[Congressional Record Volume 170, Number 118 (Monday, July 22, 2024)]
[House]
[Pages H4651-H4653]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
FINANCIAL TECHNOLOGY PROTECTION ACT OF 2023
Mr. NUNN of Iowa. Mr. Speaker, I move to suspend the rules and pass
the bill (H.R. 2969) to establish an Independent Financial Technology
Working Group to Combat Terrorism and Illicit Financing, and for other
purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 2969
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 ``Financial Technology
Protection Act of 2023''.
SEC. 2. INDEPENDENT FINANCIAL TECHNOLOGY WORKING GROUP TO
COMBAT TERRORISM AND ILLICIT FINANCING.
(a) Establishment.--There is established the Independent
Financial Technology Working Group to Combat Terrorism and
Illicit Financing (in this section referred to as the
``Working Group''), which shall consist of the following:
(1) The Secretary of the Treasury, acting through the Under
Secretary for Terrorism and Financial Intelligence, who shall
serve as the chair of the Working Group.
(2) A senior-level representative from each of the
following:
(A) Each of the following components of the Department of
the Treasury:
(i) The Financial Crimes Enforcement Network.
(ii) The Internal Revenue Service.
(iii) The Office of Foreign Assets Control.
(B) The Department of Justice and each of the following
components of the Department:
(i) The Federal Bureau of Investigation.
(ii) The Drug Enforcement Administration.
(C) The Department of Homeland Security and the United
States Secret Service.
(D) The Department of State.
(E) The Central Intelligence Agency.
(3) Five individuals appointed by the Under Secretary for
Terrorism and Financial Intelligence to represent the
following:
(A) Financial technology companies.
(B) Blockchain intelligence companies.
(C) Financial institutions.
(D) Institutions or organizations engaged in research.
(E) Institutions or organizations focused on individual
privacy and civil liberties.
(b) Duties.--The Working Group shall--
(1) conduct research on terrorist and illicit use of new
financial technologies, including digital assets; and
(2) develop legislative and regulatory proposals to improve
anti-money laundering, counter-terrorist, and other counter-
illicit financing efforts in the United States.
(c) Reports.--
(1) In general.--Not later than one year after the date of
the enactment of this Act, and annually for the 3 years
thereafter, the Working Group shall submit to the Secretary
of the Treasury, the heads of each agency represented in the
Working Group pursuant to subsection (a)(2), and the
appropriate congressional committees a report containing the
findings and determinations made by the Working Group in the
previous year and any legislative and regulatory proposals
developed by the Working Group.
(2) Final report.--Before the date on which the Working
Group terminates under subsection (d)(1), the Working Group
shall submit to the appropriate congressional committees a
final report detailing the findings, recommendations, and
activities of the Working Group.
(d) Sunset.--
(1) In general.--The Working Group shall, subject to
paragraph (3), terminate on the date that is 4 years after
the date of the enactment of this Act.
(2) Expiration and return of appropriated funds.--On the
date on which the Working Group terminates under paragraph
(1)--
(A) all authorities granted to the Working Group under this
section shall expire, subject to paragraph (3); and
(B) any funds appropriated for the Working Group that are
available for obligation as of that date shall be returned to
the Treasury.
(3) Authority to wind up activities.--The termination of
the Working Group under paragraph (1) and the expiration of
authorities under paragraph (2) shall not affect any
research, proposals, or other related activities of the
Working Group ongoing as of the date on which the Working
Group terminates under paragraph (1). Such research,
proposals, and other related activities may continue until
their completion.
[[Page H4652]]
SEC. 3. PREVENTING ROGUE AND FOREIGN ACTORS FROM EVADING
SANCTIONS.
(a) Report and Strategy With Respect to Digital Assets and
Other Related Emerging Technologies.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the President, acting through the
Secretary of the Treasury and in consultation with the head
of each agency represented on the Independent Financial
Technology Working Group to Combat Terrorism and Illicit
Financing pursuant to section 2(a)(2), shall submit to the
appropriate congressional committees a report that
describes--
(A) the potential uses of digital assets and other related
emerging technologies by States, non-State actors, foreign
terrorist organizations, and other terrorist groups to evade
sanctions, finance terrorism, or launder monetary
instruments, and threaten the national security of the United
States; and
(B) a strategy how the United States will mitigate and
prevent the illicit use of digital assets and other related
emerging technologies.
(2) Form of report; public availability.--
(A) In general.--The report required by paragraph (1) shall
be submitted in unclassified form, but may include a
classified annex.
(B) Public availability.--The unclassified portion of each
report required by paragraph (1) shall be made available to
the public and posted on a publicly accessible website of the
Department of Treasury--
(i) in precompressed, easily downloadable versions, in all
appropriate formats; and
(ii) in machine-readable format, if applicable.
(3) Sources of information.--In preparing the reports
required by paragraph (1), the President may utilize any
credible publication, database, or web-based resource, and
any credible information compiled by any government agency,
nongovernmental organization, or other entity that is made
available to the President.
(b) Briefing.--Not later than 2 years after the date of the
enactment of this Act, the Secretary of the Treasury shall
brief the appropriate congressional committees on the
implementation of the strategy required by subsection (a)(2).
SEC. 4. DEFINITIONS.
In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Banking, Housing, and Urban Affairs,
the Committee on Finance, the Committee on Foreign Relations,
the Committee on Homeland Security and Governmental Affairs,
the Committee on the Judiciary, and the Select Committee on
Intelligence of the Senate; and
(B) the Committee on Financial Services, the Committee on
Foreign Affairs, the Committee on Homeland Security, the
Committee on the Judiciary, the Committee on Way and Means,
and the Permanent Select Committee on Intelligence of the
House of Representatives.
(2) Blockchain intelligence company.--The term ``blockchain
intelligence company'' means any business providing software,
research, or other services (such as blockchain tracing
tools, geofencing, transaction screening, the collection of
business data, and sanctions screening) that--
(A) support private and public sector investigations and
risk management activities; and
(B) involve cryptographically secured distributed ledgers
or any similar technology or implementation.
(3) Digital asset.--The term ``digital asset'' means any
digital representation of value that is recorded on a
cryptographically secured digital ledger or any similar
technology.
(4) Foreign terrorist organization.--The term ``foreign
terrorist organization'' means an organization that is
designated as a foreign terrorist organization under section
219 of the Immigration and Nationality Act (8 U.S.C. 1189).
(5) 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).
(6) Terrorist.--The term ``terrorist'' includes a person
carrying out domestic terrorism or international terrorism
(as such terms are defined, respectively, under section 2331
of title 18, United States Code).
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Iowa (Mr. Nunn) and the gentleman from North Carolina (Mr. Nickel) each
will control 20 minutes.
The Chair recognizes the gentleman from Iowa.
General Leave
Mr. NUNN of Iowa. Mr. Speaker, I ask unanimous consent that all
Members may have 5 legislative days in which to revise and extend their
remarks and include extraneous material on the bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Iowa?
There was no objection.
Mr. NUNN of Iowa. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise today in strong support of the Financial
Technology Protection Act of 2023. Blockchain technology and digital
assets are here to stay, and we need an environment in which they can
grow in the United States without being exploited by our adversaries.
The transparent and traceable nature of this technology improves law
enforcement's abilities to combat cybercrime and to recover funds
fueling our enemies today.
These insights have led to massive forfeitures and seizures of
illicit funds and high-profile prosecutions that help every American.
Last year the U.S. Government utilized this technology to recover
over $30 million in stolen funds from the Lazarus Group, a North Korean
hacking entity. In the same year, the Israeli Government and their
authorities used blockchain to recover roughly $1.7 million from the
Hezbollah terrorist group financed by Iran.
Mr. Speaker, as a former national counterintelligence officer for
cyber, I have also seen firsthand how this technology can be exploited
by terrorist groups and our adversaries for illicit money and
laundering, a direct threat to U.S. national security. That is why I
introduced the Financial Technology Protection Act, along with my
colleague on the other side of the aisle, Representative Himes from
Connecticut.
This bipartisan bill establishes a working group of key Federal
Government departments, intelligence agencies, private organizations
and their innovation, as well as private-sector experts to combat
terrorism and illicit financing on digital platforms.
The working group will consist of experts to develop legislative and
regulatory proposals to tackle anti-money laundering and address
security risks, as well as prevent illicit financing activity right
here in the United States.
These efforts are critical in protecting our financial systems from
bad actors and our adversaries alike, including those nation-states
like the People's Republic of China and the Russian Federation.
Passing this legislation, I believe, is crucial in strengthening
America's national security, protecting our digital assets, and
ensuring the next generation of financial and internet technology is
built right here in America. This is a commonsense piece of
legislation, and it passed out of the Financial Services Committee
unanimously. I would also like to thank our colleagues across the
rotunda, including Senator Budd for his leadership on this legislation.
Mr. Speaker, I urge my colleagues to support my bipartisan Financial
Technology Protection Act for the sake of America and our innovative
future, and I reserve the balance of my time.
Mr. NICKEL. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of H.R. 2969, the Financial Technology
Protection Act of 2023 sponsored by my colleague Representative Nunn
from the great State of Iowa and Representative Himes.
As its sponsors recognize, the benefits offered by emerging financial
technologies, including digital assets, including peer-to-peer
technologies and blockchain-based exchanges, can be a boon to consumers
and industry, providing speedy transactions, anonymity, and lower
costs. It is important that we encourage this innovation here in the
United States.
These same traits, however, can be abused by bad actors for
laundering money and obscuring ownership and source of funds allowing
traffickers, terrorists, kleptocrats, and other bad actors to move and
hide their operational assets and the proceeds of their crimes.
This bill establishes a public-private independent financial
technology working group to combat terrorism and illicit financing to
make related recommendations to Congress for new financial crime
legislation and regulations.
All Members of this body should support efforts to detect and defer
illicit finance while encouraging responsible innovation that will
propel our country and our economy into the future.
[[Page H4653]]
Mr. Speaker, I reserve the balance of my time.
{time} 1630
Mr. NUNN of Iowa. Mr. Speaker, this has been a great work of
bipartisanship that impacts not only the future of our country but your
and my futures, the future of America, and the future of all the young
children today watching this take place.
Mr. Speaker, I yield 2 minutes to the gentlewoman from Texas (Ms. De
La Cruz), my very good friend.
Ms. DE LA CRUZ. Mr. Speaker, I thank the gentleman for yielding.
Mr. Speaker, we live in an increasingly interconnected world with new
and emerging technologies changing how we conduct business with one
another and exchange currency.
Blockchain technology and digital assets are a key component of this.
This new technology is here to stay and needs an environment in which
it can continue to grow and thrive in the United States.
At the same time, Congress needs to ensure that law enforcement has
the tools they need to combat new threats arising from this technology.
The Financial Technology Protection Act will help accomplish that goal.
H.R. 2969 establishes an independent financial technology working
group that is focused on combating illicit finance using financial
technologies, including digital assets.
The working group established by this act will conduct research on
illicit finance and will use that knowledge to develop legislative and
regulatory proposals to counter money laundering, terrorist financing,
and other threats to the U.S. so that our families are more secure and
money is cut off from illicit enterprises.
This bill is good governance. It is bipartisan. It is a cooperative
effort to address real problems in our country, and I am happy to
support it and vote in favor of it on the House floor.
Mr. Speaker, I urge my colleagues to support H.R. 2969.
Mr. NICKEL. Mr. Speaker, I reserve the balance of my time.
Mr. NUNN of Iowa. Mr. Speaker, I thank the gentlewoman from Texas
(Ms. De La Cruz) not only for her incredible work in Texas but for what
she is doing on the Financial Services Committee to really help protect
our Nation.
Mr. Speaker, if the gentleman from North Carolina (Mr. Nickel) has no
additional speakers, I am prepared to close, and I reserve the balance
of my time.
Mr. NICKEL. Mr. Speaker, I have no further speakers, and I yield
myself the balance of my time to close.
Mr. Speaker, I again urge my colleagues to support this bill, and I
yield back the balance of my time.
Mr. NUNN of Iowa. Mr. Speaker, I yield myself the balance of my time
to close.
Mr. Speaker, I thank all of my colleagues on the House Committee on
Financial Services. This has truly been a team effort.
Mr. Speaker, I remind the entire body, as well as my fellow
Americans, that blockchain technology, digital assets, and other
financial technology products are here to stay, and they will be an
intricate part of our future. Together, we need an environment where
they can grow safely, right here in America. We must move them smartly,
innovatively, and made in the U.S.
At the same time, we must stay one step ahead of bad actors,
terrorists, and others who want to exploit our financial system to
engage in illicit activity or, worse, terrorism or state-sponsored
threats.
Mr. Speaker, this bill moves us in the right direction, and so I urge
my colleagues to support H.R. 2969.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Iowa (Mr. Nunn) that the House suspend the rules and
pass the bill, H.R. 2969, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
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