Sponsors (9)
The bill strengthens coordinated U.S. enforcement, sanctions, and victim‑centered responses to disrupt international scam compounds and compensate victims, but does so at the cost of higher federal spending, compliance burdens, diplomatic friction, legal/due‑process risks, and uncertainty from a seven‑year sunset.
Law enforcement and the general public: Federal agencies will coordinate expanded use of targeted financial sanctions, visa restrictions, asset blocking/forfeiture, and a new interagency Task Force to disrupt transnational scam‑compound networks and reduce fraud against Americans.
Survivors of trafficking and scam victims: The bill promotes victim-centered identification and services, aligns with existing trafficking definitions to protect victims from prosecution for acts committed under duress, and creates a mechanism for financial redress (compensation from seized assets).
Congress and the public: The Act requires regular reporting (annual public reports with classified annexes, semiannual sanctions listings, and a rapid 90‑day interagency assessment) to improve oversight, transparency, and legislative responsiveness.
Foreign governments, bilateral cooperation, and U.S. interests: Expanded sanctions, designations (including scrutiny tied to PRC connections), visa restrictions, and labeling of 'enabling' countries risk straining diplomatic relations, provoking retaliation, and complicating cooperation on other priorities.
Taxpayers and federal budgets: Establishing and running a Task Force, conducting cross‑border enforcement, providing foreign assistance, operating victim‑redress mechanisms, and potential reauthorization needs will increase federal administrative and program costs.
Businesses and financial institutions: Blocking, forfeiture, sanctions, and associated civil/criminal penalties will raise compliance costs, disrupt lawful transactions, and risk exposing uninformed third parties (banks, intermediaries, small businesses) to penalties or operational disruption.
Based on analysis of 8 sections of legislative text.
Requires a U.S. strategy and task force against transnational "scam compounds," enables IEEPA sanctions on foreign enablers, and directs DOJ to study forfeiture-based victim redress.
Official title: Require the Secretary of State and relevant executive branch agencies to address international scam compounds defrauding people in the United States, to hold significant transnational criminal organizations accountable, and for other purposes.
Introduced September 30, 2025 by John Cornyn · Last progress December 9, 2025
Creates a U.S. whole-of-government response to transnational “scam compounds” that run cyber-enabled fraud, recruit and traffic victims, launder proceeds, and force victims into criminality. It requires a strategy and interagency task force, enables Treasury/President sanctions under IEEPA after 180 days, directs DOJ to study forfeiture-based victim redress, mandates reporting, and sunsets after seven years.