[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6505 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 6505
To amend the Fentanyl Sanctions Act to strengthen the imposition of
sanctions under that Act, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 29, 2023
Mr. James (for himself and Ms. Pettersen) introduced the following
bill; which was referred to the Committee on Financial Services, and in
addition to the Committees on Foreign Affairs, the Judiciary, and
Oversight and Accountability, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Fentanyl Sanctions Act to strengthen the imposition of
sanctions under that Act, 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 ``Fentanyl Reduction Engrained by
Economic Deterrence Act'' or the ``FREED Act''.
SEC. 2. EXPANSION OF SANCTIONS UNDER THE FENTANYL SANCTIONS ACT.
(a) In General.--Section 7212 of the Fentanyl Sanctions Act (21
U.S.C. 2312) is amended to read as follows:
``SEC. 7212. IMPOSITION OF SANCTIONS.
``(a) Application to Foreign Persons.--The President shall impose
the sanctions described in section 7213(a)(6) with respect to any
foreign person that--
``(1) is identified as a foreign opioid trafficker in the
report submitted under section 7211(a); or
``(2) the President determines--
``(A) knowingly has engaged in, or attempted to
engage in, an activity or transaction that has
materially contributed to, or poses a significant risk
of materially contributing to, opioid trafficking;
``(B) knowingly has received any property or
interest in property that the foreign person knows or
should have known--
``(i) constitutes or is derived from the
proceeds of an activity or transaction
described in subparagraph (A); or
``(ii) was used or intended to be used to
commit or to facilitate such an activity or
transaction;
``(C) knowingly has provided, or attempted to
provide, financial, material, or technological support
for, including through the provision of goods or
services in support of--
``(i) any activity or transaction described
in subparagraph (A); or
``(ii) any foreign person described in
paragraph (1) or clause (i) of this
subparagraph;
``(D) is an adult spouse or other family member of
an individual described in paragraph (1) or
subparagraph (A), (B), or (C) of this paragraph; or
``(E) is or has been owned, controlled, or directed
by, or has knowingly acted or purported to act for or
on behalf of, directly or indirectly, any foreign
person described in paragraph (1) or subparagraph (A),
(B), or (C) of this paragraph.
``(b) Application to Agencies and Instrumentalities of Foreign
States.--The President shall impose 3 or more of the sanctions
described in section 7213 with respect to--
``(1) each agency or instrumentality of a foreign state (as
defined in section 1603(b) of title 28, United States Code)
that the President determines--
``(A) has engaged in, or attempted to engage in, an
activity or transaction that has materially contributed
to, or poses a significant risk of materially
contributing to, opioid trafficking; or
``(B) has provided, or attempted to provide,
financial, material, or technological support for,
including through the provision of goods or services in
support of, any activity or transaction described in
subparagraph (A);
``(2) each foreign person the President determines is a
senior official of an agency or instrumentality of a foreign
state described in paragraph (1); and
``(3) each foreign person that the President determines is
or has been owned, controlled, or directed by, or has knowingly
acted or purported to act for or on behalf of, directly or
indirectly, an agency or instrumentality of a foreign state
described in paragraph (1) or a foreign person described in
paragraph (2).
``(c) Determination of Applicability to Certain Foreign Persons.--
``(1) In general.--The sanctions described in section 7213
may not apply to a foreign person described in subsection
(a)(1)(D) if the President determines that there is clear and
convincing evidence the person--
``(A) is no longer in contact with the individual
described in paragraph (1) of subsection (a) or
subparagraph (A), (B), or (C) of paragraph (2) of that
subsection; and
``(B) has provided reliable assurances that the
person will not engage in any conduct described in
subsection (a) in the future.
``(2) Notification.--Not later than 30 days after making a
determination under paragraph (1), the President shall submit
to the appropriate congressional committees and leadership a
report on the determination.
``(d) Waiver Authority.--
``(1) In general.--The President may waive the imposition
of sanctions under this section, on a case-by-case basis and
for a period not to exceed 180 days per waiver, with respect to
a foreign person or agency or instrumentality of a foreign
state, as the case may be, if the President certifies in
writing to the appropriate congressional committees that such
waiver is vital to the national security interests of the
United States or would ensure the delivery of humanitarian
assistance such as medicine, agricultural products, food, or
fuel.
``(2) Briefings.--Not later than 30 days after issuing a
waiver under paragraph (1) with respect to a foreign person or
agency or instrumentality of a foreign state, and every 180
days thereafter for such period of time as the waiver remains
in effect, the President shall provide to the appropriate
congressional committees a briefing on the status of the
involvement of the foreign person or agency or instrumentality
of a foreign state in activities described in this section.''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on the date that is 90 days after the date of the enactment
of this Act.
(c) Regulatory Authority.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the President shall prescribe
regulations as necessary for the implementation of the
amendment made by subsection (a).
(2) Notification to congress.--Not later than 10 days prior
to prescribing regulations under paragraph (1), the President
shall notify the appropriate congressional committees and
leadership (as defined in section 7203 of the Fentanyl
Sanctions Act (21 U.S.C. 2302)) with respect to the proposed
regulations.
SEC. 3. DETERMINATIONS WITH RESPECT TO PRIMARY MONEY LAUNDERING CONCERN
RELATING TO ILLICIT FENTANYL AND NARCOTICS FINANCING.
If the Secretary of the Treasury determines that 1 or more
financial institutions operating outside of the United States, 1 or
more classes of transactions within, or involving, a jurisdiction
outside of the United States, or 1 or more types of accounts within, or
involving, a jurisdiction outside of the United States, is of primary
money laundering concern in connection with the financing of illicit
fentanyl and other narcotics, the Secretary of the Treasury may, by
order, regulation, or otherwise as permitted by law, require domestic
financial institutions and domestic financial agencies to take one or
more of the special measures described in section 5318A(b) of title 31,
United States Code.
SEC. 4. REPORT ON IMPROVED ENFORCEMENT WITH RESPECT TO MONEY LAUNDERING
RELATING TO ILLICIT FENTANYL AND NARCOTIC DRUGS
FINANCING.
(a) In General.--Not later than one year after the date of the
enactment of this Act, the Secretary of the Treasury shall submit to
appropriate congressional committees a report that identifies any
additional regulations, statutory changes, enhanced due diligence
requirements, or reporting requirements the Secretary determines are
necessary to better identify, prevent, and combat money laundering
connected with the financing of illicit fentanyl and other narcotic
drugs, including related to--
(1) identifying the beneficial ownership of anonymous
entities; and
(2) enhanced know-your-customer procedures and screenings
for transactions involving any organization identified by the
Secretary as--
(A) a drug cartel or other criminal organization
based in Mexico;
(B) a money laundering organization based in the
People's Republic of China; or
(C) any other entity involved in the financing of
illicit fentanyl.
(b) Form.--
(1) In general.--The report required by subsection (a)
shall be submitted in unclassified form, but may include a
classified annex and be accompanied by a classified briefing.
(2) Public availability.--The unclassified portion of the
report required by subsection (a) shall be made available to
the public, including on a publicly accessible internet website
of the Department of the Treasury.
(c) Appropriate Congressional Committees Defined.--In this section,
the term ``appropriate congressional committees\\'' means--
(1) the Committee on Banking, Housing, and Urban Affairs
and the Committee on Foreign Relations of the Senate; and
(2) the Committee on Financial Services and the Committee
on Foreign Affairs of the House of Representatives.
SEC. 5. SENSE OF CONGRESS ON INTERNATIONAL COOPERATION.
It is the sense of Congress that the Secretary of the Treasury and
other relevant Federal officials should work jointly with financial
intelligence units, trade transparency units, and appropriate law
enforcement authorities of Canada, European and European Union
countries, and the United Kingdom to identify and present, in the
report required by section 4 and in future analyses of suspicious
transaction reports, cash transaction reports, currency and monetary
instrument reports, and other relevant data to identify trends and
assess risks in the movement of illicit funds from illicit fentanyl
operations from Mexico, India, the People's Republic of China, or any
country in the Western Hemisphere through the financial systems of the
United States, the United Kingdom, and Europe.
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