FEND Off Fentanyl Act

I 118TH CONGRESS 1ST SESSION H. R. 3333 To impose sanctions with respect to trafficking of illicit fentanyl and its precursors by transnational criminal organizations, including cartels, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MAY 15, 2023 Mr. MCCAUL (for himself, Mr. CUELLAR, and Mrs. CHAVEZ-DEREMER) intro- duced the following bill; which was referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, the Ju- diciary, and Oversight and Accountability, for a period to be subsequently determined by the Speaker, in each case for consideration of such provi- sions as fall within the jurisdiction of the committee concerned A BILL To impose sanctions with respect to trafficking of illicit fentanyl and its precursors by transnational criminal or- ganizations, including cartels, 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; TABLE OF CONTENTS. 3 (a) SHORT TITLE.—This Act may be cited as the 4 ‘‘Fentanyl Eradication and Narcotics Deterrence Off 5 Fentanyl Act’’ or the ‘‘FEND Off Fentanyl Act’’. 6 VerDate Sep 11 2014 01:23 May 30, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3333.IH H3333 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 3333 IH (b) TABLE OF CONTENTS.—The table of contents for 1 this Act is as follows: 2 Sec. 1. Short title; table of contents. Sec. 2. Sense of Congress. Sec. 3. Definitions. TITLE I—SANCTIONS MATTERS Subtitle A—Sanctions in Response to National Emergency Relating to Fentanyl Trafficking Sec. 101. Finding; policy. Sec. 102. Use of national emergency authorities; reporting. Sec. 103. Codification of Executive order imposing sanctions with respect to foreign persons involved in global illicit drug trade. Sec. 104. Imposition of sanctions with respect to fentanyl trafficking by transnational criminal organizations. Sec. 105. Penalties; waivers; exceptions. Sec. 106. Treatment of blocked property of transnational criminal organiza- tions. Subtitle B—Other Matters Sec. 111. Eight-year statute of limitations for violations of sanctions. Sec. 112. Repeal of prohibition on imposition of sanctions with respect to im- portation of goods under Fentanyl Sanctions Act. Sec. 113. Classified report and briefing on staffing of Office of Foreign Assets Control. Sec. 114. Report on drug transportation routes and use of vessels with mis- labeled cargo. TITLE II—ANTI-MONEY LAUNDERING MATTERS Sec. 201. Designation of illicit fentanyl transactions of sanctioned persons as of primary money laundering concern. Sec. 202. Treatment of transnational criminal organizations in suspicious transactions reports of the Financial Crimes Enforcement Net- work. Sec. 203. Report on trade-based money laundering in trade with Mexico, the People’s Republic of China, and Burma. SEC. 2. SENSE OF CONGRESS. 3 It is the sense of Congress that— 4 (1) the proliferation of fentanyl is causing an 5 unprecedented surge in overdose deaths in the 6 United States, fracturing families and communities, 7 and necessitating a comprehensive policy response to 8 VerDate Sep 11 2014 01:23 May 30, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3333.IH H3333 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 3333 IH combat its lethal flow and to mitigate the drug’s 1 devastating consequences; 2 (2) the trafficking of fentanyl into the United 3 States is a national security threat that has killed 4 hundreds of thousands of United States citizens; 5 (3) transnational criminal organizations, includ- 6 ing cartels primarily based in Mexico, are the main 7 purveyors of fentanyl into the United States and 8 must be held accountable; 9 (4) precursor chemicals sourced from the Peo- 10 ple’s Republic of China are— 11 (A) shipped from the People’s Republic of 12 China by legitimate and illegitimate means; 13 (B) transformed through various synthetic 14 processes to produce different forms of 15 fentanyl; and 16 (C) crucial to the production of illicit 17 fentanyl by transnational criminal organiza- 18 tions, contributing to the ongoing opioid crisis; 19 (5) the United States Government must remain 20 vigilant to address all new forms of fentanyl precur- 21 sors and drugs used in combination with fentanyl, 22 such as Xylazine, which attribute to overdose deaths 23 of people in the United States; 24 VerDate Sep 11 2014 01:23 May 30, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3333.IH H3333 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 3333 IH (6) to increase the cost of fentanyl trafficking, 1 the United States Government should work collabo- 2 ratively across agencies and should surge analytic 3 capability to impose sanctions and other remedies 4 with respect to transnational criminal organizations 5 (including cartels), including foreign nationals who 6 facilitate the trade in illicit fentanyl and its precur- 7 sors from the People’s Republic of China and such 8 organizations; and 9 (7) the Department of the Treasury should 10 focus on fentanyl trafficking and its facilitators as 11 one of the top national security priorities for the De- 12 partment. 13 SEC. 3. DEFINITIONS. 14 In this Act: 15 (1) APPROPRIATE CONGRESSIONAL COMMIT- 16 TEES.—The term ‘‘appropriate congressional com- 17 mittees’’ means— 18 (A) the Committee on Banking, Housing, 19 and Urban Affairs of the Senate; and 20 (B) the Committee on Foreign Affairs and 21 the Committee on Financial Services of the 22 House of Representatives. 23 (2) FOREIGN PERSON.—The term ‘‘foreign per- 24 son’’— 25 VerDate Sep 11 2014 01:23 May 30, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3333.IH H3333 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 3333 IH (A) means— 1 (i) any citizen or national of a foreign 2 country; or 3 (ii) any entity not organized under the 4 laws of the United States or a jurisdiction 5 within the United States; and 6 (B) does not include the government of a 7 foreign country. 8 (3) KNOWINGLY.—The term ‘‘knowingly’’, with 9 respect to conduct, a circumstance, or a result, 10 means that a person has actual knowledge, or should 11 have known, of the conduct, the circumstance, or the 12 result. 13 (4) TRAFFICKING.—The term ‘‘trafficking’’, 14 with respect to fentanyl, fentanyl precursors, or 15 other related opioids, has the meaning given the 16 term ‘‘opioid trafficking’’ in section 7203 of the 17 Fentanyl Sanctions Act (21 U.S.C. 2302). 18 (5) TRANSNATIONAL CRIMINAL ORGANIZA- 19 TION.—The term ‘‘transnational criminal organiza- 20 tion’’ includes— 21 (A) any organization designated as a sig- 22 nificant transnational criminal organization 23 under part 590 of title 31, Code of Federal 24 Regulations; 25 VerDate Sep 11 2014 01:23 May 30, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3333.IH H3333 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 3333 IH (B) any of the organizations known as— 1 (i) the Sinaloa Cartel; 2 (ii) the Jalisco New Generation Car- 3 tel; 4 (iii) the Gulf Cartel; 5 (iv) the Los Zetas Cartel; 6 (v) the Juarez Cartel; 7 (vi) the Tijuana Cartel; 8 (vii) the Beltran-Leyva Cartel; 9 (viii) La Familia Michoacana, also 10 known as the Knights Templar Cartel; or 11 (ix) La Nueva Familia Michoacan; 12 (C) any other organization that the Presi- 13 dent determines is a transnational criminal or- 14 ganization; or 15 (D) any successor organization to an orga- 16 nization described in subparagraph (B) or as 17 otherwise determined by the President. 18 (6) UNITED STATES PERSON.—The term 19 ‘‘United States person’’ means— 20 (A) a United States citizen or an alien law- 21 fully admitted for permanent residence to the 22 United States; 23 (B) an entity organized under the laws of 24 the United States or of any jurisdiction within 25 VerDate Sep 11 2014 01:23 May 30, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H3333.IH H3333 kjohnson on DSK79L0C42PROD with BILLS 7 •HR 3333 IH the United States, including a foreign branch of 1 such an entity; or 2 (C) any person in the United States. 3 TITLE I—SANCTIONS MATTERS 4 Subtitle A—Sanctions in Response 5 to National Emergency Relating 6 to Fentanyl Trafficking 7 SEC. 101. FINDING; POLICY. 8 (a) FINDING.—Congress finds that international 9 trafficking of fentanyl, fentanyl precursors, or other re- 10 lated opioids constitutes an unusual and extraordinary 11 threat to the national security, foreign policy, and econ- 12 omy of the United States, and is a national emergency. 13 (b) POLICY.—It shall be the policy of the United 14 States to apply economic and other financial sanctions to 15 those who engage in the international trafficking of 16 fentanyl, fentanyl precursors, or other related opioids to 17 protect the national security, foreign policy, and economy 18 of the United States. 19 SEC. 102. USE OF NATIONAL EMERGENCY AUTHORITIES; 20 REPORTING. 21 (a) IN GENERAL.—The President may exercise all 22 authorities provided under sections 203 and 205 of the 23 International Emergency Economic Powers Act (50 24 U.S.C. 1702 and 1704) to carry out this subtitle. 25 VerDate Sep 11 2014 01:23 May 30, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3333.IH H3333 kjohnson on DSK79L0C42PROD with BILLS 8 •HR 3333 IH (b) REPORT REQUIRED.— 1 (1) IN GENERAL.—Not later than 180 days 2 after the date of the enactment of this Act, and an- 3 nually thereafter, the President shall submit to the 4 appropriate congressional committees a report on ac- 5 tions taken by the executive branch pursuant to this 6 subtitle and any national emergency declared with 7 respect to the trafficking of fentanyl, including— 8 (A) the issuance of any new or revised reg- 9 ulations, policies, or guidance; 10 (B) the imposition of sanctions; 11 (C) the collection of relevant information 12 from outside parties; 13 (D) the approval or denial of licenses by 14 the Office of Foreign Assets Control; 15 (E) the initiation of enforcement cases; or 16 (F) the implementation of mitigation pro- 17 cedures. 18 (2) FORM OF REPORT.—Each report required 19 by paragraph (1) shall be submitted in unclassified 20 form, but may include the matters required by sub- 21 paragraphs (C), (D), (E), and (F) of that paragraph 22 in a classified annex. 23 VerDate Sep 11 2014 01:23 May 30, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H3333.IH H3333 kjohnson on DSK79L0C42PROD with BILLS 9 •HR 3333 IH SEC. 103. CODIFICATION OF EXECUTIVE ORDER IMPOSING 1 SANCTIONS WITH RESPECT TO FOREIGN PER- 2 SONS INVOLVED IN GLOBAL ILLICIT DRUG 3 TRADE. 4 United States sanctions provided for in Executive 5 Order 14059 (50 U.S.C. 1701 note; relating to imposing 6 sanctions on foreign persons involved in the global illicit 7 drug trade), and any amendments to or directives issued 8 pursuant to such Executive orders before the date of the 9 enactment of this Act, shall remain in effect. 10 SEC. 104. IMPOSITION OF SANCTIONS WITH RESPECT TO 11 FENTANYL TRAFFICKING BY 12 TRANSNATIONAL CRIMINAL ORGANIZATIONS. 13 (a) IN GENERAL.—The President shall impose the 14 sanctions described in subsection (b) with respect to any 15 foreign person the President determines— 16 (1) is knowingly involved in the significant traf- 17 ficking of fentanyl, fentanyl precursors, or other re- 18 lated opioids by a transnational criminal organiza- 19 tion; or 20 (2) otherwise is knowingly involved in signifi- 21 cant activities of a transnational criminal organiza- 22 tion relating to the trafficking of fentanyl, fentanyl 23 precursors, or other related opioids. 24 (b) SANCTIONS DESCRIBED.—The President may, 25 pursuant to the International Emergency Economic Pow- 26 VerDate Sep 11 2014 01:23 May 30, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H3333.IH H3333 kjohnson on DSK79L0C42PROD with BILLS 10 •HR 3333 IH ers Act (50 U.S.C. 1701 et seq.), block and prohibit all 1 transactions in property and interests in property of a for- 2 eign person described in subsection (a) if such property 3 and interests in property are in the United States, come 4 within the United States, or are or come within the posses- 5 sion or control of a United States person. 6 (c) REPORT REQUIRED.—Not later than 180 days 7 after the date of the enactment of this Act, and annually 8 thereafter, the President shall submit to the appropriate 9 congressional committees a report on actions taken by the 10 executive branch with respect to the foreign persons iden- 11 tified under subsection (a). 12 SEC. 105. PENALTIES; WAIVERS; EXCEPTIONS. 13 (a) PENALTIES.—A person that violates, attempts to 14 violate, conspires to violate, or causes a violation of this 15 subtitle or any regulation, license, or order issued to carry 16 out this subtitle shall be subject to the penalties set forth 17 in subsections (b) and (c) of section 206 of the Inter- 18 national Emergency Economic Powers Act (50 U.S.C. 19 1705) to the same extent as a person that commits an 20 unlawful act described in subsection (a) of that section. 21 (b) WAIVER AUTHORITY.— 22 (1) IN GENERAL.—The President may waive 23 the imposition of sanctions under this subtitle if the 24 VerDate Sep 11 2014 01:23 May 30, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H3333.IH H3333 kjohnson on DSK79L0C42PROD with BILLS 11 •HR 3333 IH President determines, and reports to the appropriate 1 congressional committees, that— 2 (A) the waiver is needed for humanitarian 3 purposes; or 4 (B) the national emergency described in 5 section 101 has ended. 6 (2) NATIONAL SECURITY WAIVER.—The Presi- 7 dent may waive the application of sanctions under 8 this subtitle with respect to a foreign person if the 9 President determines that the waiver is in the na- 10 tional security interest of the United States. 11 (c) EXCEPTIONS.— 12 (1) EXCEPTION FOR INTELLIGENCE ACTIVI- 13 TIES.—This subtitle shall not apply with respect to 14 activities subject to the reporting requirements 15 under title V of the National Security Act of 1947 16 (50 U.S.C. 3091 et seq.) or any authorized intel- 17 ligence activities of the United States. 18 (2) EXCEPTION FOR COMPLIANCE WITH INTER- 19 NATIONAL OBLIGATIONS AND LAW ENFORCEMENT 20 ACTIVITIES.—Sanctions under section 102(c) shall 21 not apply with respect to an alien if admitting or pa- 22 roling the alien into the United States is nec- 23 essary— 24 VerDate Sep 11 2014 01:23 May 30, 2023 Jkt 039200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H3333.IH H3333 kjohnson on DSK79L0C42PROD with BILLS 12 •HR 3333 IH (A) to permit the United States to comply 1 with the Agreement regarding the Head- 2 quarters of the United Nations, signed at Lake [Text truncated for display. 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