119th Congress (2025-2026)

HR 1577

Stop Fentanyl Money Laundering Act of 2025

Passed Committee

Jurisdiction

US Congress

Session

119th Congress (2025-2026)

Official source

Chamber

House

Session

119th Congress (2025-2026)

Jurisdiction

US Congress

Bill overview

The Stop Fentanyl Money Laundering Act of 2025 aims to combat the use of financial systems to fund the illicit trade of fentanyl and other synthetic opioids. It authorizes the Treasury Secretary to impose special measures on foreign financial institutions or transactions deemed to be of primary money laundering concern related to these drugs. The act also directs the Financial Crimes Enforcement Network (FinCEN) to issue updated advisories to financial institutions about identifying and reporting suspicious activity linked to Chinese money laundering and narcotics trafficking, and to provide guidance for filing suspicious transaction reports.

Key provisions

Authorizes the Treasury Secretary to require domestic financial institutions to take special measures against foreign entities involved in fentanyl money laundering.
Directs FinCEN to update and issue advisories to financial institutions on identifying Chinese professional money laundering related to fentanyl trafficking.
Requires FinCEN to issue guidance to financial institutions for filing suspicious transaction reports related to suspected narcotics trafficking.
Establishes a process for classifying information related to money laundering concerns and submitting it to judicial review.
Provides for penalties and civil injunctions for violations of Treasury orders and regulations.
Expands the application of certain national defense authorization act exemptions and prohibitions to reports related to the act.
Directs the Director of FinCEN to prioritize research into suspicious transactions linked to narcotics trafficking.

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Legislative history

2025-02-25House

Referred to the House Committee on Financial Services.

2025-02-25

Introduced in House

2025-02-25

Introduced in House

2025-03-05House

Ordered to be Reported (Amended) by the Yeas and Nays: 49 - 0.

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Feb 25, 2025XMLView source

119th CONGRESS — 1st Session

H. R. 1577

IN THE HOUSE OF REPRESENTATIVES

A BILL

To provide authority to the Secretary of the Treasury to take special measures against certain entities outside of the United States of primary money laundering concern in connection with illicit fentanyl and narcotics financing, and for other purposes.

1.Short title

This Act may be cited as the

Stop Fentanyl Money Laundering Act of 2025

2.Determination with respect to primary money laundering concern of illicit fentanyl and narcotics financing

(a)In generalIf the Secretary of the Treasury determines that one or more financial institutions operating outside of the United States, or one or more classes of transactions within, or involving, a jurisdiction outside of the United States, or one or more types of accounts within, or involving, a jurisdiction outside of the United States is of primary money laundering concern in connection with illicit fentanyl and narcotics financing, the Secretary of the Treasury may, by order, regulation, or otherwise as permitted by law, require domestic financial institutions and domestic financial agencies to take one or more of the special measures described in section 5318A(b) of title 31, United States Code.

(b)Classified informationIn any judicial review of a finding of the existence of a primary money laundering concern, or of the requirement for 1 or more special measures with respect to a primary money laundering concern made under this section, if the designation or imposition, or both, were based on classified information (as defined in section 1(a) of the Classified Information Procedures Act (18 U.S.C. App.)), such information may be submitted by the Secretary of the Treasury to the reviewing court ex parte and in camera. This subsection does not confer or imply any right to judicial review of any finding made or any requirement imposed under this section.

(c)Availability of information

The exemptions from, and prohibitions on, search and disclosure referred to in section 9714(c) of the National Defense Authorization Act for Fiscal Year 2021 (Public Law 116–283; 31 U.S.C. 5318A note) shall apply to any report or record of report filed pursuant to a requirement imposed under subsection (a). For purposes of section 552 of title 5, United States Code, this section shall be considered a statute described in subsection (b)(3)(B) of that section.

(d)Penalties

The penalties referred to in section 9714(d) of the National Defense Authorization Act for Fiscal Year 2021 (Public Law 116–283; 31 U.S.C. 5318A note) shall apply to violations of any order, regulation, special measure, or other requirement imposed under subsection (a), in the same manner and to the same extent as described in such section 9714(d).

(e)Injunctions

The Secretary of the Treasury may bring a civil action to enjoin a violation of any order, regulation, special measure, or other requirement imposed under subsection (a) in the same manner and to the same extent as described in section 9714(e) of the National Defense Authorization Act for Fiscal Year 2021 (Public Law 116–283; 31 U.S.C. 5318A note).

(f)Definitions

In this section, the terms domestic financial agency, domestic financial institution, financial agency, and financial institution have the meanings given those terms as used in section 9714 of the National Defense Authorization Act for Fiscal Year 2021 (Public Law 116–283; 31 U.S.C. 5318A note).

3.Trade-based money laundering advisory

Not later than one year following the date of the enactment of this Act, the Financial Crimes Enforcement Network shall update and issue a new advisory to financial institutions on identifying Chinese professional money laundering facilitating the trafficking of fentanyl and other synthetic opioids. Such advisory shall incorporate the following advisories:

(1)

FIN–2014–A005, entitled Update on U.S. Currency Restrictions in Mexico: Funnel Accounts and TBML;

(2)

FIN–2010–A001, entitled Advisory to Financial Institutions on Filing Suspicious Activity Reports regarding Trade-Based Money Laundering; and

(3)

FIN–2019–A006, entitled Advisory to Financial Institutions on Illicit Financial Schemes and Methods Related to the Trafficking of Fentanyl and Other Synthetic Opioids.

4.Treatment of transnational criminal organizations in suspicious transactions

(a)Filing instructionsNot later than 180 days after the date of the enactment of this Act, the Director of the Financial Crimes Enforcement Network shall issue guidance or instructions to United States financial institutions for filing reports on suspicious transactions required by section 5318(g) of title 31, United States Code, related to suspected narcotics trafficking by transnational criminal organizations.

(b)Prioritization of reports relating to narcotics trafficking or transnational criminal organizations

The Director shall prioritize research into reports described in subsection (a) that indicate a connection to trafficking of narcotics.

(c)Briefing to CongressNot later than one year after the date of enactment of this Act, the Director shall brief the Committees on Financial Services and Foreign Affairs of the House of Representatives and the Committees on Banking, Housing, and Urban Affairs and Foreign Relations of the Senate on the usefulness of the guidance or instructions issued under subsection (a).

HR 1577

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