The U.S Secret Service would be given increased authority to investigate the laundering of funds obtained from cybercrimes under a new bill introduced by Sens. Catherine Cortez Masto, D-Nev., and Chuck Grassley, R-Iowa, reports The Record, a news site by cybersecurity firm Recorded Future.
With the Secret Service having limited jurisdiction over money transmitting businesses that have no licenses under existing laws, such legislation would not only allow the federal agency to probe the said entities but also evaluate financial transaction structures that have enabled concealment of malicious operations. "As money laundering schemes continue to evolve, so must our capacity to combat them. By enhancing Secret Services authority to investigate criminal digital assets, our bill significantly improves law enforcement's ability to effectively anticipate, identify and prevent cybercrime," said Grassley. Such a development comes almost a year after the failed passage of the measure, initially introduced by the lawmakers alongside Sen. Amy Klobuchar, D-Minn., as well as a similar House version.
Democratic senators Ron Wyden and Sheldon Whitehouse, along with Republican congressman Pat Harrigan, sent a letter to U.S. Secretary of Commerce Howard Lutnick urging the addition of three Indian companies—BellTroX, CyberRoot, and Sunkissed Organic Farms (formerly Appin)—to the Commerce Department’s entity list.
The bill addresses a perceived gap in regulatory power, as the NCUA's temporary authority to oversee third-party vendors has lapsed, leaving financial systems vulnerable.
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