The STOP Scammers Act requires the Secretary of the Treasury to designate certain foreign entities as Foreign Financial Threat Organizations within a defined timeframe. The first designation must occur no later than 90 days after enactment, and the Secretary must notify key congressional leaders and committees before designations and publish the designation in the Federal Register.
Once designated, these FFTOs can have their assets frozen and transactions blocked, with actions parallel to other sanctions authorities. The Secretary would also be authorized to take cybersecurity and communications-restriction steps against FFTOs and would issue annual public reports detailing designations, asset seizures, and refunds to fraud victims.
At a Glance
What It Does
Designates covered foreign organizations as Foreign Financial Threat Organizations and authorizes asset freezes, transaction blocking, and related enforcement. Establishes notice, publication, and procedural requirements for designations.
Who It Affects
Treasury and enforcement agencies, financial institutions implementing freezes, and designated FFTOs (foreign entities) as well as U.S. victims of fraud.
Why It Matters
Creates a formal framework to disrupt scam networks abroad, with transparent reporting and strong, SDGT-like penalties to deter fraud and protect U.S. financial systems.
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What This Bill Actually Does
The bill creates a new tool for disrupting international scam networks by designating certain foreign entities as Foreign Financial Threat Organizations (FFTOs). A covered organization is a foreign entity that deceives U.S. citizens or permanent residents to part with cash or assets, and it can include subsidiaries.
The Secretary of the Treasury must designate the first FFTO within 90 days of enactment. Before any designation, the Secretary must notify the Speaker of the House, the Senate leaders, and relevant committees, outlining the factual basis for designation, and must publish the designation in the Federal Register within seven days of that notification.
Once designated, the Secretary can require U.S. financial institutions that hold or control assets of the FFTO to block all financial transactions involving those assets until directed otherwise. The designation also subjects FFTOs to penalties and procedures similar to those governing specially designated global terrorists under Executive Order 13224.
The act authorizes the government to take actions to protect U.S. cybersecurity and to limit FFTOs’ access to internet or cellular services. It also bars FFTOs from contacting U.S. citizens or permanent residents by phone, internet, or email.In addition to these powers, the bill mandates a two-year, then annual, report from the Treasury on implementation.
Reports must identify designated FFTOs, quantify seized assets, describe actions taken, and note funds returned to fraud victims, with publicly available versions that redact sensitive information. The designation framework is backed by a clear definition of a covered organization in the law, tying designation to fraudulent activity aimed at deceiving U.S. persons for financial gain.
The Five Things You Need to Know
Designates foreign entities as Foreign Financial Threat Organizations (FFTOs) with a first designation within 90 days of enactment.
Requires advance notice to Congress and publication in the Federal Register before designation.
Authorizes asset freezes and blocking of transactions for FFTOs.
Treats FFTOs with SDGT-like penalties and enforcement to disrupt fraudulent activity.
Imposes annual Treasury reporting on designations, asset seizures, and victims’ refunds, with redacted public versions.
Section-by-Section Breakdown
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Short title
This Act may be cited as the Strengthening Targeting of Organized Predatory Scammers Act (STOP Scammers Act). It sets the name by which the law will be known and cited in official materials.
Designation timeline
The Secretary of the Treasury must designate covered organizations as FFTOs, with the first designation due not later than 90 days after enactment. This creates an initial, predictable timeline for implementing the new designation framework.
Designation procedure
Before designation, the Secretary must notify the Speaker and Minority Leader of the House, the President pro tempore, the Majority and Minority Leaders of the Senate, and relevant committees, and provide the factual basis for designation. A designation must be published in the Federal Register within seven days of notification.
Asset freezing and enforcement
Upon designation, the Secretary may require U.S. financial institutions with assets of the FFTO to block all financial transactions involving those assets, pending further direction from Congress, the President, or a court. The enforcement framework parallels that used for other critical sanctions regimes to disrupt financial flows.
Prohibition on contact
The Treasury shall take necessary actions to prevent FFTOs from contacting U.S. citizens or lawful permanent residents by phone, internet, or email, reducing the ability of the organization to exploit U.S. population segments.
Reporting requirements
Not later than two years after enactment and annually thereafter, Treasury must report to appropriate congressional committees on the implementation of the Act, including designation details, asset seizures, actions taken, and funds returned to fraud victims. A publicly available version with redactions must be provided.
Covered organization defined
A covered organization means a foreign entity (as defined in 31 C.F.R. 800.220(a)) or its subsidiaries or affiliates that engages in fraudulent activity intended to deceive U.S. citizens or lawful permanent residents to provide cash or other assets, as determined jointly by the Secretary of the Treasury and the Attorney General.
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Explore Finance in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- Treasury and law enforcement agencies gain a formal tool to designate and freeze assets of fraud networks, improving disruption and enforcement capabilities.
- Financial institutions gain a clear, legally-authorized framework to block transactions for designated FFTOs, reducing compliance risk in known cases.
- Fraud victims can see potential asset seizures and funds returned, improving redress mechanisms and deterrence.
- Congressional committees gain regular, structured reporting on designation activity and outcomes to inform oversight.
Who Bears the Cost
- Foreign entities designated as FFTOs face asset freezes, transaction prohibitions, and reputational harm, with potential collateral consequences in cross-border activity.
- U.S. financial institutions incur compliance costs to implement freezes, monitor designated assets, and report to Treasury.
- Treasury and other federal agencies bear ongoing enforcement and administrative costs to administer the program and produce annual reports.
- There is a risk of overbroad or erroneous designations that could disrupt legitimate transactions or harm innocent parties, requiring robust safeguards and accuracy.
Key Issues
The Core Tension
The central tension is between aggressively disrupting foreign fraud networks through swift designation and asset control, and protecting legitimate economic activity and individuals from misdesignation or overreach, all while maintaining due process, accuracy, and safeguards against abuse.
The bill creates a powerful mechanism to disrupt fraud networks abroad but raises questions about designation accuracy, due process in designation, and the risk of collateral damage to legitimate actors. The reliance onTreasury and interagency processes for designation, asset freezing, and contact restrictions hinges on precise factual determinations and timely updates to sanctions lists.
The reporting requirements improve transparency but their public versions must carefully balance transparency with security concerns and privacy. The broad authority to block communications and suppress internet access, while intended to undermine criminal networks, could have unintended consequences for legitimate users and businesses if misapplied.
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