Scam Compound Accountability and Mobilization Act

Bill Number

S. 2950

Origin Chamber

Senate

Congress

119th Congress, Session 1

Policy Area

International Affairs

Status

Passed Senate

Latest Action

2025-12-09: Held at the desk.

Last Updated

2026-01-05T17:12:50Z

AI-Generated Summary

Purpose of the Legislation

The Scam Compound Accountability and Mobilization Act (S. 2950) aims to combat international "scam compounds"—physical sites run by criminal groups where cyber fraud (fraud using the internet or technology) is conducted, often involving human trafficking and forced criminal activity. It requires U.S. executive branch agencies, led by the Secretary of State, to develop strategies, coordinate efforts, impose sanctions, and support victims to protect U.S. citizens from fraud, enhance national security, and promote international accountability for these operations.

Key Provisions

• Sense of Congress: Outlines the growing threat of cyber-enabled fraud from scam compounds, primarily in Southeast Asia, linked to criminal organizations affiliated with China. It notes billions in U.S. losses (e.g., $13.7 billion in 2024), human trafficking of victims from over 40 countries, global expansion of these operations, and the need for U.S. tools like sanctions and international cooperation. It emphasizes victim support to avoid punishing those forced into crimes.

• Definitions: Provides specific terms for the Act, including:
• Cyber-enabled fraud: Using technology to steal money, data, or create fakes.
• Scam compound: A site where criminal groups run fraud operations, often using trafficked people.
• Significant transnational criminal organization: A group spanning countries that threatens U.S. security or economy through serious crimes.
• Enabling country: A nation that allows or fails to stop these operations.
• Impacted country: A place where victims are sourced, transited, or targeted by fraud.
• Other terms cover human trafficking (forced labor or exploitation) and forced criminality (being made to commit crimes under duress).

• Strategy Development (Section 4): Within 180 days of enactment, the Secretary of State, with input from the Attorney General, Treasury Secretary, and others, must submit a global strategy to Congress. It includes:
• Identifying vulnerabilities exploited by these groups.
• Listing enabling and impacted countries.
• Cataloging current U.S. aid and diplomatic efforts against fraud, trafficking, and money laundering.
• Outlining needs for resources and obstacles.
• Setting goals like preventing recruitment scams (e.g., via private sector partnerships and awareness campaigns), supporting survivors, building partner capabilities, using sanctions and visa bans, fighting corruption, and probing China ties.
• The strategy does not affect ongoing law enforcement or intelligence work.

• Interagency Task Force (Section 5): Established 90 days after the strategy, this group coordinates implementation, monitors global scam operations, tracks progress, and updates the strategy. It conducts annual reviews and public reports to Congress (with possible classified parts) on the threat and country lists. The task force ends after 6 years.

• Sanctions and Accountability Tools (Section 6): Starting 180 days after enactment, the President can block assets and transactions of foreign individuals or entities supporting scam compounds, using powers from the International Emergency Economic Powers Act (IEEPA, a law allowing economic measures in emergencies). Targets include those aiding fraud, trafficking, or money laundering. Semiannual reports list sanctioned parties. Exceptions apply for U.S. intelligence/law enforcement and imports of goods. Waivers are possible if in U.S. national interest, with congressional notification. Penalties for violations match IEEPA standards.

• Victim Redress (Section 7): Within 90 days, the Attorney General must report to Congress on gaps in current asset forfeiture laws (seizing crime proceeds) and recommend changes to allow financial compensation for U.S. victims of these scams.

• Sunset Clause (Section 8): The Act expires 7 years after enactment.

Significant Changes to Existing Law

• Introduces targeted sanctions under IEEPA specifically for scam compounds, human trafficking, and related crimes, expanding its use beyond traditional threats like terrorism.
• Mandates a new comprehensive strategy and interagency task force, which did not previously exist for this issue, requiring formal coordination and reporting.
• Builds on existing anti-trafficking laws (e.g., Trafficking Victims Protection Act) by defining "forced criminality" and emphasizing victim support in fraud contexts, but adds recommendations for forfeiture reforms to enable direct victim payments—potentially altering how seized assets are distributed.

Potential Impacts

• Government Agencies: Increases workload for the Departments of State, Justice, and Treasury through strategy development, task force operations, sanctions administration, and annual reporting. Promotes interagency collaboration but excludes intelligence activities to avoid overlap.
• Citizens: Enhances protection from cyber fraud via awareness, prevention, and potential financial redress, reducing economic losses (e.g., from the reported $13.7 billion annually). Victims of trafficking gain explicit support to avoid punishment for forced crimes.
• International Relations: Strengthens U.S. pressure on "enabling countries" (e.g., in Southeast Asia) through sanctions and diplomacy, potentially straining ties with nations like China due to probes into affiliations. Encourages cooperation with partners, multilateral groups, and private sectors (e.g., tech platforms) for global info-sharing and enforcement, which could improve anti-crime alliances but risk diplomatic tensions if sanctions are applied broadly.

Main Stakeholders Affected

• U.S. Government Entities: Departments of State, Justice, Treasury; congressional committees (e.g., Foreign Relations, Judiciary); and the task force participants.
• Victims and Citizens: U.S. scam victims (financially harmed) and global human trafficking survivors (from over 40 countries), who benefit from support and redress.
• Criminal Actors: Significant transnational criminal organizations and their facilitators, facing new sanctions, asset freezes, and accountability.
• Foreign Governments and Entities: Enabling countries (e.g., Burma, Cambodia, Laos) and impacted ones; private sector firms (e.g., internet platforms) involved in prevention; and countries like China, targeted for investigation.
• International Partners: Multilateral institutions, civil society, and law enforcement in affected regions, aiding coordination.

Notable Legal, Constitutional, or Political Implications

• Legal: Relies on existing IEEPA authorities for sanctions, ensuring enforceability without new emergency declarations, but introduces specific criteria for this fraud-trafficking nexus. The victim redress report could lead to amendments in forfeiture laws, expanding civil remedies. Definitions are Act-specific to avoid broader legal changes.
• Constitutional: Aligns with executive foreign policy powers (e.g., sanctions) and congressional oversight via reporting/consultation, maintaining separation of powers. No direct impact on free speech or due process, as sanctions target foreign actors and exclude U.S. activities.
• Political: Highlights U.S. concerns over China-linked crimes and global fraud expansion, potentially influencing bilateral relations and trade (e.g., Belt and Road scrutiny). Promotes a victim-centered approach, aligning with human rights priorities, but the 7-year sunset allows periodic reassessment amid evolving cyber threats.

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

Sponsor

Sen. Cornyn, John [R-TX]

Cosponsors (8)

Sen. Shaheen, Jeanne [D-NH], Sen. Scott, Rick [R-FL], Sen. Duckworth, Tammy [D-IL], Sen. Ricketts, Pete [R-NE], Sen. Hassan, Margaret Wood [D-NH], Sen. Lankford, James [R-OK], Sen. Rosen, Jacky [D-NV], Sen. Kaine, Tim [D-VA]

Recent Actions

• 2025-12-09: Held at the desk.
• 2025-12-09: Received in the House.
• 2025-12-09: Message on Senate action sent to the House.
• 2025-12-08: Passed Senate with an amendment by Unanimous Consent. (consideration: CR S8533-8535; text: CR S8533--8535)
• 2025-12-08: Passed/agreed to in Senate: Passed Senate with an amendment by Unanimous Consent.
• 2025-10-30: Placed on Senate Legislative Calendar under General Orders. Calendar No. 244.
• 2025-10-30: Committee on Foreign Relations. Reported by Senator Risch with an amendment in the nature of a substitute. Without written report.
• 2025-10-30: Committee on Foreign Relations. Reported by Senator Risch with an amendment in the nature of a substitute. Without written report.
• 2025-10-22: Committee on Foreign Relations. Ordered to be reported with an amendment in the nature of a substitute favorably.
• 2025-09-30: Read twice and referred to the Committee on Foreign Relations.
• 2025-09-30: Introduced in Senate

Bill Versions

• Scam Compound Accountability and Mobilization Act — issued 2025-12-08 — PDF (20 pages)
• Scam Compound Accountability and Mobilization Act — issued 2025-09-30 — PDF (17 pages)
• Scam Compound Accountability and Mobilization Act — issued 2025-10-30 — PDF (34 pages)