Read [between] the lines to discover their dirty schemes for your own oppression. Fight back. SIL22D55 70R S.L.C. S. ll 117TH CONGRESS 2D SESSION To require the Financial Crimes Enforcement Network to issue guidance on digital assets, and for other purposes. IN THE SENATE OF THE UNITED STATES llllllllll Ms. WARREN (for herself and Mr. MARSHALL) introduced the following bill; which was read twice and referred to the Committee on llllllllll A BILL To require the Financial Crimes Enforcement Network to issue guidance on digital assets, and for other purposes. 1 Be it enacted by the Senate and House of Representa- 2 tives of the United States of America in Congress assembled, 3 SECTION 1. SHORT TITLE. 4 This Act may be cited as the ``Digital Asset Anti- 5 Money Laundering Act of 2022''. 6 SEC. 2. DEFINITIONS. 7 (1) DIGITAL ASSETS.--The term ``digital asset'' 8 means an asset that is issued or transferred using 9 distributed ledger, blockchain technology, or similar SIL22D55 70R S.L.C. 2 1 technology, including but not limited to virtual cur- 2 rencies, coins, and tokens. 3 (2) DIGITAL ASSET KIOSK.--The term ``digital 4 asset kiosk'' means a stand-alone machine, com- 5 monly referred to as a digital asset automated teller 6 machine, that facilitates the buying, selling, and ex- 7 change of virtual currencies. 8 (3) DIGITAL ASSET MIXER.--The term ``digital 9 asset mixer'' means a website, software, or other 10 service designed to conceal or obfuscate the origin, 11 destination, and counterparties of digital asset 12 transactions. 13 (4) FINANCIAL INSTITUTION.--The term ``fi- 14 nancial institution'' has the meaning given the term 15 in section 5312(a) of title 31, United States Code. 16 (5) PRIVACY COIN.--The term ``privacy coin'' 17 means a digital asset designed to-- 18 (A) prevent tracing through distributed 19 ledgers; or 20 (B) conceal or obfuscate the origin, des- 21 tination, and counterparties of digital asset 22 transactions. 23 SEC. 3. DIGITAL ASSET RULEMAKINGS. 24 (a) MONEY SERVICE BUSINESS DESIGNATION.--The 25 Financial Crimes Enforcement Network shall promulgate SIL22D55 70R S.L.C. 3 1 a rule classifying custodial and unhosted wallet providers, 2 cryptocurrency miners, validators, or other nodes who may 3 act to validate or secure third-party transactions, inde- 4 pendent network participants, including MEV searchers, 5 and other validators with control over network protocols 6 as money service businesses. 7 (b) IMPLEMENTATION OF PROPOSED RULE.--Not 8 later than 120 days after the date of enactment of this 9 Act, the Financial Crimes Enforcement Network shall fi- 10 nalize the proposed virtual currency rule (85 Fed. Reg. 11 83840; relating to requirements for certain transactions 12 involving convertible virtual currency or digital assets). 13 (c) REPORTING REQUIREMENTS.--Not later than 14 120 days after the date of enactment of this Act, the Fi- 15 nancial Crimes Enforcement Network shall promulgate a 16 rule that requires United States persons engaged in a 17 transaction with a value greater than $10,000 in digital 18 assets through 1 or more accounts outside of the United 19 States to file a report described in section 1010.350 of 20 title 31, Code of Federal Regulations, using the form de- 21 scribed in that section, in accordance with section 5314 22 of title 31, United States Code. 23 (d) TREASURY REGULATIONS.--Not later than 120 24 days after the date of enactment of this Act, the Secretary SIL22D55 70R S.L.C. 4 1 of the Treasury shall promulgate a rule that prohibits fi- 2 nancial institutions from-- 3 (1) handling, using, or transacting business 4 with digital asset mixers, privacy coins, and other 5 anonymity-enhancing technologies, as specified by 6 the Secretary; and 7 (2) handling, using, or transacting business 8 with digital assets that have been anonymized by the 9 technologies described in paragraph (1). 10 SEC. 4. EXAMINATION AND REVIEW PROCESS. 11 (a) TREASURY.--Not later than 2 years after the 12 date of enactment of this Act, the Secretary of the Treas- 13 ury, in consultation with the Conference of State Bank 14 Supervisors and Federal Financial Institutions Examina- 15 tion Council, shall establish a risk-focused examination 16 and review process for money service businesses to as- 17 sess-- 18 (1) the adequacy of antimoney laundering pro- 19 grams and reporting obligations under subsections 20 (g) and (h) of section 5318 of title 31, United States 21 Code; and 22 (2) compliance with antimoney laundering and 23 countering the financing of terrorism requirements 24 under subchapter II of chapter 53 of title 31, United 25 States Code. SIL22D55 70R S.L.C. 5 1 (b) SEC.--Not later than 2 years after the date of 2 enactment of this Act, the Securities and Exchange Com- 3 mission shall establish a dedicated risk-focused examina- 4 tion and review process for entities regulated by the Com- 5 mission to assess-- 6 (1) the adequacy of antimoney laundering pro- 7 grams and reporting obligations under subsections 8 (g) and (h) of section 5318 of title 31, United States 9 Code; and 10 (2) compliance with antimoney laundering and 11 countering the financing of terrorism requirements 12 under subchapter II of chapter 53 of title 31, United 13 States Code. 14 (c) CFTC.--Not later than 2 years after the date of 15 enactment of this Act, the Commodity Futures Trading 16 Commission shall establish a dedicated risk-focused exam- 17 ination and review process for entities regulated by the 18 Commission to assess-- 19 (1) the adequacy of antimoney laundering pro- 20 grams and reporting obligations under subsections 21 (g) and (h) of section 5318 of title 31, United States 22 Code; and 23 (2) compliance with antimoney laundering and 24 countering the financing of terrorism requirements SIL22D55 70R S.L.C. 6 1 under subchapter II of chapter 53 of title 31, United 2 States Code. 3 SEC. 5. DIGITAL ASSET KIOSKS. 4 (a) IN GENERAL.--Not later than 1 year after the 5 date of enactment of this Act, the Financial Crimes En- 6 forcement Network shall require digital asset kiosk owners 7 and administrators to submit and update the physical ad- 8 dresses of the kiosks owned or operated by the operator 9 or administrator every 3 months, as applicable. 10 (b) GUIDANCE.--Not later than 1 year after the date 11 of enactment of this Act, the Financial Crimes Enforce- 12 ment Network shall issue guidance requiring digital asset 13 kiosk and automated teller machine operators and admin- 14 istrators to-- 15 (1) verify the identity of each customer using a 16 valid form of government-issued identification or 17 other documentary method, as determined by the 18 Secretary of the Treasury; and 19 (2) collect the name, date of birth, physical ad- 20 dress, and phone number of each counterparty to 21 the transaction. 22 (c) REPORTS.-- 23 (1) FINCEN.--Not later than 120 days after 24 the date of enactment of this Act, the Financial 25 Crimes Enforcement Network shall issue a report SIL22D55 70R S.L.C. 7 1 identifying unlicensed kiosk operators and adminis- 2 trators, including identification of known unlicensed 3 operators and estimates of the number and locations 4 of suspected unlicensed operators, as applicable. 5 (2) DEA.--Not later than 1 year after the date 6 of enactment of this Act, the Drug Enforcement Ad- 7 ministration shall issue a report identifying rec- 8 ommendations to reduce drug trafficking with digital 9 asset kiosks. 10 SEC. 6. AUTHORIZATION OF APPROPRIATIONS. 11 There are authorized to be appropriated to the Sec- 12 retary of the Treasury such sums as are necessary to carry 13 out this Act.