[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3384 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
1st Session
S. 3384
To combat illicit cross-border financial activity and to improve the
Trade Transparency Unit program of U.S. Immigration and Customs
Enforcement, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
November 30, 2023
Mr. Whitehouse (for himself, Mr. Cassidy, and Mr. King) introduced the
following bill; which was read twice and referred to the Committee on
Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To combat illicit cross-border financial activity and to improve the
Trade Transparency Unit program of U.S. Immigration and Customs
Enforcement, 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 ``Combating Cross-border Financial
Crime Act of 2023''.
SEC. 2. ESTABLISHMENT OF CROSS-BORDER FINANCIAL CRIME CENTER.
The Tariff Act of 1930 (19 U.S.C. 1304 et seq.) is amended by
inserting after section 631 (19 U.S.C. 1631) the following:
``SEC. 632. ESTABLISHMENT OF CROSS-BORDER FINANCIAL CRIME CENTER.
``(a) Establishment.--The Secretary of Homeland Security, acting
through the Executive Associate Director of Homeland Security
Investigations, shall--
``(1) establish the Cross-Border Financial Crime Center (in
this section referred to as the `Center'), which shall be
located in the National Capital region (as defined in section
8702 of title 40, United States Code); and
``(2) appoint a Director to serve as the head of the Center
(in this section referred to as the `Director').
``(b) Duties.--
``(1) In general.--The Center shall--
``(A) support, through the provision of analysts,
equipment, and other resources, the investigation and
seizure of assets and proceeds (as defined in section
981 of title 18, United States Code) related to trade-
based money laundering and other illicit cross-border
financial activity or attempted illicit cross-border
financial activity, to, from, or through the United
States, including such activity conducted by actors
determined by the Secretary of State, the Attorney
General, the Secretary of the Treasury, and the
Secretary of Homeland Security to be the highest
priority threats, including--
``(i) transnational criminal organizations;
``(ii) kleptocrats and oligarchs with
respect to whom the United States has imposed
sanctions;
``(iii) professional money laundering
organizations; and
``(iv) persons knowingly enabling criminal
or corrupt activity, including designated non-
financial businesses and professions;
``(B) coordinate with the Deputy Directors
appointed under subsection (c) and the heads of other
relevant Federal agencies to better ensure uniform
training is provided to United States Federal, State,
local, and Tribal law enforcement agencies and foreign
law enforcement agencies to address the vulnerabilities
outlined in the National Money Laundering Risk
Assessment, published by the Department of the Treasury
in February 2022, or any successor document;
``(C) coordinate with such agencies to develop
metrics to assess whether the training described in
subparagraph (B) improved enforcement of anti-money
laundering laws;
``(D) leverage existing, lawfully obtained,
government data sources to establish a means to
receive, collect, track, analyze, and deconflict
information regarding illicit cross-border financial
activity from United States and foreign law enforcement
agencies and other non-Federal sources;
``(E) coordinate with the Deputy Directors
appointed under subsection (c) and relevant components
of their agencies, including the Financial Crimes
Enforcement Network, to disseminate information, on a
rolling basis, regarding trends and techniques involved
in illicit cross-border financial activity to other
Federal agencies, private sector stakeholders, and
foreign law enforcement partners, as appropriate;
``(F) coordinate with the offices of United States
attorneys in order to develop expertise in, and assist
with, the investigation and prosecution of crimes
involving trade-based money laundering and other
illicit cross-border financial activity; and
``(G) carry out such other duties as the Executive
Associate Director may assign.
``(2) Supplement not supplant.--The duties described in
paragraph (1) shall supplement, not supplant, the work of
existing Federal agencies, task forces, and working groups.
``(c) Deputy Directors.--The Attorney General, the Secretary of the
Treasury (acting through the Director of the Financial Crimes
Enforcement Network), and the Secretary of State shall each appoint a
Deputy Director to assist the Director.
``(d) Coordination With Other Agencies.--
``(1) In general.--In carrying out the duties described in
subsection (b), the Director shall coordinate with the Federal
entities specified in paragraph (2), and to the extent
practicable, with the State, local, and Tribal entities
specified in paragraph (3) to ensure at least part-time
representation, in the form of detailees, in the Center of at
least one agent or analyst with expertise in countering cross-
border illicit finance, including trade-based money laundering,
from each such entity.
``(2) Federal entities specified.--The Federal entities
specified in this paragraph are the following:
``(A) The Department of the Treasury and the
following components of the Department:
``(i) The Financial Crimes Enforcement
Network.
``(ii) The Office of Foreign Assets
Control.
``(iii) The Office of the Comptroller of
the Currency.
``(iv) The Office of Technical Assistance.
``(v) Internal Revenue Service Criminal
Investigation.
``(vi) The Small Business/Self Employed
Division of the Internal Revenue Service.
``(B) The Department of Justice and the following
components of the Department:
``(i) The Criminal Division.
``(ii) The Drug Enforcement Administration.
``(iii) The Federal Bureau of
Investigation.
``(iv) Task Force KleptoCapture.
``(C) The Department of State and the following
components of the Department:
``(i) The Bureau of International Narcotics
and Law Enforcement Affairs.
``(ii) The Bureau of Western Hemisphere
Affairs.
``(iii) The Bureau of African Affairs.
``(iv) The Bureau of East Asian and Pacific
Affairs.
``(v) The Bureau of European and Eurasian
Affairs.
``(vi) The Bureau of Near Eastern Affairs.
``(vii) The Bureau of South and Central
Asian Affairs.
``(viii) The Bureau of Economic and
Business Affairs.
``(ix) The Bureau of Diplomatic Security.
``(D) The following components of the Department of
Homeland Security:
``(i) U.S. Customs and Border Protection.
``(ii) The United States Secret Service.
``(iii) The National Intellectual Property
Rights Coordination Center.
``(iv) The Trade Transparency Units program
of U.S. Immigration and Customs Enforcement.
``(v) The Bulk Cash Smuggling Center of
U.S. Immigration and Customs Enforcement.
``(vi) The Cyber Crimes Center of Homeland
Security Investigations.
``(E) The National Security Agency.
``(F) The United States Postal Inspection Service.
``(G) The Department of Commerce.
``(H) The Department of Defense.
``(I) The Office of the United States Trade
Representative.
``(J) The Board of Governors of the Federal Reserve
System.
``(K) The Commodity Futures Trading Commission.
``(L) The Securities and Exchange Commission.
``(M) The Federal Trade Commission.
``(N) The Federal Deposit Insurance Corporation.
``(O) The National Credit Union Administration.
``(3) State, local, and tribal entities specified.--The
State, local, and Tribal entities specified in this paragraph
are the following:
``(A) Any State bank supervisor (as that term is
defined in section 3 of the Federal Deposit Insurance
Act (12 U.S.C. 1813)) that the Executive Associate
Director considers appropriate.
``(B) Any State credit union supervisor (as that
term is used in the Federal Credit Union Act (12 U.S.C.
1751 et seq.)) that the Executive Associate Director
considers appropriate.
``(C) Any State, local, and Tribal law enforcement
agency that the Executive Associate Director considers
appropriate.
``(4) Supplement not supplant.--The coordination described
in paragraph (1) shall supplement, not supplant, the work of
existing Federal agencies, task forces, and working groups.
``(e) Private Sector Outreach.--
``(1) In general.--The Director, in coordination with the
Deputy Directors appointed under subsection (c) by the Attorney
General and the Secretary of the Treasury, shall work with the
Federal entities specified in subsection (d)(2) to conduct
outreach to private sector entities in the United States in
order to exchange information, in real-time or as soon as
practicable, with respect to tactics and trends being used to
conduct illicit cross-border financial activity, including such
activity that involves corruption, international commercial
trade and counterfeit products, bulk cash smuggling, the
illicit use of digital assets or digital currencies and the
dark web, and financial institutions and designated
nonfinancial businesses and professions.
``(2) Training and technical assistance.--In order to
coordinate public and private sector efforts to combat the
tactics and trends described in paragraph (1), the Director, in
coordination with the Deputy Directors appointed under
subsection (c) by the Attorney General and the Secretary of the
Treasury, shall provide training and technical assistance, as
appropriate, regarding best practices for--
``(A) identifying, reporting, and protecting
against money laundering; and
``(B) maintaining sensitive financial information,
which may include suspicious activity reports and
currency transaction reports.
``(3) Supplement not supplant.--The activities described in
paragraphs (1) and (2) shall supplement, not supplant, the work
of existing Federal agencies, task forces, and working groups.
``(f) International Outreach.--
``(1) In general.--The Secretary of State, acting through
the Assistant Secretary of State for International Narcotics
and Law Enforcement Affairs, shall coordinate with the Director
of the Center and the Deputy Directors of the Center appointed
under subsection (c) by the Attorney General and the Secretary
of the Treasury to facilitate capacity building and perform
outreach to law enforcement agencies of countries that are
partners of the United States and foreign private industry
stakeholders by developing and providing specialized training
and information-sharing opportunities regarding illicit cross-
border financial activity, including such activity that
involves corruption, international commercial trade and
counterfeit products, bulk cash smuggling, the illicit use of
digital assets or digital currencies and the dark web, and
financial institutions and designated nonfinancial businesses
and professions.
``(2) Coordination.--In carrying out paragraph (1) in a
country, the Secretary of State, acting through the Assistant
Secretary of State for International Narcotics and Law
Enforcement Affairs, and in coordination with the Director of
the Center and the Deputy Directors of the Center appointed
under subsection (c) by the Attorney General and the Secretary
of the Treasury, shall establish and maintain relationships
with--
``(A) officials from law enforcement agencies,
regulatory authorities, customs authorities, financial
intelligence units, and ministries of finance in that
country; and
``(B) private industry stakeholders in that
country, including commercial and financial industry
stakeholders most commonly impacted by illicit cross-
border financial activity.
``(3) Supplement not supplant.--The activities described in
paragraph (1) shall supplement, not supplant, international
training conducted by other Federal agencies.
``(4) Information sharing.--To the extent practicable and
consistent with other provisions of law, the Secretary of
State, acting through the Assistant Secretary of State for
International Narcotics and Law Enforcement Affairs, shall work
with the Director and, as appropriate, the Deputy Directors
appointed under subsection (c), to strengthen international
cooperation and information-sharing agreements with law
enforcement agencies of countries that are partners of the
United States regarding combating illicit cross-border
financial activity, including through the enhancement and
expansion of Trade Transparency Units under section 633.
``(g) Report Required.--
``(1) In general.--Not less frequently than annually, the
Director shall submit to the appropriate congressional
committees a report detailing the latest trends and techniques
utilized to facilitate illicit cross-border financial activity.
``(2) Elements.--The report required by paragraph (1) shall
include--
``(A) an assessment of the training provided to
United States and foreign law enforcement agencies
under subsection (b)(1)(B), based upon the metrics
developed under subsection (b)(1)(C);
``(B) a summary of the activities conducted
pursuant to subsections (d), (e), and (f);
``(C) the number and status of investigations
supported by the Center, unless the disclosure of such
information would reveal information protected by rule
6(e) of the Federal Rules of Criminal Procedure or a
court order;
``(D) the amount of money and other assets of value
in various forms that the United States Government
seized as a result of such investigations; and
``(E) the countries with which the Center has
established information-sharing agreements.
``(3) Form.--Each report required by paragraph (1) shall be
submitted in unclassified form, but may include information
that is classified or law enforcement sensitive in an annex.
``(h) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
to the Secretary of Homeland Security to establish and maintain
the Center--
``(A) $6,200,000 for fiscal year 2024; and
``(B) such sums as may be necessary for each of
fiscal years 2025 through 2029.
``(2) Prohibition on use of funds.--None of the funds
authorized to be appropriated pursuant to the authorization of
appropriations under paragraph (1) may be obligated or expended
to carry out civil immigration enforcement or removal
activities.
``(i) Definitions.--In this section:
``(1) Appropriate congressional committees.--The term
`appropriate congressional committees' means--
``(A) the Caucus on International Narcotics
Control, the Committee on Finance, the Committee on
Banking, Housing, and Urban Affairs, the Committee on
the Judiciary, and the Committee on Foreign Relations
of the Senate; and
``(B) the Committee on Ways and Means, the
Committee on Financial Services, the Committee on the
Judiciary, and the Committee on Foreign Affairs of the
House of Representatives.
``(2) Trade-based money laundering.--The term `trade-based
money laundering' means the process of disguising the proceeds
of crime by moving such proceeds through the use of trade
transactions in an attempt to legitimize the illegal origin of
such proceeds or to finance criminal activities.
``(3) United states.--The term `United States' means the
several States, the District of Columbia, the Commonwealth of
Puerto Rico, American Samoa, the Commonwealth of the Northern
Mariana Islands, Guam, and the Virgin Islands, and any
federally recognized tribe (as defined in section 4(3)(B) of
the Native American Housing Assistance and Self-Determination
Act of 1996 (25 U.S.C. 4103(13)(B)).''.
SEC. 3. TRADE TRANSPARENCY UNITS PROGRAM.
The Tariff Act of 1930 (19 U.S.C. 1304 et seq.), as amended by
section 2, is further amended by inserting after section 632 the
following:
``SEC. 633. TRADE TRANSPARENCY UNITS PROGRAM.
``(a) Establishment of Program.--The Secretary of Homeland
Security, acting through the Executive Associate Director of Homeland
Security Investigations, shall establish a program under which Trade
Transparency Units are established with foreign countries.
``(b) Purposes.--The purposes of Trade Transparency Units are--
``(1) to combat transnational criminal organizations,
kleptocrats and oligarchs with respect to whom the United
States has imposed sanctions, professional money laundering
organizations, and other criminal or corrupt actors or enablers
of criminal or corrupt activity; and
``(2) to prevent such persons from exploiting the
international trade and financial infrastructures to finance
criminal acts, evade sanctions or export controls, evade taxes,
tariffs, or customs duties, or launder criminal or corrupt
proceeds, by--
``(A) developing relationships with foreign law
enforcement agencies and customs authorities; and
``(B) working through the Department of State to
strengthen international cooperation and facilitate
information-sharing agreements with foreign countries
that provide for the exchange of import and export data
with agencies of those countries, and as appropriate,
other United States agencies, which can be used to
investigate and prosecute international money
laundering and illicit trade cases.
``(c) Establishment and Composition of Units.--
``(1) Establishment of units.--The Executive Associate
Director, in consultation with the Secretary of State, may
establish Trade Transparency Units in--
``(A) countries in which money laundering is
prevalent;
``(B) countries in which corruption is prevalent;
``(C) countries that conduct a high volume of trade
with the United States;
``(D) countries that have inconsistent trade
figures or high incidences of illicit trade;
``(E) trade corridors in which one country that has
a currency restriction in place;
``(F) countries that have been identified as having
substantial volumes of suspicious financial
transactions, based on data obtained under subchapter
II of chapter 53 of title 31, United States Code; or
``(G) countries for which the Executive Associate
Director, in consultation with the Secretary of State,
determines that a Trade Transparency Unit would support
the purposes of the Trade Transparency Units program
under this section.
``(2) Requirements.--
``(A) In general.--Before establishing a Trade
Transparency Unit in a country after the date of the
enactment of the Combating Cross-border Financial Crime
Act of 2023, the Executive Associate Director shall--
``(i) ensure the United States and the
government of the country have an active
Customs Mutual Assistance Agreement in place;
``(ii) conduct a risk-based assessment to
determine whether the country meets the
criteria described in any of subparagraphs (A)
through (F) of paragraph (1); and
``(iii) work with the United States embassy
in the country to establish a trade data
exchange agreement or memorandum of
understanding with the government of the
country that includes, to the greatest extent
practicable, language to provide for the
sharing of foreign import and export data with
relevant United States agencies.
``(B) Transition rule.--The requirements under
subparagraph (A) do not apply with respect to a Trade
Transparency Unit established before the date of the
enactment of the Combating Cross-border Financial Crime
Act of 2023.
``(3) Composition.--A Trade Transparency Unit may be
comprised of personnel from--
``(A) Homeland Security Investigations;
``(B) other Federal agencies, as appropriate; and
``(C) foreign law enforcement agencies, as
appropriate and pursuant to a trade data exchange
agreement or memorandum of understanding described in
paragraph (2)(C).
``(d) Operation.--After a trade data exchange agreement or
memorandum of understanding described in subsection (c)(2)(A)(iii) is
signed with a country, the Executive Associate Director, in
consultation with the Secretary of State, may assign Homeland Security
Investigations criminal investigators to the country to provide
training and technical assistance to the country in order to
operationalize and maintain a Trade Transparency Unit in that country.
``(e) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
to the Secretary of Homeland Security $4,100,000 for each of
fiscal years 2024 through 2029 to establish and maintain Trade
Transparency Units.
``(2) Prohibition on use of funds.--None of the funds
authorized to be appropriated pursuant to the authorization of
appropriations under paragraph (1) may be obligated or expended
to carry out civil immigration enforcement or removal
activities.''.
SEC. 4. GOVERNMENT ACCOUNTABILITY OFFICE REVIEW OF BARRIERS TO
HARMONIZING DATA SYSTEMS OF CERTAIN LAW ENFORCEMENT
AGENCIES.
(a) In General.--Not later than one year after the date of the
enactment of this Act, the Comptroller General of the United States
shall submit to the appropriate congressional committees a report
detailing the statutory, technical, and security barriers to
harmonizing the data systems of relevant law enforcement agencies,
including the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the
Federal Bureau of Investigation, the Drug Enforcement Administration,
the United States Secret Service, the Diplomatic Security Service, the
Financial Crimes Enforcement Network, and U.S. Customs and Border
Protection, to improve data access necessary to facilitate trade-based
money laundering investigations.
(b) Assessment of New Technologies.--The report required by
subsection (a) shall include an assessment of the benefits and
feasibility of integrating new technologies, including distributed
ledger technology and quantum ledger technology, into the processes of
U.S. Customs and Border Protection and the customs services of foreign
jurisdictions with which the United States has trade agreements in
effect in order to facilitate the immediate, secure, and complete
transfer between jurisdictions of lists of goods and related invoices
and bills of lading.
(c) Definitions.--In this section:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Caucus on International Narcotics Control,
the Committee on Finance, the Committee on Banking,
Housing, and Urban Affairs, and the Committee on the
Judiciary of the Senate; and
(B) the Committee on Ways and Means, the Committee
on Financial Services, and the Committee on the
Judiciary of the House of Representatives.
(2) Trade-based money laundering.--The term ``trade-based
money laundering'' means the process of disguising the proceeds
of crime by moving such proceeds through the use of trade
transactions in an attempt to legitimize the illegal origin of
such proceeds or to finance criminal activities.
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