Lawmakers are introducing bills to tackle criminal and terrorist crypto activities
Lawmakers introduced bills in the House and Senate to prevent financial technologies such as cryptocurrencies from being used to illegally finance terrorism, according to an announcement late last week.
Rep. Zach Nunn, R-Iowa, and Jim Himes, D-Conn. introduced the House bill, and Sens. Kirsten Gillibrand, DN.Y., and Ted Budd, RN.C., introduced a companion bill in the Senate.
The bipartisan Financial Technology Protection Act of 2023 would create the Independent Financial Technology Task Force to combat terrorism and illicit financing. It will research transactions related to terrorism and financial technology such as cryptocurrency and make proposals to improve efforts against money laundering and terrorist financing.
“Digital assets are quickly emerging as an important way we spend money,” Nunn said. “This bipartisan bill will help ensure that the United States is prepared to address security risks and prevent money laundering, while protecting the freedom of all Americans. We must do both at the same time to ensure the long-term integrity of digital assets.”
The group will submit annual reports to Congress on its findings and recommendations. In addition, the president must send a report to Congress via the finance minister outlining the potential use of digital assets by foreign actors to avoid sanctions and finance terrorism, as well as a strategy to combat such use.
“As innovation in traditional finance continues, we must ensure that our financial systems are equipped to combat the use of these new technologies to evade sanctions, finance terrorism and launder money,” Gillibrand said.
The group will have a senior representative from 11 agencies: the Departments of Treasury, Justice, State and Homeland Security, as well as the Secret Service, the Financial Crimes Enforcement Network, the FBI, the Drug Enforcement Administration, the IRS, the Office of Foreign Assets Control and the CIA. It will also have five members appointed by the Treasury Undersecretary for Terrorism and Financial Intelligence and representing fintech companies, financial institutions, research institutions or organizations and blockchain intelligence companies.
The working group will last for four years from the time the law is adopted.
“Unfortunately, criminals and terrorists are increasingly able to use new financial technologies to destroy our fellow citizens,” Budd said. “Our government must take this threat seriously, which is why this bill is so important. It is taking meaningful steps to help stop the illicit use of new financial technologies.”
The bill passed the House unanimously in 2018 and 2019, but has not previously passed the Senate.
“The rapid evolution of our financial systems requires increased attention to reduce risk and combat abuse by terrorist organizations,” Himes said.
