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Congress·In Committee·S. 3801

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

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

about 2 months ago·View on Congress.gov

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

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

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.

Feb 5, 2026

Introduced in Senate

What Happens Next

Projected impacts based on AI analysis

Within 1 year of enactment

Treasury Department must complete a threat analysis of how remittances are used for illegal financing

This study will shape future rules about how people can send money overseas, potentially affecting fees, documentation requirements, or available services for the millions of people who regularly send money to family abroad.

Within 18 months of enactment

Treasury must publish a remittances strategy and implementation plan

This plan could introduce new oversight requirements for money transfer companies that affect how quickly and affordably people can send money internationally. The plan must be updated every 5 years for 10 years.

Upon enactment

New criminal penalties and enforcement tools take effect

If enacted, the doubled penalties for cash smuggling, expanded wiretap authority, broadened money services business definitions, and new counterfeiting provisions would all take effect, giving law enforcement significantly more power to pursue financial crimes.

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.