Dismantle Foreign Scam Syndicates Act

Bill Number: H.R. 5490
Origin Chamber: House
Congress: 119th Congress, Session 1
Policy Area: International Affairs
Status: Introduced
Latest Action: 2025-12-03: Ordered to be Reported in the Nature of a Substitute (Amended) by the Yeas and Nays: 48 - 0.
Last Updated: 2026-06-26T08:07:18Z

AI-Generated Summary

Purpose of the Legislation

The Dismantle Foreign Scam Syndicates Act (H.R. 5490) aims to create a coordinated U.S. government response to combat large-scale online financial scams targeting Americans. These scams, often called "pig butchering" schemes, involve building fake online relationships to trick victims into investing in fraudulent cryptocurrency platforms. The bill focuses on dismantling transnational criminal networks in Southeast Asia that rely on human trafficking and forced labor to operate "scam centers" in countries like Burma (Myanmar), Laos, and Cambodia. It seeks to protect U.S. citizens from financial losses estimated at over $10 billion in 2024 alone, while addressing links to corrupt officials and governments, including in China.

Key Provisions

Findings and Policy Statement: The bill outlines Congress's recognition of the rise in these scams since the COVID-19 pandemic, their use of trafficked victims (hundreds of thousands forced into scam operations under threat of violence), and their growth in targeting Americans. U.S. policy is set to aggressively fight these transnational criminals and their enablers.

Establishment of Interagency Task Force:
Must be created by the President within 30 days of enactment.
Chaired by the Secretary of State (or designee), with members from key agencies including the Departments of State, Justice (including FBI), Homeland Security (including Secret Service and investigations), and Treasury (including financial intelligence and sanctions offices).
Additional members can include the Securities and Exchange Commission (SEC), Federal Trade Commission (FTC), Federal Communications Commission (FCC), and others as deemed relevant.
The intelligence community can provide support.
Requires regular meetings, full information sharing among members, and consultations with state/local law enforcement, non-governmental organizations (NGOs) focused on trafficking and corruption, and private sector partners (e.g., banks, social media, crypto exchanges).

Duties of the Task Force:
Develop and submit a comprehensive strategy to Congress within 180 days, covering shutdown of scam centers, disruption of criminals and traffickers, accountability for enablers, and prevention of proliferation.
Oversee strategy implementation, with measurable success indicators (e.g., sanctions imposed, arrests, funds recovered, trafficking victims rescued).
Strategy elements include pressuring complicit governments (e.g., via allies), investigating China's role, building foreign law enforcement capacity (e.g., training in digital forensics and anti-money laundering), imposing sanctions, using cyber tools to disrupt operations, recovering stolen assets, and forming international coalitions.
The Task Force sunsets (ends) after seven years.

Reporting Requirements:
Annual reports to Congress for five years, detailing sanctions, scam losses (U.S. and global), intercepted funds, trafficking victim estimates, known scam centers, proliferation trends, and program recommendations.
Reports are unclassified but may include classified sections; includes regular consultations with Congress.

Sanctions and Enforcement:
Within 180 days, the President must assess and impose sanctions on a list of 37 named foreign individuals and entities (e.g., Aik Paung, Prince Group Holding Company) under existing laws like the Global Magnitsky Human Rights Accountability Act (for human rights abuses), Trafficking Victims Protection Act (for trafficking), and Executive Order on Transnational Criminal Organizations.
Additional sanctions for any others credibly linked to scams using trafficked labor.
Waivers possible for national security reasons, with justification to Congress.
Exceptions protect trafficking victims from sanctions.

Victim Support Programs:
Authorizes the Secretary of State to provide trauma-informed care, shelter, and reintegration services for trafficking victims from scam centers, designed to avoid re-victimization and gather evidence for prosecutions.

Funding:
Authorizes $30 million for the Department of State in fiscal years 2026 and 2027 to implement the strategy.

Definitions:
"Appropriate congressional committees" are the House Foreign Affairs Committee and Senate Foreign Relations Committee.
"Intelligence community" refers to U.S. spy agencies as defined in national security law.

Significant Changes to Existing Law

New Task Force and Strategy: Introduces a dedicated interagency body and mandatory whole-of-government strategy, which did not previously exist specifically for online scam syndicates. This builds on but expands existing anti-trafficking and sanctions frameworks (e.g., Trafficking Victims Protection Act, Global Magnitsky Act) by mandating targeted actions against scam operations.
Sanctions Mandates: Requires proactive assessments and impositions on named parties within 180 days, unlike prior laws that allowed but did not compel such actions. Adds "pig butchering" scams as a focus under transnational crime sanctions.
Victim Programs and International Focus: Enhances victim support under the Trafficking Victims Protection Act by tying it to scam-specific evidence collection. Introduces requirements for international coalitions and cyber disruption, extending beyond traditional law enforcement.
No major repeals or overhauls; instead, it integrates and activates existing tools with deadlines and reporting.

Potential Impacts

On Government Agencies: Increases coordination demands across State, Justice, DHS, and Treasury, potentially straining resources but improving efficiency in combating cybercrime and trafficking. Authorizes new funding, which could expand programs like training for foreign partners.
On Citizens: Aims to reduce financial losses (e.g., through asset recovery and scam prevention), protect against unreported scams, and support U.S. scam victims indirectly via global disruptions. Could lead to fewer successful "pig butchering" schemes targeting Americans.
On International Relations: May strain ties with implicated countries like China, Cambodia, Laos, and Burma by imposing sanctions and public pressure, including advocacy for Financial Action Task Force (an global anti-money laundering body) greylisting/blacklisting. Strengthens alliances through coalitions and capacity-building, potentially improving U.S. influence in Southeast Asia on security and anti-corruption issues. Could disrupt criminal networks, benefiting global financial stability.

Main Stakeholders Affected

U.S. Government Agencies: Departments of State, Justice, Homeland Security, and Treasury bear primary implementation roles; SEC, FTC, and FCC provide support.
Victims and Citizens: Americans defrauded by scams (thousands annually) and global trafficking victims (hundreds of thousands forced into scam labor) gain protections, recovery efforts, and support services.
Transnational Criminals and Enablers: Named individuals/entities (e.g., Chinese syndicates, Cambodian officials) face sanctions, investigations, and disruptions; broader networks in Southeast Asia targeted for dismantlement.
Foreign Governments and Partners: China, Burma, Laos, and Cambodia may face diplomatic/economic pressure; trusted allies (e.g., in coalitions) benefit from shared data and training.
Private Sector: Banks, social media, crypto exchanges, and tech firms required to partner on infrastructure disruptions (e.g., blocking scam platforms).
NGOs and Law Enforcement: State/local U.S. police, anti-trafficking groups, and foreign partners consulted for expertise and capacity-building.

Notable Legal, Constitutional, or Political Implications

Legal: Relies on established sanction authorities, ensuring compliance with international law (e.g., human rights standards), but mandates quick action could challenge executive discretion. Protects trafficking victims from sanctions, aligning with anti-trafficking treaties. Enhances prosecutorial tools via evidence from victim programs.
Constitutional: Involves executive branch implementation with congressional oversight (reports, consultations), respecting separation of powers. No direct free speech or privacy issues, though cyber disruptions may raise questions about international cyber norms.
Political: Signals strong U.S. bipartisan concern over China-linked crime (introduced by Republicans but with broad implications), potentially escalating tensions in U.S.-China relations or Southeast Asian diplomacy. Could politicize anti-scam efforts if waivers are used, but sunset clause limits long-term entrenchment. Promotes a "whole-of-government" approach, fostering interagency unity on emerging threats like cyber-enabled trafficking.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Shreve, Jefferson [R-IN-6]

Cosponsors (65)

Rep. Moolenaar, John R. [R-MI-2], Rep. Rulli, Michael A. [R-OH-6], Rep. Huizenga, Bill [R-MI-4], Rep. Suozzi, Thomas R. [D-NY-3], Rep. Yakym, Rudy [R-IN-2], Rep. McDowell, Addison P. [R-NC-6], Del. Moylan, James C. [R-GU-At Large], Rep. Gottheimer, Josh [D-NJ-5], Rep. Vindman, Eugene Simon [D-VA-7], Rep. Riley, Josh [D-NY-19], Rep. Lawler, Michael [R-NY-17], Rep. Smith, Christopher H. [R-NJ-4], Rep. Sherman, Brad [D-CA-32], Rep. Amo, Gabe [D-RI-1], Rep. McBride, Sarah [D-DE-At Large], Rep. Castro, Joaquin [D-TX-20], Rep. Kennedy, Timothy M. [D-NY-26], Rep. Messmer, Mark B. [R-IN-8], Rep. Whitesides, George [D-CA-27], Rep. Davidson, Warren [R-OH-8], Rep. Biggs, Sheri [R-SC-3], Rep. Baumgartner, Michael [R-WA-5], Rep. Gillen, Laura [D-NY-4], Rep. Olszewski, Johnny [D-MD-2], Rep. Kean, Thomas H. [R-NJ-7], Rep. Tran, Derek [D-CA-45], Rep. Kim, Young [R-CA-40], Rep. Kamlager-Dove, Sydney [D-CA-37], Rep. Wagner, Ann [R-MO-2], Rep. Downing, Troy [R-MT-2], Rep. Stauber, Pete [R-MN-8], Rep. Lee, Susie [D-NV-3], Rep. Harder, Josh [D-CA-9], Rep. Valadao, David G. [R-CA-22], Rep. Haridopolos, Mike [R-FL-8], Rep. Amodei, Mark E. [R-NV-2], Rep. Stefanik, Elise M. [R-NY-21], Rep. LaHood, Darin [R-IL-16], Rep. Krishnamoorthi, Raja [D-IL-8], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Wasserman Schultz, Debbie [D-FL-25], Rep. Lucas, Frank D. [R-OK-3], Rep. Williams, Roger [R-TX-25], Rep. Bost, Mike [R-IL-12], Rep. Pfluger, August [R-TX-11], Rep. Moulton, Seth [D-MA-6], Rep. Miller, Max L. [R-OH-7], Rep. Bilirakis, Gus M. [R-FL-12], Rep. Goldman, Craig A. [R-TX-12], Rep. Schakowsky, Janice D. [D-IL-9] and 15 more

Recent Actions

2025-12-03: Ordered to be Reported in the Nature of a Substitute (Amended) by the Yeas and Nays: 48 - 0.
2025-12-03: Committee Consideration and Mark-up Session Held
2025-09-18: Referred to the Committee on Foreign Affairs, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-09-18: Referred to the Committee on Foreign Affairs, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-09-18: Introduced in House
2025-09-18: Introduced in House

Bill Versions

Dismantle Foreign Scam Syndicates Act — issued 2025-09-18 — PDF (18 pages)