Terrorist Financing Prevention Act of 2023

This bill requires the Treasury to identify foreign banks and digital asset platforms (like crypto exchanges) that knowingly facilitate transactions for terrorist groups designated as Foreign Terrorist Organizations. It mandates sanctions such as blocking U.S. bank accounts for identified foreign banks and prohibiting U.S. persons from transacting with identified digital asset platforms. The law specifically targets digital asset protocols and transactions involving designated terrorist organizations, while exempting intelligence activities and goods imports. It authorizes funding for Treasury enforcement and applies penalties for violations under existing economic sanctions law.