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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2950 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 2950
To require the Secretary of State and relevant executive branch
agencies to address international scam compounds defrauding people in
the United States, to hold significant transnational criminal
organizations accountable, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 30, 2025
Mr. Cornyn (for himself and Mrs. Shaheen) introduced the following
bill; which was read twice and referred to the Committee on Foreign
Relations
_______________________________________________________________________
A BILL
To require the Secretary of State and relevant executive branch
agencies to address international scam compounds defrauding people in
the United States, to hold significant transnational criminal
organizations accountable, 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 ``Scam Compound Accountability and
Mobilization Act''.
SEC. 2. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) transnational cyber-enabled fraud, particularly
perpetrated from scam compounds in Southeast Asia, is a growing
threat to citizens of the United States, national security, and
economic interests globally, with the Federal Bureau of
Investigation reporting $13,700,000,000 in losses in the United
States due to cyber-enabled fraud in 2024, including schemes
commonly perpetrated by significant transnational criminal
organizations operating scam compounds;
(2) significant transnational criminal organizations
responsible for a large proportion of these scam compounds are
affiliated with the People's Republic of China (PRC), actively
spread PRC propaganda, promote unification with Taiwan, and
have brokered projects for the Belt and Road Initiative;
(3) significant transnational criminal organizations have
lured hundreds of thousands of human trafficking victims from
over 40 countries to scam compounds, primarily in Burma,
Cambodia, and Laos, for purposes of forced criminality;
(4) significant transnational criminal organizations are
expanding scam compounds internationally including in Africa,
the Middle East, South Asia, and the Pacific Islands, and
related money laundering, human trafficking and recruitment
fraud have occurred in Europe, North America, and South
America;
(5) the United States should redouble efforts to hold the
perpetrators and enablers of scam compound operations
accountable, including those involved in related money
laundering, human trafficking, and recruitment fraud, by
employing tools, such as targeted financial sanctions, visa
restrictions, asset seizures, and forfeiture;
(6) to effectively address cyber-enabled fraud originating
from scam compounds internationally, the United States
Government should work with partner governments, multilateral
institutions, civil society experts, and private sector
stakeholders to improve information sharing, strengthen
preventative measures, raise public awareness, and increase
coordination on law enforcement investigations and regulatory
actions; and
(7) survivors of human trafficking, including forced
criminality, require victim-centered support to ensure they are
not punished for offenses committed under duress.
SEC. 3. DEFINITIONS.
(a) In General.--In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Relations of the
Senate;
(B) the Committee on the Judiciary of the Senate;
(C) the Committee on Banking, Housing, and Urban
Affairs of the Senate;
(D) the Select Committee on Intelligence of the
Senate;
(E) the Committee on Foreign Affairs of the House
of Representatives;
(F) the Committee on the Judiciary of the House of
Representatives;
(G) the Committee on Financial Services of the
House of Representatives; and
(H) the Permanent Select Committee on Intelligence
of the House of Representatives.
(2) Cyber-enabled fraud.--The term ``cyber-enabled fraud''
means the use of the internet or other technology to commit
fraudulent activity, including illicitly obtaining money,
property, data, identification documents, or authentication
features, or creating counterfeit goods or services.
(3) Enabling country.--The term ``enabling country'' means
a country where--
(A) government authorities actively or implicitly
permit, enable, or perpetuate scam compound operations;
or
(B) ineffective law enforcement or a failure to
enact legislation intended to prevent facilitating
services from reaching scam compounds or significant
transnational criminal organizations enables scam
compound operators to obtain facilitating services.
(4) Forced criminality.--The term ``forced criminality''
means a form of forced labor for the purpose of causing the
victim to engage in criminal activity, which may include cyber-
enabled fraud.
(5) Forced labor.--The term ``forced labor'' has the
meaning given the term severe form of trafficking in persons in
section 103(11)(B) of the Trafficking Victims Protection Act of
2000 (22 U.S.C. 7102(11)(B)).
(6) Relevant foreign assistance programs and diplomatic
efforts.--The term ``relevant foreign assistance programs and
diplomatic efforts''--
(A) means unclassified voluntary support programs
funded directly by the United States Government that
provide assistance to one or more foreign countries for
the purpose of combating scam compound operations and
related significant transnational criminal
organizations; and
(B) excludes intelligence activities, including
activities authorized by the President and reported to
Congress in accordance with section 503 of the National
Security Act of 1947 (50 U.S.C. 3093).
(7) Human trafficking.--The term ``human trafficking'' has
the meaning given the term severe form of trafficking in
persons in section 103(11) of the Trafficking Victims
Protection Act of 2000 (22 U.S.C. 7102(11)).
(8) Human trafficking victim.--The terms ``human
trafficking victim'' and ``victim of human trafficking'' mean a
person subject to an act or practice described in section
103(11) of the Trafficking Victims Protection Act of 2000 (22
U.S.C. 7102(11)).
(9) Impacted country.--The term ``impacted country'' means
a country that is a significant--
(A) transit location for victims of human
trafficking to scam compounds;
(B) source location for victims of human
trafficking for scam compounds; or
(C) target of cyber-enabled fraud originating from
scam compounds internationally.
(10) Scam compound.--The term ``scam compound'' means a
physical installation where a significant transnational
criminal organization carries out cyber-enabled fraud
operations, frequently using victims of human trafficking and
forced criminality.
(11) Significant transnational criminal organization.--The
term ``significant transnational criminal organization'' means
a group of persons that--
(A) includes one or more foreign person;
(B) engages in or facilitates an ongoing pattern of
serious criminal activity involving the jurisdictions
of at least two foreign states or one foreign state and
the United States; and
(C) threatens the national security, foreign
policy, or economy of the United States.
(12) Strategy.--The term ``Strategy'' means the strategy to
counter scam compounds and hold significant transnational
criminal organizations accountable required under section 4.
(b) Rule of Construction.--The definitions under this section are
exclusive to this Act and may not be construed to affect any other
provision of United States law.
SEC. 4. STRATEGY TO COUNTER SCAM COMPOUNDS AND HOLD SIGNIFICANT
TRANSNATIONAL CRIMINAL ORGANIZATIONS ACCOUNTABLE.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Secretary of State, in consultation with the
Attorney General, the Secretary of the Treasury, and the heads of other
Federal departments and agencies, shall submit to the appropriate
congressional committees a comprehensive strategy that--
(1) is designed to counter scam compounds and hold
significant transnational criminal organizations accountable;
(2) is global in scope; and
(3) may prioritize efforts focused on Southeast Asian
countries where scam compound operations are most prevalent.
(b) Contents.--The Strategy shall--
(1) articulate a comprehensive problem statement
identifying the structural vulnerabilities exploited by
significant transnational criminal organizations operating scam
compounds;
(2) develop a comprehensive list of enabling countries and
impacted countries;
(3) identify all active executive branch relevant foreign
assistance programs and diplomatic efforts underway to address
scam compounds, significant transnational criminal
organizations connected to scam compounds, and related money
laundering, human trafficking and forced criminality, including
efforts with enabling countries and impacted countries;
(4) identify relevant foreign assistance resources needed
to fully implement the Strategy and any obstacles to the
response of the Federal Government to scam compounds, including
coordination with partner governments, to address the human
trafficking, including forced criminality, and money laundering
that facilitates and sustains scam compound operations;
(5) include objectives, activities, and performance
indicators regarding the response of the Federal Government to
scam compounds, including--
(A) the prevention of recruitment fraud and human
trafficking, including by--
(i) engaging private sector entities
operating internet platforms or other services
that can be abused or exploited to perpetrate
recruitment fraud, human trafficking or cyber-
enabled fraud;
(ii) raising awareness among at-risk
populations to identify common recruitment
fraud strategies and improve due diligence and
self-protection measures;
(iii) urging governments to monitor and
enforce laws against fraudulent and unlawful
recruitment practices; and
(iv) sharing information and building
awareness among foreign counterparts, including
law enforcement and border officials, to
identify potential human trafficking victims;
(B) the support for survivors of human trafficking
and forced criminality under the direction of the
Ambassador at Large to Monitor and Combat Trafficking
in Persons;
(C) the enhancement of coordination and
strengthening the capabilities of partner governments
and law enforcement agencies;
(D) the use of sanctions, visa restrictions, and
other accountability measures against enabling
countries, significant transnational criminal
organizations, and related third-party facilitators of
scam compound operations;
(E) the support of partner governments in
countering corruption and money laundering related to
scam compound operations; and
(F) the investigation of PRC connections to
significant transnational criminal organizations
operating scam compounds.
(c) Limitation.--Nothing in the Strategy may affect, apply to, or
create obligations related to past, present, or future criminal or
civil law enforcement or intelligence activities of the United States
or the law enforcement activities of any State or subdivision of a
State.
SEC. 5. ESTABLISHING A TASK FORCE TO IMPLEMENT THE STRATEGY.
(a) In General.--Not later than 90 days after submitting the
Strategy pursuant to section 4(a), the Secretary of State, in
consultation with the Attorney General, the Secretary of the Treasury,
and the heads of other Federal departments and agencies, shall
establish an interagency task force (referred to in this section as the
``Task Force'')--
(1) to coordinate the implementation of the Strategy;
(2) to conduct regular monitoring and analysis of scam
compound operations internationally;
(3) to track and evaluate progress toward the objectives,
activities, and performance indicators of the Strategy
described in section 4(b)(5); and
(4) to update the Strategy, in consultation with the
appropriate congressional committees, as needed.
(b) Annual Reviews and Reports.--Not later than one year after the
establishment of the Task Force, and not less frequently than annually
thereafter, the Secretary of State and the Attorney General, in
consultation with the Secretary of the Treasury and the heads of other
Federal departments and agencies, shall--
(1) conduct a status review of the Strategy and the overall
state of scam compounds operated by significant transnational
criminal organizations;
(2) include a list of enabling countries and impacted
countries; and
(3) submit the results of such review in a public report to
the appropriate congressional committees, which may contain a
classified annex.
(c) Task Force Termination.--The Task Force shall terminate on the
date that is six years after the date on which it is established.
SEC. 6. STRENGTHENING TOOLS TO DISMANTLE SCAM COMPOUNDS AND HOLD
SIGNIFICANT TRANSNATIONAL CRIMINAL ORGANIZATIONS
ACCOUNTABLE.
(a) Imposition of Sanctions With Respect to Significant Actors in
Scam Compound Operations.--Beginning on and after the date that is 180
days after the date of the enactment of this Act, the President may
impose the sanctions described in subsection (b) with respect to any
foreign person that the President determines--
(1) has materially assisted in, or provided significant
financial or technological support to, or provided significant
goods or services in support of, the activities of
international scam compounds or enabling services, including
recruitment fraud, human trafficking (including forced
criminality), cyber-enabled fraud, or money laundering; or
(2) owned, controlled, directed, or acted for, or on behalf
of, a significant scam compound operation or enabling service,
including recruitment fraud, human trafficking (including
forced criminality), cyber-enabled fraud, or money laundering.
(b) Sanctions Described.--The President may exercise of all powers
granted to the President under the International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.) to the extent necessary to block
and prohibit all transactions in all property and interests in property
of a foreign person described in subsection (a), including, to the
extent appropriate, the vessel of which the person is the beneficial
owner, if such property or 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) Implementation; Penalties.--
(1) Implementation.--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 section.
(2) Penalties.--The penalties set forth in subsections (b)
and (c) of section 206 of the International Emergency Economic
Powers Act (50 U.S.C. 1705) shall apply to any person who
violates, attempts to violate, conspires to violate, or causes
a violation of any prohibition of this section, or an order or
regulation prescribed under this section, to the same extent
that such penalties apply to a person that commits an unlawful
act described in section 206(a) of such Act (50 U.S.C.
1705(a)).
(d) Intelligence and Law Enforcement Activities.--Sanctions
authorized under this section shall not apply with respect to--
(1) any activity subject to the reporting requirements
under title V of the National Security Act of 1947 (50 U.S.C.
3091 et seq.); or
(2) any authorized intelligence or law enforcement
activities of the United States.
(e) Semiannual Report.--Not later than 180 days after the date of
the enactment of this Act, and every 180 days thereafter, the President
shall submit a report to the appropriate congressional committees
that--
(1) identifies all foreign persons the President has
sanctioned pursuant to the authorities under this section; and
(2) the dates on which sanctions were imposed.
(f) Exception Relating to Importation of Goods.--
(1) In general.--A requirement to block and prohibit all
transactions in all property and interests in property pursuant
to subsection (b) shall not include the authority or a
requirement to impose sanctions on the importation of goods.
(2) Defined term.--In this subsection, the term ``good''
means any article, natural or manmade substance, material,
supply, or manufactured product, including inspection and test
equipment, and excluding technical data.
(g) Waiver.--
(1) In general.--The President may waive the application of
sanctions under this section with respect to a foreign person
or a foreign financial institution if the President determines
that such waiver is in the national interest of the United
States.
(2) Report.--Not later than 15 days before granting a
waiver pursuant to paragraph (1), the President shall submit a
report to the appropriate congressional committees that
includes--
(A) the name of the individual or institution that
is benefitting from such waiver; and
(B) if the beneficiary is an individual, a detailed
justification explaining how the waiver serves the
national security interests of the United States.
SEC. 7. SUNSET.
This Act shall cease to be effective beginning on the date that is
7 years after the date of the enactment of this Act.
<all>
Introduced in Senate
Read twice and referred to the Committee on Foreign Relations.
Committee on Foreign Relations. Ordered to be reported with an amendment in the nature of a substitute favorably.
Committee on Foreign Relations. Reported by Senator Risch with an amendment in the nature of a substitute. Without written report.
Committee on Foreign Relations. Reported by Senator Risch with an amendment in the nature of a substitute. Without written report.
Placed on Senate Legislative Calendar under General Orders. Calendar No. 244.
Passed/agreed to in Senate: Passed Senate with an amendment by Unanimous Consent.
Passed Senate with an amendment by Unanimous Consent. (consideration: CR S8533-8535; text: CR S8533--8535)
Message on Senate action sent to the House.
Received in the House.
Held at the desk.
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