S. 706: American Victims of Terrorism Compensation Act

The American Victims of Terrorism Compensation Act aims to amend existing legislation to improve the funding and distribution processes for victims of state-sponsored terrorism in the United States. Here are the main provisions of the bill:

1. Clarification of Funding Sources

The bill enhances the procedures for utilizing funds related to state-sponsored terrorism. It specifically addresses the following:

• It mandates that certain funds from legal proceedings involving state sponsors of terrorism be deposited into the United States Victims of State Sponsored Terrorism Fund.
• This includes funds forfeited from companies or entities involved in such proceedings, explicitly mentioning Binance Holdings Limited and related cases.
• Funds will be deposited into the Crime Victims Fund, which ensures that financial resources are available for compensating victims.

2. Timelines for Payments

The bill establishes deadlines for distributing funds:

• Fifth-round payments to victims are to be disbursed by March 14, 2025, or as soon as payment information is made available by the claimants.
• Additional payments will be made annually, starting January 1, 2026, based on the total contributions to the Fund during the preceding year.

3. Reporting Requirements

The legislation requires annual and triennial reporting to Congress regarding the Fund's activity:

• The Attorney General must publish an annual report detailing the Fund's balance, sources of deposits, and disbursements.
• The Comptroller General will provide a report evaluating the Fund’s administration and financial sufficiency every three years, starting in 2027.

4. Administrative Provisions

The bill allows for the hiring of Department of Justice personnel to manage the fund's administration and covers related costs from the Fund. It ensures that these costs do not detract from the compensation available to victims.

5. Legal Interpretations

Importantly, the bill clarifies that the new provisions should not undermine existing rights of direct crime victims to receive restitution associated with underlying criminal offenses.

6. Additional Deposits

The legislation ensures that any remaining amounts in specific reserves are deposited into the Fund promptly, enhancing the available resources for compensation.

Relevant Companies

• BNB - Binance Holdings Limited is likely to be significantly impacted due to the mention of forfeited assets connected to its legal proceedings. Significant funds have been associated with this entity, which could affect the overall amounts available for distribution to victims.