Dismantle Foreign Scam Syndicates Act
This bill, the Dismantle Foreign Scam Syndicates Act (H.R. 5490), would create a new interagency Task Force to lead a whole-of-government campaign against transnational criminal networks that run large-scale online scam operations in which trafficking victims are forced to work in scam centers. The findings emphasize a shift during the COVID-19 era to elaborate online crypto investment scams (often described as “pig butchering” scams) that rely on forced labor from trafficking victims in Southeast Asia (notably Burma/Myanmar, Cambodia, Laos) and ties to Chinese criminal networks and officials. The Task Force would coordinate federal agencies, private sector partners, and international partners to disrupt, dismantle, and shut down these centers, with a focus on pressuring foreign governments, sanctioning perpetrators, and recovering stolen assets. The bill also creates mechanisms to support victims and requires regular reporting to Congress, with a sunset after seven years. Key features include a leadership structure (chaired by the Secretary of State) and a broad roster of participating agencies (State, Justice, Homeland Security, Treasury, plus the SEC, FTC, FCC, and others), a mandated strategy within 180 days, sanctions authorities for named foreign individuals and entities, data sharing and interagency coordination, victim support programs, annual congressional reporting, and a five-year reporting window. The program is funded at $30 million for 2026 and 2027 to develop and implement the strategy.
Key Points
- 1Establishment and leadership of an interagency Task Force to dismantle and shut down transnational scam networks, with a 30-day setup deadline, a 180-day strategy submission deadline, regular meetings, and a seven-year sunset.
- 2Comprehensive strategy to shut down online scam centers, disrupt traffickers, build foreign-law-enforcement capacity (digital forensics, AML, border control), and require measurable indicators of success; includes private-sector and NGO partnerships and quarterly consultations.
- 3Sanctions framework: within 180 days, the President must determine and impose sanctions on listed foreign persons tied to online scams, provide a public/limited-scope sanctions list, and have a waiver mechanism; authorities draw from Global Magnitsky, the Trafficking Victims Protection Act, and Executive Order 13581.
- 4Victim support and protection: authority to fund trauma-informed care, shelter, reintegration, and services for trafficking victims within online scam centers, designed to prevent revictimization and aid evidence collection for prosecutions.
- 5Reporting and oversight: annual, unclassified (with possible classified annex) reports to Congress for five years detailing sanctions, losses, recovered assets, trafficking victims, known scam centers, global proliferation, program recommendations, and funding needs; ongoing consultation with Congress, local law enforcement, NGOs, and private sector partners.