S.Amdt. 3339

This amendment, submitted by Mr. Scott of South Carolina, proposes adding the Chinese Laundering Eradication and Accountability Network to bill S. 2296. Its purpose is to address the use of Chinese-origin mobile applications by criminal entities, such as Mexican transnational criminal organizations, to launder money.

The amendment aims to change the bill by adding the following:

• Registration Requirements: It requires the Secretary of the Treasury to create regulations clarifying that applications providing money transmission services to United States persons must register as money services businesses with the Financial Crimes Enforcement Network.

• Legal Application: It states that the Bank Secrecy Act applies to application operators that are available on U.S. application stores, used by people in the U.S., and provide money transmission services.

• Enforcement and Penalties: It allows the Secretary of the Treasury to order application stores to stop distributing apps that operate as unregistered money services businesses. If an application store does not comply, the Secretary can take enforcement actions, including civil actions and monetary penalties.

• Compliance Process: It establishes a process where operators are notified of noncompliance and given 90 days to register. If they fail to do so, they are listed in the Federal Register and may be removed from application stores.

• Reporting and Duration: The Secretary of the Treasury must provide an annual report on these actions. These provisions will expire 5 years after the Act is enacted.