Pfluger Part of Push to Cut Off Terrorist Funding at the Source

WASHINGTON, D.C. — Congressman August Pfluger (TX-11) and Senator Tim Sheehy (R-MN) introduced bicameral legislation to cut off terrorists and transnational criminals at the source, by following the money and stopping it cold.

The Trade Transparency Unit Strategy Act modernizes how the United States shares trade data with trusted allies, ensuring law enforcement is fully equipped to find bad actors and expose trade-based money laundering schemes before they bankroll the next attack. In an era of global commerce, this bill ensures that criminals can no longer hide dirty money that threatens U.S. security in plain sight, or worse, let it slip through the cracks.

"Criminals and terrorists are hiding the dirty money that fuels their operations in plain sight by exploiting the global trade networks," said Rep. Pfluger. "The Trade Transparency Unit Strategy Act modernizes how the U.S. shares information with our allies, enabling us to expose trade-based money laundering before it funds the next attack. I'm proud to lead this critical legislation alongside a fellow combat veteran like Senator Sheehy, who understands that strengthening international data sharing is essential to equipping our law enforcement to keep pace with evolving threats and keep Americans safe.”

“Government’s highest calling is protecting its own people, and as a combat veteran, it’s an honor to continue fighting to defend our country while serving in Congress," said Sen. Sheehy."We cannot sit idly by as transnational criminal enterprises and terrorist organizations seek to exploit vulnerabilities in the global trade system to fund their nefarious operations. The Trade Transparency Unit Strategy Act is an America First, commonsense bill that will help streamline bureaucracy and strengthen our national security apparatus’s ability to thwart threats before they reach our homeland.”

What the bill does:

This legislation directs the Secretary of Homeland Security, in coordination with the Secretary of State, the Secretary of Commerce, and the Secretary of the Treasury, to develop and deliver a comprehensive strategy to Congress to:

• Expand information sharing between U.S. and foreign customs agencies through Trade Transparency Units (TTUs)

• Improve coordination within agencies, across agencies, and with international partners

• Modernize how trade data is analyzed to keep pace with increasingly complex and high-speed transactions

Outside experts agree with the necessity of this legislation.

Connor Pfeiffer, Senior Director of Government Relations at FDD Action, said, “Trade Transparency Units are an important tool for working with U.S. partners to combat trade-based money laundering and other illicit activities that threaten national security. FDD Action is proud to support this legislation to enhance the effectiveness of TTUs and develop a strategy for expanding information sharing and international cooperation with key trading partners.”

Background:

Criminal and terrorist organizations rely heavily on trade-based money laundering (TBML) to disguise the origins of their illicit proceeds and fund their operations. TBML schemes often rely on misrepresenting the price, quantity, or type of goods in trade transactions, but fundamentally rely on value transfer mechanisms.

The U.S. government's primary tool to counter TBML is the Trade Transparency Unit (TTU) program under the Department of Homeland Security's Immigration and Customs Enforcement (ICE). ICE has set up TTUs in 17 partner countries to exchange and analyze trade data to identify potential cases of TBML.

While TTUs have played a role in some TBML investigations, the TTU program has experienced various challenges, including lapses in information sharing, mismatched priorities, and limitations in the outdated data system used by ICE and the TTUs. As markets grow more complex, criminals are moving faster while TTUs struggle to keep up.

The Trade Transparency Unit Strategy Act changes this, ensuring the U.S. and its allies aren't left trading yesterday's tools for tomorrow's threats.