S. 4078: Stop Somali Currency Airport Smuggling through Hawalas Fraud Act

The bill titled "Stop Somali Currency Airport Smuggling through Hawalas Fraud Act" aims to amend section 5316 of title 31 of the United States Code. The main objective is to enhance reporting requirements related to the transportation of currency and money instruments, particularly targeting certain high-risk countries, including Somalia. Here’s a breakdown of the key components of the bill:

1. Reporting Requirements

The bill mandates that if currency or monetary instruments are transported out of the U.S. by a person who is a national of specific designated countries, a report must be filed at least 72 hours prior to the transaction. The designated countries include:

• Countries identified by the Secretary of State as a risk under various acts (Export Control Reform Act, Arms Export Control Act, Foreign Assistance Act).
• Countries that are considered state sponsors of terrorism.
• Countries identified as high-risk in a specific Department of State press release.

2. Content of the Reports

The reports that need to be filed must contain detailed information about the person transporting the currency. This includes:

• Identity or travel documents issued over the past five years.
• Individual taxpayer identification numbers (ITIN).
• Alien registration numbers used in the same time frame.

The reports must also provide information about the beneficiary or recipient of the currency, including:

• Name and address.
• Date and place of birth.
• Contact information (phone numbers and emails).
• Passport or national identification numbers.

Additionally, information on whether the funds are sourced from government contracts or benefit programs, and any ownership interests by the transporter in those funds, must also be included in the reports.

3. Purpose

The intent of these changes is to reduce instances of fraud and illegal financial transactions that could be associated with high-risk countries, thereby enhancing U.S. financial security and compliance with international regulations.

Relevant Companies

None found.