Nashville Standard

United States Senators Bill Hagerty (R-TN) and Cynthia Lummis (R-WY) have introduced the Preventing Illicit Finance Through Partnership Act of 2024. This legislation aims to combat illicit finance by fostering communication between federal law enforcement agencies and private companies.

Senator Hagerty emphasized the importance of collaboration and information sharing, stating, "Federal law enforcement agencies already have the tools to combat illicit finance—they just need to communicate with the private sector to deploy them most effectively."

Senator Lummis acknowledged that while there are bad actors in every industry, cryptocurrency itself is not the problem. She stated, "The Preventing Illicit Finance Through Partnership Act will allow federal regulators to work with the private sector to gain insight into the often-misunderstood world of crypto to weed out bad actors without crushing an entire emerging industry."

The legislation establishes a pilot program for federal agencies and the private sector to share information related to illicit finance. Chaired by the Attorney General, the program will include 20 voluntarily participating money services businesses and cryptocurrency companies.

Under the program, when federal agencies investigate a potential illicit finance violation, threat, or risk, they may securely share information with a private sector entity participating in the program. The private sector entity can then use this information to identify or report potential illicit finance activity.

This program aims to provide private companies with a channel to alert federal agencies to any suspicious money transfers and sanctions evasion. By fostering this public-private partnership, regulators will gain valuable insight into the use cases for crypto assets and establish federal rules that support the industry's growth while preventing illicit financial activities.

The Preventing Illicit Finance Through Partnership Act of 2024 is a step towards fostering collaboration and coordination between the public and private sectors in combatting illicit finance. It recognizes that effective communication and information sharing are essential in detecting and disrupting bad actors in the cryptocurrency industry.

The full text of the legislation can be found [here](link).