Washington– U.S. Senators Bill Hagerty (R-Tenn.) and Cynthia Lummis (R-Wis.), members of the Senate Banking Committee, introduced today Preventing illicit financing through the Partnership Act of 2024Legislation to combat illicit financing by enhancing communication between federal law enforcement agencies and private companies.
“Federal law enforcement agencies already have the tools to combat illicit finance – they just need to engage with the private sector to deploy these tools more effectively.” Senator Hagerty said. “By promoting collaboration and information sharing, this bill will ensure that all parties at the table work together to expose and disrupt bad actors.”
“There are bad actors in every industry, and crypto assets are no exception, but make no mistake – cryptocurrencies themselves are not the problem.” Senator Lummis said. “the Preventing illicit financing through partnership law It will allow federal regulators to work with the private sector to gain insight into the often misunderstood world of cryptocurrencies to weed out bad actors without crushing the entire nascent industry. This public-private partnership will help inform regulators about use cases for crypto assets and pave the way for federal rules of the road that will keep the industry in America and advance cryptocurrencies’ role as the next frontier of financial innovation.
the Preventing illicit financing through the 2024 Partnership Establish a pilot program for federal agencies and the private sector to share information related to illicit financing. The program will be chaired by the Attorney General and consist of 20 financial services and cryptocurrency companies that participate voluntarily. When certain Federal agencies are investigating a potential illicit financing violation, threat, or risk, the agency may securely share information about the matter with a private sector entity participating in the program. The private sector entity can then use the information to identify or report potential illicit financing activity. The program provides private companies with a channel to alert federal agencies of suspicious money transfers and evade sanctions.
The full text of the legislation can be viewed here.
###