CONFRONT Act

I 116TH CONGRESS 1ST SESSION H. R. 1387 To require the President to develop a national strategy to combat the financial networks of transnational organized criminals, and for other purposes. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 27, 2019 Mr. KUSTOFF of Tennessee (for himself and Mr. FOSTER) introduced the following bill; which was referred to the Committee on Financial Services A BILL To require the President to develop a national strategy to combat the financial networks of transnational organized criminals, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Criminal Organiza- 4 tions’ Narcotics, Finances, Resources, Operations, and 5 Networks Targeting Act’’ or the ‘‘CONFRONT Act’’. 6 SEC. 2. NATIONAL STRATEGY. 7 (a) IN GENERAL.—The President, acting through the 8 Secretary of the Treasury, shall, in consultation with the 9 Attorney General, the Secretary of State, the Secretary 10 VerDate Sep 11 2014 00:29 Mar 08, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1387.IH H1387 pamtmann on DSKBFK8HB2PROD with BILLS 2 •HR 1387 IH of Homeland Security, the Director of National Intel- 1 ligence, the Secretary of Defense, the Director of the Fi- 2 nancial Crimes Enforcement Network, the Director of the 3 United States Secret Service, the Director of the Federal 4 Bureau of Investigation, the Administrator of the Drug 5 Enforcement Administration, the Commissioner of Cus- 6 toms and Border Protection, the Director of the Office 7 of National Drug Control Policy, and the Federal func- 8 tional regulators, develop a national strategy to combat 9 the financial networks of transnational organized crimi- 10 nals. 11 (b) TRANSMITTAL TO CONGRESS.— 12 (1) IN GENERAL.—Not later than 1 year after 13 the date of enactment of this Act, the President 14 shall submit to the appropriate congressional com- 15 mittees and make available to the head of each agen- 16 cy described in subsection (a), a comprehensive na- 17 tional strategy in accordance with subsection (a). 18 (2) UPDATES.—After the initial submission of 19 the national strategy under paragraph (1), the 20 President shall, not less often than every 2 years, 21 update the national strategy and submit the updated 22 strategy to the appropriate congressional commit- 23 tees. 24 VerDate Sep 11 2014 00:29 Mar 08, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1387.IH H1387 pamtmann on DSKBFK8HB2PROD with BILLS 3 •HR 1387 IH (c) SEPARATE PRESENTATION OF CLASSIFIED MA- 1 TERIAL.—Any part of the national strategy required to be 2 developed under subsection (a) that involves information 3 that is properly classified under criteria established by the 4 President shall be submitted to the appropriate congres- 5 sional committees separately in a classified annex and, if 6 requested by the chairman or ranking member of one of 7 the appropriate Congressional committees, as a briefing 8 at an appropriate level of security. 9 SEC. 3. CONTENTS OF NATIONAL STRATEGY. 10 The national strategy required under section 2 shall 11 contain the following: 12 (1) THREATS.—An identification and assess- 13 ment of the most significant current transnational 14 organized crime threats posed to the national secu- 15 rity of the United States or to the U.S. and inter- 16 national financial system, including drug and human 17 trafficking organizations, cyber criminals, klepto- 18 crats, and other relevant state and non-state enti- 19 ties, including those threats identified in the Presi- 20 dent’s ‘‘Strategy to Combat Transnational Orga- 21 nized Crime’’ (published July 2011). 22 (2) ILLICIT FINANCE.—(A) An identification of 23 individuals, entities, and networks (including ter- 24 rorist organizations, if any) that provide financial 25 VerDate Sep 11 2014 00:29 Mar 08, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1387.IH H1387 pamtmann on DSKBFK8HB2PROD with BILLS 4 •HR 1387 IH support or financial facilitation to transnational or- 1 ganized crime groups, and an assessment of the 2 scope and role of those providing financial support 3 to transnational organized crime groups. 4 (B) An assessment of methods by which trans- 5 national organized crime groups launder illicit pro- 6 ceeds, including money laundering using real estate 7 and other tangible goods such as art and antiquities, 8 trade-based money laundering, bulk-cash smuggling, 9 exploitation of shell companies, and misuse of digital 10 currencies and other cyber technologies, as well as 11 an assessment of the risk to the financial system of 12 the United States of such methods. 13 (3) GOALS, OBJECTIVES, PRIORITIES, AND AC- 14 TIONS.—(A) A comprehensive, research-based dis- 15 cussion of short-term and long-term goals, objec- 16 tives, priorities, and actions, listed for each agency 17 described under section 2(a), for combating the fi- 18 nancing of transnational organized crime groups and 19 their facilitators. 20 (B) A description of how the strategy is inte- 21 grated into, and supports, the national security 22 strategy, drug control strategy, and counterterrorism 23 strategy of the United States. 24 VerDate Sep 11 2014 00:29 Mar 08, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1387.IH H1387 pamtmann on DSKBFK8HB2PROD with BILLS 5 •HR 1387 IH (4) REVIEWS AND PROPOSED CHANGES.—A re- 1 view of current efforts to combat the financing or fi- 2 nancial facilitation of transnational organized crime, 3 including efforts to detect, deter, disrupt, and pros- 4 ecute transnational organized crime groups and their 5 supporters, and, if appropriate, proposed changes to 6 any law or regulation determined to be appropriate 7 to ensure that the United States pursues coordi- 8 nated and effective efforts within the jurisdiction of 9 the United States, including efforts or actions that 10 are being taken or can be taken by financial institu- 11 tions, efforts in cooperation with international part- 12 ners of the United States, and efforts that build 13 partnerships and global capacity to combat transna- 14 tional organized crime. 15 SEC. 4. DEFINITIONS. 16 In this Act: 17 (1) APPROPRIATE CONGRESSIONAL COMMIT- 18 TEES.—The term ‘‘appropriate congressional com- 19 mittees’’ means— 20 (A) the Committee on Financial Services, 21 the Committee on Foreign Affairs, the Com- 22 mittee on Armed Services, the Committee on 23 the Judiciary, the Committee on Homeland Se- 24 curity, and the Permanent Select Committee on 25 VerDate Sep 11 2014 00:29 Mar 08, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1387.IH H1387 pamtmann on DSKBFK8HB2PROD with BILLS 6 •HR 1387 IH Intelligence of the House of Representatives; 1 and 2 (B) the Committee on Banking, Housing, 3 and Urban Affairs, the Committee on Foreign 4 Relations, the Committee on Armed Services, 5 the Committee on the Judiciary, the Committee 6 on Homeland Security and Governmental Af- 7 fairs, and the Select Committee on Intelligence 8 of the Senate. 9 (2) FEDERAL FUNCTIONAL REGULATOR.—The 10 term ‘‘Federal functional regulator’’ has the mean- 11 ing given that term in section 509 of the Gramm- 12 Leach-Bliley Act (15 U.S.C. 6809). 13 (3) TRANSNATIONAL ORGANIZED CRIME.—The 14 term ‘‘transnational organized crime’’ refers to those 15 self-perpetuating associations of individuals who op- 16 erate transnationally for the purpose of obtaining 17 power, influence, monetary or commercial gains, 18 wholly or in part by illegal means, while— 19 (A) protecting their activities through a 20 pattern of corruption or violence; or 21 (B) protecting their illegal activities 22 through a transnational organizational struc- 23 VerDate Sep 11 2014 00:29 Mar 08, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1387.IH H1387 pamtmann on DSKBFK8HB2PROD with BILLS 7 •HR 1387 IH ture and the exploitation of transnational com- 1 merce or communication mechanisms. 2 Æ VerDate Sep 11 2014 00:29 Mar 08, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6301 E:\BILLS\H1387.IH H1387 pamtmann on DSKBFK8HB2PROD with BILLS