# Plain Language Summary: Special Measures to Fight Modern Threats Act

This bill gives the U.S. Treasury Department stronger tools to crack down on money laundering and financial crimes by updating rules that haven't been significantly changed since 2001. Essentially, it allows the Treasury Secretary to block or restrict money transfers involving countries, banks, or financial accounts that are suspected of being used for illegal activities like money laundering, terrorism financing, ransomware payments, or sanctions evasion. The key change is that these restrictions can now apply to newer forms of money movement—like cryptocurrency transactions and digital payment systems—that didn't exist or weren't common when the original law was written.

The bill specifically addresses the growing problem of ransomware attacks, where criminals (sometimes backed by foreign governments like China) hack into American companies and demand payment in cryptocurrency. The Treasury estimates that ransomware payments alone reached $590 million in just the first half of 2021. By modernizing these enforcement tools, the Treasury can better track and block these illicit payments before they reach criminals. The Secretary would need to consult with the State Department, Attorney General, and Federal Reserve before taking action, ensuring that decisions aren't made unilaterally.

For most regular Americans, this bill likely won't have a direct impact on everyday banking. However, it could affect people who use cryptocurrency exchanges or informal money transfer services, as these platforms may face new restrictions or reporting requirements if they're suspected of facilitating illegal activity. Legitimate users shouldn't be blocked, but they might experience additional verification steps or delays. The bill essentially gives law enforcement better ability to follow the money trail in the digital age, making it harder for criminals to hide proceeds from ransomware attacks, fraud, and other financial crimes.

Special Measures to Fight Modern Threats Act

Himes, James A.

Special Measures to Fight Modern Threats Act This bill expands the special measures available to the Financial Crimes Enforcement Network (FinCEN) to combat money laundering regarding <ul> <li>a jurisdiction outside of the United States; </li> <li>a financial institution operating outside of the United States; </li> <li>a class of transaction within, or involving, a jurisdiction outside of the United States; or </li> <li>one or more types of accounts. </li> </ul> Specifically, FinCEN may prohibit or impose conditions upon the opening or maintaining in the United States of a correspondent account or payable-through account by any domestic financial institution or domestic financial agency without requiring, as under current law, that such account be for or on behalf of a foreign banking institution. Further, FinCEN may prohibit or impose conditions upon certain transmittals of funds to or from any domestic financial institution or domestic financial agency if such transmittal of funds involves any such jurisdiction, institution, class of transaction, or type of account.