U.S. Lawmakers Propose Bill to Fight Terrorism Financing
A bipartisan group of U.S. lawmakers has introduced a bill called the Terrorist Financing Prevention Act of 2023. Its purpose is to crack down on terrorist organizations and foreign parties that facilitate financial transactions with terrorists. The legislation would apply sanctions to these entities and provide additional resources to the Treasury Department to address emerging threats involving digital assets.
Expanding Sanctions
The bill aims to expand the scope of sanctions that are currently imposed on terrorist groups like Hezbollah to cover all U.S.-designated Foreign Terrorist Organizations (FTOs), including Hamas, and other foreign parties controlled by or acting on behalf of these FTOs.
Stopping Funding at the Source
The Terrorism Financing Prevention Act would sanction foreign financial institutions and digital asset companies that assist terrorist organizations. By doing so, it seeks to cut off funding for these organizations, ultimately saving lives.
Treasury Department’s Tools
The bill also seeks to bolster the tools of the Treasury Department to protect national and economic security. It aims to force foreign financial institutions and crypto firms to choose between doing business with terrorist organizations or maintaining access to the U.S. financial system.
Identifying and Sanctioning
Under the proposed legislation, the U.S. Department of the Treasury would be required to identify foreign banks or digital asset transaction facilitators that knowingly facilitate transactions with FTOs or related parties. Once identified, sanctions would be imposed, restricting their use of U.S. correspondent bank accounts or barring their digital asset transactions with U.S. persons.
Enhancement of FinCEN’s Tools
The bill includes a provision from the previously introduced CANSEE Act. This provision would equip the Financial Crimes Enforcement Network (FinCEN) with the necessary tools to address threats involving digital assets and non-traditional finance networks.
Closing Thoughts
The recent attacks by Hamas on Israel have underscored the urgency of countering cryptocurrency’s role in terrorism financing. By expanding financial sanctions and providing additional resources, the proposed legislation aims to combat terrorism and address emerging threats involving digital assets.
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