        the report.
            (3) Covered forfeited property defined.--In this 
        subsection, the term ``covered forfeited property'' means 
        property--
                    (A) seized by the Department of Justice under 
                chapter 46 or section 1963 of title 18, United States 
                Code; and
                    (B) that belonged to or was possessed by a 
                transnational criminal organization subject to 
                sanctions under--
                            (i) this subtitle;
                            (ii) the Fentanyl Sanctions Act (21 U.S.C. 
                        2301 et seq.); or
                            (iii) Executive Order 14059 (50 U.S.C. 1701 
                        note; relating to imposing sanctions on foreign 
                        persons involved in the global illicit drug 
                        trade).
    (b) Blocked Assets Under Terrorism Risk Insurance Act of 2002.--
Nothing in this subtitle affects the treatment of blocked assets of a 
terrorist party described in subsection (a) of section 201 of the 
Terrorism Risk Insurance Act of 2002 (28 U.S.C. 1610 note).

                       Subtitle B--Other Matters

SEC. 111. EIGHT-YEAR STATUTE OF LIMITATIONS FOR VIOLATIONS OF 
              SANCTIONS.

    (a) International Emergency Economic Powers Act.--Section 206 of 
the International Emergency Economic Powers Act (50 U.S.C. 1705) is 
amended by adding at the end the following:
    ``(d) Statute of Limitations.--
            ``(1) Time for commencing proceedings.--
                    ``(A) In general.--An action, suit, or proceeding 
                for the enforcement of any civil fine, penalty, or 
                forfeiture, pecuniary or otherwise, under this section 
                shall not be entertained unless commenced within eight 
                years after the latest date of the violation upon which 
                the civil fine, penalty, or forfeiture is based.
                    ``(B) Commencement.--For purposes of this 
                paragraph, the commencement of an action, suit, or 
                proceeding includes the issuance of a pre-penalty 
                notice or finding of violation.
            ``(2) Time for indictment.--No person shall be prosecuted, 
        tried, or punished for any offense under subsection (c) unless 
        the indictment is found or the information is instituted within 
        eight years after the latest date of the violation upon which 
        the indictment or information is based.''.
    (b) Trading With the Enemy Act.--Section 16 of the Trading with the 
Enemy Act (50 U.S.C. 4315) is amended by adding at the end the 
following:
    ``(d) Statute of Limitations.--
            ``(1) Time for commencing proceedings.--
                    ``(A) In general.--An action, suit, or proceeding 
                for the enforcement of any civil fine, penalty, or 
                forfeiture, pecuniary or otherwise, under this section 
                shall not be entertained unless commenced within eight 
                years after the latest date of the violation upon which 
                the civil fine, penalty, or forfeiture is based.
                    ``(B) Commencement.--For purposes of this 
                paragraph, the commencement of an action, suit, or 
                proceeding includes the issuance of a pre-penalty 
                notice or finding of violation.
            ``(2) Time for indictment.--No person shall be prosecuted, 
        tried, or punished for any offense under subsection (a) unless 
        the indictment is found or the information is instituted within 
        eight years after the latest date of the violation upon which 
        the indictment or information is based.''.

SEC. 112. REPEAL OF PROHIBITION ON IMPOSITION OF SANCTIONS WITH RESPECT 
              TO IMPORTATION OF GOODS UNDER FENTANYL SANCTIONS ACT.

    Section 7235 of the Fentanyl Sanctions Act (21 U.S.C. 2335) is 
repealed.

SEC. 113. CLASSIFIED REPORT AND BRIEFING ON STAFFING OF OFFICE OF 
              FOREIGN ASSETS CONTROL.

    Not later than 180 days after the date of the enactment of this 
Act, the Director of the Office of Foreign Assets Control shall provide 
to the appropriate congressional committees a classified report and 
briefing on the staffing of the Office of Foreign Assets Control, 
disaggregated by staffing dedicated to each sanctions program and each 
country or issue.

SEC. 114. REPORT ON DRUG TRANSPORTATION ROUTES AND USE OF VESSELS WITH 
              MISLABELED CARGO.

    Not later than 180 days after the date of the enactment of this 
Act, the Secretary of the Treasury, in conjunction with the heads of 
other relevant Federal agencies, shall provide to the appropriate 
congressional committees a classified report and briefing on efforts to 
target drug transportation routes and modalities, including an 
assessment of the prevalence of false cargo labeling and shipment of 
precursor chemicals without accurate tracking of the customers 
purchasing the chemicals.

                TITLE II--ANTI-MONEY LAUNDERING MATTERS

SEC. 201. DESIGNATION OF ILLICIT FENTANYL TRANSACTIONS OF SANCTIONED 
              PERSONS AS OF PRIMARY MONEY LAUNDERING CONCERN.

    Subtitle A of the Fentanyl Sanctions Act (21 U.S.C. 2311 et seq.) 
is amended by inserting after section 7213 the following:

``SEC. 7213A. DESIGNATION OF TRANSACTIONS OF SANCTIONED PERSONS AS OF 
              PRIMARY MONEY LAUNDERING CONCERN.

    ``(a) In General.--If the Secretary of the Treasury determines that 
reasonable grounds exist for concluding that one or more classes of 
transactions within, or involving, a jurisdiction outside of the United 
States is of primary money laundering concern in connection with 
illicit opioid trafficking, the Secretary of the Treasury may, by 
order, regulation, or otherwise as permitted by law--
            ``(1) require domestic financial institutions and domestic 
        financial agencies to take 1 or more of the special measures 
        provided for in section 9714(a)(1) of the National Defense 
        Authorization Act for Fiscal Year 2021 (Public Law 116-283; 31 
        U.S.C. 5318A note); and
            ``(2) prohibit, or impose conditions upon, certain 
        transmittals of funds (to be defined by the Secretary) by any 
        domestic financial institution or domestic financial agency, if 
        such transmittal of funds involves any such class of 
        transactions.
    ``(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 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. 202. TREATMENT OF TRANSNATIONAL CRIMINAL ORGANIZATIONS IN 
              SUSPICIOUS TRANSACTIONS REPORTS OF THE FINANCIAL CRIMES 
              ENFORCEMENT NETWORK.

    (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 1010.320 of title 31, Code of Federal 
Regulations, related to suspected fentanyl trafficking by transnational 
criminal organizations.
    (b) Prioritization of Reports Relating to Fentanyl Trafficking or 
Transnational Criminal Organizations.--The Director shall prioritize 
research into reports described in subsection (a) that indicate a 
connection to trafficking of fentanyl or related synthetic opioids or 
financing of suspected transnational criminal organizations.

SEC. 203. REPORT ON TRADE-BASED MONEY LAUNDERING IN TRADE WITH MEXICO, 
              THE PEOPLE'S REPUBLIC OF CHINA, AND BURMA.

    Not later than 180 days after the date of the enactment of this 
Act, the Secretary of the Treasury shall submit to the appropriate 
congressional committees a report on trade-based money laundering 
originating in Mexico or the People's Republic of China and involving 
Burma.
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