Dismantle Foreign Scam Syndicates Act
- Sponsor
- Rep. Shreve, Jefferson [R-IN-6]
- Committees
- Foreign Affairs Committee (primary)
- Last action
- Dec 3, 2025
Bottom line
This bill creates a comprehensive, interagency U.S. government effort to disrupt and dismantle foreign online scam operations, protect victims of human trafficking, and recover stolen assets from American victims.
What it actually does
This bill establishes an interagency Task Force, chaired by the Secretary of State, to lead a whole-of-government effort to dismantle and shut down transnational criminal syndicates. These syndicates operate large-scale online scam compounds, primarily in Southeast Asia, using forced labor from human trafficking victims to perpetrate financial scams like 'pig butchering' against Americans. The bill mandates the development of a comprehensive strategy, annual reports to Congress, and the imposition of sanctions against identified foreign persons and entities involved in these operations.
Proponents argue
Proponents argue that the bill addresses a growing national security and economic threat, protecting Americans from significant financial losses and combating severe human rights abuses. They emphasize the necessity of a coordinated 'whole-of-government' approach to tackle sophisticated transnational criminal organizations and hold complicit foreign governments accountable for enabling these illicit activities.
Opponents contend
No explicit opposition to the bill's core goals of combating online scams and human trafficking is documented, as these issues generally garner bipartisan concern. Potential criticisms, if any, might focus on the scope of sanctions, the feasibility of asset recovery, or the potential for diplomatic complexities with targeted nations.
The bill is relatively concise, allowing an informed reader to grasp its core provisions and strategic intent within a reasonable timeframe.
Section 2
Congressional Findings on Online Scam Operations
This section details Congress's understanding of the problem, including the origin of 'pig butchering' scams by Chinese criminal organizations in Southeast Asia, their reliance on human trafficking victims for forced labor, the significant financial losses incurred by Americans (estimated $10 billion in 2024), and troubling links to the People's Republic of China and corrupt local politicians.
Supporters argue
Supporters argue these findings establish a clear and urgent justification for the bill's actions, demonstrating the scale of the problem and the need for a robust federal response.
Critics contend
No specific opposition is typically raised against factual findings that serve as legislative justification, unless the facts themselves are disputed.
Section 3
United States Policy to Combat Transnational Online Scams
This section formally declares it the policy of the United States to comprehensively combat transnational organized criminals who operate human trafficking compounds, primarily in Southeast Asia, to perpetrate large-scale online scams against Americans.
Section 4
Establishment and Duties of Interagency Task Force
This section mandates the President to establish an interagency Task Force within 30 days, chaired by the Secretary of State, to lead a whole-of-government effort against transnational online scam syndicates. The Task Force is responsible for developing a comprehensive strategy within 180 days, overseeing its implementation, and coordinating information sharing among member agencies. It also authorizes consultation with state/local law enforcement, NGOs, and private sector actors. The Task Force sunsets after seven years.
Section 5
Objectives of the Comprehensive Strategy
This section details 13 specific objectives for the Task Force's comprehensive strategy. These include pressuring complicit foreign governments, investigating PRC and Burmese military involvement, reducing criminal influence, building foreign law enforcement capacity (digital forensics, anti-money laundering, victim protection), imposing sanctions, advocating for financial blacklisting (e.g., Cambodia at FATF), harnessing offensive cyber capabilities, recovering stolen assets, integrating data across agencies, and convening international coalitions. It also requires measurable indicators of success.
Section 6
Annual Report to Congress
This section requires the Task Force to submit an annual report to Congress for five years, starting 360 days after the strategy submission. The report must include a list of sanctioned foreign persons, an assessment of their ongoing involvement, estimates of money stolen from and recovered for U.S. nationals, estimates of human trafficking victims, a list of known scam centers, and recommendations for State Department programs.
Section 7
Mandated Sanctions Against Perpetrators and Enablers
Within 180 days, the President must determine if specific foreign persons and entities listed in the bill (including individuals like Aik Paung, Chen Xiuling, Hun To, and entities like Dongmei Group, Prince Group Holding Company) meet criteria for sanctions under existing authorities (Global Magnitsky Act, Trafficking Victims Protection Act, Executive Order 13581). Applicable sanctions must be imposed, and a report justifying any non-determinations must be submitted to Congress. The President can waive sanctions for national security interests. Victims of trafficking are explicitly exempted from being sanctioned.
Section 8
Victim Support and Reintegration Programs
This section authorizes the Secretary of State to carry out programs providing trauma-informed care, shelter, reintegration, and support services for victims of trafficking in persons within online scam centers. The Task Force must ensure these programs prevent revictimization and gather critical intelligence for prosecuting scammers.
Section 9
Authorization of Appropriations for Strategy Implementation
This section authorizes the appropriation of $30,000,000 for the Department of State for each of fiscal years 2026 and 2027 to develop, coordinate, and implement the comprehensive strategy.
Authorizes the President to sanction "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."
Section 7(d)(1)(RR)
Why it matters:This is standard legislative practice to provide flexibility and future-proofing for sanctions regimes, allowing the Executive Branch to respond to evolving threats without needing new legislation for every new actor.
Case for: Proponents would argue this provision is crucial for the long-term effectiveness of the bill, ensuring the U.S. government can adapt to new criminal actors and evolving scam tactics without being limited to a static list. It provides necessary flexibility to combat dynamic transnational criminal organizations.
Case against: Critics might argue that such broad authority could be subject to abuse, used for politically motivated sanctions, or applied without sufficient transparency or due process, potentially impacting legitimate entities or individuals.
Estimated impact: Potentially significant, as it allows for the targeting of an unlimited number of future actors involved in these scams, extending the reach and duration of the bill's impact beyond the initially identified list.