S.Amdt. 1567

SA 1567. Mr. WARNER (for himself, Mr. Rounds, Mr. Reed, and Mr.
Romney) submitted an amendment intended to be proposed to amendment SA
1388 proposed by Mrs. Murray (for herself and Mr. Schumer) to the bill
H.R. 815, to amend title 38, United States Code, to make certain
improvements relating to the eligibility of veterans to receive
reimbursement for emergency treatment furnished through the Veterans
Community Care program, and for other purposes; which was ordered to
lie on the table; as follows:

At the appropriate place, insert the following:

DIVISION__TERRORIST FINANCING PREVENTION

TITLE I--PREVENTION OF ACCESS TO FINANCIAL AND OTHER INSTITUTIONS OF
THE UNITED STATES BY FOREIGN TERRORIST ORGANIZATIONS AND THEIR ENABLERS

SEC. 101. DEFINITIONS.

In this title:
(1) Digital asset.--The term ``digital asset'' means any
digital representation of value that is recorded on a
cryptographically secured distributed ledger or any similar
technology, or another implementation which was designed and
built as part of a system to leverage or replace blockchain
or distributed ledger technology or their derivatives.
(2) Digital asset protocol.--The term ``digital asset
protocol'' means any communication protocol, smart contract,
or other software--
(A) deployed through the use of distributed ledger or
similar technology; and
(B) that provides a mechanism for users to interact and
agree to the terms of a trade for digital assets.
(3) Foreign digital asset transaction facilitator.--The
term ``foreign digital asset transaction facilitator'' means
any foreign person or group of foreign persons that, as
determined by the Secretary, controls, operates, or makes
available a digital asset protocol or similar facility, or
otherwise materially assists in the purchase, sale, exchange,
custody, or other transaction involving an exchange or
transfer of value using digital assets.
(4) Foreign financial institution.--The term ``foreign
financial institution'' has the meaning given that term under
section 561.308 of title 31, Code of Federal Regulations.
(5) Foreign person.--The term ``foreign person'' means an
individual or entity that is not a United States person.
(6) Foreign terrorist organization.--The term ``Foreign
Terrorist Organization'' means an organization that has been
designated as a Foreign Terrorist Organization by the
Secretary of State, pursuant to section 219 of the
Immigration and Nationality Act (8 U.S.C. 1189).
(7) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.

[[Page S737]]

(8) Specially designated global terrorist organization.--
The term ``specially designated global terrorist
organization'' means an organization that has been designated
as a specially designated global terrorist by the Secretary
of State or the Secretary, pursuant to Executive Order 13224
(50 U.S.C. 1701 note; relating to blocking property and
prohibiting transactions with persons who commit, threaten to
commit, or support terrorism).
(9) United states person.--The term ``United States
person'' means--
(A) an individual who is a United States citizen or an
alien lawfully admitted for permanent residence to the United
States;
(B) an entity organized under the laws of the United States
or any jurisdiction within the United States, including a
foreign branch of such an entity; or
(C) any person in the United States.

SEC. 102. SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL
INSTITUTIONS AND FOREIGN DIGITAL ASSET
TRANSACTION FACILITATORS THAT ENGAGE IN CERTAIN
TRANSACTIONS.

(a) Mandatory Identification.--Not later than 60 days after
the date of enactment of this Act, and periodically
thereafter, the Secretary shall identify and submit to the
President a report identifying any foreign financial
institution or foreign digital asset transaction facilitator
that has knowingly--
(1) facilitated a significant financial transaction with--
(A) a Foreign Terrorist Organization;
(B) a specially designated global terrorist organization;
or
(C) a person identified on the list of specially designated
nationals and blocked persons maintained by the Office of
Foreign Assets Control of the Department of the Treasury, the
property and interests in property of which are blocked
pursuant to the International Emergency Economic Powers Act
(50 U.S.C. 1701 et seq.) for acting on behalf of or at the
direction of, or being owned or controlled by, a Foreign
Terrorist Organization or a specially designated global
terrorist organization; or
(2) engaged in money laundering to carry out an activity
described in paragraph (1).
(b) Imposition of Sanctions.--
(1) Foreign financial institutions.--The President shall
prohibit, or impose strict conditions on, the opening or
maintaining of a correspondent account or a payable-through
account in the United States by a foreign financial
institution identified under subsection (a).
(2) Foreign digital asset transaction facilitators.--The
President, pursuant to such regulations as the President may
prescribe, shall prohibit any transactions between any person
subject to the jurisdiction of the United States with a
foreign digital asset transaction facilitator identified
under subsection (a).
(c) Implementation and 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,
1704) to the extent necessary to carry out this title.
(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 a person
that violates, attempts to violate, conspires to violate, or
causes a violation of regulations prescribed under this
section to the same extent that such penalties apply to a
person that commits an unlawful act described in subsection
(a) of such section 206.
(d) Procedures for Judicial Review of Classified
Information.--
(1) In general.--If a finding under this section, or a
prohibition, condition, or penalty imposed as a result of any
such finding, is based on classified information (as defined
in section 1(a) of the Classified Information Procedures Act
(18 U.S.C. App.)), the Secretary may submit to a court
reviewing the finding or the imposition of the prohibition,
condition, or penalty such classified information ex parte
and in camera.
(2) Rule of construction.--Nothing in this subsection shall
be construed to confer or imply any right to judicial review
of any finding under this subsection or any prohibition,
condition, or penalty imposed as a result of any such
finding.
(e) Waiver for National Security.--The Secretary may waive
the imposition of sanctions under this section with respect
to a person if the Secretary--
(1) determines that such a waiver is in the national
interests of the United States; and
(2) submits to Congress a notification of the waiver and
the reasons for the waiver.
(f) Exception for Intelligence Activities.--This section
shall not apply with respect to 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 any authorized
intelligence activities of the United States.
(g) Exception Relating to Importation of Goods.--
(1) In general.--The authorities and requirements under
this section shall not include the authority or a requirement
to impose sanctions on the importation of goods.
(2) Good defined.--In this section, the term ``good'' means
any article, natural or manmade substance, material, supply,
or manufactured product, including inspection and test
equipment, and excluding technical data.

TITLE II--SPECIAL MEASURES FOR MODERN THREATS

SEC. 201. PROHIBITIONS OR CONDITIONS ON CERTAIN TRANSMITTALS
OF FUNDS.

Section 5318A of title 31, United States Code, is amended--
(1) in subsection (a)(2)(C), by striking ``subsection
(b)(5)'' and inserting ``paragraphs (5) and (6) of subsection
(b)''; and
(2) in subsection (b)--
(A) in paragraph (5), by striking ``for or on behalf of a
foreign banking institution''; and
(B) by adding at the end the following:
``(6) Prohibitions or conditions on certain transmittals of
funds.--If the Secretary finds a jurisdiction outside of the
United States, 1 or more financial institutions operating
outside of the United States, 1 or more types of accounts
within, or involving, a jurisdiction outside of the United
States, or 1 or more classes of transactions within, or
involving, a jurisdiction outside of the United States to be
of primary money laundering concern, the Secretary, in
consultation with the Secretary of State, the Attorney
General, and the Chairman of the Board of Governors of the
Federal Reserve System, may prohibit, or impose conditions
upon, certain transmittals of funds (as such term may be
defined by the Secretary in a special measure issuance, by
regulation, or as otherwise permitted by law), to or from any
domestic financial institution or domestic financial agency
if such transmittal of funds involves any such jurisdiction,
institution, type of account, class of transaction, or type
of account.''.

TITLE III--FUNDING

SEC. 301. ADEQUATE FUNDING TO PREVENT EVASION OF COUNTER-
TERRORISM SANCTIONS AND FINANCIAL CRIME
ENFORCEMENT.

There are authorized to be appropriated to the Secretary of
the Treasury such funds as are necessary to carry out the
purposes of this division.
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