[Congressional Record Volume 169, Number 120 (Thursday, July 13, 2023)]
[Senate]
[Pages S2476-S2478]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 282. Mr. SCOTT of South Carolina (for himself and Mr. Brown)
submitted an amendment intended to be proposed by him to the bill S.
2226, to authorize appropriations for fiscal year 2024 for military
activities of the Department of Defense, for military construction, and
for defense activities of the Department of Energy, to prescribe
military personnel strengths for such fiscal year, and for other
purposes; which was ordered to lie on the table; as follows:
At the end of division A, add the following:
TITLE XVIII--FEND OFF FENTANYL ACT
SEC. 1801. SHORT TITLE.
This title may be cited as the ``Fentanyl Eradication and
Narcotics Deterrence Off Fentanyl Act'' or the ``FEND Off
Fentanyl Act''.
SEC. 1802. 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
(7) the Department of the Treasury should focus on fentanyl
trafficking and its
[[Page S2477]]
facilitators as one of the top national security priorities
for the Department.
SEC. 1803. DEFINITIONS.
In this title:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Banking, Housing, and Urban Affairs
and the Committee on Foreign Relations 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; or
(viii) La Familia Michoacana; or
(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.
Subtitle A--Sanctions Matters
PART I--SANCTIONS IN RESPONSE TO NATIONAL EMERGENCY RELATING TO
FENTANYL TRAFFICKING
SEC. 1811. 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. 1812. 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 part.
(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 part and any national emergency declared
with respect to the trafficking of fentanyl and trade in
other illicit drugs, 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 issuance or closure of general licenses, specific
licenses, and statements of licensing policy by the Office of
Foreign Assets Control;
(E) a description of any pending 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. 1813. 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 order before the date of the enactment of this Act,
shall remain in effect.
SEC. 1814. 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,
including such trafficking 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. 1815. PENALTIES; WAIVERS; EXCEPTIONS.
(a) Penalties.--A person that violates, attempts to
violate, conspires to violate, or causes a violation of this
part or any regulation, license, or order issued to carry out
this part 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) National Security Waiver.--The President may waive the
application of sanctions under this part 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 part 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 this part
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) Humanitarian exemption.--The President may not impose
sanctions under this part 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.
(4) Exception relating to importation of goods.--
(A) In general.--The authority or a requirement to block
and prohibit all transactions in all property and interests
in property under this part shall not include the authority
or a requirement to impose sanctions on the importation of
goods.
(B) Good defined.--In this paragraph, the term ``good''
means any article, natural or manmade substance, material,
supply or manufactured product, including inspection and test
equipment, and excluding technical data.
SEC. 1816. TREATMENT OF FORFEITED PROPERTY OF TRANSNATIONAL
CRIMINAL ORGANIZATIONS.
(a) Transfer of Forfeited Property to Forfeiture Funds.--
(1) In general.--Any covered forfeited property shall be
deposited into 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 deposits 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) forfeited to the United States under chapter 46 or
section 1963 of title 18, United States Code; and
(B) that belonged to or was possessed by an individual
affiliated with or connected to a transnational criminal
organization subject to sanctions under--
[[Page S2478]]
(i) this part;
(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 part 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).
PART II--OTHER MATTERS
SEC. 1821. TEN-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 ten 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 ten 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 ten 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 ten years after the latest date of the
violation upon which the indictment or information is
based.''.
SEC. 1822. 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. 1823. 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.
SEC. 1824. REPORT ON ACTIONS OF PEOPLE'S REPUBLIC OF CHINA
WITH RESPECT TO PERSONS INVOLVED IN FENTANYL
SUPPLY CHAIN.
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 actions taken by the Government of the
People's Republic of China with respect to persons involved
in the shipment of fentanyl, fentanyl analogues, fentanyl
precursors, precursors for fentanyl analogues, and equipment
for the manufacturing of fentanyl and fentanyl-laced
counterfeit pills.
Subtitle B--Anti-Money Laundering Matters
SEC. 1831. 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 financial institutions operating outside of the
United States, 1 or more classes of transactions within, or
involving, a jurisdiction outside of the United States, or 1
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 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); or
``(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 institution,
class of transaction, or type of accounts.
``(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
subsection 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).''.
SEC. 1832. 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. 1833. REPORT ON TRADE-BASED MONEY LAUNDERING IN TRADE
WITH MEXICO, THE PEOPLE'S REPUBLIC OF CHINA,
AND BURMA.
(a) In General.--In the first update to the national
strategy for combating the financing of terrorism and related
forms of illicit finance submitted to Congress after the date
of the enactment of this Act, the Secretary of the Treasury
shall include a report on trade-based money laundering
originating in Mexico or the People's Republic of China and
involving Burma.
(b) Definition.--In this section, the term ``national
strategy for combating the financing of terrorism and related
forms of illicit finance'' means the national strategy for
combating the financing of terrorism and related forms of
illicit finance required by section 261 of the Countering
America's Adversaries Through Sanctions Act (Public Law 115-
44; 131 Stat. 934), as amended by section 6506 of the
National Defense Authorization Act for Fiscal Year 2022
(Public Law 117-81; 135 Stat. 2428).
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