Scam Compound Accountability and Mobilization Act

This Act may be cited as the “Scam Compound Accountability and Mobilization Act”.

It is the sense of Congress that—

(1) transnational cyber-enabled fraud, particularly perpetrated from scam compounds in Southeast Asia, is a growing threat to citizens of the United States, national security, and economic interests globally, with the Federal Bureau of Investigation reporting $13,700,000,000 in losses in the United States due to cyber-enabled fraud in 2024, including schemes commonly perpetrated by significant transnational criminal organizations operating scam compounds;

(2) significant transnational criminal organizations responsible for a large proportion of these scam compounds are affiliated with the People’s Republic of China (PRC), actively spread PRC propaganda, promote unification with Taiwan, and have brokered projects for the Belt and Road Initiative;

(3) significant transnational criminal organizations have lured hundreds of thousands of human trafficking victims from over 40 countries to scam compounds, primarily in Burma, Cambodia, and Laos, for purposes of forced criminality;

(4) significant transnational criminal organizations are expanding scam compounds internationally including in Africa, the Middle East, South Asia, and the Pacific Islands, and related money laundering, human trafficking and recruitment fraud have occurred in Europe, North America, and South America;

(5) the United States should redouble efforts to hold the perpetrators and enablers of scam compound operations accountable, including those involved in related money laundering, human trafficking, and recruitment fraud, by employing tools, such as targeted financial sanctions, visa restrictions, asset seizures, and forfeiture;

(6) to effectively address cyber-enabled fraud originating from scam compounds internationally, the United States Government should work with partner governments, multilateral institutions, civil society experts, and private sector stakeholders to improve information sharing, strengthen preventative measures, raise public awareness, and increase coordination on law enforcement investigations and regulatory actions; and

(7) survivors of human trafficking, including forced criminality, require victim-centered support to ensure they are not punished for offenses committed under duress.

(a) In general.— In this Act:

(1) Appropriate congressional committees.— The term appropriate congressional committees means—

(A) the Committee on Foreign Relations of the Senate;

(B) the Committee on the Judiciary of the Senate;

(C) the Committee on Banking, Housing, and Urban Affairs of the Senate;

(D) the Select Committee on Intelligence of the Senate;

(E) the Committee on Foreign Affairs of the House of Representatives;

(F) the Committee on the Judiciary of the House of Representatives;

(G) the Committee on Financial Services of the House of Representatives; and

(H) the Permanent Select Committee on Intelligence of the House of Representatives.

(2) Cyber-enabled fraud.— The term cyber-enabled fraud means the use of the internet or other technology to commit fraudulent activity, including illicitly obtaining money, property, data, identification documents, or authentication features, or creating counterfeit goods or services.

(3) Enabling country.— The term enabling country means a country where—

(A) government authorities actively or implicitly permit, enable, or perpetuate scam compound operations; or

(B) ineffective law enforcement or a failure to enact legislation intended to prevent facilitating services from reaching scam compounds or significant transnational criminal organizations enables scam compound operators to obtain facilitating services.

(4) Forced criminality.— The term forced criminality means a form of forced labor for the purpose of causing the victim to engage in criminal activity, which may include cyber-enabled fraud.

(5) Forced labor.— The term forced labor has the meaning given the term severe form of trafficking in persons in section 103(11)(B) of the Trafficking Victims Protection Act of 2000(22 U.S.C. 7102(11)(B)).

(6) Relevant foreign assistance programs and diplomatic efforts.— The term relevant foreign assistance programs and diplomatic efforts—

(A) means unclassified voluntary support programs funded directly by the United States Government that provide assistance to one or more foreign countries for the purpose of combating scam compound operations and related significant transnational criminal organizations; and

(B) excludes intelligence activities, including activities authorized by the President and reported to Congress in accordance with section 503 of the National Security Act of 1947 (50 U.S.C. 3093).

(7) Human trafficking.— The term human trafficking has the meaning given the term severe form of trafficking in persons in section 103(11) of the Trafficking Victims Protection Act of 2000(22 U.S.C. 7102(11)).

(8) Human trafficking victim.— The terms human trafficking victim and victim of human trafficking mean a person subject to an act or practice described in section 103(11) of the Trafficking Victims Protection Act of 2000(22 U.S.C. 7102(11)).

(9) Impacted country.— The term impacted country means a country that is a significant—

(A) transit location for victims of human trafficking to scam compounds;

(B) source location for victims of human trafficking for scam compounds; or

(C) target of cyber-enabled fraud originating from scam compounds internationally.

(10) Scam compound.— The term scam compound means a physical installation where a significant transnational criminal organization carries out cyber-enabled fraud operations, frequently using victims of human trafficking and forced criminality.

(11) Significant transnational criminal organization.— The term significant transnational criminal organization means a group of persons that—

(A) includes one or more foreign person;

(B) engages in or facilitates an ongoing pattern of serious criminal activity involving the jurisdictions of at least two foreign states or one foreign state and the United States; and

(C) threatens the national security, foreign policy, or economy of the United States.

(12) Strategy.— The term Strategy means the strategy to counter scam compounds and hold significant transnational criminal organizations accountable required under section 4.

(b) Rule of construction.— The definitions under this section are exclusive to this Act and may not be construed to affect any other provision of United States law.

(a) In general.— Not later than 180 days after the date of enactment of this Act, the Secretary of State, in consultation with the Attorney General, the Secretary of the Treasury, and the heads of other Federal departments and agencies, shall submit to the appropriate congressional committees a comprehensive strategy that—

(1) is designed to counter scam compounds and hold significant transnational criminal organizations accountable;

(2) is global in scope; and

(3) may prioritize efforts focused on Southeast Asian countries where scam compound operations are most prevalent.

(b) Contents.— The Strategy shall—

(1) articulate a comprehensive problem statement identifying the structural vulnerabilities exploited by significant transnational criminal organizations operating scam compounds;

(2) develop a comprehensive list of enabling countries and impacted countries;

(3) identify all active executive branch relevant foreign assistance programs and diplomatic efforts underway to address scam compounds, significant transnational criminal organizations connected to scam compounds, and related money laundering, human trafficking and forced criminality, including efforts with enabling countries and impacted countries;

(4) identify relevant foreign assistance resources needed to fully implement the Strategy and any obstacles to the response of the Federal Government to scam compounds, including coordination with partner governments, to address the human trafficking, including forced criminality, and money laundering that facilitates and sustains scam compound operations;

(5) include objectives, activities, and performance indicators regarding the response of the Federal government to scam compounds, including—

(A) the prevention of recruitment fraud and human trafficking, including by—

(i) engaging private sector entities operating internet platforms or other services that can be abused or exploited to perpetrate recruitment fraud, human trafficking or cyber-enabled fraud;

(ii) raising awareness among at-risk populations to identify common recruitment fraud strategies and improve due diligence and self-protection measures;

(iii) urging governments to monitor and enforce laws against fraudulent and unlawful recruitment practices; and

(iv) sharing information and building awareness among foreign counterparts, including law enforcement and border officials, to identify potential human trafficking victims;

(B) the support for survivors of human trafficking and forced criminality under the direction of the Ambassador at Large to Monitor and Combat Trafficking in Persons;

(C) the enhancement of coordination and strengthening the capabilities of partner governments and law enforcement agencies;

(D) the use of sanctions, visa restrictions, and other accountability measures against enabling countries, significant transnational criminal organizations, and related third-party facilitators of scam compound operations;

(E) the support of partner governments in countering corruption and money laundering related to scam compound operations; and

(F) the investigation of PRC connections to significant transnational criminal organizations operating scam compounds.

(c) Limitation.— Nothing in the Strategy may affect, apply to, or create obligations related to past, present, or future criminal or civil law enforcement or intelligence activities of the United States or the law enforcement activities of any State or subdivision of a State.

(a) In general.— Not later than 90 days after submitting the Strategy pursuant to section 4(a), the Secretary of State, in consultation with the Attorney General, the Secretary of the Treasury, and the heads of other Federal departments and agencies, shall establish an interagency task force (referred to in this section as the “Task Force”)—

(1) to coordinate the implementation of the Strategy;

(2) to conduct regular monitoring and analysis of scam compound operations internationally;

(3) to track and evaluate progress toward the objectives, activities, and performance indicators of the Strategy described in section 4(b)(5); and

(4) to update the Strategy, in consultation with the appropriate congressional committees, as needed.

(b) Annual reviews and reports.— Not later than one year after the establishment of the Task Force, and not less frequently than annually thereafter, the Secretary of State and the Attorney General, in consultation with the Secretary of the Treasury and the heads of other Federal departments and agencies, shall—

(1) conduct a status review of the Strategy and the overall state of scam compounds operated by significant transnational criminal organizations;

(2) include a list of enabling countries and impacted countries; and

(3) submit the results of such review in a public report to the appropriate congressional committees, which may contain a classified annex.

(c) Task force termination.— The Task Force shall terminate on the date that is six years after the date on which it is established.

(a) Imposition of sanctions with respect to significant actors in scam compound operations.— Beginning on and after the date that is 180 days after the date of the enactment of this Act, the President may impose the sanctions described in subsection (b) with respect to any foreign person that the President determines—

(1) has materially assisted in, or provided significant financial or technological support to, or provided significant goods or services in support of, the activities of international scam compounds or enabling services, including recruitment fraud, human trafficking (including forced criminality), cyber-enabled fraud, or money-laundering; or

(2) owned, controlled, directed, or acted for, or on behalf of, a significant scam compound operation or enabling service, including recruitment fraud, human trafficking (including forced criminality), cyber-enabled fraud, or money-laundering.

(b) Sanctions described.— The President may exercise of all powers granted to the President under the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to the extent necessary to block and prohibit all transactions in all property and interests in property of a foreign person described in subsection (a), including, to the extent appropriate, the vessel of which the person is the beneficial owner, if such property or interests in property are in the United States, come within the United States, or are or come within the possession or control of a United States person.

(c) Implementation; penalties.—

(1) Implementation.— The President may exercise all authorities provided under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) to carry out this section.

(2) Penalties.— The penalties set forth in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) shall apply to any person who violates, attempts to violate, conspires to violate, or causes a violation of any prohibition of this section, or an order or regulation prescribed under this section, to the same extent that such penalties apply to a person that commits an unlawful act described in section 206(a) of such Act (50 U.S.C. 1705(a)).

(d) Intelligence and law enforcement activities.— Sanctions authorized under this section shall not apply with respect to—

(1) any activity subject to the reporting requirements under title V of the National Security Act of 1947 (50 U.S.C. 3091 et seq.); or

(2) any authorized intelligence or law enforcement activities of the United States.

(e) Semiannual report.— Not later than 180 days after the date of the enactment of this Act, and every 180 days thereafter, the President shall submit a report to the appropriate congressional committees that—

(1) identifies all foreign persons the President has sanctioned pursuant to the authorities under this section; and

(2) the dates on which sanctions were imposed.

(f) Exception relating to importation of goods.—

(1) In general.— A requirement to block and prohibit all transactions in all property and interests in property pursuant to subsection (b) shall not include the authority or a requirement to impose sanctions on the importation of goods.

(2) Defined term.— In this subsection, the term good means any article, natural or manmade substance, material, supply, or manufactured product, including inspection and test equipment, and excluding technical data.

(g) Waiver.—

(1) In general.— The President may waive the application of sanctions under this section with respect to a foreign person or a foreign financial institution if the President determines that such waiver is in the national interest of the United States.

(2) Report.— Not later than 15 days before granting a waiver pursuant to paragraph (1), the President shall submit a report to the appropriate congressional committees that includes—

(A) the name of the individual or institution that is benefitting from such waiver; and

(B) if the beneficiary is an individual, a detailed justification explaining how the waiver serves the national security interests of the United States.

Not later than 90 days after the date of the enactment of this Act, the Attorney General, in consultation with the Secretary of State, the Secretary of the Treasury, and the heads of other appropriate Federal departments and agencies, shall submit to the appropriate congressional committees a report containing an assessment of existing forfeiture law that—

(1) outlines challenges or limitations to providing financial redress to victims of international scam compound operations;

(2) offers recommendations to amend existing forfeiture law to enable the Department of Justice to use assets forfeited as a result of law enforcement activities targeting international scam compound operations to provide financial redress to United States citizen victims of scam operations; and

(3) offers recommendations for the administration of such a redress mechanism.

This Act shall cease to be effective beginning on the date that is 7 years after the date of the enactment of this Act.