[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3801 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
2d Session
S. 3801
To improve prohibitions on money laundering, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 5, 2026
Mr. Grassley (for himself and Ms. Klobuchar) introduced the following
bill; which was read twice and referred to the Committee on the
Judiciary
_______________________________________________________________________
A BILL
To improve prohibitions on money laundering, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

03492e0973fa49c14b7fd93280c721af01c2f6bba60c7901b6b441f6a549ff21

(a) Short Title.--This Act may be cited as the ``Combating Money
Laundering, Terrorist Financing, and Counterfeiting Act of 2026''.
(b) Table of Contents.--The table of contents for this Act is as
follows:

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19c160858a465c577e15f00dd0752538d167c3c30e24cc49745b2ff8613c0a80

value transfer systems, and closely related
transactions.

477c74287355f727a9bcffd5f5ebb5e80f05c0662f1bd383f2b034d65c818093

money laundering and counterfeiting
offenses.

0227c8ba22de70958ef2988c7773a12aa004de041c29045483dddd9ad1014c83

87868ed372309c1a160e9eea425a633ff556e8adac24dc0ed102210fb05cbf73

24253011a469718e280c9e4bb66f038a7f55dd54761791da44fb80d155c71f53

Section 5316 of title 31, United States Code, is amended by adding
at the end the following:
``(e) Monetary Instruments With Amount Left Blank.--For purposes of
this section, a monetary instrument in bearer form that has the amount
left blank, such that the amount could be filled in by the bearer, and
that is possessed by the bearer for the purpose of avoiding a reporting
requirement, shall be considered to have a value of more than $10,000
if the instrument was drawn on an account that contained, or was
intended to contain more than $10,000 at the time--
``(1) the instrument was transported; or
``(2) the instrument was negotiated or was intended to be
negotiated.''.

ccf13f66c40e8b5b95a25f73b34f0023b22e2035eee27ff28903e0374a232262

Section 5332(b) of title 31, United States Code, is amended--
(1) in paragraph (1), by striking ``5 years'' and inserting
``10 years'';
(2) in paragraph (2), by inserting ``a'' before
``sentence'';
(3) by redesignating paragraphs (3) and (4), as paragraphs
(4), and (5), respectively; and
(4) by inserting after paragraph (2) the following:
``(3) Fine.--
``(A) In general.--Whoever violates this section
shall be fined under title 18.
``(B) Enhanced fine for aggravated cases.--Whoever
violates this section while violating another law of
the United States, other than section 5316 or 5324(c)
of this title, or as a part of a pattern of any
unlawful activity, including a violation of section
5316 or 5324(c) of this title, shall be fined double
the amount provided in subsection (b)(3) or (c)(3) (as
applicable) of section 3571 of title 18.''.

adc70e320fb28358a8f3d7b3b21238f23709b0b750a5a6ac1b43411873f76501

AGGREGATED TRANSACTIONS.
Section 1957 of title 18, United States Code, is amended--
(1) by redesignating subsection (f) as subsection (g); and
(2) by inserting after subsection (e) the following:
``(f) In a prosecution for an offense under this section, the
Government may satisfy the $10,000 monetary transaction value
requirement under subsection (a) by showing that--
``(1) the monetary transaction involved the transfer,
withdrawal, encumbrance, or other disposition of more than
$10,000 from an account in which more than $10,000 in proceeds
of specified unlawful activity was commingled with other funds;
or
``(2) the defendant conducted a series of monetary
transactions in amounts of not more than $10,000 that--
``(A) exceeded $10,000 in the aggregate; and
``(B) were closely related to each other as
demonstrated by factors such as--
``(i) the time period between the
transactions;
``(ii) the identity of the parties
involved;
``(iii) the nature or purpose of the
transactions; and
``(iv) the manner in which the transactions
were conducted.''.

705551d79b2adcdc5433e76a99bcaec2ac5fea9724a7f97b82bacb579b551f5d

Section 1956 of title 18, United States Code, is amended--
(1) in subsection (h), by striking ``or section 1957'' and
inserting ``, section 1957, or section 1960''; and
(2) by adding at the end the following:
``(k) Multiple Violations.--Multiple violations of this section
that are part of the same scheme or continuing course of conduct may be
charged, at the election of the Government, in a single count in an
indictment or information.''.

53c22128efea20ac97b757aafcdf5fa29a2ffdf3a7e0319aaf68ad1a346bc6f0

(a) In General.--Section 1960 of title 18, United States Code, is
amended by striking subsections (a) and (b) and inserting the
following:
``(a) Offense.--
``(1) In general.--Whoever knowingly conducts, controls,
manages, supervises, directs, or owns all or part of a covered
money services business described under paragraph (2) shall be
punished as provided in subsection (b).
``(2) Money services businesses described.--A covered money
services business described in this paragraph is a covered
money services business that--
``(A) is operated without an appropriate license in
a State where such operation is punishable as a
misdemeanor or a felony under State law, whether or not
the person knows that the operation is required to be
licensed or that the operation is so punishable;
``(B) fails to comply with the money services
business registration requirements under section 5330
of title 31, or regulations prescribed under that
section, whether or not the person knows that the
operation is required to comply with those registration
requirements; or
``(C) otherwise engages in a transaction involving
funds that the person knows have been derived from a
criminal offense or are intended to be used to promote
or support unlawful activity.
``(b) Criminal Penalty.--Any person who violates--
``(1) subsection (a) shall be fined in accordance with this
title, imprisoned for not more than 5 years, or both; or
``(2) subsection (a) by conducting, controlling, managing,
supervising, directing, or owning all or part of a covered
money services business that engaged in activity as a covered
money services business involving more than $1,000,000 during a
12-month period, or by engaging in a transaction or
transactions involving more than $1,000,000 during a 12-month
period, shall be fined double the amount provided in subsection
(b)(3) or (c)(3) (as applicable) of section 3571, imprisoned
for not more than 10 years, or both.
``(c) Definitions.--In this section--
``(1) the term `covered money services business' means a
money services business that--
``(A) operates on behalf of the public; and
``(B) affects interstate or foreign commerce in any
manner or degree;
``(2) the term `money services business'--
``(A) has the meaning given the term in section
5330 of title 31 and any regulations prescribed under
that section; and
``(B) includes a person that engages in the
transfer, transportation, or exchange of currency,
funds, or value that substitutes for currency by any
and all means, even when not performed for profit; and
``(3) the term `State' means any State of the United
States, the District of Columbia, the Northern Mariana Islands,
and any commonwealth, territory, or possession of the United
States.''.
(b) Technical and Conforming Amendments.--
(1) Title 18, united states code.--
(A) Section heading.--Section 1960 of title 18,
United States Code, is amended in the section heading--
(i) by striking ``unlicensed'' and
inserting ``illegal''; and
(ii) by striking ``transmitting'' and
inserting ``services''.
(B) Table of sections.--The table of sections for
chapter 95 of title 18, United States Code, is amended
by striking the item relating to section 1960 and
inserting the following:
``1960. Prohibition of illegal money services businesses.''.
(2) Title 31, united states code.--
(A) Section 5330.--
(i) Headings.--Section 5330 of title 31,
United States Code, is amended--
(I) in the section heading, by
striking ``transmitting'' and inserting
``services'';
(II) in subsection (c)--
(aa) in the subsection
heading, by striking
``Transmitting'' and inserting
``Services'';
(bb) in paragraph (1), in
the paragraph heading, by
striking ``transmitting'' and
inserting ``services''; and
(cc) in paragraph (2), in
the paragraph heading, by
striking ``transmitting'' and
inserting ``services''; and
(III) in subsection (d)(1), in the
paragraph heading, by striking
``transmitting'' and inserting
``services''.
(ii) Text.--Section 5330 of title 31,
United States Code, is amended--
(I) by striking ``money
transmitting business'' each place that
term appears and inserting ``money
services business''; and
(II) in subsection (a)(3), by
striking ``money transmitting
businesses'' and inserting ``a money
services business''.
(B) Section 5336.--Section 5336(a)(11)(B)(vi) of
title 31, United States Code, is amended by striking
``money transmitting business'' and inserting ``money
services business''.
(C) Section 5362.--Section 5362 of title 31, United
States Code, is amended--
(i) by striking ``money transmitting
business'' each place that term appears and
inserting ``money services business''; and
(ii) in paragraph (11)(E), in the
subparagraph heading, by striking
``transmitting'' and inserting ``services''.
(D) Section 5363.--Section 5363(2) of title 31,
United States Code, is amended by striking ``money
transmitting business'' and inserting ``money services
business''.
(E) Table of sections.--The table of sections for
subchapter II of chapter 53 of title 31, United States
Code, is amended by striking the item relating to
section 5330 and inserting the following:
``5330. Registration of money services businesses.''.
(3) Federal deposit insurance act.--Section 21(b)(3)(A) of
the Federal Deposit Insurance Act (12 U.S.C. 1829b(b)(3)(A)) is
amended--
(A) in the matter preceding clause (i), by striking
``money transmitting businesses'' and inserting ``money
services businesses (as that term is defined in section
1960 of title 18, United States Code)''; and
(B) in clause (ii), by striking ``money
transmitting business'' and inserting ``money services
business''.

3300170208d54f1d7684c3c14fdb98693cbee5669d007e4b774209651846f94b

VALUE TRANSFER SYSTEMS, AND CLOSELY RELATED TRANSACTIONS.
The matter following section 1956(a)(1)(B)(ii) of title 18, United
States Code, is amended by striking ``For purposes of this paragraph, a
financial transaction'' and inserting ``For purposes of this paragraph
and section 1957, a financial transaction or a monetary transaction, as
applicable,''.

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MONEY LAUNDERING AND COUNTERFEITING OFFENSES.
(a) Currency Reporting Offenses.--Section 2516(1)(g) of title 18,
United States Code, is amended by striking ``or section 5324 of title
31, United States Code (relating to structuring transactions to evade
reporting requirement prohibited)'' and inserting ``or section 5324 or
5332 of that title (relating to evasion of Federal transaction
reporting requirements)''.
(b) Money Laundering.--Section 2516(1)(c) of title 18, United
States Code, is amended by inserting ``section 1960 (relating to
illegal money services businesses),'' before ``section 659''.
(c) Counterfeiting.--Section 2516(1)(d) of title 18, United States
Code, is amended by striking ``or 473'' and inserting ``473, 474, or
474A''.

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EVASION.
Section 1956(a)(2)(A) of title 18, United States Code, is amended--
(1) by inserting ``(i)'' before ``with the intent to
promote''; and
(2) by adding at the end the following:
``(ii) with the intent to engage in conduct
constituting a violation of section 7201 or 7206 of the
Internal Revenue Code of 1986; or''.

d4a9c7e315316e205798e7ec87819d667e75e3e8060ac748a334dcae243b6051

(a) In General.--Section 474(a) of title 18, United States Code, is
amended by inserting after the paragraph beginning ``Whoever has in his
control, custody, or possession any plate'' the following:
``Whoever, with intent to defraud, has custody, control, or
possession of any material, tool, machinery, or other equipment that
can be used to make, alter, forge, or counterfeit any obligation or
other security of the United States or any part of such obligation or
security, except under the authority of the Secretary of the Treasury;
or''.
(b) Foreign Obligations and Securities.--Section 481 of title 18,
United States Code, is amended by inserting after the paragraph
beginning ``Whoever, with intent to defraud'' the following:
``Whoever, with intent to defraud, has custody, control, or
possession of any material, tool, machinery, or other equipment that
can be used to make, alter, forge, or counterfeit any obligation or
other security of any foreign government, bank, or corporation; or''.
(c) Counterfeit Acts.--Section 470 of title 18, United States Code,
is amended by striking ``or 474'' and inserting ``474, or 474A''.
(d) Strengthening Deterrents to Counterfeiting.--Section 474A of
title 18, United States Code, is amended--
(1) in subsection (a), by inserting ``, custody,'' after
``control'';
(2) in subsection (b)--
(A) by inserting ``, custody,'' after ``control'';
and
(B) by striking ``any essentially identical feature
or device adapted to the making of any such obligation
or security,'' and inserting ``any material or other
thing made after or in similitude of any such
deterrent,'';
(3) by redesignating subsection (c) as subsection (d); and
(4) by inserting after subsection (b) the following:
``(c) Whoever has in his control, custody, or possession any
obligation or security of the United States or any foreign government
from which the ink or other distinctive counterfeit deterrent has been
completely or partially removed, except under the authority of the
Secretary of the Treasury, is guilty of a class B felony.''.

61aed8dcbf272a14c7ab8fe2217e067682a32035ee5508933ae1a06d93024cfa

Section 151 of the Foreign Relations Authorization Act, Fiscal
Years 1990 and 1991 (5 U.S.C. 5928 note) is amended by striking ``or
the United States Marshals Service'' and inserting ``the United States
Marshals Service, U.S. Immigration and Customs Enforcement, U.S.
Customs and Border Protection, or the United States Secret Service''.

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LAUNDERING.
Section 3056(b)(3) of title 18, United States Code, is amended--
(1) by inserting ``money laundering, structured
transactions, unlicensed money transmitting,'' after
``documents or devices,''; and
(2) by striking ``federally insured''.

bc687d8624d21664751c9b6df0838d150e0291a5c7a22907a46d54ef22706c03

(a) Definitions.--In this section--
(1) the term ``appropriate congressional committees''
means--
(A) the Committee on the Judiciary of the Senate;
(B) the Committee on Homeland Security and
Governmental Affairs of the Senate;
(C) the Caucus on International Narcotics Control
of the Senate;
(D) the Committee on Banking, Housing, and Urban
Affairs of the Senate;
(E) the Committee on the Judiciary of the House of
Representatives;
(F) the Committee on Homeland Security of the House
of Representatives; and
(G) the Committee on Financial Services of the
House of Representatives;
(2) the term ``drug kingpins, crime syndicates, and other
persons'', with respect to the use of remittances to finance
terrorism, narcotics trafficking, human trafficking, money
laundering, and other forms of illicit financing, domestically
or internationally, means any persons who--
(A) are connected to individuals and organizations
associated with financing terrorism, narcotics
trafficking, human trafficking, money laundering, and
other forms of illicit financing, domestically or
internationally; and
(B) have been designated as--
(i) a significant foreign narcotics
trafficker under the Foreign Narcotics Kingpin
Designation Act (21 U.S.C. 1901 et seq.);
(ii) a significant transnational criminal
organization under Executive Order 13581 (76
Fed. Reg. 44757, 84 Fed. Reg. 10255; relating
to blocking property of transnational criminal
organizations); or
(iii) a Specially Designated Global
Terrorist under Executive Order 13224 (66 Fed.
Reg. 49079, 67 Fed. Reg. 44751, 68 Fed. Reg.
4075, 70 Fed. Reg. 8499; relating to blocking
property and prohibiting transactions with
persons who commit, threaten to commit, or
support terrorism);
(3) the term ``human trafficking'' has the meaning given
the term ``severe forms of trafficking in persons'' in section
103 of the Trafficking Victims Protection Act of 2000 (22
U.S.C. 7102);
(4) the term ``money services business'' has the meaning
given the term in section 5330 of title 31, United States Code,
as amended by section 6(b)(2)(A); and
(5) the term ``money transmitting service'' has the meaning
given the term in section 5330 of title 31, United States Code.
(b) Analysis.--
(1) Requirement.--Not later than 1 year after the date of
enactment of this Act, the Secretary of the Treasury, in
consultation with the Attorney General, the Secretary of
Homeland Security, and the head of any other appropriate
Federal law enforcement agency, shall submit to the appropriate
congressional committees a threat and operational analysis of
the use of remittances by drug kingpins, crime syndicates, and
other persons to finance terrorism, narcotics trafficking,
human trafficking, money laundering, and other forms of illicit
financing, domestically or internationally.
(2) Contents.--The Secretary of the Treasury shall include
in the threat and operational analysis required under paragraph
(1) the following:
(A) Current and potential threats posed by
individuals and organized groups seeking--
(i) to exploit security vulnerabilities
with respect to remittances and money
transmitting services; or
(ii) to unlawfully use remittances to
finance terrorism, narcotics trafficking, human
trafficking, money laundering, or other forms
of illicit financing, domestically or
internationally.
(B) Methods and pathways used to exploit security
vulnerabilities.
(C) Challenges presented by identity theft in the
use of remittances and money transmitting services.
(D) Improvements needed to enhance cooperation
between and among Federal, State, and local officials,
including State regulators, State and local
prosecutors, and other law enforcement officials.
(E) Improvements needed to enhance cooperation
between money services businesses and Federal, State,
and local officials, including State regulators, State
and local prosecutors, and other law enforcement
officials.
(3) Analysis requirements.--In compiling the threat and
operational analysis required under paragraph (1), the
Secretary of the Treasury, in consultation with the Attorney
General, the Secretary of Homeland Security, and the head of
any other appropriate Federal law enforcement agency, shall
consider and examine the personnel needs, technology needs, and
infrastructure needs of Federal law enforcement agencies.
(c) Remittances Strategy and Implementation Plan.--
(1) In general.--Not later than 180 days after the date on
which the Secretary of the Treasury submits the threat analysis
under subsection (b), and every 5 years thereafter for 10
years, the Secretary of the Treasury, in consultation with the
Attorney General, the Secretary of Homeland Security, and the
head of any other appropriate Federal law enforcement agency,
shall submit to the appropriate congressional committees a
remittances strategy and implementation plan.
(2) Contents.--In preparing the remittances strategy and
implementation plan under paragraph (1), the Secretary of the
Treasury shall consider the following:
(A) The remittances threat and operational analysis
required under subsection (b), with an emphasis on
efforts to mitigate threats and challenges identified
in the analysis.
(B) Efforts to reduce the use of remittances and
money transmitting services by drug kingpins, crime
syndicates, and other persons to finance terrorism,
narcotics trafficking, human trafficking, money
laundering, and other forms of illicit financing,
domestically or internationally.
(C) Efforts to prevent human trafficking and the
unlawful movement of illicit drugs and other contraband
through the use of remittances and money transmitting
services, and standards against which the effectiveness
of those efforts may be determined.
(D) Efforts to focus collection and information
analysis to disrupt transnational criminal
organizations attempting to exploit security
vulnerabilities, and standards against which the
effectiveness of those efforts may be determined.
(E) Personnel, technology, and infrastructure needs
of Federal law enforcement agencies.
(F) Efforts to prevent, detect, investigate, and
mitigate money laundering activities through
remittances and money transmitting services, and
standards against which the effectiveness of those
efforts may be determined.
(G) The lawful use of remittances, the role that
remittances play in countries' economies, and how any
recommended measures would impose additional burdens on
remittances in light of their lawful uses.

dcb4c809e595bd3fa6fb0f2a1dbf9cb9d91686db8a54b7bed8a294fac40354c8

Nothing in this Act, or any amendment made by this Act, shall be
construed to apply to the authorized law enforcement, protective, or
intelligence activities of the United States or of an intelligence
agency of the United States.
<all>

82af4f2bf76b9bb44c293d5b68f08a53a72b360ce4a40ffc0c92be43097b0ba7

Combating Money Laundering, Terrorist Financing, and Counterfeiting Act of 2026 — S. 3801

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