Stop Terrorist Use of Virtual Currencies Act
This bill directs the Department of the Treasury and the Office of the Director of National Intelligence to report on the use of virtual currencies by terrorists. Treasury may establish a grant program to develop and enhance illicit-finance prevention systems.
[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5664 Introduced in House (IH)]
<DOC>
115th CONGRESS
2d Session
H. R. 5664
To require a report on the possible exploitation of virtual currencies
by terrorist actors, to authorize a competition program to identify
regulatory solutions and develop technology with respect to counter
terror threat financing, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 27, 2018
Miss Rice of New York (for herself and Mr. King of New York) introduced
the following bill; which was referred to the Committee on Financial
Services, and in addition to the Permanent Select Committee on
Intelligence (Permanent Select), 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 require a report on the possible exploitation of virtual currencies
by terrorist actors, to authorize a competition program to identify
regulatory solutions and develop technology with respect to counter
terror threat 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 ``Stop Terrorist Use of Virtual
Currencies Act''.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) Virtual currencies (VC) provide low-cost, high-speed
means for verified transactions.
(2) When used positively, VCs unite disparate financial
markets and provide a convenient means for a number of
constituencies, including the economically marginalized, to
conduct transactions cheaply across large geographic expanses.
(3) Simultaneously, to the extent regulatory frameworks are
premised on institution-based transactions, VCs could be
exploited by terrorists and cybercriminals to fund untraceable
operations.
(4) According to the Center for New American Security
(CNAS), if VCs become sufficiently liquid and easily
convertible, and terrorist groups acquire technical
infrastructure needed to support VC activity at a significant
scale, VCs could pose a highly dangerous threat to the United
States and its partners.
(5) The Committee on Financial Services issued a report
entitled, ``Stopping Terror Finance: Securing the U.S.
Financial Sector'' in December, 2016, which includes numerous
recommendations to enhance a whole-of-government approach
towards counter terrorist financing.
SEC. 3. SENSE OF CONGRESS.
It is the Sense of Congress that--
(1) to the extent current statutes require financial
institutions to serve as the first line of defense against
illicit activity in the global financial system, and that VCs
specifically bypass such institutions, the United States needs
to adapt its financial regulatory framework to ensure adequate
supervision of financial activity;
(2) the President should develop principles to prioritize
counter terrorist financing among other forms of illicit
financial activity and provide recommendations to Congress to
address this threat;
(3) such principles should include a focus on innovation
and public-private partnership; and
(4) the Financial Crimes Enforcement Network (FinCEN)
should consider issuing more guidance and facilitating the
establishment of institutions pursuant to sections 314(a) and
314(b) of the USA PATRIOT Act to facilitate greater information
flow within and among global banks.
SEC. 4. REPORT.
The President, acting through the Secretary of the Treasury and the
Director of National Intelligence, shall report on the possible
exploitation of virtual currencies by terrorist actors. Such report
shall include the following elements:
(1) Recommendations to update the regulatory oversight
structure regarding virtual currencies to address transactions
that bypass financial institutions, including banks, Money
Services Businesses (MSB), and other financial institutions
subject to regulation.
(2) Assessment of current efforts by Federal departments
and agencies to study and collect intelligence against the
terror finance threat and money laundering methodologies.
(3) Identification of gaps between Federal and State
regulations which could be exploited for illicit funding.
SEC. 5. INNOVATION COMPETITION.
(a) Authorization.--In order to facilitate public-private
partnership to develop and enhance illicit finance prevention systems,
the Secretary of the Treasury may establish a program (referred to in
this section as ``the competition'') to be known as the ``Competition
for Innovation in Combating Illicit Terrorist Financing''.
(b) Activities Supported.--The Competition may carry out, through
the provision of grants or an annual reward, the following activities:
(1) Collaborative research.--Provide grants, for not more
than two years, to engage students, entrepreneurs, and
financial experts to identify regulatory solutions with respect
to the exploitation of VCs by terrorists and other criminals.
(2) Competition.--Establish an annual competition for a
reward of not more than $500,000 to any individual, team, or
nongovernmental entity that develops technologies to facilitate
counter terror threat financing, particularly that addresses
the use of VCs or emerging financial technology.
(c) Management.--
(1) In general.--The Secretary of Treasury, in consultation
with the Director of National Intelligence, shall promulgate
guidelines for review of grant applications to the Competition.
(2) Requirements.--The guidelines required under this
subsection shall address, at a minimum, the following:
(A) Criteria by which grants shall be selected.
(B) Policies to ensure that grants are in
furtherance of United States security objectives.
(d) Acceptance of Funds From Outside Sources.--The Competition may
accept funds from outside sources, including foreign governments,
nongovernmental organizations, and private business entities and,
without further appropriation, use such funds to carry out the purpose
of the Competition.
(e) Rule of Construction.--Nothing in this Act may be construed to
make any grant recipient an agent or establishment of the United States
Government.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Financial Services, and in addition to the Committee on Intelligence (Permanent Select), 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.
Referred to the Committee on Financial Services, and in addition to the Committee on Intelligence (Permanent Select), 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.
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