Stop Fentanyl Money Laundering Act of 2023

IB Union Calendar No. 780 118TH CONGRESS 2D SESSION H. R. 3244 [Report No. 118–783, Part I] To provide authority to the Secretary of the Treasury to take special measures against certain entities outside of the United States of primary money laundering concern in connection with illicit fentanyl and narcotics fi- nancing, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MAY 11, 2023 Mr. LUETKEMEYER (for himself, Mr. NUNN of Iowa, Mr. BARR, and Mrs. KIM of California) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the juris- diction of the committee concerned NOVEMBER 29, 2024 Reported from the Committee on Financial Services with an amendment [Strike out all after the enacting clause and insert the part printed in italic] NOVEMBER 29, 2024 Referral to the Committee on the Judiciary extended for a period ending not later than December 19, 2024 DECEMBER 19, 2024 Additional sponsors: Ms. PETTERSEN, Mr. LAWLER, Mr. LALOTA, Mr. MEUSER, and Ms. DE LA CRUZ DECEMBER 19, 2024 Committee on the Judiciary discharged; committed to the Committee of the Whole House on the State of the Union and ordered to be printed [For text of introduced bill, see copy of bill as introduced on May 11, 2023] VerDate Sep 11 2014 02:16 Dec 24, 2024 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H3244.RH H3244 kjohnson on DSK7ZCZBW3PROD with $$_JOB 2 •HR 3244 RH A BILL To provide authority to the Secretary of the Treasury to take special measures against certain entities outside of the United States of primary money laundering con- cern in connection with illicit fentanyl and narcotics fi- nancing, and for other purposes. VerDate Sep 11 2014 02:16 Dec 24, 2024 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6652 E:\BILLS\H3244.RH H3244 kjohnson on DSK7ZCZBW3PROD with $$_JOB 3 •HR 3244 RH 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 ‘‘Stop Fentanyl Money 4 Laundering Act of 2023’’. 5 SEC. 2. DETERMINATION WITH RESPECT TO PRIMARY 6 MONEY LAUNDERING CONCERN OF ILLICIT 7 FENTANYL AND NARCOTICS FINANCING. 8 (a) IN GENERAL.—If the Secretary of the Treasury de- 9 termines that one or more financial institutions operating 10 outside of the United States, or one or more classes of trans- 11 actions within, or involving, a jurisdiction outside of the 12 United States, or one or more types of accounts within, or 13 involving, a jurisdiction outside of the United States is of 14 primary money laundering concern in connection with il- 15 licit fentanyl and narcotics financing, the Secretary of the 16 Treasury may, by order, regulation, or otherwise as per- 17 mitted by law, require domestic financial institutions and 18 domestic financial agencies to take one or more of the spe- 19 cial measures described in section 5318A(b) of title 31, 20 United States Code. 21 (b) CLASSIFIED INFORMATION.—In any judicial re- 22 view of a finding of the existence of a primary money laun- 23 dering concern, or of the requirement for 1 or more special 24 measures with respect to a primary money laundering con- 25 VerDate Sep 11 2014 02:16 Dec 24, 2024 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6203 E:\BILLS\H3244.RH H3244 kjohnson on DSK7ZCZBW3PROD with $$_JOB 4 •HR 3244 RH cern made under this section, if the designation or imposi- 1 tion, or both, were based on classified information (as de- 2 fined in section 1(a) of the Classified Information Proce- 3 dures Act (18 U.S.C. App.)), such information may be sub- 4 mitted by the Secretary of the Treasury to the reviewing 5 court ex parte and in camera. This subsection does not con- 6 fer or imply any right to judicial review of any finding 7 made or any requirement imposed under this section. 8 (c) AVAILABILITY OF INFORMATION.—The exemptions 9 from, and prohibitions on, search and disclosure referred 10 to in section 9714(c) of the National Defense Authorization 11 Act for Fiscal Year 2021 (Public Law 116–283; 31 U.S.C. 12 5318A note) shall apply to any report or record of report 13 filed pursuant to a requirement imposed under subsection 14 (a). For purposes of section 552 of title 5, United States 15 Code, this section shall be considered a statute described in 16 subsection (b)(3)(B) of that section. 17 (d) PENALTIES.—The penalties referred to in section 18 9714(d) of the National Defense Authorization Act for Fis- 19 cal Year 2021 (Public Law 116–283; 31 U.S.C. 5318A note) 20 shall apply to violations of any order, regulation, special 21 measure, or other requirement imposed under subsection 22 (a), in the same manner and to the same extent as described 23 in such section 9714(d). 24 VerDate Sep 11 2014 02:16 Dec 24, 2024 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6203 E:\BILLS\H3244.RH H3244 kjohnson on DSK7ZCZBW3PROD with $$_JOB 5 •HR 3244 RH (e) INJUNCTIONS.—The Secretary of the Treasury may 1 bring a civil action to enjoin a violation of any order, regu- 2 lation, special measure, or other requirement imposed under 3 subsection (a) in the same manner and to the same extent 4 as described in section 9714(e) of the National Defense Au- 5 thorization Act for Fiscal Year 2021 (Public Law 116–283; 6 31 U.S.C. 5318A note). 7 (f) DEFINITIONS.—In this section, the terms ‘‘domestic 8 financial agency’’, ‘‘domestic financial institution’’, ‘‘finan- 9 cial agency’’, and ‘‘financial institution’’ have the mean- 10 ings given those terms as used in section 9714 of the Na- 11 tional Defense Authorization Act for Fiscal Year 2021 (Pub- 12 lic Law 116–283; 31 U.S.C. 5318A note). 13 SEC. 3. TRADE-BASED MONEY LAUNDERING ADVISORY. 14 Not later than one year following the date of the enact- 15 ment of this Act, the Financial Crimes Enforcement Net- 16 work shall update and issue a new advisory to financial 17 institutions on identifying Chinese professional money 18 laundering facilitating the trafficking of fentanyl and other 19 synthetic opioids. Such advisory shall incorporate the fol- 20 lowing advisories: 21 (1) FIN–2014–A005, entitled ‘‘Update on U.S. 22 Currency Restrictions in Mexico: Funnel Accounts 23 and TBML’’; 24 VerDate Sep 11 2014 02:16 Dec 24, 2024 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6203 E:\BILLS\H3244.RH H3244 kjohnson on DSK7ZCZBW3PROD with $$_JOB 6 •HR 3244 RH (2) FIN–2010–A001, entitled ‘‘Advisory to Fi- 1 nancial Institutions on Filing Suspicious Activity 2 Reports regarding Trade-Based Money Laundering’’; 3 and 4 (3) FIN–2019–A006, entitled ‘‘Advisory to Fi- 5 nancial Institutions on Illicit Financial Schemes and 6 Methods Related to the Trafficking of Fentanyl and 7 Other Synthetic Opioids’’. 8 SEC. 4. TREATMENT OF TRANSNATIONAL CRIMINAL ORGA- 9 NIZATIONS IN SUSPICIOUS TRANSACTIONS. 10 (a) FILING INSTRUCTIONS.—Not later than 180 days 11 after the date of the enactment of this Act, the Director of 12 the Financial Crimes Enforcement Network shall issue 13 guidance or instructions to United States financial institu- 14 tions for filing reports on suspicious transactions required 15 by section 5318(g) of title 31, United States Code, related 16 to suspected narcotics trafficking by transnational criminal 17 organizations. 18 (b) PRIORITIZATION OF REPORTS RELATING TO NAR- 19 COTICS TRAFFICKING OR TRANSNATIONAL CRIMINAL ORGA- 20 NIZATIONS.—The Director shall prioritize research into re- 21 ports described in subsection (a) that indicate a connection 22 to trafficking of narcotics. 23 (c) BRIEFING TO CONGRESS.—Not later than one year 24 after the date of enactment of this Act, the Director shall 25 VerDate Sep 11 2014 02:16 Dec 24, 2024 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6203 E:\BILLS\H3244.RH H3244 kjohnson on DSK7ZCZBW3PROD with $$_JOB 7 •HR 3244 RH brief the Committees on Financial Services and Foreign Af- 1 fairs of the House of Representatives and the Committees 2 on Banking, Housing, and Urban Affairs and Foreign Re- 3 lations of the Senate on the usefulness of the guidance or 4 instructions issued under subsection (a). 5 VerDate Sep 11 2014 02:16 Dec 24, 2024 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6203 E:\BILLS\H3244.RH H3244 kjohnson on DSK7ZCZBW3PROD with $$_JOB Union Calendar No. 780 118TH CONGRESS 2D SESSION H. R. 3244 [Report No. 118–783, Part I] A BILL To provide authority to the Secretary of the Treas- ury to take special measures against certain enti- ties outside of the United States of primary money laundering concern in connection with il- licit fentanyl and narcotics financing, and for other purposes. DECEMBER 19, 2024 Committee on the Judiciary discharged; committed to the Committee of the Whole House on the State of the Union and ordered to be printed VerDate Sep 11 2014 02:16 Dec 24, 2024 Jkt 059200 PO 00000 Frm 00008 Fmt 6651 Sfmt 6651 E:\BILLS\H3244.RH H3244 kjohnson on DSK7ZCZBW3PROD with $$_JOB