Bill Summary
The "Combatting Money Laundering in Cyber Crime Act of 2025" aims to enhance the investigative powers of the United States Secret Service in tackling crimes associated with digital asset transactions. This includes addressing issues such as unlicensed money transmitting businesses, structured transactions, and fraud targeting financial institutions.
Key provisions of the bill include:
1. **Expansion of Investigative Authorities**: The Secret Service's authority to investigate has been broadened to include money laundering and structured transactions, providing them with greater tools to combat financial crimes in the digital realm.
2. **Extension of Reporting Requirements**: The bill extends the time frame for certain reporting obligations under financial regulations from 5 to 10 years, thereby allowing for a more comprehensive oversight of financial transactions.
3. **International Financial Sanctions**: It also modifies existing legislation to extend certain sanctions and enforcement measures related to international financial institutions from 6 to 10 years.
4. **Government Accountability Office Study**: The bill mandates a study by the Government Accountability Office (GAO) within a year of enactment, focusing on law enforcement's effectiveness in detecting and preventing money laundering linked to cybercrimes.
Overall, the legislation seeks to bolster the U.S. government's capacity to combat cybercrime and enhance the integrity of financial systems in the face of emerging digital threats.
Possible Impacts
The "Combatting Money Laundering in Cyber Crime Act of 2025" could affect people in several ways. Here are three examples:
1. **Increased Scrutiny on Digital Transactions**: Individuals and businesses engaging in digital asset transactions might face heightened scrutiny and regulation. The expansion of the Secret Service's authority to investigate money laundering and structured transactions could lead to more rigorous compliance requirements, increased monitoring of transactions, and potential audits, affecting how people conduct their financial activities online.
2. **Enhanced Protection Against Cyber Crime**: On a positive note, this legislation aims to strengthen the government's ability to combat transnational cyber criminal activities. As a result, individuals might experience a decrease in cyber fraud incidents, identity theft, and scams related to digital assets. Enhanced law enforcement capabilities could foster a safer environment for online financial transactions, benefiting consumers and businesses alike.
3. **Longer Sentences for Financial Crimes**: The amendment extending the investigation period related to financial crimes from 5 years to 10 years could lead to longer sentences for those convicted of money laundering or related offenses. This might deter individuals from engaging in illegal activities concerning digital assets, impacting people's decisions regarding financial dealings. It could also have implications for those wrongly accused, as the extended investigation period may prolong legal battles and uncertainties.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1273 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 1273
To strengthen the authority of the United States Secret Service to
investigate various crimes related to digital asset transactions and to
counter transnational cyber criminal activity, including unlicensed
money transmitting businesses, structured transactions, and fraud
against financial institutions, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 3, 2025
Ms. Cortez Masto (for herself and Mr. Grassley) introduced the
following bill; which was read twice and referred to the Committee on
Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To strengthen the authority of the United States Secret Service to
investigate various crimes related to digital asset transactions and to
counter transnational cyber criminal activity, including unlicensed
money transmitting businesses, structured transactions, and fraud
against financial institutions, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Combatting Money Laundering in Cyber
Crime Act of 2025''.
SEC. 2. EXPANSION OF UNITED STATES SECRET SERVICE INVESTIGATIVE
AUTHORITIES.
Section 3056(b) of title 18, United States Code, is amended--
(1) in paragraph (1), by striking ``or'' after ``871'' and
inserting ``, or 1960'' after ``879''; and
(2) in paragraph (3)--
(A) by inserting ``money laundering, structured
transactions,'' after ``documents or devices,'';
(B) by striking ``federally insured''; and
(C) by inserting ``, as defined in section 5312 of
title 31'' after ``institution''.
SEC. 3. FINCEN EXCHANGE.
Section 310(d)(3)(A) of title 31, United States Code, is amended,
in the matter preceding clause (i), by striking ``5 years'' and
inserting ``10 years''.
SEC. 4. INTERNATIONAL FINANCIAL INSTITUTIONS.
Section 7125(b) of the Otto Warmbier North Korea Nuclear Sanctions
and Enforcement Act of 2019 (22 U.S.C. 262p-13 note) is amended by
striking ``6'' and inserting ``10''.
SEC. 5. REPORT.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, the Government Accountability Office shall conduct a study
and submit to the appropriate committees of Congress a report on the
implementation of section 6102 of the Anti-Money Laundering Act of 2020
(title LXI of division F of the William M. (Mac) Thornberry National
Defense Authorization Act for Fiscal Year 2021 (Public Law 116-283; 134
Stat. 4552)).
(b) Focus.--In conducting the study under subsection (a), the
Government Accountability Office shall focus on evaluating the ability
of law enforcement to identify and deter money laundering in cyber
crimes.
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