[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3603 Introduced in Senate (IS)]

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118th CONGRESS
  2d Session
                                S. 3603

To establish an information-sharing pilot program to combat the illicit 
                         use of crypto assets.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 17, 2024

Mr. Hagerty (for himself and Ms. Lummis) introduced the following bill; 
  which was read twice and referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
To establish an information-sharing pilot program to combat the illicit 
                         use of crypto assets.

    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 ``Preventing Illicit Finance Through 
Partnership Act of 2024''.

SEC. 2. INFORMATION-SHARING PILOT PROGRAM TO COMBAT ILLICIT USE OF 
              CRYPTO ASSETS.

    (a) Definitions.--In this section:
            (1) Covered agency.--The term ``covered agency'' means--
                    (A) the Department of Justice, including the 
                Federal Bureau of Investigation and the Drug 
                Enforcement Administration;
                    (B) the Financial Crimes Enforcement Network; and
                    (C) the Department of Homeland Security.
            (2) Crypto asset.--The term ``crypto asset'' means a 
        natively electronic asset that--
                    (A) confers economic, proprietary, or access rights 
                or powers; and
                    (B) is recorded using cryptographically secured 
                distributed ledger technology, or any similar analogue.
            (3) Designated private sector entity.--The term 
        ``designated private sector entity'' means a private sector 
        entity designated under subsection (c).
            (4) Director.--The term ``Director'' means the Director of 
        the Financial Crimes Enforcement Network.
            (5) Illicit finance violation.--The term ``illicit finance 
        violation'' means the illicit use of crypto assets.
            (6) Illicit use.--The term ``illicit use'' includes fraud, 
        darknet marketplace transactions, money laundering, the 
        purchase and sale of illicit goods, sanctions evasion, theft of 
        funds, funding of illegal activities, transactions related to 
        child sexual abuse material, and any other financial 
        transaction involving the proceeds of specified unlawful 
        activity (as defined in section 1956(c) of title 18, United 
        States Code).
            (7) Money services business.--The term ``money services 
        business'' has the meaning given the term in section 1010.100 
        of title 31, Code of Federal Regulations, or any successor 
        regulation.
            (8) Secretary.--The term ``Secretary'' means the Secretary 
        of Homeland Security.
    (b) Establishment of Program.--The Attorney General shall establish 
a pilot program under which covered agencies and designated private 
sector entities securely share information about potential illicit 
finance violations and threats and emerging risks relating to illicit 
finance violations.
    (c) Designation of Private Sector Entities.--
            (1) Required designation.--
                    (A) Initial designation.--Not later than 90 days 
                after the date of enactment of this Act, the Attorney 
                General, in consultation with the Director and the 
                Secretary, shall designate 10 private sector entities 
                that are money services businesses and 10 private 
                sector entities from the crypto asset industry to 
                participate in the pilot program established under 
                subsection (b).
                    (B) Biannual review.--Not less frequently than once 
                every 6 months, the Attorney General, in consultation 
                with the Director and the Secretary, shall review and, 
                as appropriate, replace the private sector entities 
                designated under this paragraph.
            (2) Optional designation.--In addition to the 20 private 
        sector entities designated under paragraph (1), the Attorney 
        General, in consultation with the Director and the Secretary, 
        may designate 1 or more information sharing and analysis 
        centers to participate in the pilot program.
    (d) Information Sharing With Private Sector Entities.--A covered 
agency that initiates an investigation into a potential illicit finance 
violation, or identifies a threat or emerging risk relating to illicit 
finance violations, may share with any designated private sector entity 
such information about the investigation, threat, or emerging risk as 
the covered agency determines appropriate.
    (e) Use of Information by Private Sector Entities.--Information 
received by a designated private sector entity under this section may 
not be used for any purpose other than identifying and reporting on 
activities that may involve illicit finance violations or threats and 
emerging risks relating to illicit finance violations.
    (f) Means of Sharing Information.--The covered agencies and 
designated private sector entities may share information about 
potential illicit finance violations, or threats and emerging risks 
relating to illicit finance violations, with each other--
            (1) through a portal established by the Attorney General or 
        a similar mechanism determined appropriate by the Attorney 
        General;
            (2) through secure email; or
            (3) at virtual monthly meetings, which shall be facilitated 
        by the Attorney General.
    (g) Limitation on Liability.--A designated private sector entity 
that transmits, receives, or shares information for the purposes of 
identifying and reporting activities that may constitute illicit 
finance violations, or threats and emerging risks relating to illicit 
finance violations, shall not be liable to any person under any law or 
regulation of the United States, any constitution, law, or regulation 
of any State or political subdivision thereof, or under any contract or 
other legally enforceable agreement (including any arbitration 
agreement), for such disclosure or for any failure to provide notice of 
such disclosure to the person who is the subject of such disclosure, or 
any other person identified in the disclosure.
    (h) Voluntary Participation.--Participation by a designated private 
sector entity in the pilot program established under subsection (b), 
including sharing of information regarding potential illicit finance 
violations or threats and emerging risks relating to illicit finance 
violations, shall be voluntary.
    (i) Sunset.--The pilot program established under subsection (b) 
shall terminate on the date that is 5 years after the date of enactment 
of this Act.
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