Senate Introduces Bipartisan Bill to Combat Drug and Terrorism Money Laundering

In a significant bipartisan effort to combat financial crimes, Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) and Sen. Amy Klobuchar (D-Minn.) have introduced new legislation aimed at strengthening the nation’s ability to fight money laundering operations used by drug cartels and terrorist organizations.

The “Combating Money Laundering, Terrorist Finance and Counterfeiting Act,” introduced Friday, seeks to modernize existing criminal money laundering statutes to address evolving financial crime techniques. The comprehensive bill comes at a time when Trump administration officials have increasingly warned about hostile actors funding operations through sophisticated financial channels across U.S. borders.

“Criminal enterprises and terrorist organizations depend on ill-begotten cash to carry out their dark deeds. As money laundering methods have evolved over time, so must the government’s efforts to exact justice,” Grassley explained, emphasizing the legislation would equip law enforcement with necessary tools to “track down dirty money, hold criminals accountable and prevent further crimes.”

The legislation specifically targets several key areas of concern. It would update counterfeiting laws to address state-of-the-art methods, increase penalties for bulk cash smuggling, and extend money laundering laws to cover informal value transfer systems—financial networks often utilized by drug traffickers and terrorist groups to move funds while evading traditional banking oversight.

Senator Klobuchar highlighted the importance of staying ahead of criminal innovation, stating, “As criminals and terrorist organizations develop new methods to launder money, we must provide our law enforcement with the tools they need to keep American communities safe.”

One significant provision would prohibit the cross-border shipment of blank checks specifically designed to evade reporting requirements. The bill also establishes a new money laundering violation targeting the transfer of funds into or out of the United States with the intent to violate U.S. income tax laws—closing a loophole that has allowed criminal organizations to exploit the tax system.

Law enforcement would gain expanded investigative powers under the legislation, including wiretapping authority for cases involving currency reporting violations, bulk cash smuggling, illegal money services businesses, and counterfeiting offenses. Additionally, the U.S. Secret Service would receive explicit authority to investigate ransomware crimes and other unlicensed money transmitting activities.

The measure has garnered strong support from major law enforcement organizations across the country. The Fraternal Order of Police, National Association of Assistant U.S. Attorneys, National Association of Police Organizations, and National District Attorneys Association have all endorsed the bill.

Patrick Yoes, president of the Fraternal Order of Police, offered a strong endorsement: “By clarifying the law in response to recent court decisions, strengthening penalties and expanding investigative authorities, this legislation will restore critical law enforcement tools and help disrupt transnational criminal organizations.”

The National Association of Assistant U.S. Attorneys similarly supported the measure, noting the “targeted reforms will strengthen investigations, improve prosecutorial clarity and better reflect how modern money-laundering schemes actually operate.”

The legislation comes amid heightened concerns about sophisticated financial networks supporting criminal enterprises. Recent federal operations have highlighted the scale of the problem, including major drug seizures in the Bronx where federal agents confiscated two kilograms of cocaine, a firearm, and $329,000 in cash, as well as the disruption of an alleged Maduro-linked money laundering network that spanned multiple nations.

Financial crimes experts have long argued that targeting the money flow is often the most effective way to disrupt criminal organizations, as it cuts off the resources needed to sustain operations. This legislation represents a significant update to the legal framework used to combat such financial networks, reflecting the increasingly complex methods employed by criminal and terrorist organizations to move funds internationally.