[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3441 Introduced in Senate (IS)]
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118th CONGRESS
1st Session
S. 3441
To prevent Foreign Terrorist Organizations and their financial
enablers, whether in currency or digital assets, from accessing
financial and other institutions of the United States, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 7, 2023
Mr. Warner (for himself, Mr. Rounds, Mr. Reed, and Mr. Romney)
introduced the following bill; which was read twice and referred to the
Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To prevent Foreign Terrorist Organizations and their financial
enablers, whether in currency or digital assets, from accessing
financial and other institutions of the United States, 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 ``Terrorist Financing Prevention Act
of 2023''.
TITLE I--PREVENTION OF ACCESS TO FINANCIAL AND OTHER INSTITUTIONS OF
THE UNITED STATES BY FOREIGN TERRORIST ORGANIZATIONS AND THEIR ENABLERS
SEC. 101. DEFINITIONS.
In this title:
(1) Digital asset.--The term ``digital asset'' means any
digital representation of value that is recorded on a
cryptographically secured distributed ledger or any similar
technology, or another implementation which was designed and
built as part of a system to leverage or replace blockchain or
distributed ledger technology or their derivatives.
(2) Digital asset protocol.--The term ``digital asset
protocol'' means any communication protocol, smart contract, or
other software--
(A) deployed through the use of distributed ledger
or similar technology; and
(B) that provides a mechanism for users to interact
and agree to the terms of a trade for digital assets.
(3) Foreign digital asset transaction facilitator.--The
term ``foreign digital asset transaction facilitator'' means
any foreign person or group of foreign persons that, as
determined by the Secretary, controls, operates, or makes
available a digital asset protocol or similar facility, or
otherwise materially assists in the purchase, sale, exchange,
custody, or other transaction involving an exchange or transfer
of value using digital assets.
(4) Foreign financial institution.--The term ``foreign
financial institution'' has the meaning given that term under
section 561.308 of title 31, Code of Federal Regulations.
(5) Foreign person.--The term ``foreign person'' means an
individual or entity that is not a United States person.
(6) Foreign terrorist organization.--The term ``Foreign
Terrorist Organization'' means an organization that has been
designated as a Foreign Terrorist Organization by the Secretary
of State, pursuant to section 219 of the Immigration and
Nationality Act (8 U.S.C. 1189).
(7) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(8) Specially designated global terrorist organization.--
The term ``specially designated global terrorist organization''
means an organization that has been designated as a specially
designated global terrorist by the Secretary of State or the
Secretary, pursuant to Executive Order 13224 (50 U.S.C. 1701
note; relating to blocking property and prohibiting
transactions with persons who commit, threaten to commit, or
support terrorism).
(9) United states person.--The term ``United States
person'' means--
(A) an individual who is a United States citizen or
an alien lawfully admitted for permanent residence to
the United States;
(B) an entity organized under the laws of the
United States or any jurisdiction within the United
States, including a foreign branch of such an entity;
or
(C) any person in the United States.
SEC. 102. SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL INSTITUTIONS AND
FOREIGN DIGITAL ASSET TRANSACTION FACILITATORS THAT
ENGAGE IN CERTAIN TRANSACTIONS.
(a) Mandatory Identification.--Not later than 60 days after the
date of enactment of this Act, and periodically thereafter, the
Secretary shall identify and submit to the President a report
identifying any foreign financial institution or foreign digital asset
transaction facilitator that has knowingly--
(1) facilitated a significant financial transaction with--
(A) a Foreign Terrorist Organization;
(B) a specially designated global terrorist
organization; or
(C) a person identified on the list of specially
designated nationals and blocked persons maintained by
the Office of Foreign Assets Control of the Department
of the Treasury, the property and interests in property
of which are blocked pursuant to the International
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.)
for acting on behalf of or at the direction of, or
being owned or controlled by, a Foreign Terrorist
Organization or a specially designated global terrorist
organization; or
(2) engaged in money laundering to carry out an activity
described in paragraph (1).
(b) Imposition of Sanctions.--
(1) Foreign financial institutions.--The President shall
prohibit, or impose strict conditions on, the opening or
maintaining of a correspondent account or a payable-through
account in the United States by a foreign financial institution
identified under subsection (a).
(2) Foreign digital asset transaction facilitators.--The
President, pursuant to such regulations as the President may
prescribe, shall prohibit any transactions between any person
subject to the jurisdiction of the United States with a foreign
digital asset transaction facilitator identified under
subsection (a).
(c) Implementation and Penalties.--
(1) Implementation.--The President may exercise all
authorities provided under sections 203 and 205 of the
International Emergency Economic Powers Act (50 U.S.C. 1702,
1704) to the extent necessary to carry out this Act.
(2) Penalties.--The penalties set forth in subsections (b)
and (c) of section 206 of the International Emergency Economic
Powers Act (50 U.S.C. 1705) shall apply to a person that
violates, attempts to violate, conspires to violate, or causes
a violation of regulations prescribed under this section to the
same extent that such penalties apply to a person that commits
an unlawful act described in subsection (a) of such section
206.
(d) Procedures for Judicial Review of Classified Information.--
(1) In general.--If a finding under this section, or a
prohibition, condition, or penalty imposed as a result of any
such finding, is based on classified information (as defined in
section 1(a) of the Classified Information Procedures Act (18
U.S.C. App.)), the Secretary may submit to a court reviewing
the finding or the imposition of the prohibition, condition, or
penalty such classified information ex parte and in camera.
(2) Rule of construction.--Nothing in this subsection shall
be construed to confer or imply any right to judicial review of
any finding under this subsection or any prohibition,
condition, or penalty imposed as a result of any such finding.
(e) Waiver for National Security.--The Secretary may waive the
imposition of sanctions under this section with respect to a person if
the Secretary--
(1) determines that such a waiver is in the national
interests of the United States; and
(2) submits to Congress a notification of the waiver and
the reasons for the waiver.
(f) Exception for Intelligence Activities.--This section shall not
apply with respect to any activity subject to the reporting
requirements under title V of the National Security Act of 1947 (50
U.S.C. 3091 et seq.) or any authorized intelligence activities of the
United States.
(g) Exception Relating to Importation of Goods.--
(1) In general.--The authorities and requirements under
this section shall not include the authority or a requirement
to impose sanctions on the importation of goods.
(2) Good defined.--In this section, the term ``good'' means
any article, natural or manmade substance, material, supply, or
manufactured product, including inspection and test equipment,
and excluding technical data.
TITLE II--SPECIAL MEASURES FOR MODERN THREATS
SEC. 201. PROHIBITIONS OR CONDITIONS ON CERTAIN TRANSMITTALS OF FUNDS.
Section 5318A of title 31, United States Code, is amended--
(1) in subsection (a)(2)(C), by striking ``subsection
(b)(5)'' and inserting ``paragraphs (5) and (6) of subsection
(b)''; and
(2) in subsection (b)--
(A) in paragraph (5), by striking ``for or on
behalf of a foreign banking institution''; and
(B) by adding at the end the following:
``(6) Prohibitions or conditions on certain transmittals of
funds.--If the Secretary finds a jurisdiction outside of the
United States, 1 or more financial institutions operating
outside of the United States, 1 or more types of accounts
within, or involving, a jurisdiction outside of the United
States, or 1 or more classes of transactions within, or
involving, a jurisdiction outside of the United States to be of
primary money laundering concern, the Secretary, in
consultation with the Secretary of State, the Attorney General,
and the Chairman of the Board of Governors of the Federal
Reserve System, may prohibit, or impose conditions upon,
certain transmittals of funds (as such term may be defined by
the Secretary in a special measure issuance, by regulation, or
as otherwise permitted by law), to or from any domestic
financial institution or domestic financial agency if such
transmittal of funds involves any such jurisdiction,
institution, type of account, class of transaction, or type of
account.''.
TITLE III--FUNDING
SEC. 301. ADEQUATE FUNDING TO PREVENT EVASION OF COUNTER-TERRORISM
SANCTIONS AND FINANCIAL CRIME ENFORCEMENT.
There are authorized to be appropriated to the Secretary of the
Treasury such funds as are necessary to carry out the purposes of this
Act.
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