GUARD Act

Summary#

This bill lets State, local, and Tribal law enforcement agencies that receive certain federal grant programs use those grant funds to investigate elder financial fraud, pig butchering scams, and other financial fraud. The text defines key terms (for example, elder financial fraud, pig butchering, general financial fraud, and scams) and lists the specific federal grant programs whose funds may be used.

Allowed uses include hiring and keeping analysts and investigators; buying software and technical tools; providing specialized training (including use of blockchain intelligence tools and other emerging technologies); improving data collection and reporting; running coordination exercises with financial institutions; and naming a financial sector liaison to exchange information with financial firms.

The bill requires each law enforcement agency that spends eligible grant funds this way to report to the agency that provided the grant within one year. The report must explain amounts and purposes, give statistics and analysis about fraud in the agency’s area, and assess the agency’s ability to deter such crimes.

The Secretary of the Treasury and the Director of the Financial Crimes Enforcement Network must jointly submit a report to Congress within one year on efforts and recommendations related to these types of fraud. They also must submit, within two years, a separate report estimating the number and dollar losses from scams and describing related federal enforcement actions and resources. Federal agencies that provide eligible grants must send annual reports to relevant congressional committees with the information they receive from local grant recipients.

Finally, the bill clarifies that Federal law enforcement agencies may assist State, local, and Tribal law enforcement and fusion centers in using blockchain tracing tools and related technology tools.

What it means for you#

• Local, State, and Tribal law enforcement that get the named federal grants can use those funds to investigate and respond to elder scams, pig butchering, and other financial fraud.
• Agencies may get training, software, and personnel funded from those grants to support complex fraud investigations and coordination with banks and other financial firms.
• Financial institutions may have a designated point of contact (a financial sector liaison) to share information with law enforcement as part of investigations.
• Federal law enforcement may help local agencies use blockchain tracing and similar tools in investigations.

Expenses#

No publicly available information on total cost estimates or new appropriations is provided in the bill text. The bill permits existing eligible federal grant funds (listed in the bill) to be used for the activities described. It also requires various reports to Congress but does not specify new funding amounts.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.