[Pages S5637-S5639]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 3706. Mr. CORNYN (for himself and Mrs. Shaheen) submitted an 
amendment intended to be proposed by him to the bill S. 2296, to 
authorize appropriations for fiscal year 2026 for military activities 
of the Department of Defense, for military construction, and for 
defense activities of the Department of Energy, to prescribe military 
personnel strengths for such fiscal year, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the end of title XII, add the following:

     Subtitle F--Scam Compound Accountability and Mobilization Act

     SEC. 1271. SHORT TITLE.

       This subtitle may be cited as the ``Scam Compound 
     Accountability and Mobilization Act''.

     SEC. 1272. SENSE OF CONGRESS.

       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 sanctions, visa 
     restrictions, and asset seizures;
       (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 offences that directly resulted from 
     being trafficked.

     SEC. 1273. DEFINITIONS.

       (a) In General.--In this subtitle:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means--
       (A) the Committee on Foreign Relations of the Senate;
       (B) the Committee on Appropriations of the Senate;
       (C) the Committee on the Judiciary of the Senate;
       (D) the Committee on Banking, Housing, and Urban Affairs of 
     the Senate;
       (E) the Select Committee on Intelligence of the Senate;
       (F) the Committee on Foreign Affairs of the House of 
     Representatives;
       (G) the Committee on Appropriations of the House of 
     Representatives;
       (H) the Committee on the Judiciary of the House of 
     Representatives;
       (I) the Committee on Financial Services of the House of 
     Representatives; and
       (J) 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 the theft of money, data, or 
     identity or the creation of counterfeit goods or services.
       (3) Enabling country.--The term ``enabling country'' means 
     a country where--

[[Page S5638]]

       (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 trafficking in persons for the purpose of exploitation 
     of victims through forcing or otherwise compelling them to 
     commit criminal acts for economic or other gains of 
     traffickers.
       (5) 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.
       (6) 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.
       (7) 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.
       (8) Strategy.--The term ``Strategy'' means the strategy to 
     counter scam compounds and hold significant transnational 
     criminal organizations accountable required under section 
     1274.
       (b) Rule of Construction.--The definitions under this 
     subtitle are exclusive to this subtitle and may not be 
     construed to affect any other provision of United States 
     criminal law.

     SEC. 1274. STRATEGY TO COUNTER SCAM COMPOUNDS AND HOLD 
                   SIGNIFICANT TRANSNATIONAL CRIMINAL 
                   ORGANIZATIONS ACCOUNTABLE.

       (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 other Federal departments and agencies as 
     designated by the President, shall submit to the appropriate 
     congressional committees a comprehensive strategy to counter 
     scam compounds and hold significant transnational criminal 
     organizations accountable.
       (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 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 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.

     SEC. 1275. ESTABLISHING A TASK FORCE TO IMPLEMENT THE 
                   STRATEGY.

       (a) In General.--Not later than 90 days after submitting 
     the Strategy pursuant to section 1274(a), the Secretary of 
     State and the Attorney General, in consultation with the 
     Secretary of the Treasury and other Federal departments and 
     agencies designated by the President, 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 1274(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 as designated by the President, 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 
     six years after the date of its establishment.

     SEC. 1276. STRENGTHENING TOOLS TO DISMANTLE SCAM COMPOUNDS 
                   AND HOLD SIGNIFICANT TRANSNATIONAL CRIMINAL 
                   ORGANIZATIONS ACCOUNTABLE.

       (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) owns, controls, directs, or acts 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

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     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.
       (h) Sunset.--This subtitle shall cease to be effective 
     beginning on the date that is 7 years after the date of the 
     enactment of this Act.
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