[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5202 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
2d Session
S. 5202
To amend the Fentanyl Sanctions Act to strengthen the imposition of
sanctions under that Act, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 25, 2024
Mr. Rubio introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
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.''.
(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.--The President shall, not later than 180
days after the date of the enactment of this Act, prescribe
regulations as necessary for the implementation of the
amendment made by subsection (a).
(2) Notification to congress.--Not later than 10 days
before 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. DETERMINATION OF WHETHER CERTAIN ENTITIES OF THE PEOPLE'S
REPUBLIC OF CHINA MEET CRITERIA FOR IMPOSITION OF
SANCTIONS.
(a) In General.--Not later than 60 days after the date of the
enactment of this Act, the Secretary of the Treasury, in consultation
with the Secretary of State and the Attorney General, shall--
(1) determine whether any entity specified in subsection
(b)--
(A) is responsible for or complicit in, the
production, manufacture, distribution, sale, of
fentanyl, fentanyl analogues, or the precursor
chemicals for fentanyl or its analogues; or
(B) meets the criteria for the imposition of
sanctions under--
(i) the Fentanyl Sanctions Act (21 U.S.C.
2301 et seq.);
(ii) the Foreign Narcotics Kingpin
Designation Act (21 U.S.C. 1901 et seq.); or
(iii) Executive Order 14059 (50 U.S.C. 1701
note; relating to imposing sanctions on foreign
persons involved in the global illicit drug
trade);
(2) submit to Congress a report on the determination made
under paragraph (1) with respect to each entity specified in
subsection (b) that includes the reasons for the determination;
and
(3) if the Secretary of the Treasury makes an affirmative
determination under paragraph (1) with respect to an entity
specified in subsection (b), include the entity on the list of
specially designated nationals and blocked persons maintained
by the Office of Foreign Assets Control.
(b) Entities Specified.--An entity specified in this subsection is
any of the following:
(1) Bank of China Limited.
(2) Ministry of Public Security.
(3) General Administration of China Customs.
(4) Alibaba.
(5) Hebei Aicrowe Biotech Co. Ltd.
(6) Shanghai Huilitongda Biological Technology Co. Ltd.
(7) Crovell Biotech Co. Ltd.
(8) Shunwei Biological.
(9) Ministry of State Security.
(c) Form of Report.--The report required by subsection (a)(2) shall
be submitted in unclassified form, but may include a classified annex.
SEC. 4. DETERMINATIONS WITH RESPECT TO PRIMARY MONEY LAUNDERING CONCERN
RELATING TO FINANCING OF ILLICIT FENTANYL AND OTHER
CONTROLLED SUBSTANCES.
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 controlled substances, 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. 5. REPORT ON IMPROVED ENFORCEMENT WITH RESPECT TO MONEY LAUNDERING
RELATING TO FINANCING OF ILLICIT FENTANYL AND OTHER
CONTROLLED SUBSTANCES.
(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 controlled
substances, 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. 6. SENSE OF CONGRESS ON INTERNATIONAL COOPERATION.
It is the sense of Congress that the Secretary of the Treasury and
other relevant Federal officials, such as the Secretary of State, the
Secretary of Homeland Security, and the Attorney General, should work
jointly with financial intelligence units, trade transparency units,
and appropriate law enforcement authorities of Canada, the United
Kingdom, the European Union, and other countries in Europe, Latin
America, and the Caribbean, to identify and present, in the report
required by section 5 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.
<all>