[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4411 Introduced in House (IH)]

113th CONGRESS
  2d Session
                                H. R. 4411

  To prevent Hezbollah and associated entities from gaining access to 
international financial and other institutions, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 7, 2014

  Mr. Meadows (for himself, Mr. Schneider, Mr. Royce, and Mr. Engel) 
 introduced the following bill; which was referred to the Committee on 
    Foreign Affairs, and in addition to the Committee on 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 prevent Hezbollah and associated entities from gaining access to 
international financial and other institutions, 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 ``Hezbollah International Financing 
Prevention Act of 2014''.

 TITLE I--PREVENTION OF ACCESS BY HEZBOLLAH TO INTERNATIONAL FINANCIAL 
                         AND OTHER INSTITUTIONS

SEC. 101. FINDINGS; STATEMENT OF POLICY.

    (a) Findings.--Congress finds the following:
            (1) The United States Government holds Hezbollah 
        responsible for the largest number of American deaths overseas 
        by a terrorist organization prior to the attacks of September 
        11, 2001, including a number of attacks on and hostage takings 
        targeting Americans in Lebanon during the 1980s, including the 
        bombing of the United States Embassy in Beirut in April 1983, 
        and the bombing of the United States Marine barracks in October 
        1983.
            (2) Hezbollah's operations outside of Lebanon, including 
        its participation in bombings of Israeli and Jewish 
        institutions in Argentina during the 1990s, recent support to 
        Shiite insurgents in Iraq, recent attacks and attempted attacks 
        in Europe, Southeast Asia, and elsewhere, and extensive 
        international operational, logistical, and financial networks 
        have rendered it a capable and deadly adversary with global 
        reach.
            (3) Hezbollah has been designated as a terrorist 
        organization by the United States since 1995, and remains on 
        foreign terrorist organization and Specially Designated 
        Terrorist lists.
            (4) In March 2013, a Cypriot court convicted a Hezbollah 
        member for participation in a criminal organization, planning 
        to commit a crime and money laundering. In July 2013, the 
        Bulgarian government concluded that Hezbollah was responsible 
        for the 2012 Burgas bombing, which killed six people.
            (5) In July 2013, the European Union designated the 
        military wing of Hezbollah as a terrorist organization. The 
        designation helps to facilitate European law enforcement 
        agencies' actions against Hezbollah's fundraising, logistical 
        activity, and terrorist plotting on European soil.
            (6) In July 2013, the Gulf Cooperation Council, consisting 
        of Saudi Arabia, Qatar, Bahrain, Kuwait, Oman and the United 
        Arab Emirates, declared Hezbollah a terrorist organization.
            (7) Hezbollah continues to provide material assistance, 
        including assuming a combat role, in Syria, and aids the 
        Government of Iran and the Government of Syria in their human 
        rights and other abuses perpetrated against the Syrian people.
            (8) An estimated 5,000 Hezbollah fighters are supporting 
        the Assad regime in Syria by fighting on his behalf and by 
        providing military training, advice and logistical support to 
        regime forces.
            (9) Hezbollah continues to serve as a proxy of Iran, in its 
        effort to target the United States and its allies and 
        interests.
            (10) Hezbollah's global logistics and financial network 
        serves as a lifeline to the organization, and enables it to 
        consolidate power within Lebanon and provides it with the 
        capabilities to perpetrate complex attacks internationally.
            (11) Hezbollah has evolved into a significant drug 
        smuggling organization, and also engages in other serious 
        criminal activity, including money laundering, counterfeiting 
        pharmaceuticals, and trade in conflict diamonds.
            (12) In April 2013, the Department of the Treasury 
        blacklisted two Lebanese exchange houses, Kassem Rmeiti & Co. 
        and Halawi Exchange Co., for laundering drug profits for 
        Hezbollah, and stated that Hezbollah was operating like ``an 
        international drug cartel''.
            (13) In 2009, 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.
            (14) The Department of Justice reports 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. There is concern 
        about Hezbollah's drug and criminal activities, as well as 
        indications of links between al-Qa`ida in the Lands of the 
        Islamic Maghreb and the drug trade.
            (15) Al-Manar, the Lebanese satellite television station 
        affiliated with Hezbollah broadcasting from Beirut, Lebanon, 
        was designated as a Specially Designated Global Terrorist 
        entity in 2004, but continues to be carried by international 
        broadcasting agents.
            (16) Hezbollah continues to present a threat to the United 
        States and its allies and interests.
    (b) Statement of Policy.--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 criminal activities of 
        Hezbollah as a means to block that organization's ability to 
        fund its global terrorist activities.

SEC. 102. REPORT ON IMPOSITION OF SANCTIONS ON CERTAIN SATELLITE 
              PROVIDERS THAT CARRY AL-MANAR TV.

    (a) In General.--Not later than 30 days after the date of the 
enactment of this Act, the President shall submit to the Committee on 
Foreign Affairs of the House of Representatives and the Committee on 
Foreign Relations of the Senate a report that includes--
            (1) a list of all satellite, broadcast, or other providers 
        that knowingly transmits or otherwise broadcasts the content of 
        al-Manar TV, and any affiliates or successors thereof; and
            (2) with respect to all providers included on the list 
        pursuant to paragraph (1)--
                    (A) an identification of those providers that have 
                been sanctioned pursuant to Executive Order 13224 
                (September 23, 2001); and
                    (B) an identification of those providers that have 
                not been sanctioned pursuant to Executive Order 13224 
                and, with respect to each such provider, the reason why 
                sanctions have not been imposed.
    (b) Form.--The report required by subsection (a) shall be submitted 
in unclassified form to the greatest extent possible, and may contain a 
classified annex.

SEC. 103. SANCTIONS WITH RESPECT TO FINANCIAL INSTITUTIONS THAT ENGAGE 
              IN CERTAIN TRANSACTIONS.

    (a) Prohibitions and Conditions With Respect to Certain Accounts 
Held by Foreign Financial Institutions.--
            (1) In general.--Not later than 90 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 finds engages in an activity described in 
        paragraph (2).
            (2) Activities described.--A foreign financial institution 
        engages in an activity described in this paragraph if the 
        foreign financial institution--
                    (A) knowingly facilitates the activities of 
                Hezbollah, including its agents, instrumentalities, 
                affiliates, or successors;
                    (B) knowingly facilitates the activities of a 
                person acting on behalf of or at the direction of, or 
                owned or controlled by, a person described in 
                subparagraph (A);
                    (C) knowingly engages in money laundering to carry 
                out an activity described in subparagraph (A) or (B);
                    (D) 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 facilitating a 
                significant transaction or transactions or providing 
                significant financial services that involve a 
                transaction of gold, silver, platinum, or other 
                precious metals; or
                    (E)(i) 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;
                    (ii) knowingly attempts or conspires to facilitate 
                or participate in an activity described in subparagraph 
                (A), (B), (C), or (D); or
                    (iii) 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).
            (3) Penalties.--The penalties provided for in subsections 
        (b) and (c) of section 206 of the International Emergency 
        Economic Powers Act (50 U.S.C. 1705) 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.
            (4) Regulations.--The Secretary of the Treasury shall 
        prescribe and implement regulations to carry out this 
        subsection.
    (b) Requirements for Financial Institutions Maintaining Accounts 
for Foreign Financial Institutions.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, the Secretary of the Treasury shall 
        prescribe regulations to require a domestic financial 
        institution maintaining a correspondent account or payable-
        through account in the United States for a foreign financial 
        institution to do one or more of the following:
                    (A) Report to the Department of the Treasury with 
                respect to financial transactions or other financial 
                services provided with respect to any activity 
                described in subsection (a).
                    (B) Provide timely and accurate information to 
                domestic financial institutions maintaining a 
                correspondent account or payable-through account in the 
                United States for a foreign financial institution with 
                respect to any activity described in subsection (a).
                    (C) Establish due diligence policies, procedures, 
                and controls, such as the due diligence policies, 
                procedures, and controls described in section 5318(i) 
                of title 31, United States Code, reasonably designed to 
                detect whether the Secretary of the Treasury has found 
                the foreign financial institution to knowingly engage 
                in any activity described in subsection (a).
            (2) Penalties.--The penalties provided for in sections 
        5321(a) and 5322 of title 31, United States Code, shall apply 
        to a person that violates a regulation prescribed under 
        paragraph (1) of this subsection, in the same manner and to the 
        same extent as such penalties would apply to any person that is 
        otherwise subject to such section 5321(a) or 5322.
    (c) Waiver.--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 the application of a 
prohibition or condition imposed with respect to a foreign financial 
institution pursuant to subsection (a) on and after the date that is 30 
days after the Secretary of the Treasury, with the concurrence of the 
Secretary of State--
            (1) determines that such a waiver is vital to the national 
        security interests of the United States; and
            (2) submits to the appropriate congressional committees a 
        report describing the reasons for the determination.
    (d) Provisions Relating to Foreign Central Banks.--
            (1) Report.--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--
                    (A) identifies each foreign central bank that the 
                Secretary finds engages in one or more activities 
                described in subsection (a)(2)(D); and
                    (B) provides a detailed description of each such 
                activity.
            (2) Special rule to allow for termination of sanctionable 
        activity.--The Secretary of the Treasury shall not be required 
        to apply sanctions to a foreign central bank described in the 
        report required under paragraph (1) 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--
                    (A) the foreign central bank--
                            (i) is no longer engaging in the activity 
                        described in subsection (a)(2)(D); or
                            (ii) has taken significant verifiable steps 
                        toward terminating the activity described in 
                        subsection (a)(2)(D) not later than 90 days 
                        after the date on which the Secretary makes 
                        such certification; and
                    (B) the Secretary has received reliable assurances 
                from the government with primary jurisdiction over the 
                foreign central bank that the foreign central bank will 
                not engage in any activity described in subsection 
                (a)(2)(D) in the future.
    (e) Definitions.--
            (1) In general.--In this section:
                    (A) Account; correspondent account; payable-through 
                account.--The terms ``account'', ``correspondent 
                account'', and ``payable-through account'' have the 
                meanings given those terms in section 5318A of title 
                31, United States Code.
                    (B) Agent.--The term ``agent'' includes an entity 
                established by a person for purposes of conducting 
                transactions on behalf of the person in order to 
                conceal the identity of the person.
                    (C) Appropriate congressional committees.--The term 
                ``appropriate congressional committees'' means--
                            (i) the Committee on Foreign Affairs and 
                        the Committee on Financial Services of the 
                        House of Representatives; and
                            (ii) the Committee on Foreign Relations and 
                        the Committee on Banking, Housing, and Urban 
                        Affairs of the Senate.
                    (D) Financial institution.--The term ``financial 
                institution'' means a financial institution specified 
                in subparagraph (A), (B), (C), (D), (E), (F), (G), (H), 
                (I), (J), (K), (M), (N), (R), or (Y) of section 
                5312(a)(2) of title 31, United States Code.
                    (E) Foreign financial institution; domestic 
                financial institution.--
                            (i) Foreign financial institution.--The 
                        term ``foreign financial institution''--
                                    (I) has the meaning of such term as 
                                determined by the Secretary of the 
                                Treasury; and
                                    (II) includes a foreign central 
                                bank.
                            (ii) Domestic financial institution.--The 
                        term ``domestic financial institution'' has the 
                        meaning of such term as determined by the 
                        Secretary of the Treasury.
                    (F) Money laundering.--The term ``money 
                laundering'' 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.
            (2) Other definitions.--The Secretary of the Treasury may 
        further define the terms used in this section in the 
        regulations prescribed under this section.

TITLE II--DESIGNATION OF HEZBOLLAH AS A MAJOR DRUG SMUGGLING ENTERPRISE 
               AND A TRANSNATIONAL CRIMINAL ORGANIZATION

SEC. 201. DESIGNATION OF HEZBOLLAH AS SIGNIFICANT FOREIGN NARCOTICS 
              TRAFFICKERS.

    (a) In General.--Not later than 30 days after the date of the 
enactment of this Act, the President shall determine if Hezbollah meets 
the criteria specified for designation of a significant foreign 
narcotics trafficker under the Foreign Narcotics Kingpin Designation 
Act (21 U.S.C. 1901 et seq.).
    (b) Affirmative Determination.--If the President determines under 
subsection (a) that Hezbollah meets the criteria set forth under the 
Foreign Narcotics Kingpin Designation Act (21 U.S.C. 1901 et seq.), the 
President shall designate Hezbollah as a significant foreign narcotics 
trafficker under such Act.
    (c) Negative Determination.--
            (1) In general.--If the President determines under 
        subsection (a) that Hezbollah does not meet the criteria set 
        forth under the Foreign Narcotics Kingpin Designation Act (21 
        U.S.C. 1901 et seq.), the President shall submit to the 
        appropriate congressional committees a report that contains a 
        detailed justification as to which criteria have not been met.
            (2) Form.--The report required under paragraph (1) shall be 
        submitted in unclassified form, but may contain classified 
        annex, if necessary.

SEC. 202. DESIGNATION OF HEZBOLLAH AS A SIGNIFICANT TRANSNATIONAL 
              CRIMINAL ORGANIZATION.

    (a) In General.--Not later than 30 days after the date of the 
enactment of this Act, the President shall determine if Hezbollah meets 
the criteria specified for designation as a significant transnational 
criminal organization under Executive Order 13581 (76 Fed. Reg. 44757), 
and the authorities granted to the President under the International 
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), the National 
Emergencies Act (50 U.S.C. 1601 et seq.), and section 301 of title 3, 
United States Code.
    (b) Affirmative Determination.--If the President determines under 
subsection (a) that Hezbollah meets the criteria set forth under the 
orders and statutes specified in subsection (a), the President shall 
designate Hezbollah a significant transnational criminal organization 
under such orders and statutes.
    (c) Negative Determination.--
            (1) In general.--If the President determines under 
        subsection (a) that Hezbollah does not meet the criteria set 
        forth under the orders and statutes specified in subsection 
        (a), the President shall submit to the appropriate 
        congressional committees a report that contains a detailed 
        justification as to which criteria have not been met.
            (2) Form.--The report required under paragraph (1) shall be 
        submitted in unclassified form, but may contain classified 
        annex, if necessary.

SEC. 203. REPORT ON HEZBOLLAH'S INVOLVEMENT IN THE TRADE OF CONFLICT 
              DIAMONDS.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of State shall submit to the 
Committee on Foreign Affairs of the House of Representatives and the 
Committee on Foreign Relations of the Senate a report detailing 
Hezbollah's involvement in the trade in rough diamonds outside of the 
Kimberly Process Certification Scheme.
    (b) Form.--The report required by subsection (a) shall be submitted 
in unclassified form, but may contain a classified annex.

SEC. 204. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.

    In this title, the term ``appropriate congressional committees'' 
means--
            (1) the Committee on Foreign Affairs, the Committee on 
        Financial Services, and the Committee on the Judiciary of the 
        House of Representatives; and
            (2) the Committee on Foreign Relations, the Committee on 
        Finance, and the Committee on the Judiciary of the Senate.

                  TITLE III--MISCELLANEOUS PROVISIONS

SEC. 301. RULE OF CONSTRUCTION.

    Nothing in this Act or any amendment made by this Act shall apply 
to the authorized intelligence activities of the United States.

SEC. 302. REGULATORY AUTHORITY.

    (a) In General.--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.
    (b) Notification to Congress.--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.

SEC. 303. TERMINATION.

    Any provision of this Act or amendment made by this Act shall cease 
to be in effect beginning 30 days after the date on which the President 
certifies to Congress that Hezbollah--
            (1) is no longer designated as a foreign terrorist 
        organization pursuant to section 219 of the Immigration and 
        Nationality Act (8 U.S.C. 1189);
            (2) is no longer listed in the Annex to Executive Order 
        13224 (September 23, 2001; relating to blocking property and 
        prohibiting transactions with persons who commit, threaten to 
        commit, or support terrorism); and
            (3) poses no significant threat to United States national 
        security, interests, or allies.
                                 <all>