Fentanyl Eradication and Narcotics Deterrence Off Fentanyl Act or the FEND Off Fentanyl Act
This bill requires or authorizes various actions, including sanctions, targeting foreign persons (individuals and entities) engaged in trafficking of fentanyl and other illicit opioids.
This bill requires that the sanctions specified in Executive Order 14059 (relating to sanctions on foreign persons involved in the global illicit drug trade), as well as any amendments to or directives issued pursuant to that executive order before the date of the enactment of this bill, shall remain in effect.
The bill also requires the President to impose property-blocking sanctions on any foreign person knowingly involved in (1) significant trafficking of fentanyl, fentanyl precursors, or other related opioids by a transnational criminal organization; or (2) significant activities of a transnational criminal organization relating to the trafficking of fentanyl, fentanyl precursors, or other related opioids.
The Department of the Treasury is authorized to take certain actions relating to classes of transactions that (1) involve a non-U.S. jurisdiction, and (2) are of primary money laundering concern in connection with illicit opioid trafficking. For such transaction classes, Treasury may require domestic financial institutions to (1) take certain special measures, (2) prohibit certain transmittals of funds, or (3) impose conditions on transmittals of funds.
Treasury's Financial Crimes Enforcement Network must issue guidance to U.S. financial institutions for filing reports of suspicious transactions related to suspected fentanyl trafficking by transnational criminal organizations.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3333 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 3333
To impose sanctions with respect to trafficking of illicit fentanyl and
its precursors by transnational criminal organizations, including
cartels, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 15, 2023
Mr. McCaul (for himself, Mr. Cuellar, and Mrs. Chavez-DeRemer)
introduced the following bill; which was referred to the Committee on
Foreign Affairs, and in addition to the Committees on Financial
Services, 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 impose sanctions with respect to trafficking of illicit fentanyl and
its precursors by transnational criminal organizations, including
cartels, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Fentanyl
Eradication and Narcotics Deterrence Off Fentanyl Act'' or the ``FEND
Off Fentanyl Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Sense of Congress.
Sec. 3. Definitions.
TITLE I--SANCTIONS MATTERS
Subtitle A--Sanctions in Response to National Emergency Relating to
Fentanyl Trafficking
Sec. 101. Finding; policy.
Sec. 102. Use of national emergency authorities; reporting.
Sec. 103. Codification of Executive order imposing sanctions with
respect to foreign persons involved in
global illicit drug trade.
Sec. 104. Imposition of sanctions with respect to fentanyl trafficking
by transnational criminal organizations.
Sec. 105. Penalties; waivers; exceptions.
Sec. 106. Treatment of blocked property of transnational criminal
organizations.
Subtitle B--Other Matters
Sec. 111. Eight-year statute of limitations for violations of
sanctions.
Sec. 112. Repeal of prohibition on imposition of sanctions with respect
to importation of goods under Fentanyl
Sanctions Act.
Sec. 113. Classified report and briefing on staffing of Office of
Foreign Assets Control.
Sec. 114. Report on drug transportation routes and use of vessels with
mislabeled cargo.
TITLE II--ANTI-MONEY LAUNDERING MATTERS
Sec. 201. Designation of illicit fentanyl transactions of sanctioned
persons as of primary money laundering
concern.
Sec. 202. Treatment of transnational criminal organizations in
suspicious transactions reports of the
Financial Crimes Enforcement Network.
Sec. 203. Report on trade-based money laundering in trade with Mexico,
the People's Republic of China, and Burma.
SEC. 2. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) the proliferation of fentanyl is causing an
unprecedented surge in overdose deaths in the United States,
fracturing families and communities, and necessitating a
comprehensive policy response to combat its lethal flow and to
mitigate the drug's devastating consequences;
(2) the trafficking of fentanyl into the United States is a
national security threat that has killed hundreds of thousands
of United States citizens;
(3) transnational criminal organizations, including cartels
primarily based in Mexico, are the main purveyors of fentanyl
into the United States and must be held accountable;
(4) precursor chemicals sourced from the People's Republic
of China are--
(A) shipped from the People's Republic of China by
legitimate and illegitimate means;
(B) transformed through various synthetic processes
to produce different forms of fentanyl; and
(C) crucial to the production of illicit fentanyl
by transnational criminal organizations, contributing
to the ongoing opioid crisis;
(5) the United States Government must remain vigilant to
address all new forms of fentanyl precursors and drugs used in
combination with fentanyl, such as Xylazine, which attribute to
overdose deaths of people in the United States;
(6) to increase the cost of fentanyl trafficking, the
United States Government should work collaboratively across
agencies and should surge analytic capability to impose
sanctions and other remedies with respect to transnational
criminal organizations (including cartels), including foreign
nationals who facilitate the trade in illicit fentanyl and its
precursors from the People's Republic of China and such
organizations; and
(7) the Department of the Treasury should focus on fentanyl
trafficking and its facilitators as one of the top national
security priorities for the Department.
SEC. 3. DEFINITIONS.
In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Banking, Housing, and Urban
Affairs of the Senate; and
(B) the Committee on Foreign Affairs and the
Committee on Financial Services of the House of
Representatives.
(2) Foreign person.--The term ``foreign person''--
(A) means--
(i) any citizen or national of a foreign
country; or
(ii) any entity not organized under the
laws of the United States or a jurisdiction
within the United States; and
(B) does not include the government of a foreign
country.
(3) Knowingly.--The term ``knowingly'', with respect to
conduct, a circumstance, or a result, means that a person has
actual knowledge, or should have known, of the conduct, the
circumstance, or the result.
(4) Trafficking.--The term ``trafficking'', with respect to
fentanyl, fentanyl precursors, or other related opioids, has
the meaning given the term ``opioid trafficking'' in section
7203 of the Fentanyl Sanctions Act (21 U.S.C. 2302).
(5) Transnational criminal organization.--The term
``transnational criminal organization'' includes--
(A) any organization designated as a significant
transnational criminal organization under part 590 of
title 31, Code of Federal Regulations;
(B) any of the organizations known as--
(i) the Sinaloa Cartel;
(ii) the Jalisco New Generation Cartel;
(iii) the Gulf Cartel;
(iv) the Los Zetas Cartel;
(v) the Juarez Cartel;
(vi) the Tijuana Cartel;
(vii) the Beltran-Leyva Cartel;
(viii) La Familia Michoacana, also known as
the Knights Templar Cartel; or
(ix) La Nueva Familia Michoacan;
(C) any other organization that the President
determines is a transnational criminal organization; or
(D) any successor organization to an organization
described in subparagraph (B) or as otherwise
determined by the President.
(6) United states person.--The term ``United States
person'' means--
(A) 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 of any jurisdiction within the United
States, including a foreign branch of such an entity;
or
(C) any person in the United States.
TITLE I--SANCTIONS MATTERS
Subtitle A--Sanctions in Response to National Emergency Relating to
Fentanyl Trafficking
SEC. 101. FINDING; POLICY.
(a) Finding.--Congress finds that international trafficking of
fentanyl, fentanyl precursors, or other related opioids constitutes an
unusual and extraordinary threat to the national security, foreign
policy, and economy of the United States, and is a national emergency.
(b) Policy.--It shall be the policy of the United States to apply
economic and other financial sanctions to those who engage in the
international trafficking of fentanyl, fentanyl precursors, or other
related opioids to protect the national security, foreign policy, and
economy of the United States.
SEC. 102. USE OF NATIONAL EMERGENCY AUTHORITIES; REPORTING.
(a) In General.--The President may exercise all authorities
provided under sections 203 and 205 of the International Emergency
Economic Powers Act (50 U.S.C. 1702 and 1704) to carry out this
subtitle.
(b) Report Required.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, and annually thereafter, the
President shall submit to the appropriate congressional
committees a report on actions taken by the executive branch
pursuant to this subtitle and any national emergency declared
with respect to the trafficking of fentanyl, including--
(A) the issuance of any new or revised regulations,
policies, or guidance;
(B) the imposition of sanctions;
(C) the collection of relevant information from
outside parties;
(D) the approval or denial of licenses by the
Office of Foreign Assets Control;
(E) the initiation of enforcement cases; or
(F) the implementation of mitigation procedures.
(2) Form of report.--Each report required by paragraph (1)
shall be submitted in unclassified form, but may include the
matters required by subparagraphs (C), (D), (E), and (F) of
that paragraph in a classified annex.
SEC. 103. CODIFICATION OF EXECUTIVE ORDER IMPOSING SANCTIONS WITH
RESPECT TO FOREIGN PERSONS INVOLVED IN GLOBAL ILLICIT
DRUG TRADE.
United States sanctions provided for in Executive Order 14059 (50
U.S.C. 1701 note; relating to imposing sanctions on foreign persons
involved in the global illicit drug trade), and any amendments to or
directives issued pursuant to such Executive orders before the date of
the enactment of this Act, shall remain in effect.
SEC. 104. IMPOSITION OF SANCTIONS WITH RESPECT TO FENTANYL TRAFFICKING
BY TRANSNATIONAL CRIMINAL ORGANIZATIONS.
(a) In General.--The President shall impose the sanctions described
in subsection (b) with respect to any foreign person the President
determines--
(1) is knowingly involved in the significant trafficking of
fentanyl, fentanyl precursors, or other related opioids by a
transnational criminal organization; or
(2) otherwise is knowingly involved in significant
activities of a transnational criminal organization relating to
the trafficking of fentanyl, fentanyl precursors, or other
related opioids.
(b) Sanctions Described.--The President may, pursuant to the
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.),
block and prohibit all transactions in property and interests in
property of a foreign person described in subsection (a) if such
property and interests in property are in the United States, come
within the United States, or are or come within the possession or
control of a United States person.
(c) Report Required.--Not later than 180 days after the date of the
enactment of this Act, and annually thereafter, the President shall
submit to the appropriate congressional committees a report on actions
taken by the executive branch with respect to the foreign persons
identified under subsection (a).
SEC. 105. PENALTIES; WAIVERS; EXCEPTIONS.
(a) Penalties.--A person that violates, attempts to violate,
conspires to violate, or causes a violation of this subtitle or any
regulation, license, or order issued to carry out this subtitle shall
be subject to the penalties set forth in subsections (b) and (c) of
section 206 of the International Emergency Economic Powers Act (50
U.S.C. 1705) to the same extent as a person that commits an unlawful
act described in subsection (a) of that section.
(b) Waiver Authority.--
(1) In general.--The President may waive the imposition of
sanctions under this subtitle if the President determines, and
reports to the appropriate congressional committees, that--
(A) the waiver is needed for humanitarian purposes;
or
(B) the national emergency described in section 101
has ended.
(2) National security waiver.--The President may waive the
application of sanctions under this subtitle with respect to a
foreign person if the President determines that the waiver is
in the national security interest of the United States.
(c) Exceptions.--
(1) Exception for intelligence activities.--This subtitle
shall not apply with respect to activities 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.
(2) Exception for compliance with international obligations
and law enforcement activities.--Sanctions under section 102(c)
shall not apply with respect to an alien if admitting or
paroling the alien into the United States is necessary--
(A) to permit the United States to comply with the
Agreement regarding the Headquarters of the United
Nations, signed at Lake Success on June 26, 1947, and
entered into force November 21, 1947, between the
United Nations and the United States, or other
applicable international obligations of the United
States; or
(B) to carry out or assist law enforcement activity
of the United States.
(3) Exception to comply with usmca.--Sanctions under this
subtitle shall not apply in a case in which such sanctions
would conflict with provisions of the USMCA (as defined in
section 3 of the United States-Mexico-Canada Agreement
Implementation Act (19 U.S.C. 4502)).
(4) Humanitarian exemption.--The President may not impose
sanctions under this subtitle with respect to any person for
conducting or facilitating a transaction for the sale of
agricultural commodities, food, medicine, or medical devices or
for the provision of humanitarian assistance.
SEC. 106. TREATMENT OF BLOCKED PROPERTY OF TRANSNATIONAL CRIMINAL
ORGANIZATIONS.
(a) Transfer of Blocked Property to Forfeiture Funds.--
(1) In general.--The President may transfer the proceeds of
any covered forfeited property to the Department of the
Treasury Forfeiture Fund established under section 9705 of
title 31, United States Code, or the Department of Justice
Assets Forfeiture Fund established under section 524(c) of
title 28, United States Code.
(2) Report required.--Not later than 180 days after the
date of the enactment of this Act, and every 180 days
thereafter, the President shall submit to the appropriate
congressional committees a report on any transfers made under
paragraph (1) during the 180-day period preceding submission of
the report.
(3) Covered forfeited property defined.--In this
subsection, the term ``covered forfeited property'' means
property--
(A) seized by the Department of Justice under
chapter 46 or section 1963 of title 18, United States
Code; and
(B) that belonged to or was possessed by a
transnational criminal organization subject to
sanctions under--
(i) this subtitle;
(ii) the Fentanyl Sanctions Act (21 U.S.C.
2301 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).
(b) Blocked Assets Under Terrorism Risk Insurance Act of 2002.--
Nothing in this subtitle affects the treatment of blocked assets of a
terrorist party described in subsection (a) of section 201 of the
Terrorism Risk Insurance Act of 2002 (28 U.S.C. 1610 note).
Subtitle B--Other Matters
SEC. 111. EIGHT-YEAR STATUTE OF LIMITATIONS FOR VIOLATIONS OF
SANCTIONS.
(a) International Emergency Economic Powers Act.--Section 206 of
the International Emergency Economic Powers Act (50 U.S.C. 1705) is
amended by adding at the end the following:
``(d) Statute of Limitations.--
``(1) Time for commencing proceedings.--
``(A) In general.--An action, suit, or proceeding
for the enforcement of any civil fine, penalty, or
forfeiture, pecuniary or otherwise, under this section
shall not be entertained unless commenced within eight
years after the latest date of the violation upon which
the civil fine, penalty, or forfeiture is based.
``(B) Commencement.--For purposes of this
paragraph, the commencement of an action, suit, or
proceeding includes the issuance of a pre-penalty
notice or finding of violation.
``(2) Time for indictment.--No person shall be prosecuted,
tried, or punished for any offense under subsection (c) unless
the indictment is found or the information is instituted within
eight years after the latest date of the violation upon which
the indictment or information is based.''.
(b) Trading With the Enemy Act.--Section 16 of the Trading with the
Enemy Act (50 U.S.C. 4315) is amended by adding at the end the
following:
``(d) Statute of Limitations.--
``(1) Time for commencing proceedings.--
``(A) In general.--An action, suit, or proceeding
for the enforcement of any civil fine, penalty, or
forfeiture, pecuniary or otherwise, under this section
shall not be entertained unless commenced within eight
years after the latest date of the violation upon which
the civil fine, penalty, or forfeiture is based.
``(B) Commencement.--For purposes of this
paragraph, the commencement of an action, suit, or
proceeding includes the issuance of a pre-penalty
notice or finding of violation.
``(2) Time for indictment.--No person shall be prosecuted,
tried, or punished for any offense under subsection (a) unless
the indictment is found or the information is instituted within
eight years after the latest date of the violation upon which
the indictment or information is based.''.
SEC. 112. REPEAL OF PROHIBITION ON IMPOSITION OF SANCTIONS WITH RESPECT
TO IMPORTATION OF GOODS UNDER FENTANYL SANCTIONS ACT.
Section 7235 of the Fentanyl Sanctions Act (21 U.S.C. 2335) is
repealed.
SEC. 113. CLASSIFIED REPORT AND BRIEFING ON STAFFING OF OFFICE OF
FOREIGN ASSETS CONTROL.
Not later than 180 days after the date of the enactment of this
Act, the Director of the Office of Foreign Assets Control shall provide
to the appropriate congressional committees a classified report and
briefing on the staffing of the Office of Foreign Assets Control,
disaggregated by staffing dedicated to each sanctions program and each
country or issue.
SEC. 114. REPORT ON DRUG TRANSPORTATION ROUTES AND USE OF VESSELS WITH
MISLABELED CARGO.
Not later than 180 days after the date of the enactment of this
Act, the Secretary of the Treasury, in conjunction with the heads of
other relevant Federal agencies, shall provide to the appropriate
congressional committees a classified report and briefing on efforts to
target drug transportation routes and modalities, including an
assessment of the prevalence of false cargo labeling and shipment of
precursor chemicals without accurate tracking of the customers
purchasing the chemicals.
TITLE II--ANTI-MONEY LAUNDERING MATTERS
SEC. 201. DESIGNATION OF ILLICIT FENTANYL TRANSACTIONS OF SANCTIONED
PERSONS AS OF PRIMARY MONEY LAUNDERING CONCERN.
Subtitle A of the Fentanyl Sanctions Act (21 U.S.C. 2311 et seq.)
is amended by inserting after section 7213 the following:
``SEC. 7213A. DESIGNATION OF TRANSACTIONS OF SANCTIONED PERSONS AS OF
PRIMARY MONEY LAUNDERING CONCERN.
``(a) In General.--If the Secretary of the Treasury determines that
reasonable grounds exist for concluding that one or more classes of
transactions within, or involving, a jurisdiction outside of the United
States is of primary money laundering concern in connection with
illicit opioid trafficking, the Secretary of the Treasury may, by
order, regulation, or otherwise as permitted by law--
``(1) require domestic financial institutions and domestic
financial agencies to take 1 or more of the special measures
provided for in section 9714(a)(1) of the National Defense
Authorization Act for Fiscal Year 2021 (Public Law 116-283; 31
U.S.C. 5318A note); and
``(2) prohibit, or impose conditions upon, certain
transmittals of funds (to be defined by the Secretary) by any
domestic financial institution or domestic financial agency, if
such transmittal of funds involves any such class of
transactions.
``(b) Classified Information.--In any judicial review of a finding
of the existence of a primary money laundering concern, or of the
requirement for 1 or more special measures with respect to a primary
money laundering concern made under this section, if the designation or
imposition, or both, were based on classified information (as defined
in section 1(a) of the Classified Information Procedures Act (18 U.S.C.
App.)), such information may be submitted by the Secretary to the
reviewing court ex parte and in camera. This subsection does not confer
or imply any right to judicial review of any finding made or any
requirement imposed under this section.
``(c) Availability of Information.--The exemptions from, and
prohibitions on, search and disclosure referred to in section 9714(c)
of the National Defense Authorization Act for Fiscal Year 2021 (Public
Law 116-283; 31 U.S.C. 5318A note) shall apply to any report or record
of report filed pursuant to a requirement imposed under subsection (a).
For purposes of section 552 of title 5, United States Code, this
section shall be considered a statute described in subsection (b)(3)(B)
of that section.
``(d) Penalties.--The penalties referred to in section 9714(d) of
the National Defense Authorization Act for Fiscal Year 2021 (Public Law
116-283; 31 U.S.C. 5318A note) shall apply to violations of any order,
regulation, special measure, or other requirement imposed under
subsection (a), in the same manner and to the same extent as described
in such section 9714(d).
``(e) Injunctions.--The Secretary of the Treasury may bring a civil
action to enjoin a violation of any order, regulation, special measure,
or other requirement imposed under subsection (a) in the same manner
and to the same extent as described in section 9714(e) of the National
Defense Authorization Act for Fiscal Year 2021 (Public Law 116-283; 31
U.S.C. 5318A note).
``(f) Definitions.--In this section, the terms `domestic financial
agency', `domestic financial institution', `financial agency', and
`financial institution' have the meanings given those terms as used in
section 9714 of the National Defense Authorization Act for Fiscal Year
2021 (Public Law 116-283; 31 U.S.C. 5318A note).''.
SEC. 202. TREATMENT OF TRANSNATIONAL CRIMINAL ORGANIZATIONS IN
SUSPICIOUS TRANSACTIONS REPORTS OF THE FINANCIAL CRIMES
ENFORCEMENT NETWORK.
(a) Filing Instructions.--Not later than 180 days after the date of
the enactment of this Act, the Director of the Financial Crimes
Enforcement Network shall issue guidance or instructions to United
States financial institutions for filing reports on suspicious
transactions required by section 1010.320 of title 31, Code of Federal
Regulations, related to suspected fentanyl trafficking by transnational
criminal organizations.
(b) Prioritization of Reports Relating to Fentanyl Trafficking or
Transnational Criminal Organizations.--The Director shall prioritize
research into reports described in subsection (a) that indicate a
connection to trafficking of fentanyl or related synthetic opioids or
financing of suspected transnational criminal organizations.
SEC. 203. REPORT ON TRADE-BASED MONEY LAUNDERING IN TRADE WITH MEXICO,
THE PEOPLE'S REPUBLIC OF CHINA, AND BURMA.
Not later than 180 days after the date of the enactment of this
Act, the Secretary of the Treasury shall submit to the appropriate
congressional committees a report on trade-based money laundering
originating in Mexico or the People's Republic of China and involving
Burma.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, 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.
Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, 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.
Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, 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.
Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, 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.
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