Combating Money Laundering, Terrorist Financing, and Counterfeiting Act of 2026
- Bill Number
- S. 3801
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Crime and Law Enforcement
- Status
- Introduced
- Latest Action
- 2026-02-05: Read twice and referred to the Committee on the Judiciary.
- Last Updated
- 2026-02-27T15:11:14Z
AI-Generated Summary
Purpose
The Combating Money Laundering, Terrorist Financing, and Counterfeiting Act of 2026 aims to strengthen U.S. laws against money laundering, terrorist financing, bulk cash smuggling, illegal money services, and counterfeiting. It seeks to close loopholes in existing statutes, enhance penalties, expand investigative tools, and require analyses of threats from remittances (money transfers) to combat illicit activities like drug trafficking and human trafficking.
Key Provisions
- Transportation of Blank Checks (Sec. 2): Treats blank bearer checks (checks where the amount can be filled in by the holder) as exceeding $10,000 in value if drawn from an account with over $10,000, when used to evade reporting requirements during transport or negotiation.
- Bulk Cash Smuggling (Sec. 3): Increases the maximum prison sentence for smuggling large amounts of cash across borders from 5 to 10 years; adds enhanced fines (double the standard amount) for cases involving other crimes or patterns of illegal activity.
- Commingled Funds and Aggregated Transactions (Sec. 4): Allows prosecutors to meet the $10,000 threshold for money laundering charges (under 18 U.S.C. § 1957) by proving funds were mixed with illegal proceeds in an account over $10,000 or through a series of related transactions totaling over $10,000.
- Charging Money Laundering as a Course of Conduct (Sec. 5): Permits multiple related money laundering violations (under 18 U.S.C. §§ 1956, 1957, or 1960) to be charged in a single count if part of the same ongoing scheme.
- Illegal Money Services Businesses (Sec. 6): Broadens the definition of illegal money services businesses (e.g., unlicensed check cashers or currency exchangers) to include those failing to register federally or operating without state licenses; sets penalties up to 5 years in prison, or 10 years and doubled fines for large-scale operations (over $1 million in a year); updates terminology from "money transmitting" to "money services" across related laws.
- Hawalas and Informal Value Transfers (Sec. 7): Expands money laundering prohibitions to include informal systems like hawalas (trust-based money transfer networks) and related transactions under 18 U.S.C. §§ 1956 and 1957.
- Wiretap Authority (Sec. 8): Restores and expands federal wiretap approvals for investigating cash smuggling, illegal money services, and counterfeiting offenses (e.g., adding sections on fake currency production).
- International Money Laundering and Tax Evasion (Sec. 9): Applies international money laundering laws to acts intended to evade federal taxes (under Internal Revenue Code §§ 7201 or 7206).
- Conduct Aiding Counterfeiting (Secs. 10): Criminalizes possession of tools or equipment for counterfeiting U.S. or foreign currency/securities with intent to defraud; strengthens penalties for tampering with anti-counterfeiting features (e.g., removing special ink); treats such acts as felonies.
- Danger Pay Allowance (Sec. 11): Extends hazard pay eligibility to employees of U.S. Immigration and Customs Enforcement, Customs and Border Protection, and the Secret Service (in addition to existing agencies) when working in dangerous foreign posts.
- Secret Service Authority (Sec. 12): Clarifies the Secret Service's role in investigating money laundering, structured transactions (breaking up deals to avoid reporting), and unlicensed money services, removing limits tied to federally insured institutions.
- Remittances Threat Analysis (Sec. 13): Requires the Treasury Secretary (with input from Justice, Homeland Security, and other agencies) to submit a threat analysis within 1 year on how remittances fund terrorism, drug/human trafficking, and money laundering; followed by a strategy and implementation plan every 5 years for 10 years, focusing on vulnerabilities, cooperation, and balancing lawful uses.
- Rule of Construction (Sec. 14): Ensures the Act does not restrict authorized U.S. law enforcement, protective, or intelligence activities.
Significant Changes to Existing Law
- Penalty Enhancements: Doubles fines and extends prison terms for bulk cash smuggling and large-scale illegal money services, shifting some from misdemeanors to felonies.
- Expanded Definitions and Scope: Broadens "money services business" to include non-profit transfers and informal systems; treats aggregated or commingled transactions as single violations; links international laundering to tax evasion.
- Investigative Tools: Restores wiretap authority for specific offenses; clarifies agency jurisdictions (e.g., Secret Service); adds counterfeiting provisions for tools and deterrents like special inks.
- Reporting and Analysis: Introduces mandatory threat assessments and strategies for remittances, replacing narrower prior focuses on money transmitting.
- Terminology Updates: Replaces "unlicensed money transmitting" with "illegal money services" in multiple statutes for consistency.
Potential Impacts
- Government Agencies: Enhances enforcement capabilities for Treasury, Secret Service, DOJ, DHS agencies (e.g., ICE, CBP), and local prosecutors through better tools, hazard pay, and required strategies; may increase workload for threat analyses and investigations.
- Citizens and Businesses: Legitimate users of remittances (e.g., immigrants sending money home) face potential added scrutiny or burdens from anti-laundering measures, but the Act emphasizes protecting lawful economic roles; financial service providers must comply with stricter registration, risking higher penalties for non-compliance.
- International Relations: Strengthens U.S. efforts against global illicit finance, potentially improving cooperation with foreign partners on counterfeiting and trafficking; could affect remittances to countries reliant on them, influencing diplomatic ties in narcotics or terrorism hotspots.
Main Stakeholders Affected
- Law Enforcement and Regulators: Federal agencies (Treasury, Secret Service, DOJ, DHS), state/local officials, and prosecutors gain expanded authority and resources.
- Financial Sector: Money services businesses (e.g., check cashers, wire transfer operators, informal networks like hawalas) face stricter licensing, registration, and penalties.
- Criminals and Illicit Actors: Drug kingpins, terrorists, human traffickers, and counterfeiters encounter higher risks of detection, prosecution, and harsher sentences.
- General Public: Remittance users (e.g., families in developing countries) and taxpayers benefit from reduced illicit finance but may see indirect costs from enhanced oversight.
- International Entities: Foreign governments and banks involved in cross-border finance or counterfeiting probes.
Notable Legal, Constitutional, or Political Implications
- Legal: Bolsters prosecutorial flexibility (e.g., aggregating transactions) without altering core due process rights; ensures wiretaps follow existing judicial approval standards under the Wiretap Act. The rule of construction protects intelligence operations, avoiding conflicts with national security laws.
- Constitutional: Aligns with Fourth Amendment limits on searches by tying expansions to probable cause (e.g., intent to defraud); no direct privacy invasions, but increased financial surveillance could raise oversight concerns in implementation.
- Political: Bipartisan (introduced by Sens. Grassley and Klobuchar); reflects priorities on border security, anti-terrorism, and economic crime amid rising transnational threats. May spur debates on balancing enforcement with immigrant communities' reliance on remittances, potentially influencing future funding for agencies.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2026-02-05: Read twice and referred to the Committee on the Judiciary.
- 2026-02-05: Introduced in Senate
Bill Versions
- Combating Money Laundering, Terrorist Financing, and Counterfeiting Act of 2026 — issued 2026-02-05 — PDF (22 pages)