Grassley, Klobuchar Lead Bipartisan Crack Down on Money Laundering

WASHINGTON – Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) and Sen. Amy Klobuchar (D-Minn.) reintroduced the Combating Money Laundering, Terrorist Finance and Counterfeiting Act to enhance criminal money laundering statutes.

“Criminal enterprises and terrorist organizations depend on ill-begotten cash to carry out their dark deeds. As money laundering methods have evolved over time, so must the government’s efforts to exact justice,” Grassley said. “Our bipartisan bill would enhance enforcement measures and penalties, ensuring law enforcement has the tools they need to track down dirty money, hold criminals accountable and prevent further crimes.”

“As criminals and terrorist organizations develop new methods to launder money, we must provide our law enforcement with the tools they need to keep American communities safe. This bipartisan legislation makes necessary updates to anti-money laundering statutes and counterfeiting laws, ensuring the law enforcement community can stay one step ahead of those working to undermine our nation’s safety and security,” Klobuchar said.

The legislation is endorsed by the Fraternal Order of Police, the National Association of Assistant U.S. Attorneys, the National Association of Police Organizations and the National District Attorneys Association.

“By clarifying the law in response to recent court decisions, strengthening penalties and expanding investigative authorities, this legislation will restore critical law enforcement tools and help disrupt transnational criminal organizations. The Fraternal Order of Police strongly supports this bill, which would prevent criminals and terrorists from profiting from their crimes and protect public safety and national security. We are grateful for the leadership of Chairman Grassley and Senator Klobuchar on this legislation, and we look forward to working with them,” said Patrick Yoes, President of the Fraternal Order of Police.

“The National Association of Assistant United States Attorneys supports the Combatting Money Laundering, Terrorist Financing and Counterfeiting Act because it closes critical gaps in federal money-laundering law that have made complex financial crimes harder to prosecute. By clarifying intent standards, addressing informal and unlicensed money transfer systems and allowing related laundering transactions to be charged more effectively, the bill gives career prosecutors clearer tools to hold criminals accountable. These targeted reforms will strengthen investigations, improve prosecutorial clarity and better reflect how modern money-laundering schemes actually operate,” said the National Association of Assistant U.S. Attorneys.

Specifically, the Combating Money Laundering, Terrorist Finance and Counterfeiting Act would:

• Update counterfeiting laws to prohibit state-of-the-art counterfeiting methods;
• Increase penalties for bulk cash smuggling;
• Ensure money laundering laws apply to informal value transfer systems used by drug traffickers and terrorists;
• Prohibit the cross-border shipment of blank checks for the purpose of evading reporting requirements;
• Establish a new money laundering violation that prohibits the transfer of funds into or out of the United States with the intent to violate U.S. income tax laws;
• Prohibit conspiracies to create illegal money services businesses;
• Grant wiretapping authority to investigate currency reporting, bulk cash smuggling, illegal money services businesses and counterfeiting offenses;
• Grant the U.S. Secret Service the explicit authority to investigate ransomware crimes and other uses of unlicensed money transmitting; and
• Update the Federal Deposit Insurance Act’s recordkeeping requirements to ensure compliance by financial institutions.

Bill text is available HERE.

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