Dismantle Foreign Scam Syndicates Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5490 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 5490

   To establish an interagency Task Force to dismantle and shut down
    transnational criminal syndicates perpetuating mass online scam
                     operations against Americans.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           September 18, 2025

 Mr. Shreve (for himself, Mr. Moolenaar, and Mr. Rulli) introduced the
following bill; which was referred to the Committee on Foreign Affairs,
 and in addition to the Committee on the Judiciary, for a period to be
subsequently determined by the Speaker, in each case for consideration
  of such provisions as fall within the jurisdiction of the committee
                               concerned

_______________________________________________________________________

                                 A BILL

   To establish an interagency Task Force to dismantle and shut down
    transnational criminal syndicates perpetuating mass online scam
                     operations against Americans.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Dismantle Foreign Scam Syndicates
Act''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) During the COVID-19 pandemic, Chinese criminal
        organizations active in Southeast Asia pivoted to a new and
        potent form of financial scam involving elaborate fraudulent
        online cryptocurrency investment schemes.
            (2) The most common form of such financial scam is known as
        ``pig butchering'', Chinese criminal slang that describes how
        scammers develop a virtual relationship inducing them to invest
        ever larger sums into phony platforms, serving to `fatten'
        their victims for the slaughter.
            (3) Crime syndicates use the forced labor of hundreds of
        thousands of victims of human trafficking to perpetrate such
        scams.
            (4) These victims themselves fall prey to false job
        advertisements before they are taken to a compound and forced
        to meet aggressive scam quotas under pain of violent punishment
        if they refuse.
            (5) These so-called ``scam centers'' are most prevalent
        across Burma, Laos, and Cambodia, corrupt and repressive
        countries where transparency is absent, rule of law is anemic
        and checks and balances are non-existent, and often operate as
        joint ventures between the Chinese criminal groups
        organizations and the autocratic governments.
            (6) Since 2021, these scams have increasingly targeted
        Americans, robbing thousands of their life savings and
        enriching and entrenching transnational criminal syndicates and
        corrupt leaders in Cambodia, Laos and Burma.
            (7) American losses to these scams grew by 33 percent year-
        on-year in 2024.
            (8) According to the Department of Treasury, Americans lost
        at least $10,000,000,000 from these operations in 2024 alone.
            (9) Global losses are estimated to be higher than
        $60,000,000,000 annually.
            (10) The true dollar amount of losses to these scams is
        estimated to be much higher as many instances go unreported.
            (11) Troubling links exist between the People's Republic of
        China, Chinese criminal scam syndicates, and the corrupt local
        politicians enabling their rise.

SEC. 3. STATEMENT OF POLICY.

    It shall be the policy of the United States to comprehensively
combat the transnational organized criminals operating human
trafficking compounds primarily in Southeast Asia to perpetrate large-
scale online scams against the American people.

SEC. 4. TASK FORCE.

    (a) Establishment.--Not later than 30 days after the date of the
enactment of this Act, the President shall establish an interagency
Task Force responsible for leading a whole-of-government effort to
dismantle and shut down transnational criminal syndicates perpetuating
mass online scam operations against Americans through the operation of
large-scale scam compounds fueled by the forced labor of victims of
trafficking in persons.
    (b) Duties.--The Task Force shall--
            (1) not later than 180 days after the date of the enactment
        of this Act, develop and submit to the appropriate
        congressional committees a comprehensive United States
        Government strategy to shut down online scam centers, prevent
        their further proliferation, disrupt and dismantle
        transnational criminal entities and human traffickers involved
        in operating such centers, and hold accountable corrupt
        officials, state, and non-state actors enabling such entities
        and traffickers for the purpose of incentivizing cooperation;
        and
            (2) coordinate and oversee implementation of such strategy.
    (c) Leadership and Composition.--The Task Force shall--
            (1) be chaired by the Secretary of State (or the
        Secretary's designee);
            (2) meet on a regular basis at the call of the Chair; and
            (3) be comprised of the heads (or the heads' designees)
        of--
                    (A) the Department of State, including the Bureau
                of International Narcotics and Law Enforcement Affairs,
                the Bureau of East Asian and Pacific Affairs, and the
                Office to Monitor and Combat Trafficking in Persons;
                    (B) the Department of Justice, including the
                Federal Bureau of Investigation;
                    (C) the Department of Homeland Security, including
                the U.S. Secret Service and Homeland Security
                Investigations; and
                    (D) the Department of the Treasury, including the
                Office of Terrorism and Financial Intelligence, the
                Office of Foreign Assets Control, and Financial Crimes
                Enforcement Network.
    (d) Further Composition.--The heads (or the heads' designees) of
the following entities are authorized to be members of the Task Force:
            (1) The U.S. Securities and Exchange Commission.
            (2) The Federal Trade Commission.
            (3) The Federal Communications Commission.
            (4) Any other department, agency, or entity the President
        determines to be relevant.
    (e) Intelligence Community.--The intelligence community is
authorized to provide support to the Task Force.
    (f) Information Sharing.--To ensure proper coordination and
effective interagency action, each Federal department or agency
represented on the Task Force shall fully share--
            (1) all relevant data with the Task Force; and
            (2) all information regarding the department or agency's
        plans, before and after final agency decisions are made, on all
        matters relating to actions regarding combating online scams.
    (g) Consultation.--The Task Force or representatives thereof
shall--
            (1) consult quarterly with United States State and local
        law enforcement entities and stakeholder organizations with
        firsthand expertise in reporting and combatting online scam
        operations, cyberscams known as ``pig butchering scams'', and
        other kinds of cyberscams, and recovering stolen crypto assets,
        and incorporate their feedback and recommendations to the
        maximum extent feasible;
            (2) consult regularly with U.S. non-governmental
        organizations with expertise in countering trafficking in
        persons or anti-corruption, as appropriate; and
            (3) develop partnerships with relevant private sector
        actors, including banks, social media platforms, online dating
        applications, telecommunication carriers, cryptocurrency
        exchanges, internet service providers, applications stores,
        search engines, and search optimization companies, for the
        purpose of better disrupting the enabling infrastructure of
        scam compounds, operations, and syndicates.
    (h) Sunset.--The Task Force shall terminate on the date that is
seven years after the date of the enactment of this Act.

SEC. 5. ELEMENTS OF COMPREHENSIVE STRATEGY.

    (a) In General.--The strategy required by section 1(b)(1) shall
incorporate the following objectives:
            (1) Bringing pressure to bear on foreign governments, in
        coordination with allies and partners to the greatest extent
        possible, that are complicit in, tolerant of, or uncooperative
        in combatting online scam operations.
            (2) Investigating the People's Republic of China's (PRC)
        involvement in the origin and perpetuation of online scam
        operations, including through links between Chinese Communist
        Party officials and criminal organizations, deepening regional
        security influence, and selective crackdowns that incentivize
        the targeting of Americans.
            (3) Investigating the Burmese military's involvement in
        allowing, neglecting, and profiting from online scam operations
        in Burma, and the importance of resolving the instability and
        violence in Burma to stop the unfettered operation of scam
        centers in Burma.
            (4) Responding comprehensively to PRC complicity in and
        instrumentalization of online scam operations.
            (5) Reducing the power, influence, and scope of
        transnational criminal organizations and operations in
        Southeast Asia and wherever else they may propagate.
            (6) Building the capacity of trusted foreign law
        enforcement partners to degrade, disrupt, and shut down online
        scam centers and prevent their proliferation, including through
        training in digital forensics, anti-money laundering, and
        border patrol.
            (7) Building the capacity of trusted foreign law
        enforcement partners to screen for and protect victims of
        trafficking in persons in a trauma-informed manner, prosecute
        traffickers, and prevent trafficking into online scam centers,
        including through public awareness campaigns.
            (8) Imposing sanctions or other relevant designations,
        comprehensively and in coordination with allies and partners to
        the greatest extent possible, on the perpetrators and enablers
        of online scams, using relevant transnational organized crime,
        corruption, human rights, and trafficking in persons
        authorities.
            (9) Advocating for the greylisting or blacklisting, as
        appropriate, of countries involved in state-sponsored scam
        operations, including Cambodia, at the Financial Action Task
        Force.
            (10) Harnessing offensive cyber capabilities to degrade
        online scam centers' operations.
            (11) Recovering and returning stolen assets of defrauded
        United States persons.
            (12) Integrating data collection, analysis, and response
        mechanisms across Federal, State, and local agencies, including
        by assessing if any existing relevant Fusion Centers could be
        leveraged to combat online scam centers.
            (13) Convening a coalition of like-minded foreign allies
        and partners to combat online scam centers, including through
        the establishment of similar task forces or working groups, the
        compilation and sharing of data, and collaboration regarding
        the indictment of key actors and enablers.
    (b) Measurable Indicators.--The Task Force shall develop measurable
indicators of the success of the strategy required by section
1731(b)(1), which may include persons sanctioned, arrest warrants or
indictments issued, arrests made, U.S. losses mitigated, and the number
of victims of trafficking in persons rescued, and known scam centers
reduced, in comparison to the previous year.

SEC. 6. ANNUAL REPORT TO CONGRESS.

    (a) In General.--Not later than 360 days after the date of the
submission of the strategy required by section 1(b)(1), and annually
thereafter for five years, the Task Force shall submit to the
appropriate congressional committees a report that includes, for the
previous year the following:
            (1) A list of all foreign persons sanctioned by the United
        States for being responsible for, complicit in, or responsible
        for ordering, controlling, or otherwise directing, online
        financial scams against United States nationals.
            (2) For the foreign persons listed in paragraph (1), an
        assessment and review of their ongoing involvement in the
        operation of scam centers, including an identification of
        entities in particular from within the People's Republic of
        China that aid or abet such foreign persons.
            (3) An estimate of how much money was stolen from United
        States nationals through scams emanating from online scam
        centers, including as a percentage of the estimated total
        amount stolen through such scams globally.
            (4) An estimate of how many stolen funds were intercepted,
        seized, or returned.
            (5) An estimate of how many victims of trafficking in
        persons were employed in online scam centers.
            (6) An estimate of the total number of people involved in
        operating or supporting the operation of scam centers.
            (7) A list of known online scam centers.
            (8) A description of if, where, and how online scam centers
        and operations have proliferated globally.
            (9) Recommendations on the kinds of programs the Department
        of State should support in order to effectively implement the
        strategy described in subsection (c), including the level of
        appropriations such programs would require.
            (10) Any other measures the Task Force determines
        appropriate to include.
    (b) Form.--Each report submitted pursuant to subsection (a) shall
be unclassified but may include a classified annex.
    (c) Consultation.--The Task Force shall consult regularly with the
appropriate congressional committees on its efforts to implement the
strategy required by section 1(b)(1), including potential updates. Such
consultations should include descriptions of the Task Force's periodic
consultations with local law enforcement agencies and civil society
organizations and any incorporated recommendations, as well as
recommendations for strengthening the Task Force's capability to
effectively shut down online scam centers, dismantle criminal scam
organizations, and recoup stolen U.S. assets. Such consultations may
take the form of briefings.

SEC. 7. IMPOSITION OF SANCTIONS.

    (a) Determination, Imposition, and Report Required.--Not later than
180 days after the date of the enactment of this Act, the President
shall, in accordance with the strategy required by section 1(b)(1)--
            (1) determine whether each foreign person listed in
        subsection (d) meets the statutory criteria for the imposition
        of sanctions under one or more of the sanctions programs and
        authorities listed in subsection (c);
            (2) pursuant to paragraph (1), impose applicable sanctions
        against such foreign persons determined to meet such criteria
        for imposition of sanctions; and
            (3) submit to the appropriate congressional committees a
        report containing--
                    (A) a list of all foreign persons determined to
                meet such criteria; and
                    (B) for any foreign person listed in subsection (d)
                that is not determined to meet the criteria for the
                imposition of sanctions under one or more of the
                sanctions programs and authorities listed in subsection
                (c), a complete justification of such a non-
                determination or decision to otherwise not apply the
                sanctions authorized by such sanctions programs and
                authorities.
    (b) Waiver.--The President may waive the imposition of sanctions
with respect to a foreign person listed in subsection (d) on or after
the date that is 15 days after the President--
            (1) determines that such a waiver is vital to the national
        security interests of the United States; and
            (2) submits to the appropriate congressional committees the
        reasons for that determination.
    (c) Applicable Sanctions.--The sanctions listed in this subsection
are the sanctions described in the following:
            (1) Sections 1262 through 1264 of the Global Magnitsky
        Human Rights Accountability Act (22 U.S.C. 10101 et seq.).
            (2) Section 111 of the Trafficking Victims Protection Act
        of 2000 (22 U.S.C. 7108).
            (3) Executive Order 13581, relating to Transnational
        Criminal Organization Sanctions.
    (d) Foreign Persons.--
            (1) In general.--The foreign persons listed in this
        subsection are the following:
                    (A) Aik Paung.
                    (B) Benjamin Mauerberger.
                    (C) Chen Xiuling.
                    (D) D. Chen Zhi.
                    (E) Chou Bun Eng.
                    (F) Dy Vichea.
                    (G) Edward Lee.
                    (H) Gabriel Tan.
                    (I) Honn Sorachna.
                    (J) Hun To.
                    (K) Ing Dara.
                    (L) Kok An.
                    (M) Kuoch Chamrouen.
                    (N) Li Xiong.
                    (O) Long Dimanche.
                    (P) Ma Dongli.
                    (Q) Michael Chiam.
                    (R) Mote Thun.
                    (S) Neth Savoeun.
                    (T) Rithy Raksmei.
                    (U) Sai Aung Lin.
                    (V) Sai Kyaw Hla.
                    (W) Sar Sokha.
                    (X) Saw Min Min Oo.
                    (Y) Su Zhongkian.
                    (Z) Yan Borith.
                    (AA) Yan Narong.
                    (BB) Yan Sathya.
                    (CC) Yim Leak.
                    (DD) Yu Jianjun.
                    (EE) Yu Lingxiong.
                    (FF) Zhong Baojia (also known as Wang Qiang).
                    (GG) 9 Dynasty.
                    (HH) Dongmei Group.
                    (II) Fully Light Group of Companies, LTD.
                    (JJ) Hongmen World Cultural and Historical
                Association.
                    (KK) Huione Group.
                    (LL) K99 Group.
                    (MM) Prince Group Holding Company.
                    (NN) Trans-Asia International Holding Group.
                    (OO) Union Development Group.
                    (PP) White Sands Palace Casino.
                    (QQ) Xinwang International.
                    (RR) Any person, organization, or entity determined
                by the President, based on credible evidence, to be
                responsible for, complicit in, or responsible for
                ordering, controlling, or otherwise directing, online
                financial scams against United States nationals,
                including those scams originating from compounds in
                Southeast Asia in which victims of severe forms of
                trafficking in persons are forced to engage in illegal
                scam activity.
            (2) Exception.--In accordance with section 102(b)(19) of
        the Trafficking Victims Protection Act of 2000 (22 U.S.C.
        7101(b)(19)), no person determined by the President to be a
        victim of trafficking in persons shall be considered to be a
        foreign person listed in this subsection for purposes of
        imposition of sanctions under this section.

SEC. 8. PROGRAMS TO SUPPORT VICTIMS OF FORCED CRIMINALITY.

    (a) In General.--The Secretary of State is authorized to carry out
programs, out of the funds authorized to be appropriated by section 6
and in accordance with section 106(a) of the Trafficking Victims
Protection Act of 2000 (22 U.S.C. 7105(a)), to provide trauma-informed
care, shelter, reintegration, and support services for victims of
trafficking in persons within online scam centers.
    (b) Design and Implementation.--The Task Force shall ensure
programs authorized by subsection (a) are designed and implemented in a
manner that prevents revictimization and gains information and evidence
critical to understanding online scam centers' operations and
prosecuting scammers.

SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated $30,000,000 for the
Department of State for each of the fiscal years 2026 and 2027 to
develop, coordinate, and implement the strategy required by section
1(b)(1).

SEC. 10. DEFINITIONS.

    In this Act--
            (1) the term ``appropriate committees of Congress'' means--
                    (A) the Committee on Foreign Affairs of the House
                of Representatives; and
                    (B) the Committee on Foreign Relations of the
                Senate; and
            (2) the term ``intelligence community'' has the meaning
        given that term in section 3 of the National Security Act of
        1947 (50 U.S.C. 3003).
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