[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3007 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 3007

         To combat terrorism financing, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 21, 2005

   Ms. Hart introduced the following bill; which was referred to the 
    Committee on the Judiciary, and in addition to the Committee on 
International Relations, 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 
2005''.

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''; and
            (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. TECHNICAL AND CONFORMING AMENDMENTS RELATING TO THE USA PATRIOT 
              ACT.

    (a) Technical Corrections.--
            (1) Section 322 of Public Law 107-56 is amended by striking 
        ``title 18'' and inserting ``title 28''.
            (2) Section 5332(a)(1) of title 31, United States Code, is 
        amended by striking ``article of luggage'' and inserting 
        ``article of luggage or mail''.
            (3) Section 1956(b)(3) and (4) of title 18, United States 
        Code, are amended by striking ``described in paragraph (2)'' 
        each time it appears.
            (4) 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 
        aforesaid acts''.
            (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. 7. TECHNICAL CORRECTIONS TO FINANCING OF TERRORISM STATUTE.

    Section 2332b(g)(5)(B) of title 18, United States Code, is amended 
by inserting ``)'' after ``2339C (relating to financing of terrorism''.

SEC. 8. CROSS REFERENCE CORRECTION.

    Section 5318(n)(4)(A) of title 31, United States Code, is amended 
by striking ``National Intelligence Reform Act of 2004'' and inserting 
``Intelligence Reform and Terrorism Prevention Act of 2004''.

SEC. 9. AMENDMENT TO AMENDATORY LANGUAGE.

    Section 6604 of the Intelligence Reform and Terrorism Prevention 
Act of 2004 is amended [,effective on the date of the enactment of that 
Act]--
            (1) by striking ``Section 2339c(c)(2)'' and inserting 
        ``Section 2339C(c)(2)''; and
            (2) by striking ``Section 2339c(e)'' and inserting 
        ``Section 2339C(e)''.

SEC. 10. DESIGNATION OF ADDITIONAL MONEY LAUNDERING PREDICATE.

     Section 1956(c)(7)(D) of title 18, United States Code, is 
amended--
            (1) by inserting ``, or section 2339D (relating to 
        receiving military-type training from a foreign terrorist 
        organization)'' after ``section 2339A or 2339B (relating to 
        providing material support to terrorists)''; and
            (2) by striking ``or'' before ``section 2339A or 2339B''.
                                 <all>