113 HR 4411 : Hezbollah International Financing Prevention Act of 2014
U.S. House of Representatives
2014-07-23
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title and table of contents
(a)This Act may be cited as the Hezbollah International Financing Prevention Act of 2014
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title and table of contents.
Sec. 2. Statement of policy.
Title I—Prevention of access by Hezbollah to international financial and other institutions
Sec. 101. Briefing on imposition of sanctions on certain satellite providers that carry al-Manar
TV.
Sec. 102. Sanctions with respect to financial institutions that engage in certain transactions.
Title II—Reports on designation of Hezbollah as a significant foreign narcotics trafficker and a
significant transnational criminal organization
Sec. 201. Report on designation of Hezbollah as a significant foreign narcotics trafficker.
Sec. 202. Report on designation of Hezbollah as a significant transnational criminal organization.
Sec. 203. Report on Hezbollah’s involvement in the trade of conflict diamonds.
Sec. 204. Rewards for justice and Hezbollah’s fundraising, financing, and money laundering
activities.
Sec. 205. Report on activities of foreign governments to disrupt global logistics networks and
fundraising, financing, and money laundering activities of Hezbollah.
Sec. 206. Appropriate congressional committees defined.
Title III—Miscellaneous provisions
Sec. 301. Rule of construction.
Sec. 302. Regulatory authority.
Sec. 303. Offset.
Sec. 304. Termination.
2.It shall be the policy of the United States to—
(1)prevent Hezbollah’s global logistics and financial network from operating in order to curtail
funding of its domestic and international activities; and
(2)utilize all available diplomatic, legislative, and executive avenues to combat the global criminal
activities of Hezbollah as a means to block that organization’s ability to
fund its global terrorist activities.
<enum>I</enum><header>Prevention of access by Hezbollah to international financial and other institutions</header>
<section commented="no" id="H034DA5BD138D406C99EF2334052712DE"><enum>101.</enum><header>Briefing on imposition of sanctions on certain satellite providers that carry al-Manar TV</header>
<text display-inline="no-display-inline">Not later than 30 days after the date of the enactment of this Act, and annually thereafter, the
Secretary of State shall provide to the Committee on Foreign Affairs of
the House of Representatives and the Committee on Foreign Relations of the
Senate a briefing on the following:</text>
<paragraph commented="no" id="H461BEF8390E94F598672AC40CAF828CD"><enum>(1)</enum><text>The activities of all satellite, broadcast, Internet, or other providers that knowingly provide
material support to al-Manar TV, and any affiliates or successors thereof.</text>
</paragraph><paragraph commented="no" id="HCF9948144B564DAEBA78EA0817F84207"><enum>(2)</enum><text>With respect to all providers described in paragraph (1)—</text>
<subparagraph commented="no" id="H6F918DEE813C4C5BB8E42A6C67B22F14"><enum>(A)</enum><text display-inline="yes-display-inline">an identification of those providers that have been sanctioned pursuant to Executive Order No.
13224 (September 23, 2001); and</text>
</subparagraph><subparagraph commented="no" id="HA5E7F18B12D440938FC4831B87D2264A"><enum>(B)</enum><text>an identification of those providers that have not been sanctioned pursuant to Executive Order No.
13224 and, with respect to each such provider, the reason why sanctions
have not been imposed.</text>
</subparagraph></paragraph></section><section id="HAA64D5C1BDB341C8805664C927C313A4"><enum>102.</enum><header>Sanctions with respect to financial institutions that engage in certain transactions</header>
<subsection id="HBC88080EBF804009ADF2A93345986608"><enum>(a)</enum><header>Prohibitions and conditions with respect to certain accounts held by foreign financial institutions</header>
<paragraph id="H9AF5F101844341CE87F5B36651C77674"><enum>(1)</enum><header>In general</header><text>Not later than 120 days after the date of the enactment of this Act, the Secretary of the Treasury,
with the concurrence of the Secretary of State and in consultation with
the heads of other applicable departments and agencies, shall prohibit, or
impose strict conditions on, the opening or maintaining in the United
States of a correspondent account or a payable-through account by a
foreign financial institution that the Secretary determines, on or after
the date of the enactment of this Act, engages in an activity described in
paragraph (2).</text>
</paragraph><paragraph id="H4E6904FF2F944282BA69A82180BF42EC"><enum>(2)</enum><header>Activities described</header><text>A foreign financial institution engages in an activity described in this paragraph if the foreign
financial institution—</text>
<subparagraph id="H297F85E0BA39491782E3697FA63B2A7B"><enum>(A)</enum><text>knowingly facilitates a significant transaction or transactions for Hezbollah;</text>
</subparagraph><subparagraph id="H0411CF552B0544E38CD11B46A5DD12FF"><enum>(B)</enum><text display-inline="yes-display-inline">knowingly facilitates a significant transaction or transactions of a person designated for acting
on behalf of or at the direction of, or owned or controlled by, Hezbollah;</text>
</subparagraph><subparagraph id="H51D7A5111D0B408C8539272C6C9E0D2A"><enum>(C)</enum><text display-inline="yes-display-inline">knowingly engages in money laundering to carry out an activity described in subparagraph (A) or
(B);</text>
</subparagraph><subparagraph id="HC8E258ACC06A4B9598A182F48491FA60"><enum>(D)</enum><text display-inline="yes-display-inline">knowingly facilitates a significant transaction or transactions or provides significant financial
services to carry out an activity described in subparagraph (A), (B), or
(C), including—</text>
<clause id="HEEEF5E13F9FA4AA3956F9BE4470970DC"><enum>(i)</enum><text>facilitating a significant transaction or transactions; or</text>
</clause><clause id="HB828D2BB93AC4F0B820BF1497BBB63C8"><enum>(ii)</enum><text>providing significant financial services that involve a transaction of covered goods; or</text>
</clause></subparagraph><subparagraph id="H3BF0779E75154BCCAE4C783B9E5CEFBD"><enum>(E)</enum>
<clause commented="no" display-inline="yes-display-inline" id="HA426C7540BC84FD4A7FDAAE5645A3173"><enum>(i)</enum><text display-inline="yes-display-inline">knowingly facilitates, or participates or assists in, an activity described in subparagraph (A),
(B), (C), or (D), including by acting on behalf of, at the direction of,
or as an intermediary for, or otherwise assisting, another person with
respect to the activity described in any such subparagraph;</text>
</clause><clause id="HED991A4B8077499D90004B5F305CF0D7" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">knowingly attempts or conspires to facilitate or participate in an activity described in
subparagraph (A), (B), (C), or (D); or</text>
</clause><clause commented="no" id="HCB7F99F2990E4C4D9D07A373CE039DCA" indent="up1"><enum>(iii)</enum><text display-inline="yes-display-inline">is owned or controlled by a foreign financial institution that the Secretary finds knowingly
engages in an activity described in subparagraph (A), (B), (C), or (D).</text>
</clause></subparagraph></paragraph><paragraph id="HC615D6F7FFFF4D2EBD25C2924D8B320B"><enum>(3)</enum><header>Penalties</header><text>The penalties provided for in subsections (b) and (c) of section 206 of the International Emergency
Economic Powers Act (<external-xref legal-doc="usc" parsable-cite="usc/50/1705">50 U.S.C. 1705</external-xref>) shall apply to a person that
violates, attempts to violate, conspires to violate, or causes a violation
of regulations prescribed under paragraph (1) of this subsection to the
same extent that such penalties apply to a person that commits an unlawful
act described in section 206(a) of that Act.</text>
</paragraph><paragraph id="H97753150AC1E46238D5B10C0567276D7"><enum>(4)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Secretary of the Treasury shall prescribe and implement regulations to carry out this
subsection.</text>
</paragraph></subsection><subsection id="H53D08319F77747F9BBE6447C8FAAC525"><enum>(b)</enum><header>Waiver</header>
<paragraph id="H9515C799814443F9A6856644A59BFBC0"><enum>(1)</enum><header>In general</header><text>The Secretary of the Treasury, with the concurrence of the Secretary of State and in consultation
with the heads of other applicable departments and agencies, may waive, on
a case-by-case basis, the application of a prohibition or condition
imposed with respect to a foreign financial institution pursuant to
subsection (a) for a period of not more than 180 days, and may renew that
waiver for additional periods of not more than 180 days, on and after the
date that the Secretary of the Treasury, with the concurrence of the
Secretary of State—</text>
<subparagraph id="H54EC4E6A7B884513AD5BD8953A28CAE4"><enum>(A)</enum><text>determines that such a waiver is in the national security interests of the United States; and</text>
</subparagraph><subparagraph id="HD4720E8BDDAB4D52AAE57AB07CD7778E"><enum>(B)</enum><text>submits to the appropriate congressional committees a report describing the reasons for the
determination.</text>
</subparagraph></paragraph><paragraph id="H8A8CEBF749984E438F6DE81DBF8CF5C3"><enum>(2)</enum><header>Form</header><text display-inline="yes-display-inline">The report required by subparagraph (1) shall be submitted in unclassified form, but may contain a
classified annex.</text>
</paragraph></subsection><subsection id="H8009F10AE42D47A592663BA1B1398A71"><enum>(c)</enum><header>Provisions relating to foreign financial institutions</header>
<paragraph id="HE1FF0C643A254D53824444E3779EE33C"><enum>(1)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than 45 days after the date of the enactment of this Act, and every 180 days thereafter,
the Secretary of the Treasury shall submit to the appropriate
congressional committees a report that—</text>
<subparagraph id="HCB5EEE1B0F7E4AE9B546153B545A8333"><enum>(A)</enum><text>identifies each foreign central bank that the Secretary determines engages in one or more
activities described in subsection (a)(2)(D); and</text>
</subparagraph><subparagraph id="H3F334BC6743B4E628E23E324A49199B8"><enum>(B)</enum><text>provides a detailed description of each such activity.</text>
</subparagraph></paragraph><paragraph commented="no" id="H59BBF24446EC46979CF9B55A1AEFC471"><enum>(2)</enum><header>Special rule to allow for termination of sanctionable activity</header><text display-inline="yes-display-inline">The Secretary of the Treasury shall not be required to apply sanctions to a foreign financial
institution described in subsection (a) if the Secretary of the Treasury,
with the concurrence of the Secretary of State and in consultation with
the heads of other applicable departments and agencies, certifies in
writing to the appropriate congressional committees that—</text>
<subparagraph id="HBA42457655E644AF9CE815871FF15A3F"><enum>(A)</enum><text>the foreign financial institution—</text>
<clause id="H37F0B3E3EFBD4F1B9D2B590C0EADD4A6"><enum>(i)</enum><text>is no longer engaging in the activity described in subsection (a)(2); or</text>
</clause><clause id="H6EF898F6550348368EA8D74C78498152"><enum>(ii)</enum><text>has taken and is continuing to take significant verifiable steps toward terminating the activity
described in subsection (a)(2); and</text>
</clause></subparagraph><subparagraph id="HBB762014229D4896BB416E11355DB260"><enum>(B)</enum><text>the Secretary has received reliable assurances from the government with primary jurisdiction over
the foreign financial institution that the foreign financial institution
will not engage in any activity described in subsection (a)(2) in the
future.</text>
</subparagraph></paragraph></subsection><subsection id="H29132D9BB1E64C7085E9C669E2F8BC51"><enum>(d)</enum><header>Definitions</header>
<paragraph display-inline="no-display-inline" id="HFE90FB0FE904425BA9F0C24C4060CB43"><enum>(1)</enum><header>In general</header><text>In this section:</text>
<subparagraph id="H38836A94111F4B9CB95A38C91DA5A00B"><enum>(A)</enum><header>Account; correspondent account; payable-through account</header><text>The terms <term>account</term>, <term>correspondent account</term>, and <term>payable-through account</term> have the meanings given those terms in <external-xref legal-doc="usc" parsable-cite="usc/31/5318A">section 5318A</external-xref> of title 31, United States Code.</text>
</subparagraph><subparagraph id="HC9A02A0AC4FF4CE39D7AA31F4586F125"><enum>(B)</enum><header>Appropriate congressional committees</header><text display-inline="yes-display-inline">The term <term>appropriate congressional committees</term> means—</text>
<clause id="HA01B92462B5C4AC19097D2D4A80EDC7D"><enum>(i)</enum><text>the Committee on Foreign Affairs and the Committee on Financial Services of the House of
Representatives; and</text>
</clause><clause id="H8790BA134BCF4CA1BAC810750107AA8B"><enum>(ii)</enum><text>the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the
Senate.</text>
</clause></subparagraph><subparagraph id="H8658E2CADA704C589666B98C3BBB8A81"><enum>(C)</enum><header>Covered goods</header><text>The term <quote>covered goods</quote> has the meaning given the term in <external-xref legal-doc="regulation" parsable-cite="cfr/31/1027.100">section 1027.100</external-xref> of title 31, Code of Federal Regulations.</text>
</subparagraph><subparagraph id="H76B65CDA16554DF4A7227CA7846AA55B"><enum>(D)</enum><header>Financial institution</header><text>The term <term>financial institution</term> means a financial institution specified in subparagraph (A), (B), (C), (D), (E), (F), (G), (H),
(I), (J), (K), (M), (N), (P), (R), (T), (Y), or (Z) of section 5312(a)(2)
of title 31, United States Code.</text>
</subparagraph><subparagraph id="H286BFF0E4A594CA0BB9140B24F0964A3"><enum>(E)</enum><header>Foreign financial institution; domestic financial institution</header>
<clause id="H9F89C83451B54866873EDF23C6423585"><enum>(i)</enum><header>Foreign financial institution</header><text display-inline="yes-display-inline">The term <term>foreign financial institution</term> has the meaning of such term in <external-xref legal-doc="regulation" parsable-cite="cfr/31/1010.605">section 1010.605</external-xref> of title 31, Code of Federal Regulations, and
includes a foreign central bank.</text>
</clause><clause id="H5BE8F951D0164595BCABE27392CF92A1"><enum>(ii)</enum><header>Domestic financial institution</header><text display-inline="yes-display-inline">The term <term>domestic financial institution</term> has the meaning of such term as determined by the Secretary of the Treasury.</text>
</clause></subparagraph><subparagraph commented="no" id="H82529C8C28E54A1AB134774271239B07"><enum>(F)</enum><header>Hezbollah</header><text>The term <quote>Hezbollah</quote> means—</text>
<clause commented="no" id="H695F072DFB24471F9E5B763315574F77"><enum>(i)</enum><text>any person—</text>
<subclause commented="no" id="H5F9A3EA512054BD7BBC8A4CA86AED455"><enum>(I)</enum><text>the property of or interests in property of which are blocked pursuant to the International
Emergency Economic Powers Act (<external-xref legal-doc="usc" parsable-cite="usc/50/1701">50 U.S.C. 1701 et seq.</external-xref>); and</text>
</subclause><subclause commented="no" id="H5B3268AC97C14CF5BF72DBB20389103C"><enum>(II)</enum><text>who is identified on the list of specially designated nationals and blocked persons maintained by
the Office of Foreign Asset Control of the Department of the Treasury as
an agent, instrumentality, or affiliate of Hezbollah; and</text>
</subclause></clause><clause commented="no" id="HD80ABE6044D44BEBBDDEE1C75B579139"><enum>(ii)</enum><text display-inline="yes-display-inline">the entity designated by the Secretary of State as a foreign terrorist organization pursuant to
section 219 of the Immigration and Nationality Act (<external-xref legal-doc="usc" parsable-cite="usc/8/1189">8 U.S.C. 1189</external-xref>).</text>
</clause></subparagraph><subparagraph commented="no" id="H2574DE798C5C438B901A64A96FDFADB9"><enum>(G)</enum><header>Money laundering</header><text>The term <term>money laundering</term> means any of the activities described in paragraph (1), (2), or (3) of section 1956(a) of title
18, United States Code, with respect to which penalties may be imposed
pursuant to such section.</text>
</subparagraph></paragraph><paragraph id="H0822287A48814393910D952A5710F32D"><enum>(2)</enum><header>Other definitions</header><text>The Secretary of the Treasury may further define the terms used in this section in the regulations
prescribed under this section.</text>
</paragraph></subsection></section><enum>II</enum><header>Reports on designation of Hezbollah as a significant foreign narcotics trafficker and a significant
transnational criminal organization</header>
<section id="HDB877AFFD7374BC7954050161353B300"><enum>201.</enum><header>Report on designation of Hezbollah as a significant foreign narcotics trafficker</header>
<subsection id="H53AD5E42E19A49A58686DAD0B48FA50A"><enum>(a)</enum><header>Findings</header><text>Congress makes the following findings:</text>
<paragraph id="HC1C9EED0E73D43EBBA5C5C77B3F5B970"><enum>(1)</enum><text>In 2008, after the two year Operation Titan run by the U.S. Drug Enforcement Administration and
Colombian authorities dismantled an international narcotics ring that
smuggled cocaine into the United States, Europe, and the Middle East, and
was run by Chekry Harb, also known as <quote>Taliban</quote>. According to lead prosecutor for the special prosecutor’s office in Bogota, Gladys Sanchez, <quote>The profits from the sales of drugs went to finance Hezbollah.</quote>.</text>
</paragraph><paragraph id="H840DBD21760445FB963B2E11CE71F053"><enum>(2)</enum><text>In 2011, the Department of the Treasury blacklisted the Lebanese Canadian Bank as a primary money
laundering concern, alleging that it is part of a drug trafficking network
that profited Hezbollah by moving approximately $200,000,000 per month.</text>
</paragraph><paragraph id="H31DE0901EECA46FB8BA65DA17367E4F5"><enum>(3)</enum><text>In April 2013, when the Department of the Treasury blacklisted two Lebanese exchange houses, Kassem
Rmeiti & Co. and Halawi Exchange Co., for laundering drug profits for Hezbollah, it stated that Hezbollah
was operating like <quote>an international drug cartel,</quote> adding that the <quote>Halawi Exchange, through its network of established international exchange houses, initiated wire
transfers from its bank accounts to the United States without using the
Lebanese banking system in order to avoid scrutiny associated with
Treasury’s designations of Hassan Ayash Exchange, Elissa Exchange, and its
Lebanese Canadian Bank Section 311 Action * * * . Money was then wire
transferred via Halawi’s banking relationships indirectly to the United
States through countries that included China, Singapore, and the UAE,
which were perceived to receive less scrutiny by the U.S. Government.</quote>.</text>
</paragraph><paragraph id="H73B01CD3F2614EFDA0183E8298A7E938"><enum>(4)</enum><text>The Department of Justice reported that 29 of the 63 organizations on its FY 2010 Consolidated
Priority Organization Targets list, which includes the most significant
international drug trafficking organizations (DTOs) threatening the United
States, were associated with terrorist groups, and noted with concern
Hezbollah’s international drug and criminal activities.</text>
</paragraph></subsection><subsection id="HB7A504B97CA64EB4824F695FFA53E4A7"><enum>(b)</enum><header>Sense of congress</header><text>It is the sense of Congress that—</text>
<paragraph id="H6D7A22CC3EF542E18A543515B4814E8F"><enum>(1)</enum><text>Hezbollah meets the criteria for designation as a significant foreign narcotics trafficker as set
forth in the Foreign Narcotics Kingpin Designation Act (21 U.S.C. 1901 et
seq.); and</text>
</paragraph><paragraph id="HB4370176730C4E07A6B22E236A24E97C"><enum>(2)</enum><text>the President should so designate Hezbollah as a significant foreign narcotics trafficker.</text>
</paragraph></subsection><subsection id="H6A2078DDC1E04639B909A1C0DF8E182E"><enum>(c)</enum><header>Report</header>
<paragraph id="HA9E6F55AA43F4E4BA104E061284828A9"><enum>(1)</enum><header>Report required</header><text>Not later than 120 days after the date of the enactment of this Act, the President shall submit to
the appropriate congressional committees—</text>
<subparagraph id="HB39C3EF04DCA43518E08395A5C71FC79"><enum>(A)</enum><text>a detailed report on whether the Hezbollah meets the criteria for designation under the Foreign
Narcotics Kingpin Designation Act (<external-xref legal-doc="usc" parsable-cite="usc/21/1901">21 U.S.C. 1901 et seq.</external-xref>) as a
significant foreign narcotics trafficker; and</text>
</subparagraph><subparagraph id="HC6EA421C178942DE843F09340FA5ED34"><enum>(B)</enum><text>if the President determines that Hezbollah does not meet the criteria for designation under the
Foreign Narcotics Kingpin Designation Act as a significant foreign
narcotics trafficker, a detailed justification as to which criteria have
not been met.</text>
</subparagraph></paragraph><paragraph id="HAAA76D229C9B46DFBCE61E21EF51E24E"><enum>(2)</enum><header>Form</header><text>The report required by paragraph (1) shall be submitted in unclassified form, but may include a
classified annex.</text>
</paragraph></subsection></section><section id="H31651959A8684AB0BDAB2E30BD790E07"><enum>202.</enum><header>Report on designation of Hezbollah as a significant transnational criminal organization</header>
<subsection id="H2F4360A4E5674C8F8BC8146369AB624D"><enum>(a)</enum><header>Findings</header><text>Congress makes the following findings:</text>
<paragraph id="H29680CC6AA3247C0B596D8A1F4C78E36"><enum>(1)</enum><text>Hezbollah is engaged array of illicit activities, from counterfeiting currencies, passport
documents, to stolen automobile rings and other illicit activities.</text>
</paragraph><paragraph id="H9FF31767BCFB4187B9AD5288FCCE6BE8"><enum>(2)</enum><text>In 2002, authorities in Charlotte, North Carolina arrested members of a cell run by Mohammed and
Chawki Hamoud and convicted them on various charges, including funding the
activities of Hezbollah from proceeds of interstate cigarette smuggling
and money laundering.</text>
</paragraph><paragraph id="H864DC91A6D1446C6BE8D162651701033"><enum>(3)</enum><text>In 2006 the Department of the Treasury designated operations of Assad Barakat, treasurer for
Hezbollah, as providing material support for a foreign terrorist
organization and noted that Barakat had engaged in mafia-style shakedowns
and <quote>threatened TBA (triborder area) shopkeepers who are sympathetic to Hezbollah’s cause with having
family members in Lebanon placed on a <quote>Hezbollah blacklist</quote> if they did not pay their quota to Hezbollah</quote> and also was <quote>involved in a counterfeiting ring that distributes fake U.S. dollars and generates cash to fund
Hezbollah operations</quote>.</text>
</paragraph><paragraph id="HBA4B7FE0CA40416193DB979B3EC2E33B"><enum>(4)</enum><text>In 2009, Paraguayan authorities arrested Moussa Hamdan and three other individuals for selling
fraudulent passports and trafficking in counterfeit money and sporting
goods, illegally obtained consumer electronics and automobiles and then
using the proceeds to buy arms for Hezbollah.</text>
</paragraph><paragraph id="H4656C6E32E48417A9792C8053A65826A"><enum>(5)</enum><text>In October 2011, a group of businessmen pled guilty to attempting to ship electronics to a shopping
center in South America that the Department of the Treasury had designated
as a Hezbollah front.</text>
</paragraph><paragraph id="HC0FE0EB75E0D40318F2B253A9EEE3709"><enum>(6)</enum><text>A June 2014 <quote>threat assessment</quote> report by Canada’s Integrated Terrorism Assessment Centre indicated that Hezbollah members in
Canada are involved in organized crime.</text>
</paragraph></subsection><subsection id="HF822BBA78E6A41FD8EFC36A5ACD7FE44"><enum>(b)</enum><header>Sense of congress</header><text>It is the sense of Congress that—</text>
<paragraph id="H55E1742FAB3D4538ADC2BD5E6C656EBF"><enum>(1)</enum><text>Hezbollah meets the criteria for designation as a significant transnational criminal organization
under Executive Order No. 13581 (76 Fed. Reg. 44757); and</text>
</paragraph><paragraph id="H48961BC6852F494CBF834A12F1F5C0F9"><enum>(2)</enum><text>the President should so designate Hezbollah as a significant transnational criminal organization.</text>
</paragraph></subsection><subsection id="H13EB9B67BD8E464FBD21F9A80E12FF07"><enum>(c)</enum><header>Report</header>
<paragraph id="H2B9831A482714C849510BB6129A359E6"><enum>(1)</enum><header>Report required</header><text>Not later than 120 days after the date of the enactment of this Act, the President shall submit to
the appropriate committees of Congress—</text>
<subparagraph id="H8D21F4C5C1314159857ED941D7D86823"><enum>(A)</enum><text>a detailed report on whether the Hezbollah meets the criteria for designation as a significant
transnational criminal organization under Executive Order No. 13581 (76
Fed. Reg. 44757); and</text>
</subparagraph><subparagraph id="HD5528CA8F71D415EB4A46C7AE5C27544"><enum>(B)</enum><text>if the President determines that Hezbollah does not meet the criteria for designation as a
significant transnational criminal organization under Executive Order No.
13581, a detailed justification as to which criteria have not been met.</text>
</subparagraph></paragraph><paragraph id="H52CBBF1539034468AD8B3E7BB7C35C7D"><enum>(2)</enum><header>Form</header><text>The report required by paragraph (1) shall be submitted in unclassified form, but may include a
classified annex.</text>
</paragraph></subsection></section><section id="H324218DDE0F94342981D2F4698825C69"><enum>203.</enum><header>Report on Hezbollah’s involvement in the trade of conflict diamonds</header>
<subsection id="HAF0902BD73AA49B5A239100716D7F463"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 120 days after the date of the enactment of this Act, the Secretary of State shall
submit to appropriate congressional committees a report detailing
Hezbollah’s involvement in the trade in rough diamonds outside of the
Kimberley Process Certification Scheme.</text>
</subsection><subsection id="H4308A41DCD3C46EE87CBD10F890A78DA"><enum>(b)</enum><header>Form</header><text>The report required by subsection (a) shall be submitted in unclassified form, but may contain a
classified annex.</text>
</subsection><subsection id="H1B94FBD3F2664C86B5DC7AAD9D176564"><enum>(c)</enum><header>Appropriate congressional committees defined</header><text display-inline="yes-display-inline">In this section, the term <quote>appropriate congressional committees</quote> means—</text>
<paragraph id="HCF14575AECDD438586B08F97C32ACCAD"><enum>(1)</enum><text>the Committee on Foreign Affairs, the Committee on Ways and Means, and the Committee on Financial
Services of the House of Representatives; and</text>
</paragraph><paragraph id="H56536BE2D43E46A5A98E1E77EF2FECFB"><enum>(2)</enum><text>the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the
Senate.</text>
</paragraph></subsection></section><section id="H5D33995D1D51409895822F6AB8F8F7DA"><enum>204.</enum><header>Rewards for justice and Hezbollah’s fundraising, financing, and money laundering activities</header>
<subsection id="HF68C15415DF5487483C919A2CF675C8C"><enum>(a)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than 90 days after the date of the enactment of this Act, the Secretary of State shall
submit to the appropriate congressional committees a report that details
actions taken by the Department of State through the Department of State
rewards program (<external-xref legal-doc="usc" parsable-cite="usc/22/2708">22 U.S.C. 2708</external-xref>) to obtain information on fundraising,
financing, and money laundering activities of Hezbollah and its agents and
affiliates.</text>
</subsection><subsection id="H36C82560F4C04CFFA6ADE0D7082195F0"><enum>(b)</enum><header>Briefing</header><text>Not later than 90 days after the date of the enactment of this Act, and annually thereafter, the
Secretary of State shall provide a briefing to the appropriate
congressional committees on the status of the actions described in
subsection (a).</text>
</subsection><subsection commented="no" id="HD14FE0D538574D6F9EB9C7F4B67B1A94"><enum>(c)</enum><header>Appropriate congressional committees defined</header><text display-inline="yes-display-inline">In this section, the term <quote>appropriate congressional committees</quote> means—</text>
<paragraph id="HA382545DBE75449ABA7D988986BFC328"><enum>(1)</enum><text display-inline="yes-display-inline">the Committee on Foreign Affairs and the Committee on Financial Services of the House of
Representatives; and</text>
</paragraph><paragraph id="HDBF0862F5B1749AFB215BD658CCFDF20"><enum>(2)</enum><text display-inline="yes-display-inline">the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the
Senate.</text>
</paragraph></subsection></section><section id="H46566B114B454BF5B037735E12B223E8"><enum>205.</enum><header>Report on activities of foreign governments to disrupt global logistics networks and fundraising,
financing, and money laundering activities of Hezbollah</header>
<subsection id="H14B3BE68D87147D88C7A5D59C1119975"><enum>(a)</enum><header>Report</header>
<paragraph id="HADD18EEFA4714A689DAF9A7664465E72"><enum>(1)</enum><header>In general</header><text>Not later than 90 days after the date of the enactment of this Act, the President shall submit to
the appropriate congressional committees a report that includes—</text>
<subparagraph id="H5C53FE338D0D4BC2BA80475FAA75F191"><enum>(A)</enum><text>a list of countries that support Hezbollah, or in which Hezbollah maintains important portions of
its global logistics networks;</text>
</subparagraph><subparagraph id="H0F5024ACBF6A456097EA1FF33BF0DA9B"><enum>(B)</enum><text>with respect to each country on the list required by subparagraph (A)—</text>
<clause id="H4CC2ABC93D3942C99BDEEF6D7AC7719B"><enum>(i)</enum><text>an assessment of whether the government of the country is taking adequate measures to disrupt the
global logistics networks of Hezbollah within the territory of the
country; and</text>
</clause><clause id="HD8E6DF186EEA49B182843D54E30CD1D3"><enum>(ii)</enum><text>in the case of a country the government of which is not taking adequate measures to disrupt those
networks—</text>
<subclause id="H3B90AA3182B74BDD9883E541813FFDDB"><enum>(I)</enum><text>an assessment of the reasons that government is not taking adequate measures to disrupt those
networks; and</text>
</subclause><subclause id="HB0AF7606B9E54DA7A82B554FAA538891"><enum>(II)</enum><text>a description of measures being taken by the United States Government to encourage that government
to improve measures to disrupt those networks;</text>
</subclause></clause></subparagraph><subparagraph id="HD5533756E0974DE7BBFCC4C37D511858"><enum>(C)</enum><text>a list of countries in which Hezbollah, or any of its agents or affiliates, conducts significant
fundraising, financing, or money laundering activities;</text>
</subparagraph><subparagraph id="HB0726ABCFBF04CB5BE1F5807EDB714C1"><enum>(D)</enum><text>with respect to each country on the list required by subparagraph (C)—</text>
<clause id="HA89E6953C2E1442CB60285456D666B1D"><enum>(i)</enum><text>an assessment of whether the government of the country is taking adequate measures to disrupt the
fundraising, financing, or money laundering activities of Hezbollah and
its agents and affiliates within the territory of the country; and</text>
</clause><clause id="H3654B685CACE4F49B5879BF192547866"><enum>(ii)</enum><text>in the case of a country the government of which is not taking adequate measures to disrupt those
activities—</text>
<subclause id="H2D6E6C930EF94E11B2B644674391F208"><enum>(I)</enum><text>an assessment of the reasons that government is not taking adequate measures to disrupt those
activities; and</text>
</subclause><subclause id="H677E947ED44D45E19280BBB4F9943D94"><enum>(II)</enum><text>a description of measures being taken by the United States Government to encourage the government
of that country to improve measures to disrupt those activities; and</text>
</subclause></clause></subparagraph><subparagraph id="HC64ECF028D154DA6A821107324A4A63D"><enum>(E)</enum><text>a list of methods that Hezbollah, or any of its agents or affiliates, utilizes to raise or transfer
funds, including trade-based money laundering, the use of foreign exchange
houses, and free-trade zones.</text>
</subparagraph></paragraph><paragraph id="HAC042A515229468A87503C5218800C28"><enum>(2)</enum><header>Form</header><text>The report required by paragraph (1) shall be submitted in unclassified form to the greatest extent
possible, and may contain a classified annex.</text>
</paragraph><paragraph id="HDB3020B4D58C43CD9361C908ACDCD3C6"><enum>(3)</enum><header>Global logistics networks of Hezbollah</header><text display-inline="yes-display-inline">In this subsection, the term <quote>global logistics networks of Hezbollah </quote>, <quote>global logistics networks</quote>, or <quote>networks</quote> means financial, material, or technological support for, or financial or other services in support
of, Hezbollah.</text>
</paragraph></subsection><subsection id="HB5626DBD463E45D0AB8A1C51841F6E8C"><enum>(b)</enum><header>Briefing on Hezbollah’s assets and activities related to fundraising, financing, and money
laundering worldwide</header><text>Not later than 90 days after the date of the enactment of this Act, and every 180 days thereafter,
the Secretary of State, the Secretary of the Treasury, and the heads of
other applicable Federal departments and agencies (or their designees)
shall provide to the appropriate congressional committees a briefing on
the disposition of Hezbollah’s assets and activities related to
fundraising, financing, and money laundering worldwide.</text>
</subsection><subsection id="HC5B417845F4C4DAE9789B08A98A0E14F"><enum>(c)</enum><header>Appropriate Congressional Committees Defined</header><text>In this section, the term <quote>appropriate congressional committees</quote> means—</text>
<paragraph id="H3D0065A8BAE14965981490E97DD47E30"><enum>(1)</enum><text>the Committee on Foreign Affairs, the Committee on Financial Services, and the Permanent Select
Committee on Intelligence of the House of Representatives; and</text>
</paragraph><paragraph id="H03DB0CEC16FC43DEB195025EE4188CC4"><enum>(2)</enum><text>the Committee on Foreign Relations, the Committee on Banking, Housing, and Urban Affairs, and the
Select Committee on Intelligence of the Senate.</text>
</paragraph></subsection></section><section commented="no" id="H465729B06C304DED978A4BBF37172E5D"><enum>206.</enum><header>Appropriate congressional committees defined</header><text display-inline="no-display-inline">Except as otherwise provided, in this title, the term <quote>appropriate congressional committees</quote> means—</text>
<paragraph commented="no" id="H7233A04988744BA391B16E54A91500A7"><enum>(1)</enum><text>the Committee on Foreign Affairs, the Committee on Financial Services, and the Committee on the
Judiciary of the House of Representatives; and</text>
</paragraph><paragraph commented="no" id="H1155C0E499B246FAA43A9E17FC84CF57"><enum>(2)</enum><text>the Committee on Foreign Relations, the Committee on Finance, and the Committee on the Judiciary of
the Senate.</text>
</paragraph></section><enum>III</enum><header>Miscellaneous provisions</header>
<section id="H48AFC7DD220C444BBB749DB9BA442B6F"><enum>301.</enum><header>Rule of construction</header><text display-inline="no-display-inline">Nothing in this Act or any amendment made by this Act shall apply to the authorized intelligence
activities of the United States.</text>
</section><section id="H5E95BA66C0784DAC827594309BBFC01F"><enum>302.</enum><header>Regulatory authority</header>
<subsection id="H77CC82CC5BB8470E9EE07D4A6C93A062"><enum>(a)</enum><header>In general</header><text>The President shall, not later than 90 days after the date of the enactment of this Act, promulgate
regulations as necessary for the implementation of this Act and the
amendments made by this Act.</text>
</subsection><subsection id="H0FE7AE6A8B7F466B87ECBD32EC454F56"><enum>(b)</enum><header>Notification to congress</header><text>Not less than 10 days prior to the promulgation of regulations under subsection (a), the President
shall notify the appropriate congressional committees (as defined in
section 204) of the proposed regulations and the provisions of this Act
and the amendments made by this Act that the regulations are implementing.</text>
</subsection></section><section id="H8A0F9B7BC45745DD87FACEF7F9C8D6A9"><enum>303.</enum><header>Offset</header><text display-inline="no-display-inline">Section 102(a) of the Enhanced Partnership with Pakistan Act of 2009 (<external-xref legal-doc="usc" parsable-cite="usc/22/8412">22 U.S.C. 8412(a)</external-xref>; Public Law
111–73; 123 Stat. 2068) is amended by striking <quote>$1,500,000,000</quote> and inserting <quote>$1,497,000,000</quote>.</text>
</section><section id="HEC2BB7C02B454F1ABC3A476D30DBBAB7"><enum>304.</enum><header>Termination</header><text display-inline="no-display-inline">This Act shall cease to be in effect beginning 30 days after the date on which the President
certifies to Congress that Hezbollah—</text>
<paragraph id="H6880A27F8F7B43D9A28137EE2D37022A"><enum>(1)</enum><text>is no longer designated as a foreign terrorist organization pursuant to section 219 of the
Immigration and Nationality Act (<external-xref legal-doc="usc" parsable-cite="usc/8/1189">8 U.S.C. 1189</external-xref>);</text>
</paragraph><paragraph id="H163CD045E3A94899BCCE8B77346AB915"><enum>(2)</enum><text display-inline="yes-display-inline">is no longer listed in the Annex to Executive Order No. 13224 (September 23, 2001; relating to
blocking property and prohibiting transactions with persons who commit,
threaten to commit, or support terrorism); and</text>
</paragraph><paragraph id="H3193AD59B8D54596B8E8C72B27AF4A8B"><enum>(3)</enum><text>poses no significant threat to United States national security, interests, or allies.</text>
</paragraph></section>
Passed the House of Representatives July 22, 2014.Karen L. Haas,Clerk