[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2969 Reported in House (RH)]
<DOC>
Union Calendar No. 402
118th CONGRESS
2d Session
H. R. 2969
[Report No. 118-485]
To establish an Independent Financial Technology Working Group to
Combat Terrorism and Illicit Financing, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 27, 2023
Mr. Nunn of Iowa (for himself and Mr. Himes) introduced the following
bill; which was referred to the Committee on Financial Services
May 6, 2024
Additional sponsors: Mr. Davidson, Mr. Lawler, and Mr. Timmons
May 6, 2024
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on April
27, 2023]
_______________________________________________________________________
A BILL
To establish an Independent Financial Technology Working Group to
Combat Terrorism and Illicit Financing, 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 ``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.
(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 (e)(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) Travel Expenses.--Members of the Working Group shall serve
without pay, but shall receive travel expenses in accordance with
sections 5702 and 5703 of title 5, United States Code.
(e) 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
investigations, research, or other activities of the Working
Group ongoing as of the date on which the Working Group
terminates under paragraph (1). Such investigations, research,
and activities may continue until their completion.
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).
Union Calendar No. 402
118th CONGRESS
2d Session
H. R. 2969
[Report No. 118-485]
_______________________________________________________________________
A BILL
To establish an Independent Financial Technology Working Group to
Combat Terrorism and Illicit Financing, and for other purposes.
_______________________________________________________________________
May 6, 2024
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed