Preventing Illicit Finance Through Partnership Act of 2024
This bill establishes a pilot program to facilitate information sharing between federal entities and private sector entities regarding illicit finance (i.e., financial transactions involving the proceeds of unlawful activity as specified by the bill).
Specifically, the Department of Justice (DOJ) must establish a pilot program for information sharing between the private sector and the DOJ, the Financial Crimes Enforcement Network (FinCEN), and the Department of Homeland Security (DHS) about potential violations, threats, and risks regarding illicit finance.
The DOJ, in consultation with FinCEN and DHS, must designate private sector entities in the money service business and in the crypto asset industry to participate in the pilot program. Additionally, one or more information sharing and analysis centers may also be selected to participate in the pilot program. Participation in the pilot program is voluntary.
The bill limits the liability of designated private sector entities in the context of sharing or disclosing information under this bill.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3603 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
2d Session
S. 3603
To establish an information-sharing pilot program to combat the illicit
use of crypto assets.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 17, 2024
Mr. Hagerty (for himself and Ms. Lummis) introduced the following bill;
which was read twice and referred to the Committee on the Judiciary
_______________________________________________________________________
A BILL
To establish an information-sharing pilot program to combat the illicit
use of crypto assets.
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 ``Preventing Illicit Finance Through
Partnership Act of 2024''.
SEC. 2. INFORMATION-SHARING PILOT PROGRAM TO COMBAT ILLICIT USE OF
CRYPTO ASSETS.
(a) Definitions.--In this section:
(1) Covered agency.--The term ``covered agency'' means--
(A) the Department of Justice, including the
Federal Bureau of Investigation and the Drug
Enforcement Administration;
(B) the Financial Crimes Enforcement Network; and
(C) the Department of Homeland Security.
(2) Crypto asset.--The term ``crypto asset'' means a
natively electronic asset that--
(A) confers economic, proprietary, or access rights
or powers; and
(B) is recorded using cryptographically secured
distributed ledger technology, or any similar analogue.
(3) Designated private sector entity.--The term
``designated private sector entity'' means a private sector
entity designated under subsection (c).
(4) Director.--The term ``Director'' means the Director of
the Financial Crimes Enforcement Network.
(5) Illicit finance violation.--The term ``illicit finance
violation'' means the illicit use of crypto assets.
(6) Illicit use.--The term ``illicit use'' includes fraud,
darknet marketplace transactions, money laundering, the
purchase and sale of illicit goods, sanctions evasion, theft of
funds, funding of illegal activities, transactions related to
child sexual abuse material, and any other financial
transaction involving the proceeds of specified unlawful
activity (as defined in section 1956(c) of title 18, United
States Code).
(7) Money services business.--The term ``money services
business'' has the meaning given the term in section 1010.100
of title 31, Code of Federal Regulations, or any successor
regulation.
(8) Secretary.--The term ``Secretary'' means the Secretary
of Homeland Security.
(b) Establishment of Program.--The Attorney General shall establish
a pilot program under which covered agencies and designated private
sector entities securely share information about potential illicit
finance violations and threats and emerging risks relating to illicit
finance violations.
(c) Designation of Private Sector Entities.--
(1) Required designation.--
(A) Initial designation.--Not later than 90 days
after the date of enactment of this Act, the Attorney
General, in consultation with the Director and the
Secretary, shall designate 10 private sector entities
that are money services businesses and 10 private
sector entities from the crypto asset industry to
participate in the pilot program established under
subsection (b).
(B) Biannual review.--Not less frequently than once
every 6 months, the Attorney General, in consultation
with the Director and the Secretary, shall review and,
as appropriate, replace the private sector entities
designated under this paragraph.
(2) Optional designation.--In addition to the 20 private
sector entities designated under paragraph (1), the Attorney
General, in consultation with the Director and the Secretary,
may designate 1 or more information sharing and analysis
centers to participate in the pilot program.
(d) Information Sharing With Private Sector Entities.--A covered
agency that initiates an investigation into a potential illicit finance
violation, or identifies a threat or emerging risk relating to illicit
finance violations, may share with any designated private sector entity
such information about the investigation, threat, or emerging risk as
the covered agency determines appropriate.
(e) Use of Information by Private Sector Entities.--Information
received by a designated private sector entity under this section may
not be used for any purpose other than identifying and reporting on
activities that may involve illicit finance violations or threats and
emerging risks relating to illicit finance violations.
(f) Means of Sharing Information.--The covered agencies and
designated private sector entities may share information about
potential illicit finance violations, or threats and emerging risks
relating to illicit finance violations, with each other--
(1) through a portal established by the Attorney General or
a similar mechanism determined appropriate by the Attorney
General;
(2) through secure email; or
(3) at virtual monthly meetings, which shall be facilitated
by the Attorney General.
(g) Limitation on Liability.--A designated private sector entity
that transmits, receives, or shares information for the purposes of
identifying and reporting activities that may constitute illicit
finance violations, or threats and emerging risks relating to illicit
finance violations, shall not be liable to any person under any law or
regulation of the United States, any constitution, law, or regulation
of any State or political subdivision thereof, or under any contract or
other legally enforceable agreement (including any arbitration
agreement), for such disclosure or for any failure to provide notice of
such disclosure to the person who is the subject of such disclosure, or
any other person identified in the disclosure.
(h) Voluntary Participation.--Participation by a designated private
sector entity in the pilot program established under subsection (b),
including sharing of information regarding potential illicit finance
violations or threats and emerging risks relating to illicit finance
violations, shall be voluntary.
(i) Sunset.--The pilot program established under subsection (b)
shall terminate on the date that is 5 years after the date of enactment
of this Act.
<all>
Introduced in Senate
Read twice and referred to the Committee on the Judiciary.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line