S.Amdt. 3706

SA 3706. Mr. CORNYN (for himself and Mrs. Shaheen) submitted an
amendment intended to be proposed by him to the bill S. 2296, to
authorize appropriations for fiscal year 2026 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 end of title XII, add the following:

Subtitle F--Scam Compound Accountability and Mobilization Act

SEC. 1271. SHORT TITLE.

This subtitle may be cited as the ``Scam Compound
Accountability and Mobilization Act''.

SEC. 1272. SENSE OF CONGRESS.

It is the sense of Congress that--
(1) transnational cyber-enabled fraud, particularly
perpetrated from scam compounds in Southeast Asia, is a
growing threat to citizens of the United States, national
security, and economic interests globally, with the Federal
Bureau of Investigation reporting $13,700,000,000 in losses
in the United States due to cyber-enabled fraud in 2024,
including schemes commonly perpetrated by significant
transnational criminal organizations operating scam
compounds;
(2) significant transnational criminal organizations
responsible for a large proportion of these scam compounds
are affiliated with the People's Republic of China (PRC),
actively spread PRC propaganda, promote unification with
Taiwan, and have brokered projects for the Belt and Road
Initiative;
(3) significant transnational criminal organizations have
lured hundreds of thousands of human trafficking victims from
over 40 countries to scam compounds, primarily in Burma,
Cambodia, and Laos, for purposes of forced criminality;
(4) significant transnational criminal organizations are
expanding scam compounds internationally including in Africa,
the Middle East, South Asia, and the Pacific Islands, and
related money laundering, human trafficking and recruitment
fraud have occurred in Europe, North America, and South
America;
(5) the United States should redouble efforts to hold the
perpetrators and enablers of scam compound operations
accountable, including those involved in related money
laundering, human trafficking, and recruitment fraud, by
employing tools, such as targeted sanctions, visa
restrictions, and asset seizures;
(6) to effectively address cyber-enabled fraud originating
from scam compounds internationally, the United States
Government should work with partner governments, multilateral
institutions, civil society experts, and private sector
stakeholders to improve information sharing, strengthen
preventative measures, raise public awareness, and increase
coordination on law enforcement investigations and regulatory
actions; and
(7) survivors of human trafficking, including forced
criminality, require victim-centered support to ensure they
are not punished for offences that directly resulted from
being trafficked.

SEC. 1273. DEFINITIONS.

(a) In General.--In this subtitle:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Relations of the Senate;
(B) the Committee on Appropriations of the Senate;
(C) the Committee on the Judiciary of the Senate;
(D) the Committee on Banking, Housing, and Urban Affairs of
the Senate;
(E) the Select Committee on Intelligence of the Senate;
(F) the Committee on Foreign Affairs of the House of
Representatives;
(G) the Committee on Appropriations of the House of
Representatives;
(H) the Committee on the Judiciary of the House of
Representatives;
(I) the Committee on Financial Services of the House of
Representatives; and
(J) the Permanent Select Committee on Intelligence of the
House of Representatives.
(2) Cyber-enabled fraud.--The term ``cyber-enabled fraud''
means the use of the internet or other technology to commit
fraudulent activity, including the theft of money, data, or
identity or the creation of counterfeit goods or services.
(3) Enabling country.--The term ``enabling country'' means
a country where--

[[Page S5638]]

(A) government authorities actively or implicitly permit,
enable, or perpetuate scam compound operations; or
(B) ineffective law enforcement or a failure to enact
legislation intended to prevent facilitating services from
reaching scam compounds or significant transnational criminal
organizations enables scam compound operators to obtain
facilitating services.
(4) Forced criminality.--The term ``forced criminality''
means trafficking in persons for the purpose of exploitation
of victims through forcing or otherwise compelling them to
commit criminal acts for economic or other gains of
traffickers.
(5) Impacted country.--The term ``impacted country'' means
a country that is a significant--
(A) transit location for victims of human trafficking to
scam compounds;
(B) source location for victims of human trafficking for
scam compounds; or
(C) target of cyber-enabled fraud originating from scam
compounds internationally.
(6) Scam compound.--The term ``scam compound'' means a
physical installation where a significant transnational
criminal organization carries out cyber-enabled fraud
operations, frequently using victims of human trafficking and
forced criminality.
(7) Significant transnational criminal organization.--The
term ``significant transnational criminal organization''
means a group of persons that--
(A) includes one or more foreign person;
(B) engages in or facilitates an ongoing pattern of serious
criminal activity involving the jurisdictions of at least two
foreign states or one foreign state and the United States;
and
(C) threatens the national security, foreign policy, or
economy of the United States.
(8) Strategy.--The term ``Strategy'' means the strategy to
counter scam compounds and hold significant transnational
criminal organizations accountable required under section
1274.
(b) Rule of Construction.--The definitions under this
subtitle are exclusive to this subtitle and may not be
construed to affect any other provision of United States
criminal law.

SEC. 1274. STRATEGY TO COUNTER SCAM COMPOUNDS AND HOLD
SIGNIFICANT TRANSNATIONAL CRIMINAL
ORGANIZATIONS ACCOUNTABLE.

(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Secretary of State, in
consultation with the Attorney General, the Secretary of the
Treasury, and other Federal departments and agencies as
designated by the President, shall submit to the appropriate
congressional committees a comprehensive strategy to counter
scam compounds and hold significant transnational criminal
organizations accountable.
(b) Contents.--The Strategy shall--
(1) articulate a comprehensive problem statement
identifying the structural vulnerabilities exploited by
significant transnational criminal organizations operating
scam compounds;
(2) develop a comprehensive list of enabling countries and
impacted countries;
(3) identify all active executive branch foreign assistance
programs and diplomatic efforts underway to address scam
compounds, significant transnational criminal organizations
connected to scam compounds, and related money laundering,
human trafficking and forced criminality, including efforts
with enabling countries and impacted countries;
(4) identify foreign assistance resources needed to fully
implement the Strategy and any obstacles to the response of
the Federal Government to scam compounds, including
coordination with partner governments, to address the human
trafficking, including forced criminality, and money
laundering that facilitates and sustains scam compound
operations;
(5) include objectives, activities, and performance
indicators regarding the response of the Federal government
to scam compounds, including--
(A) the prevention of recruitment fraud and human
trafficking, including by--
(i) engaging private sector entities operating internet
platforms or other services that can be abused or exploited
to perpetrate recruitment fraud, human trafficking or cyber-
enabled fraud;
(ii) raising awareness among at-risk populations to
identify common recruitment fraud strategies and improve due
diligence and self-protection measures;
(iii) urging governments to monitor and enforce laws
against fraudulent and unlawful recruitment practices; and
(iv) sharing information and building awareness among
foreign counterparts, including law enforcement and border
officials, to identify potential human trafficking victims;
(B) the support for survivors of human trafficking and
forced criminality under the direction of the Ambassador at
Large to Monitor and Combat Trafficking in Persons;
(C) the enhancement of coordination and strengthening the
capabilities of partner governments and law enforcement
agencies;
(D) the use of sanctions, visa restrictions, and other
accountability measures against enabling countries,
significant transnational criminal organizations, and related
third-party facilitators of scam compound operations;
(E) the support of partner governments in countering
corruption and money laundering related to scam compound
operations; and
(F) the investigation of PRC connections to significant
transnational criminal organizations operating scam
compounds.

SEC. 1275. ESTABLISHING A TASK FORCE TO IMPLEMENT THE
STRATEGY.

(a) In General.--Not later than 90 days after submitting
the Strategy pursuant to section 1274(a), the Secretary of
State and the Attorney General, in consultation with the
Secretary of the Treasury and other Federal departments and
agencies designated by the President, shall establish an
interagency task force (referred to in this section as the
``Task Force'')--
(1) to coordinate the implementation of the Strategy;
(2) to conduct regular monitoring and analysis of scam
compound operations internationally;
(3) to track and evaluate progress toward the objectives,
activities, and performance indicators of the Strategy
described in section 1274(b)(5); and
(4) to update the Strategy, in consultation with the
appropriate congressional committees, as needed.
(b) Annual Reviews and Reports.--Not later than one year
after the establishment of the Task Force, and not less
frequently than annually thereafter, the Secretary of State
and the Attorney General, in consultation with the Secretary
of the Treasury and the heads of other Federal departments
and agencies as designated by the President, shall--
(1) conduct a status review of the Strategy and the overall
state of scam compounds operated by significant transnational
criminal organizations;
(2) include a list of enabling countries and impacted
countries; and
(3) submit the results of such review in a public report to
the appropriate congressional committees, which may contain a
classified annex.
(c) Task Force Termination.--The Task Force shall terminate
six years after the date of its establishment.

SEC. 1276. STRENGTHENING TOOLS TO DISMANTLE SCAM COMPOUNDS
AND HOLD SIGNIFICANT TRANSNATIONAL CRIMINAL
ORGANIZATIONS ACCOUNTABLE.

(a) Imposition of Sanctions With Respect to Significant
Actors in Scam Compound Operations.--Beginning on and after
the date that is 180 days after the date of the enactment of
this Act, the President may impose the sanctions described in
subsection (b) with respect to any foreign person that the
President determines--
(1) has materially assisted in, or provided significant
financial or technological support to, or provided
significant goods or services in support of, the activities
of international scam compounds or enabling services,
including recruitment fraud, human trafficking (including
forced criminality), cyber-enabled fraud, or money-
laundering; or
(2) owns, controls, directs, or acts for or on behalf of, a
significant scam compound operation or enabling service,
including recruitment fraud, human trafficking (including
forced criminality), cyber-enabled fraud, or money-
laundering.
(b) Sanctions Described.--The President may exercise of all
powers granted to the President under the International
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to the
extent necessary to block and prohibit all transactions in
all property and interests in property of a foreign person
described in subsection (a), including, to the extent
appropriate, the vessel of which the person is the beneficial
owner, if such property or 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.
(c) Implementation; 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
and 1704) to carry out this section.
(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 any
person who violates, attempts to violate, conspires to
violate, or causes a violation of any prohibition of this
section, or an order or regulation prescribed under this
section, to the same extent that such penalties apply to a
person that commits an unlawful act described in section
206(a) of such Act (50 U.S.C. 1705(a)).
(d) Intelligence and Law Enforcement Activities.--Sanctions
authorized under this section shall not apply with respect
to--
(1) 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
(2) any authorized intelligence or law enforcement
activities of the United States.
(e) Semiannual Report.--Not later than 180 days after the
date of the enactment of this Act, and every 180 days
thereafter, the President shall submit a report to the
appropriate congressional committees that--
(1) identifies all foreign persons the President has
sanctioned pursuant to the authorities under this section;
and
(2) the dates on which sanctions were imposed.
(f) Exception Relating to Importation of Goods.--
(1) In general.--A requirement to block and prohibit all
transactions in all property and interests in property
pursuant to subsection (b) shall not include the authority or

[[Page S5639]]

a requirement to impose sanctions on the importation of
goods.
(2) Defined term.--In this subsection, the term ``good''
means any article, natural or manmade substance, material,
supply, or manufactured product, including inspection and
test equipment, and excluding technical data.
(g) Waiver.--
(1) In general.--The President may waive the application of
sanctions under this section with respect to a foreign person
or a foreign financial institution if the President
determines that such waiver is in the national interest of
the United States.
(2) Report.--Not later than 15 days before granting a
waiver pursuant to paragraph (1), the President shall submit
a report to the appropriate congressional committees that
includes--
(A) the name of the individual or institution that is
benefitting from such waiver; and
(B) if the beneficiary is an individual, a detailed
justification explaining how the waiver serves the national
security interests of the United States.
(h) Sunset.--This subtitle shall cease to be effective
beginning on the date that is 7 years after the date of the
enactment of this Act.
______