118 S3603 IS: Preventing Illicit Finance Through Partnership Act of 2024 U.S. Senate 2024-01-17 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

II118th CONGRESS2d SessionS. 3603IN THE SENATE OF THE UNITED STATESJanuary 17, 2024Mr. Hagerty (for himself and Ms. Lummis) introduced the following bill; which was read twice and referred to the Committee on the JudiciaryA BILLTo establish an information-sharing pilot program to combat the illicit use of crypto assets.

1.

Short title

This Act may be cited as the Preventing Illicit Finance Through Partnership Act of 2024.

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.