[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).
                                 ______