HR5490-119

1. Short title This Act may be cited as the Dismantle Foreign Scam Syndicates Act.

3. Statement of policy It shall be the policy of the United States to comprehensively combat the transnational organized criminals operating human trafficking compounds primarily in Southeast Asia to perpetrate large-scale online scams against the American people.

4. Task Force Not later than 30 days after the date of the enactment of this Act, the President shall establish an interagency Task Force responsible for leading a whole-of-government effort to dismantle and shut down transnational criminal syndicates perpetuating mass online scam operations against Americans through the operation of large-scale scam compounds fueled by the forced labor of victims of trafficking in persons. The Task Force shall— not later than 180 days after the date of the enactment of this Act, develop and submit to the appropriate congressional committees a comprehensive United States Government strategy to shut down online scam centers, prevent their further proliferation, disrupt and dismantle transnational criminal entities and human traffickers involved in operating such centers, and hold accountable corrupt officials, state, and non-state actors enabling such entities and traffickers for the purpose of incentivizing cooperation; and coordinate and oversee implementation of such strategy. The Task Force shall— be chaired by the Secretary of State (or the Secretary’s designee); meet on a regular basis at the call of the Chair; and be comprised of the heads (or the heads’ designees) of— the Department of State, including the Bureau of International Narcotics and Law Enforcement Affairs, the Bureau of East Asian and Pacific Affairs, and the Office to Monitor and Combat Trafficking in Persons; the Department of Justice, including the Federal Bureau of Investigation; the Department of Homeland Security, including the U.S. Secret Service and Homeland Security Investigations; and the Department of the Treasury, including the Office of Terrorism and Financial Intelligence, the Office of Foreign Assets Control, and Financial Crimes Enforcement Network. The heads (or the heads’ designees) of the following entities are authorized to be members of the Task Force: The U.S. Securities and Exchange Commission. The Federal Trade Commission. The Federal Communications Commission. Any other department, agency, or entity the President determines to be relevant. The intelligence community is authorized to provide support to the Task Force. To ensure proper coordination and effective interagency action, each Federal department or agency represented on the Task Force shall fully share— all relevant data with the Task Force; and all information regarding the department or agency’s plans, before and after final agency decisions are made, on all matters relating to actions regarding combating online scams. The Task Force or representatives thereof shall— consult quarterly with United States State and local law enforcement entities and stakeholder organizations with firsthand expertise in reporting and combatting online scam operations, cyberscams known as pig butchering scams, and other kinds of cyberscams, and recovering stolen crypto assets, and incorporate their feedback and recommendations to the maximum extent feasible; consult regularly with U.S. non-governmental organizations with expertise in countering trafficking in persons or anti-corruption, as appropriate; and develop partnerships with relevant private sector actors, including banks, social media platforms, online dating applications, telecommunication carriers, cryptocurrency exchanges, internet service providers, applications stores, search engines, and search optimization companies, for the purpose of better disrupting the enabling infrastructure of scam compounds, operations, and syndicates. The Task Force shall terminate on the date that is seven years after the date of the enactment of this Act.

5. Elements of comprehensive strategy The strategy required by section 1(b)(1) shall incorporate the following objectives: Bringing pressure to bear on foreign governments, in coordination with allies and partners to the greatest extent possible, that are complicit in, tolerant of, or uncooperative in combatting online scam operations. Investigating the People’s Republic of China’s (PRC) involvement in the origin and perpetuation of online scam operations, including through links between Chinese Communist Party officials and criminal organizations, deepening regional security influence, and selective crackdowns that incentivize the targeting of Americans. Investigating the Burmese military’s involvement in allowing, neglecting, and profiting from online scam operations in Burma, and the importance of resolving the instability and violence in Burma to stop the unfettered operation of scam centers in Burma. Responding comprehensively to PRC complicity in and instrumentalization of online scam operations. Reducing the power, influence, and scope of transnational criminal organizations and operations in Southeast Asia and wherever else they may propagate. Building the capacity of trusted foreign law enforcement partners to degrade, disrupt, and shut down online scam centers and prevent their proliferation, including through training in digital forensics, anti-money laundering, and border patrol. Building the capacity of trusted foreign law enforcement partners to screen for and protect victims of trafficking in persons in a trauma-informed manner, prosecute traffickers, and prevent trafficking into online scam centers, including through public awareness campaigns. Imposing sanctions or other relevant designations, comprehensively and in coordination with allies and partners to the greatest extent possible, on the perpetrators and enablers of online scams, using relevant transnational organized crime, corruption, human rights, and trafficking in persons authorities. Advocating for the greylisting or blacklisting, as appropriate, of countries involved in state-sponsored scam operations, including Cambodia, at the Financial Action Task Force. Harnessing offensive cyber capabilities to degrade online scam centers’ operations. Recovering and returning stolen assets of defrauded United States persons. Integrating data collection, analysis, and response mechanisms across Federal, State, and local agencies, including by assessing if any existing relevant Fusion Centers could be leveraged to combat online scam centers. Convening a coalition of like-minded foreign allies and partners to combat online scam centers, including through the establishment of similar task forces or working groups, the compilation and sharing of data, and collaboration regarding the indictment of key actors and enablers. The Task Force shall develop measurable indicators of the success of the strategy required by section 1731(b)(1), which may include persons sanctioned, arrest warrants or indictments issued, arrests made, U.S. losses mitigated, and the number of victims of trafficking in persons rescued, and known scam centers reduced, in comparison to the previous year.

6. Annual report to Congress Not later than 360 days after the date of the submission of the strategy required by section 1(b)(1), and annually thereafter for five years, the Task Force shall submit to the appropriate congressional committees a report that includes, for the previous year the following: A list of all foreign persons sanctioned by the United States for being responsible for, complicit in, or responsible for ordering, controlling, or otherwise directing, online financial scams against United States nationals. For the foreign persons listed in paragraph (1), an assessment and review of their ongoing involvement in the operation of scam centers, including an identification of entities in particular from within the People’s Republic of China that aid or abet such foreign persons. An estimate of how much money was stolen from United States nationals through scams emanating from online scam centers, including as a percentage of the estimated total amount stolen through such scams globally. An estimate of how many stolen funds were intercepted, seized, or returned. An estimate of how many victims of trafficking in persons were employed in online scam centers. An estimate of the total number of people involved in operating or supporting the operation of scam centers. A list of known online scam centers. A description of if, where, and how online scam centers and operations have proliferated globally. Recommendations on the kinds of programs the Department of State should support in order to effectively implement the strategy described in subsection (c), including the level of appropriations such programs would require. Any other measures the Task Force determines appropriate to include. Each report submitted pursuant to subsection (a) shall be unclassified but may include a classified annex. The Task Force shall consult regularly with the appropriate congressional committees on its efforts to implement the strategy required by section 1(b)(1), including potential updates. Such consultations should include descriptions of the Task Force’s periodic consultations with local law enforcement agencies and civil society organizations and any incorporated recommendations, as well as recommendations for strengthening the Task Force’s capability to effectively shut down online scam centers, dismantle criminal scam organizations, and recoup stolen U.S. assets. Such consultations may take the form of briefings.

7. Imposition of sanctions Not later than 180 days after the date of the enactment of this Act, the President shall, in accordance with the strategy required by section 1(b)(1)— determine whether each foreign person listed in subsection (d) meets the statutory criteria for the imposition of sanctions under one or more of the sanctions programs and authorities listed in subsection (c); pursuant to paragraph (1), impose applicable sanctions against such foreign persons determined to meet such criteria for imposition of sanctions; and submit to the appropriate congressional committees a report containing— a list of all foreign persons determined to meet such criteria; and for any foreign person listed in subsection (d) that is not determined to meet the criteria for the imposition of sanctions under one or more of the sanctions programs and authorities listed in subsection (c), a complete justification of such a non-determination or decision to otherwise not apply the sanctions authorized by such sanctions programs and authorities. The President may waive the imposition of sanctions with respect to a foreign person listed in subsection (d) on or after the date that is 15 days after the President— determines that such a waiver is vital to the national security interests of the United States; and submits to the appropriate congressional committees the reasons for that determination. The sanctions listed in this subsection are the sanctions described in the following: Sections 1262 through 1264 of the Global Magnitsky Human Rights Accountability Act (22 U.S.C. 10101 et seq.). Section 111 of the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7108). Executive Order 13581, relating to Transnational Criminal Organization Sanctions. The foreign persons listed in this subsection are the following: Aik Paung. Benjamin Mauerberger. Chen Xiuling. D. Chen Zhi. Chou Bun Eng. Dy Vichea. Edward Lee. Gabriel Tan. Honn Sorachna. Hun To. Ing Dara. Kok An. Kuoch Chamrouen. Li Xiong. Long Dimanche. Ma Dongli. Michael Chiam. Mote Thun. Neth Savoeun. Rithy Raksmei. Sai Aung Lin. Sai Kyaw Hla. Sar Sokha. Saw Min Min Oo. Su Zhongkian. Yan Borith. Yan Narong. Yan Sathya. Yim Leak. Yu Jianjun. Yu Lingxiong. Zhong Baojia (also known as Wang Qiang). 9 Dynasty. Dongmei Group. Fully Light Group of Companies, LTD. Hongmen World Cultural and Historical Association. Huione Group. K99 Group. Prince Group Holding Company. Trans-Asia International Holding Group. Union Development Group. White Sands Palace Casino. Xinwang International. Any person, organization, or entity determined by the President, based on credible evidence, to be responsible for, complicit in, or responsible for ordering, controlling, or otherwise directing, online financial scams against United States nationals, including those scams originating from compounds in Southeast Asia in which victims of severe forms of trafficking in persons are forced to engage in illegal scam activity. In accordance with section 102(b)(19) of the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7101(b)(19)), no person determined by the President to be a victim of trafficking in persons shall be considered to be a foreign person listed in this subsection for purposes of imposition of sanctions under this section.

8. Programs to support victims of forced criminality The Secretary of State is authorized to carry out programs, out of the funds authorized to be appropriated by section 6 and in accordance with section 106(a) of the Trafficking Victims Protection Act of 2000 (22 U.S.C. 7105(a)), to provide trauma-informed care, shelter, reintegration, and support services for victims of trafficking in persons within online scam centers. The Task Force shall ensure programs authorized by subsection (a) are designed and implemented in a manner that prevents revictimization and gains information and evidence critical to understanding online scam centers’ operations and prosecuting scammers.

10. Definitions In this Act— the term appropriate committees of Congress means— the Committee on Foreign Affairs of the House of Representatives; and the Committee on Foreign Relations of the Senate; and the term intelligence community has the meaning given that term in section 3 of the National Security Act of 1947 (50 U.S.C. 3003).