To require the Secretary of the Treasury to designate certain covered organizations as Foreign Financial Threat Organizations, and for other purposes.
This bill would require the Secretary of the Treasury to designate certain foreign entities that engage in fraudulent activity aimed at deceiving U.S. persons into giving cash or assets as “Foreign Financial Threat Organizations” (FFTOs). Once designated, U.S. financial institutions could be required to block transactions and freeze the FFTOs’ assets, and the FFTOs would be treated similarly to other high-priority sanctions targets under the same authorities used for designated terrorist organizations. The bill also authorizes actions to protect U.S. cybersecurity and to prevent FFTOs from contacting U.S. persons by phone, internet, or email. It would create ongoing reporting to Congress about designations, assets seized, actions taken, and funds returned to victims, and it defines “covered organization” as a foreign entity or affiliate that engages in fraudulent activity targeting U.S. persons, determined jointly by the Treasury Secretary and the Attorney General.
Key Points
- 1Timeline and designation process: The Secretary of the Treasury must designate FFTOs within 90 days of enactment, and must notify Congress and publish the designation in the Federal Register seven days after notification.
- 2Asset blocking and penalties: Upon notification, U.S. financial institutions may be required to block all transactions involving the FFTO’s assets, and FFTOs face penalties and procedures similar to those for designated global terrorist organizations under EO 13224.
- 3Cybersecurity and communications restrictions: The Administration may take actions to protect U.S. cybersecurity and limit the FFTO’s access to internet or cellular services; the Treasury must work to prevent FFTOs from contacting U.S. persons by phone, internet, or email.
- 4Oversight and reporting: The Treasury must report every two years (and annually thereafter) to relevant Congressional committees on designations, assets seized, actions taken, and funds returned to victims, with a redacted public version available.
- 5Definition of a covered organization: A foreign entity (including subsidiaries/affiliates) that fraudulently persuades U.S. persons to give cash or assets, as jointly determined by the Treasury Secretary and the Attorney General.