S.Amdt. 3003

SA 3003. Mr. WARNER (for himself, Mr. Rounds, Mr. Reed, and Mr.
Romney) submitted an amendment intended to be proposed by him to the
bill S. 4638, to authorize appropriations for fiscal year 2025 for
military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe military personnel strengths for such fiscal year, and for
other purposes; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. ___. TERRORIST FINANCING PREVENTION.

(a) Definitions.--In this section:
(1) Digital asset.--Except as provided by the Secretary by
rule, the term ``digital asset'' means any digital
representation of value that is recorded on a
cryptographically secured distributed ledger or any similar
technology.
(2) Foreign digital asset platform.--The term ``foreign
digital asset platform'' means any foreign person or group of
foreign persons that, as determined by the Secretary, engages
in facilitating the exchange, purchase, sale, custody,
transfer, issuance, or lending of digital assets.
(3) 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.
(4) Foreign person.--The term ``foreign person'' means an
individual or entity that is not a United States person.
(5) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(6) Specially designated global terrorist; specially
designated global terrorist organization.--The terms
``specially designated global terrorist'' and ``specially
designated global terrorist organization'' mean an individual
or organization, respectively, that has been designated as a
specially designated global terrorist by the Secretary of
State, 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).
(7) 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.
(8) Hamas.--The term ``Hamas'' means--
(A) the entity known as Hamas and designated by the
Secretary of State as a foreign terrorist organization
pursuant to section 219 of the Immigration and Nationality
Act (8 U.S.C. 1189); or
(B) any foreign person identified as an agent or
instrumentality of Hamas on the list of specially designated
nationals and blocked persons maintained by the Office of
Foreign Asset Control of the Department of the Treasury, the
property or interests in property of which are blocked
pursuant to the International Emergency Economic Powers Act
(50 U.S.C. 1701 et seq.).
(9) Palestine islamic jihad.--The term ``Palestine Islamic
Jihad'' means--
(A) the entity known as Palestine Islamic Jihad and
designated by the Secretary of State as a foreign terrorist
organization pursuant to section 219 of the Immigration and
Nationality Act (8 U.S.C. 1189); or
(B) any foreign person identified as an agent or
instrumentality of Palestine Islamic Jihad on the list of
specially designated nationals and blocked persons maintained
by the Office of Foreign Asset Control of the Department of
the Treasury, the property or interests in property of which
are blocked pursuant to the International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.).
(10) Yemeni houthi.--The term ``Yemeni Houthi'' means--
(A) the entity known as Houthi or Ansarallah and designated
by the Secretary of State as a specially designated global
terrorist organization; or
(B) any foreign person identified as an agent or
instrumentality of Houthi or Ansarallah on the list of
specially designated nationals and blocked persons maintained
by the Office of Foreign Asset Control of the Department of
the Treasury, the property or interests in property of which
are blocked pursuant to the International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.).
(b) Sanctions With Respect to Foreign Financial
Institutions and Foreign Digital Asset Platforms That Engage
in Certain Transactions.--
(1) Mandatory identification.--Not later than 60 days after
the date of enactment of this Act, and periodically
thereafter, the Secretary, in consultation with the Secretary
of State, shall, to the fullest extent possible, identify and
submit to the President a report identifying any foreign
financial institution or foreign digital asset platform that
has knowingly--
(A) facilitated a significant transaction with--
(i) the Islamic Revolutionary Guards Corps;
(ii) Hamas;
(iii) Palestinian Islamic Jihad;
(iv) Yemeni Houthis;
(v) any person identified as a specially designated global
terrorist on the list of specially designated nationals and
blocked persons maintained by the Office of Foreign Assets
Control of the Department of the Treasury and 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.);
(vi) a specially designated global terrorist organization;
or
(vii) 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
(B) engaged in money laundering to carry out an activity
described in subparagraph (A).
(2) Imposition of sanctions with respect to a foreign
financial institution or foreign digital asset platform.--The
President may impose 1 or more of the sanctions described in
paragraph (3) with respect to a foreign financial institution
or foreign digital asset platform identified under paragraph
(1).
(3) Sanctions described.--
(A) Blocking of property, digital assets, and related
technologies.--The President may, pursuant to the
International Emergency Economic Powers Act (50 U.S.C. 1701
et seq.), block and prohibit all transactions in all property
and interests in property of the foreign financial
institution or foreign digital asset platform if such
property and 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.
(B) Restrictions on providing accounts.--The President may
prohibit, or impose conditions on, the opening or maintaining
in the United States of an operational or business account at
a financial institution by the foreign financial institution
or foreign digital asset platform.
(C) Inclusion on entity list.--The President may include
the foreign financial institution or foreign digital asset
platform on the Entity List maintained by the Bureau of
Industry and Security of the Department of Commerce and set
forth in Supplement No. 4 to part 744 of title 15, Code of
Federal Regulations, for activities contrary to the national
security or foreign policy interests of the United States.
(D) Loans from united states financial institutions.--The
President may prohibit any United States financial
institution from making loans or providing credits to the
foreign financial institution or foreign digital asset
platform in an amount totaling more than $10,000,000 in any
12-month period unless the foreign financial institution or
foreign digital asset platform is engaged in activities to
relieve human suffering and the loans or credits are provided
for such activities.
(E) Procurement sanction.--The United States Government may
not procure, or enter into any contract for the procurement
of, any goods or services from the foreign financial
institution or foreign digital asset platform.
(F) Foreign exchange.--The President may, pursuant to such
regulations as the President may prescribe, prohibit any
transactions in foreign exchange that are subject to the
jurisdiction of the United States and in which the foreign
financial institution or foreign digital asset platform has
any interest.
(G) Financial institution transactions.--The President may,
pursuant to such regulations as the President may prescribe,
prohibit any transfers of credit or payments between
financial institutions or by, through, or to any financial
institution, to the extent that such transfers or payments
are subject to the jurisdiction of the United States and
involve any interest of the foreign financial institution or
foreign digital asset platform.
(H) Ban on investment in platform.--The President may,
pursuant to such regulations or guidelines as the President
may prescribe, prohibit any United States person from
investing in or purchasing significant amounts of equity or
debt instruments of the foreign financial institution or
foreign digital asset platform, or from investing in or
purchasing significant amounts of any digital assets

[[Page S5262]]

issued by the foreign financial institution or foreign
digital asset platform.
(I) Sanctions on principal executive officers.--The
President may impose on the principal executive officer or
officers of the foreign financial institution or foreign
digital asset platform, or on individuals performing similar
functions and with similar authorities as such officer or
officers, any of the sanctions under this paragraph.
(4) Implementation and penalties.--
(A) 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 subsection.
(B) 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.
(5) Waiver for national security.--The President may waive
the imposition of sanctions under this subsection with
respect to a person if the President--
(A) determines that such a waiver is in the national
interests of the United States; and
(B) submits to Congress a notification of the waiver and
the reasons for the waiver.
(6) Exceptions.--
(A) Intelligence activities.--This subsection 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.
(B) Law enforcement activities.--Sanctions under this
section shall not apply with respect to any authorized law
enforcement activities of the United States.
(C) United states government activities.--Nothing this
subsection shall prohibit transactions for the conduct of the
official business of the Federal Government by employees,
grantees, or contractors thereof.
(7) Rule of construction.--Nothing in this subsection shall
be construed to authorize the imposition of any sanction
pursuant to paragraph (2) on a United States person.
(c) Special Measures for Modern Threats.--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 with respect to terrorist
financing, 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.''.
(d) Funding.--There is authorized to be appropriated to the
Secretary such funds as are necessary to carry out the
purposes of this section.
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