Federal

Preventing the Financing of Illegal Synthetic Drugs Act

Source: Congress.gov · 855 words in original text

What This Bill Does

This law requires the Comptroller General of the United States (the head of an office that audits federal spending) to study how illegal synthetic drugs are brought into the country and how criminals finance this trafficking. The law focuses on drugs like fentanyl and methamphetamine and asks for a full report within one year.

Who It Affects

The Comptroller General of the United States will directly conduct this study. Federal agencies that combat drug trafficking and illegal financing may be reviewed as part of the study.

Key Provisions

- The Comptroller General must study illegal financing connected to synthetic drug trafficking, including how criminal organizations operate and what countries they use as sources or transit points (Sec. 3(a)(1)) - The study must examine how criminal organizations run their drug business, including buying materials, manufacturing drugs, selling them, and moving money back (Sec. 3(a)(2)) - The study must look at how social media apps like Snapchat, Discord and Facebook and payment apps like CashApp are used to sell synthetic drugs and handle payments, especially to young people (Sec. 3(a)(6)) - The study must review U.S. Government efforts to stop illegal financing of drug trafficking, including whether different agencies work together and whether they have enough resources and staff (Sec. 3(a)(7)) - The Comptroller General must give Congress a written report with all study findings within one year of the law passing (Sec. 3(b))

What Changes

A government study of synthetic drug trafficking and its financing will be conducted where none currently exists as a requirement of law.

Important Definitions

None defined in bill text.

138 STAT. 1515 PUBLIC LAW 118–79—SEPT. 13, 2024 Public Law 118–79 118th Congress An Act To require the Comptroller General of the United States to carry out a study on the trafficking into the United States of synthetic drugs, and related illicit finance, and for other purposes. 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 the Financing of Illegal Synthetic Drugs Act’’. SEC. 2. FINDINGS. The Congress finds the following: (1) According to the Center for Disease Control and Preven- tion, over 107,000 people in the United States died from drug overdoses or drug poisonings in the 12-month period ending January 2022, with 67 percent of those deaths involving syn- thetic opioids like fentanyl. (2) According to the United National Office of Drugs and Crime (UNODC) in its ‘‘Synthetic Drug Strategy 2021-2025’’, the number of synthetic drugs, also called New Psychoactive Substances, has increased 631 percent since 2009, with traf- fickers introducing an average of 80 new substances to the illicit drug market each year from 2009-2019. (3) In October 2022, F. Michael McDaniel, director of the Houston High Intensity Drug Trafficking Areas (HITDA) pro- gram testified in Congress that one kilogram of fentanyl can produce one million counterfeit pills containing one milligram of fentanyl, saying, ‘‘Currently in Houston, Texas, you can buy a kilogram of fentanyl for an average price of $25,000 to $30,000. This same kilogram of fentanyl in Culiaca´n (Mexico) could be purchased at an average price of $13,500. Currently, the price of a fentanyl pill in Houston ranges from $6 to $65. Therefore, an illicit investment of $30,000 or less could result in a return of $6 to $32.5 million.’’. (4) According to Celina B. Realuyo, Adjunct Professor, The George Washington University Elliott School of International Affairs, in March 2022 Congressional testimony, ‘‘Financing is essential to support and sustain the command and control, personnel, arms, communications, logistics and operations of organized crime groups. For this reason, following the money trail and depriving criminals of illicit financial flows can disrupt and disable these networks.’’. Preventing the Financing of Illegal Synthetic Drugs Act. Sept. 13, 2024 [H.R. 1076] VerDate Sep 11 2014 03:44 Sep 18, 2024 Jkt 049139 PO 00079 Frm 00001 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL079.118 PUBL079 kcroghan on LAP5R21GR3PROD with PUBLAWS 138 STAT. 1516 PUBLIC LAW 118–79—SEPT. 13, 2024 SEC. 3. GAO STUDY ON SYNTHETIC DRUGS TRAFFICKING. (a) STUDY.—The Comptroller General of the United States shall carry out a study on illicit financing in connection with the traf- ficking of synthetic drugs, including fentanyl and methamphet- amine, fentanyl- and methamphetamine-related substances, Captagon, and fentanyl and methamphetamine precursors, including— (1) the business of the trafficking of synthetic drugs and related illicit finance, such as the participation of transnational criminal organizations and terror syndicates and their notable trafficking corridors, including source and transit countries; (2) the business models used by these transnational criminal organizations, including U.S. domestic and foreign activities for precursor purchase or production, movement along the supply chain, manufacture of the completed product, mar- keting, distribution, sales, and return of proceeds; (3) the overlap of the business model of human trafficking and the trafficking of synthetic drugs and related illicit finance; (4) the use of online illicit drug markets and the use of social media for the marketing, sale, and payment for syn- thetic drugs; (5) financial methods used by such transnational criminal organizations, including— (A) payment; (B) money laundering; and (C) repatriation of proceeds; (6) the use of social media applications like Snap Chat, Discord, and Facebook and payment applications like CashApp to facilitate financial transactions for synthetic drug trafficking, especially among young people; and (7) U.S. Government activities to combat illicit finance related to the trafficking of synthetic drugs, including— (A) interagency collaboration, including personnel detailed to other agencies to support the effort to combat synthetic drugs trafficking and related illicit finance; (B) intergovernmental collaboration; (C) intersectoral collaboration with the private sector, including the business and non-governmental communities; and (D) identified gaps or resource deficiencies in com- bating the trafficking of synthetic drugs and related illicit finance in the coordination and collaboration activities described in subparagraphs (A) through (C). (b) REPORT REQUIRED.—Not later than the end of the 1-year period beginning on the date of enactment of this Act, the Comp- troller General shall issue a report to the Congress containing Time period. Determinations. Social media. VerDate Sep 11 2014 03:44 Sep 18, 2024 Jkt 049139 PO 00079 Frm 00002 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL079.118 PUBL079 kcroghan on LAP5R21GR3PROD with PUBLAWS 138 STAT. 1517 PUBLIC LAW 118–79—SEPT. 13, 2024 LEGISLATIVE HISTORY—H.R. 1076: HOUSE REPORTS: No. 118–75, Pt. 1 (Comm. on Financial Services). CONGRESSIONAL RECORD: Vol. 169 (2023): May 22, considered and passed House. Vol. 170 (2024): July 23, considered and passed Senate. Æ all findings and determinations made in carrying out the study required under subsection (a). Approved September 13, 2024. VerDate Sep 11 2014 03:44 Sep 18, 2024 Jkt 049139 PO 00079 Frm 00003 Fmt 6580 Sfmt 6580 E:\PUBLAW\PUBL079.118 PUBL079 kcroghan on LAP5R21GR3PROD with PUBLAWS

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