Skip to content
Govbase
Govbase
Congress·In Committee·S. 3801

Combating Money Laundering, Terrorist Financing, and Counterfeiting Act of 2026

Grassley, Klobuchar Bill Would Double Prison Time for Cash Smuggling, Close Money Laundering Loopholes

Legislative Progress

Senate
House
President
Law

Key Points

  • This bill, introduced by Senators Grassley and Klobuchar, aims to make it harder for criminals and terrorists to move money. It doubles the maximum prison time for smuggling large amounts of cash across borders from 5 years to 10 years and adds heavy new fines for people caught breaking these laws.
  • The proposal closes a loophole regarding blank checks. If someone carries a blank check for an account with more than $10,000 to avoid reporting rules, it will now be treated the same as carrying $10,000 in cash. It also allows the government to combine several smaller transactions to prove someone is trying to hide illegal money.
  • For the first time, international money laundering laws would specifically apply to people trying to evade U.S. taxes. The bill also makes it a crime to possess tools or machinery used for counterfeiting money with the intent to defraud, and it gives the Secret Service more power to investigate these financial crimes.
  • The Treasury Department would be required to study how "remittances"—money sent by individuals to people in other countries—are being used by drug cartels and human traffickers. While the goal is to stop crime, the study must also look at how new rules might affect regular people who send money home to their families legally.
Economy FinanceCriminal JusticeNational Security Foreign Policy

Impact Analysis

Personal Impact

Life & Work

The bill significantly increases penalties across multiple financial crime categories. Bulk cash smuggling maximum sentences double from 5 to 10 years. Aggravated cases carry doubled fines. The government gains new tools to aggregate smaller transactions and prosecute money laundering as a 'course of conduct' in a single count, making convictions easier to obtain and sentences potentially harsher for people involved in financial crimes.

3
2
1
5
-3
ImpactCertaintyScopeDurationSentiment

Activities

Broader Impacts

Score
Scores: -5 (harmful) to +5 (beneficial)Short-term: 0-2 yearsLong-term: 10-30 years

Milestones

2 milestones2 actions
Feb 5, 2026Senate

Read twice and referred to the Committee on the Judiciary.

Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.

Feb 5, 2026

Introduced in Senate

The bill was officially filed and given a number. It now enters the legislative queue.

Votes

No votes have been recorded for this legislation yet.

Source Information

Document Type

Congressional Bill

Official Title

Combating Money Laundering, Terrorist Financing, and Counterfeiting Act of 2026

Bill NumberS 3801
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on the Judiciary.

Sponsor

Cosponsors

(1)
D: 1

Analysis generated by AI. Always verify with official sources.