Summary of HR 3523: Foreign Financial Threat Organizations Act

Purpose and Intent

HR 3523 aims to empower the Secretary of the Treasury to designate certain foreign entities as Foreign Financial Threat Organizations (FFTOs). The intent of the bill is to enhance the United States' ability to combat fraudulent activities perpetrated by foreign organizations that seek to deceive U.S. citizens and lawful permanent residents into providing cash or assets.

Key Provisions

The bill includes several significant provisions:

1. Designation of FFTOs:

   • The Secretary of the Treasury is required to designate organizations as FFTOs within 90 days of the bill's enactment.
   • Prior to designation, the Secretary must notify key Congressional leaders and committees about the intent to designate an organization and the factual basis for such a decision.

2. Publication and Notification:

   • Designations must be published in the Federal Register within seven days of notification to Congress.

3. Financial Transaction Restrictions:

   • U.S. financial institutions must block all transactions involving assets of designated FFTOs until further direction from the Secretary, Congress, or a court order.

4. Penalties and Procedures:

   • FFTOs will face penalties and procedures similar to those applied to organizations designated as specially designated global terrorist organizations under Executive Order 13224.

5. Cybersecurity Measures:

   • The Federal Government is authorized to take necessary actions to protect U.S. cybersecurity and limit FFTOs' access to internet and cellular services.

6. Communication Restrictions:

   • The Secretary will implement measures to prevent FFTOs from contacting U.S. citizens or lawful permanent residents through phone, internet, or email.

7. Reporting Requirements:

   • The Secretary must submit a report to relevant Congressional committees two years after enactment and annually thereafter. This report will include:
     • Identification of designated FFTOs.
     • Amount of assets seized from these organizations.
     • Actions taken to identify FFTOs.
     • Funds returned to victims of fraud.

8. Definition of Covered Organization:

   • The term "covered organization" refers to foreign entities engaged in fraudulent activities aimed at deceiving U.S. citizens or lawful permanent residents, as determined by the Secretary of the Treasury and the Attorney General.

Impact

The bill is expected to have a significant impact on:
- U.S. Financial Institutions: They will be required to monitor and block transactions involving FFTOs.
- Foreign Entities: Organizations designated as FFTOs will face severe restrictions and penalties, potentially limiting their operations and ability to interact with U.S. citizens.
- Victims of Fraud: The bill aims to enhance recovery efforts for victims of fraud perpetrated by these organizations.

Legislative Actions

• Introduced: May 20, 2025
• Referred to Committees: The bill has been referred to the Committee on Foreign Affairs, as well as the Committees on Financial Services and Energy and Commerce for further consideration.

Sponsors

The bill is sponsored by:
- Jefferson Shreve (primary)
- Keith Self (cosponsor)
- Michael Guest (cosponsor)
- Beth Van Duyne (cosponsor)
- Brian K. Fitzpatrick (cosponsor)

This summary provides an overview of HR 3523, outlining its purpose, key provisions, potential impacts, and legislative status.