[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3016 Introduced in House (IH)]






108th CONGRESS
  1st Session
                                H. R. 3016

         To combat terrorism financing, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 5, 2003

   Ms. Hart introduced the following bill; which was referred to the 
   Committee on the Judiciary, and in addition to the Committees on 
  International Relations and Financial Services, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
         To combat terrorism financing, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Combating Terrorism Financing Act of 
2003''.

SEC. 2. INCREASED PENALTIES FOR TERRORISM FINANCING.

    Section 206 of the International Emergency Economic Powers Act (50 
U.S.C. 1705) is amended--
            (1) in subsection (a), by deleting ``$10,000'' and 
        inserting ``$50,000''.
            (2) in subsection (b), by deleting ``ten years'' and 
        inserting ``twenty years''.

SEC. 3. TERRORISM-RELATED SPECIFIED ACTIVITIES FOR MONEY LAUNDERING.

    (a) Amendments to RICO.--Section 1961(1) of title 18, United States 
Code, is amended--
            (1) in subparagraph (B), by inserting ``section 1960 
        (relating to illegal money transmitters),'' before ``sections 
        2251''; and
            (2) in subparagraph (F), by inserting ``section 274A 
        (relating to unlawful employment of aliens),'' before ``section 
        277''.
    (b) Amendments to Section 1956(c)(7).--Section 1956(c)(7)(D) of 
title 18, United States Code, is amended by--
            (1) inserting ``, or section 2339C (relating to financing 
        of terrorism)'' before ``of this title''; and
            (2) striking ``or any felony violation of the Foreign 
        Corrupt Practices Act'' and inserting ``any felony violation of 
        the Foreign Corrupt Practices Act, or any violation of section 
        208 of the Social Security Act (relating to obtaining funds 
        through misuse of a social security number)''.
    (c) Conforming Amendments to Sections 1956(e) and 1957(e).--
            (1) Section 1956(e) of title 18, United States Code, is 
        amended to read as follows:
    ``(e) Violations of this section may be investigated by such 
components of the Department of Justice as the Attorney General may 
direct, and by such components of the Department of the Treasury as the 
Secretary of the Treasury may direct, as appropriate, and, with respect 
to offenses over which the Department of Homeland Security has 
jurisdiction, by such components of the Department of Homeland Security 
as the Secretary of Homeland Security may direct, and, with respect to 
offenses over which the United States Postal Service has jurisdiction, 
by the Postal Service. Such authority of the Secretary of the Treasury, 
the Secretary of Homeland Security, and the Postal Service shall be 
exercised in accordance with an agreement which shall be entered into 
by the Secretary of the Treasury, the Secretary of Homeland Security, 
the Postal Service, and the Attorney General. Violations of this 
section involving offenses described in paragraph (c)(7)(E) may be 
investigated by such components of the Department of Justice as the 
Attorney General may direct, and the National Enforcement 
Investigations Center of the Environmental Protection Agency.''.
            (2) Section 1957(e) of title 18, United States Code, is 
        amended to read as follows:
    ``(e) Violations of this section may be investigated by such 
components of the Department of Justice as the Attorney General may 
direct, and by such components of the Department of the Treasury as the 
Secretary of the Treasury may direct, as appropriate, and, with respect 
to offenses over which the Department of Homeland Security has 
jurisdiction, by such components of the Department of Homeland Security 
as the Secretary of Homeland Security may direct, and, with respect to 
offenses over which the United States Postal Service has jurisdiction, 
by the Postal Service. Such authority of the Secretary of the Treasury, 
the Secretary of Homeland Security, and the Postal Service shall be 
exercised in accordance with an agreement which shall be entered into 
by the Secretary of the Treasury, the Secretary of Homeland Security, 
the Postal Service, and the Attorney General.''.

SEC. 4. ASSETS OF PERSONS COMMITTING TERRORIST ACTS AGAINST FOREIGN 
              COUNTRIES OR INTERNATIONAL ORGANIZATIONS.

    Section 981(a)(1)(G) of title 18, United States Code, is amended--
            (1) by striking ``or'' at the end of clause (ii);
            (2) by striking the period at the end of clause (iii) and 
        inserting ``; or''; and
            (3) by inserting the following after clause (iii):
                            ``(iv) of any individual, entity, or 
                        organization engaged in planning or 
                        perpetrating any act of international terrorism 
                        (as defined in section 2331) against any 
                        international organization (as defined in 
                        section 209 of the State Department Basic 
                        Authorities Act of 1956 (22 U.S.C. 4309(b))) or 
                        against any foreign Government. Where the 
                        property sought for forfeiture is located 
                        beyond the territorial boundaries of the United 
                        States, an act in furtherance of such planning 
                        or perpetration must have occurred within the 
                        jurisdiction of the United States.''.

SEC. 5. MONEY LAUNDERING THROUGH HAWALAS.

    Section 1956 of title 18, United States Code, is amended by adding 
at the end the following:
    ``(j)(1) For the purposes of subsections (a)(1) and (a)(2), a 
transaction, transportation, transmission, or transfer of funds shall 
be considered to be one involving the proceeds of specified unlawful 
activity, if the transaction, transportation, transmission, or transfer 
is part of a set of parallel or dependent transactions, any one of 
which involves the proceeds of specified unlawful activity.
    ``(2) As used in this section, a `dependent transaction' is one 
that completes or complements another transaction or one that would not 
have occurred but for another transaction.''.

SEC. 6. CLASSIFIED INFORMATION IN MONEY LAUNDERING PROCEEDINGS.

    Section 5318A of title 31, United States Code (as added by section 
311 of the USA PATRIOT Act of 2001) is amended by adding at the end the 
following new subsection:
    ``(f) Classified Information.--In any judicial review of a finding 
of the existence of a primary money laundering concern, or the 
requirement for one or more special measures with respect to a primary 
money laundering concern, made under this section, if the designation 
or imposition or both were based on classified information (as defined 
in section 1(a) of the Classified Information Procedures Act), such 
information may be submitted by the Secretary to the reviewing court ex 
parte and in camera. This subsection does not confer or imply any right 
to judicial review of any finding made or requirement imposed under 
this section.''.

SEC. 7. TECHNICAL AND CONFORMING AMENDMENTS RELATING TO THE USA PATRIOT 
              ACT.

    (a) Technical Corrections.--
            (1) Sections 5312(a)(3)(C) and 5324(b) of title 31 are 
        amended by striking ``5333'' each time it appears and inserting 
        ``5331''.
            (2) Section 322 of Public Law 107-56 is amended by striking 
        ``title 18'' and inserting ``title 28''.
            (3) Section 5318(k)(1)(B) of title 31, United States Code, 
        is amended by striking ``5318A(f)(1)(B)'' and inserting 
        ``5318A(e)(1)(B)''.
            (4) Section 5332(a)(1) of title 31, United States Code, is 
        amended by striking ``article of luggage'' and inserting 
        ``article of luggage or mail''.
            (5) Section 1956(b)(3) and (4) of title 18, United States 
        Code, are amended by striking ``described in paragraph (2)'' 
        each time it appears; and
            (6) Section 981(k) of title 18, United States Code, is 
        amended by striking ``foreign bank'' each time it appears and 
        inserting ``foreign bank or financial institution''.
    (b) Codification of Section 316 of the USA PATRIOT Act.--
            (1) Chapter 46 of title 18, United States Code, is 
        amended--
                    (A) by inserting at the end the following:
``Sec. 987. Anti-terrorist forfeiture protection
    ``(a) Right to Contest.--An owner of property that is confiscated 
under this chapter or any other provision of law relating to the 
confiscation of assets of suspected international terrorists, may 
contest that confiscation by filing a claim in the manner set forth in 
the Federal Rules of Civil Procedure (Supplemental Rules for Certain 
Admiralty and Maritime Claims), and asserting as an affirmative defense 
that--
            ``(1) the property is not subject to confiscation under 
        such provision of law; or
            ``(2) the innocent owner provisions of section 983(d) apply 
        to the case.
    ``(b) Evidence.--In considering a claim filed under this section, a 
court may admit evidence that is otherwise inadmissible under the 
Federal Rules of Evidence, if the court determines that the evidence is 
reliable, and that compliance with the Federal Rules of Evidence may 
jeopardize the national security interests of the United States.
    ``(c) Clarifications.--
            ``(1) Protection of rights.--The exclusion of certain 
        provisions of Federal law from the definition of the term 
        `civil forfeiture statute' in section 983(i) shall not be 
        construed to deny an owner of property the right to contest the 
        confiscation of assets of suspected international terrorists 
        under--
                    ``(A) subsection (a) of this section;
                    ``(B) the Constitution; or
                    ``(C) subchapter II of chapter 5 of title 5, United 
                States Code (commonly known as the `Administrative 
                Procedure Act').
            ``(2) Savings clause.--Nothing in this section shall limit 
        or otherwise affect any other remedies that may be available to 
        an owner of property under section 983 or any other provision 
        of law.''; and
                    (B) in the chapter analysis, by inserting at the 
                end the following:

``987. Anti-terrorist forfeiture protection.''.
            (2) Subsections (a), (b), and (c) of section 316 of Public 
        Law 107-56 are repealed.
    (c) Conforming Amendments Concerning Conspiracies.--
            (1) Section 33(a) of title 18, United States Code is 
        amended by inserting ``or conspires'' before ``to do any of the 
        foregoing''.
            (2) Section 1366(a) of title 18, United States Code, is 
        amended--
                    (A) by striking ``attempts'' each time it appears 
                and inserting ``attempts or conspires''; and
                    (B) by inserting ``, or if the object of the 
                conspiracy had been achieved,'' after ``the attempted 
                offense had been completed''.

SEC. 8. TECHNICAL CORRECTIONS TO FINANCING OF TERRORISM STATUTE.

    (a) Section 2339C(c)(2) of title 18, United States Code, is 
amended--
            (1) by striking ``resources, or funds'' and inserting 
        ``resources, or any funds or proceeds of such funds'';
            (2) in subparagraph (A), striking ``were provided'' and 
        inserting ``are to be provided, or knowing that the support or 
        resources were provided,''; and
            (3) in subparagraph (B)--
                    (A) by striking ``or any proceeds of such funds''; 
                and
                    (B) by striking ``were provided or collected'' and 
                inserting ``are to be provided or collected, or knowing 
                that the funds were provided or collected,''.
    (b) Section 2339C(e) is amended--
            (1) by striking ``and'' at the end of paragraph (12);
            (2) by redesignating paragraph (13) as paragraph (14); and
            (3) by inserting after paragraph (12) the following new 
        paragraph:
            ``(13) the term `material support or resources' has the 
        same meaning as in section 2339A(b) of this title; and''.
    (c) Section 2332b(g)(5)(B) of title 18, United States Code, is 
amended by inserting ``)'' after ``2339C (relating to financing of 
terrorism''.
                                 <all>