HR 5490
Dismantle Foreign Scam Syndicates Act
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Bill overview
The Dismantle Foreign Scam Syndicates Act aims to combat widespread online financial scams targeting Americans, particularly those perpetrated by criminal syndicates operating from Southeast Asia. It establishes an interagency task force to investigate and dismantle these criminal networks, which often rely on forced labor of trafficking victims. The bill also mandates the President to impose sanctions on responsible foreign persons and requires the task force to submit regular reports to Congress detailing its efforts and identifying sanctioned individuals. Finally, it authorizes the Department of State to provide support services to victims of trafficking involved in these scams.
Key provisions
- Establishes an interagency Task Force to investigate and dismantle transnational criminal syndicates involved in online scam operations.
- Requires the President to impose sanctions on foreign persons responsible for online financial scams against U.S. nationals.
- Directs the Task Force to develop and submit a comprehensive strategy to combat scam centers and disrupt criminal entities.
- Authorizes the Department of State to provide trauma-informed care and support services to victims of trafficking in online scam centers.
- Mandates the Task Force to submit annual reports to Congress detailing its progress and identifying sanctioned individuals.
- Authorizes the imposition of sanctions on foreign persons involved in scam operations, utilizing existing sanctions authorities.
- Requires the Task Force to consult with law enforcement agencies, civil society organizations, and private sector actors.
- Provides for the sunset of the Task Force after seven years.
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119th CONGRESS — 1st Session
H. R. 5490
IN THE HOUSE OF REPRESENTATIVES
A BILL
To establish an interagency Task Force to dismantle and shut down transnational criminal syndicates perpetuating mass online scam operations against Americans.
This Act may be cited as the Dismantle Foreign Scam Syndicates Act
.
Congress makes the following findings:
The most common form of such financial scam is known as pig butchering
, Chinese criminal slang that describes how scammers develop a virtual relationship inducing them to invest ever larger sums into phony platforms, serving to ‘fatten’ their victims for the slaughter.
Crime syndicates use the forced labor of hundreds of thousands of victims of human trafficking to perpetrate such scams.
These victims themselves fall prey to false job advertisements before they are taken to a compound and forced to meet aggressive scam quotas under pain of violent punishment if they refuse.
scam centersare most prevalent across Burma, Laos, and Cambodia, corrupt and repressive countries where transparency is absent, rule of law is anemic and checks and balances are non-existent, and often operate as joint ventures between the Chinese criminal groups organizations and the autocratic governments.
American losses to these scams grew by 33 percent year-on-year in 2024.
Global losses are estimated to be higher than $60,000,000,000 annually.
Troubling links exist between the People’s Republic of China, Chinese criminal scam syndicates, and the corrupt local politicians enabling their rise.
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.
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.
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.
Responding comprehensively to PRC complicity in and instrumentalization of online scam operations.
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.
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.
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.
Each report submitted pursuant to subsection (a) shall be unclassified but may include a classified annex.
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.
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.
There is authorized to be appropriated $30,000,000 for the Department of State for each of the fiscal years 2026 and 2027 to develop, coordinate, and implement the strategy required by section 1(b)(1).
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).