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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5490 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 5490
To establish an interagency Task Force to dismantle and shut down
transnational criminal syndicates perpetuating mass online scam
operations against Americans.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 18, 2025
Mr. Shreve (for himself, Mr. Moolenaar, and Mr. Rulli) introduced the
following bill; which was referred to the Committee on Foreign Affairs,
and in addition to the Committee on the Judiciary, 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 establish an interagency Task Force to dismantle and shut down
transnational criminal syndicates perpetuating mass online scam
operations against Americans.
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 ``Dismantle Foreign Scam Syndicates
Act''.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) During the COVID-19 pandemic, Chinese criminal
organizations active in Southeast Asia pivoted to a new and
potent form of financial scam involving elaborate fraudulent
online cryptocurrency investment schemes.
(2) The most common form of such financial scam is known as
``pig butchering'', Chinese criminal slang that describes how
scammers develop a virtual relationship inducing them to invest
ever larger sums into phony platforms, serving to `fatten'
their victims for the slaughter.
(3) Crime syndicates use the forced labor of hundreds of
thousands of victims of human trafficking to perpetrate such
scams.
(4) These victims themselves fall prey to false job
advertisements before they are taken to a compound and forced
to meet aggressive scam quotas under pain of violent punishment
if they refuse.
(5) These so-called ``scam centers'' are most prevalent
across Burma, Laos, and Cambodia, corrupt and repressive
countries where transparency is absent, rule of law is anemic
and checks and balances are non-existent, and often operate as
joint ventures between the Chinese criminal groups
organizations and the autocratic governments.
(6) Since 2021, these scams have increasingly targeted
Americans, robbing thousands of their life savings and
enriching and entrenching transnational criminal syndicates and
corrupt leaders in Cambodia, Laos and Burma.
(7) American losses to these scams grew by 33 percent year-
on-year in 2024.
(8) According to the Department of Treasury, Americans lost
at least $10,000,000,000 from these operations in 2024 alone.
(9) Global losses are estimated to be higher than
$60,000,000,000 annually.
(10) The true dollar amount of losses to these scams is
estimated to be much higher as many instances go unreported.
(11) Troubling links exist between the People's Republic of
China, Chinese criminal scam syndicates, and the corrupt local
politicians enabling their rise.
SEC. 3. STATEMENT OF POLICY.
It shall be the policy of the United States to comprehensively
combat the transnational organized criminals operating human
trafficking compounds primarily in Southeast Asia to perpetrate large-
scale online scams against the American people.
SEC. 4. TASK FORCE.
(a) Establishment.--Not later than 30 days after the date of the
enactment of this Act, the President shall establish an interagency
Task Force responsible for leading a whole-of-government effort to
dismantle and shut down transnational criminal syndicates perpetuating
mass online scam operations against Americans through the operation of
large-scale scam compounds fueled by the forced labor of victims of
trafficking in persons.
(b) Duties.--The Task Force shall--
(1) not later than 180 days after the date of the enactment
of this Act, develop and submit to the appropriate
congressional committees a comprehensive United States
Government strategy to shut down online scam centers, prevent
their further proliferation, disrupt and dismantle
transnational criminal entities and human traffickers involved
in operating such centers, and hold accountable corrupt
officials, state, and non-state actors enabling such entities
and traffickers for the purpose of incentivizing cooperation;
and
(2) coordinate and oversee implementation of such strategy.
(c) Leadership and Composition.--The Task Force shall--
(1) be chaired by the Secretary of State (or the
Secretary's designee);
(2) meet on a regular basis at the call of the Chair; and
(3) be comprised of the heads (or the heads' designees)
of--
(A) the Department of State, including the Bureau
of International Narcotics and Law Enforcement Affairs,
the Bureau of East Asian and Pacific Affairs, and the
Office to Monitor and Combat Trafficking in Persons;
(B) the Department of Justice, including the
Federal Bureau of Investigation;
(C) the Department of Homeland Security, including
the U.S. Secret Service and Homeland Security
Investigations; and
(D) the Department of the Treasury, including the
Office of Terrorism and Financial Intelligence, the
Office of Foreign Assets Control, and Financial Crimes
Enforcement Network.
(d) Further Composition.--The heads (or the heads' designees) of
the following entities are authorized to be members of the Task Force:
(1) The U.S. Securities and Exchange Commission.
(2) The Federal Trade Commission.
(3) The Federal Communications Commission.
(4) Any other department, agency, or entity the President
determines to be relevant.
(e) Intelligence Community.--The intelligence community is
authorized to provide support to the Task Force.
(f) Information Sharing.--To ensure proper coordination and
effective interagency action, each Federal department or agency
represented on the Task Force shall fully share--
(1) all relevant data with the Task Force; and
(2) all information regarding the department or agency's
plans, before and after final agency decisions are made, on all
matters relating to actions regarding combating online scams.
(g) Consultation.--The Task Force or representatives thereof
shall--
(1) consult quarterly with United States State and local
law enforcement entities and stakeholder organizations with
firsthand expertise in reporting and combatting online scam
operations, cyberscams known as ``pig butchering scams'', and
other kinds of cyberscams, and recovering stolen crypto assets,
and incorporate their feedback and recommendations to the
maximum extent feasible;
(2) consult regularly with U.S. non-governmental
organizations with expertise in countering trafficking in
persons or anti-corruption, as appropriate; and
(3) develop partnerships with relevant private sector
actors, including banks, social media platforms, online dating
applications, telecommunication carriers, cryptocurrency
exchanges, internet service providers, applications stores,
search engines, and search optimization companies, for the
purpose of better disrupting the enabling infrastructure of
scam compounds, operations, and syndicates.
(h) Sunset.--The Task Force shall terminate on the date that is
seven years after the date of the enactment of this Act.
SEC. 5. ELEMENTS OF COMPREHENSIVE STRATEGY.
(a) In General.--The strategy required by section 1(b)(1) shall
incorporate the following objectives:
(1) Bringing pressure to bear on foreign governments, in
coordination with allies and partners to the greatest extent
possible, that are complicit in, tolerant of, or uncooperative
in combatting online scam operations.
(2) Investigating the People's Republic of China's (PRC)
involvement in the origin and perpetuation of online scam
operations, including through links between Chinese Communist
Party officials and criminal organizations, deepening regional
security influence, and selective crackdowns that incentivize
the targeting of Americans.
(3) Investigating the Burmese military's involvement in
allowing, neglecting, and profiting from online scam operations
in Burma, and the importance of resolving the instability and
violence in Burma to stop the unfettered operation of scam
centers in Burma.
(4) Responding comprehensively to PRC complicity in and
instrumentalization of online scam operations.
(5) Reducing the power, influence, and scope of
transnational criminal organizations and operations in
Southeast Asia and wherever else they may propagate.
(6) Building the capacity of trusted foreign law
enforcement partners to degrade, disrupt, and shut down online
scam centers and prevent their proliferation, including through
training in digital forensics, anti-money laundering, and
border patrol.
(7) Building the capacity of trusted foreign law
enforcement partners to screen for and protect victims of
trafficking in persons in a trauma-informed manner, prosecute
traffickers, and prevent trafficking into online scam centers,
including through public awareness campaigns.
(8) Imposing sanctions or other relevant designations,
comprehensively and in coordination with allies and partners to
the greatest extent possible, on the perpetrators and enablers
of online scams, using relevant transnational organized crime,
corruption, human rights, and trafficking in persons
authorities.
(9) Advocating for the greylisting or blacklisting, as
appropriate, of countries involved in state-sponsored scam
operations, including Cambodia, at the Financial Action Task
Force.
(10) Harnessing offensive cyber capabilities to degrade
online scam centers' operations.
(11) Recovering and returning stolen assets of defrauded
United States persons.
(12) Integrating data collection, analysis, and response
mechanisms across Federal, State, and local agencies, including
by assessing if any existing relevant Fusion Centers could be
leveraged to combat online scam centers.
(13) Convening a coalition of like-minded foreign allies
and partners to combat online scam centers, including through
the establishment of similar task forces or working groups, the
compilation and sharing of data, and collaboration regarding
the indictment of key actors and enablers.
(b) Measurable Indicators.--The Task Force shall develop measurable
indicators of the success of the strategy required by section
1731(b)(1), which may include persons sanctioned, arrest warrants or
indictments issued, arrests made, U.S. losses mitigated, and the number
of victims of trafficking in persons rescued, and known scam centers
reduced, in comparison to the previous year.
SEC. 6. ANNUAL REPORT TO CONGRESS.
(a) In General.--Not later than 360 days after the date of the
submission of the strategy required by section 1(b)(1), and annually
thereafter for five years, the Task Force shall submit to the
appropriate congressional committees a report that includes, for the
previous year the following:
(1) A list of all foreign persons sanctioned by the United
States for being responsible for, complicit in, or responsible
for ordering, controlling, or otherwise directing, online
financial scams against United States nationals.
(2) For the foreign persons listed in paragraph (1), an
assessment and review of their ongoing involvement in the
operation of scam centers, including an identification of
entities in particular from within the People's Republic of
China that aid or abet such foreign persons.
(3) An estimate of how much money was stolen from United
States nationals through scams emanating from online scam
centers, including as a percentage of the estimated total
amount stolen through such scams globally.
(4) An estimate of how many stolen funds were intercepted,
seized, or returned.
(5) An estimate of how many victims of trafficking in
persons were employed in online scam centers.
(6) An estimate of the total number of people involved in
operating or supporting the operation of scam centers.
(7) A list of known online scam centers.
(8) A description of if, where, and how online scam centers
and operations have proliferated globally.
(9) Recommendations on the kinds of programs the Department
of State should support in order to effectively implement the
strategy described in subsection (c), including the level of
appropriations such programs would require.
(10) Any other measures the Task Force determines
appropriate to include.
(b) Form.--Each report submitted pursuant to subsection (a) shall
be unclassified but may include a classified annex.
(c) Consultation.--The Task Force shall consult regularly with the
appropriate congressional committees on its efforts to implement the
strategy required by section 1(b)(1), including potential updates. Such
consultations should include descriptions of the Task Force's periodic
consultations with local law enforcement agencies and civil society
organizations and any incorporated recommendations, as well as
recommendations for strengthening the Task Force's capability to
effectively shut down online scam centers, dismantle criminal scam
organizations, and recoup stolen U.S. assets. Such consultations may
take the form of briefings.
SEC. 7. IMPOSITION OF SANCTIONS.
(a) Determination, Imposition, and Report Required.--Not later than
180 days after the date of the enactment of this Act, the President
shall, in accordance with the strategy required by section 1(b)(1)--
(1) determine whether each foreign person listed in
subsection (d) meets the statutory criteria for the imposition
of sanctions under one or more of the sanctions programs and
authorities listed in subsection (c);
(2) pursuant to paragraph (1), impose applicable sanctions
against such foreign persons determined to meet such criteria
for imposition of sanctions; and
(3) submit to the appropriate congressional committees a
report containing--
(A) a list of all foreign persons determined to
meet such criteria; and
(B) for any foreign person listed in subsection (d)
that is not determined to meet the criteria for the
imposition of sanctions under one or more of the
sanctions programs and authorities listed in subsection
(c), a complete justification of such a non-
determination or decision to otherwise not apply the
sanctions authorized by such sanctions programs and
authorities.
(b) Waiver.--The President may waive the imposition of sanctions
with respect to a foreign person listed in subsection (d) on or after
the date that is 15 days after the President--
(1) determines that such a waiver is vital to the national
security interests of the United States; and
(2) submits to the appropriate congressional committees the
reasons for that determination.
(c) Applicable Sanctions.--The sanctions listed in this subsection
are the sanctions described in the following:
(1) Sections 1262 through 1264 of the Global Magnitsky
Human Rights Accountability Act (22 U.S.C. 10101 et seq.).
(2) Section 111 of the Trafficking Victims Protection Act
of 2000 (22 U.S.C. 7108).
(3) Executive Order 13581, relating to Transnational
Criminal Organization Sanctions.
(d) Foreign Persons.--
(1) In general.--The foreign persons listed in this
subsection are the following:
(A) Aik Paung.
(B) Benjamin Mauerberger.
(C) Chen Xiuling.
(D) D. Chen Zhi.
(E) Chou Bun Eng.
(F) Dy Vichea.
(G) Edward Lee.
(H) Gabriel Tan.
(I) Honn Sorachna.
(J) Hun To.
(K) Ing Dara.
(L) Kok An.
(M) Kuoch Chamrouen.
(N) Li Xiong.
(O) Long Dimanche.
(P) Ma Dongli.
(Q) Michael Chiam.
(R) Mote Thun.
(S) Neth Savoeun.
(T) Rithy Raksmei.
(U) Sai Aung Lin.
(V) Sai Kyaw Hla.
(W) Sar Sokha.
(X) Saw Min Min Oo.
(Y) Su Zhongkian.
(Z) Yan Borith.
(AA) Yan Narong.
(BB) Yan Sathya.
(CC) Yim Leak.
(DD) Yu Jianjun.
(EE) Yu Lingxiong.
(FF) Zhong Baojia (also known as Wang Qiang).
(GG) 9 Dynasty.
(HH) Dongmei Group.
(II) Fully Light Group of Companies, LTD.
(JJ) Hongmen World Cultural and Historical
Association.
(KK) Huione Group.
(LL) K99 Group.
(MM) Prince Group Holding Company.
(NN) Trans-Asia International Holding Group.
(OO) Union Development Group.
(PP) White Sands Palace Casino.
(QQ) Xinwang International.
(RR) Any person, organization, or entity determined
by the President, based on credible evidence, to be
responsible for, complicit in, or responsible for
ordering, controlling, or otherwise directing, online
financial scams against United States nationals,
including those scams originating from compounds in
Southeast Asia in which victims of severe forms of
trafficking in persons are forced to engage in illegal
scam activity.
(2) Exception.--In accordance with section 102(b)(19) of
the Trafficking Victims Protection Act of 2000 (22 U.S.C.
7101(b)(19)), no person determined by the President to be a
victim of trafficking in persons shall be considered to be a
foreign person listed in this subsection for purposes of
imposition of sanctions under this section.
SEC. 8. PROGRAMS TO SUPPORT VICTIMS OF FORCED CRIMINALITY.
(a) In General.--The Secretary of State is authorized to carry out
programs, out of the funds authorized to be appropriated by section 6
and in accordance with section 106(a) of the Trafficking Victims
Protection Act of 2000 (22 U.S.C. 7105(a)), to provide trauma-informed
care, shelter, reintegration, and support services for victims of
trafficking in persons within online scam centers.
(b) Design and Implementation.--The Task Force shall ensure
programs authorized by subsection (a) are designed and implemented in a
manner that prevents revictimization and gains information and evidence
critical to understanding online scam centers' operations and
prosecuting scammers.
SEC. 9. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated $30,000,000 for the
Department of State for each of the fiscal years 2026 and 2027 to
develop, coordinate, and implement the strategy required by section
1(b)(1).
SEC. 10. DEFINITIONS.
In this Act--
(1) the term ``appropriate committees of Congress'' means--
(A) the Committee on Foreign Affairs of the House
of Representatives; and
(B) the Committee on Foreign Relations of the
Senate; and
(2) the term ``intelligence community'' has the meaning
given that term in section 3 of the National Security Act of
1947 (50 U.S.C. 3003).
<all>
Introduced in House
Introduced in House
Referred to the Committee on Foreign Affairs, and in addition to the Committee on the Judiciary, 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 Committee on the Judiciary, 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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