[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2329 Introduced in Senate (IS)]

113th CONGRESS
  2d Session
                                S. 2329

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 13, 2014

   Mrs. Shaheen (for herself, Mr. Rubio, Mr. Casey, Ms. Ayotte, Mr. 
  Cardin, Mr. Risch, Mr. Markey, Mr. Cornyn, Mrs. Gillibrand, and Mr. 
    Graham) introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To prevent Hezbollah 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Hezbollah 
International Financing Prevention Act of 2014''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
 TITLE I--PREVENTION OF ACCESS BY HEZBOLLAH TO INTERNATIONAL FINANCIAL 
                         AND OTHER INSTITUTIONS

Sec. 101. Findings; statement of policy.
Sec. 102. Sanctions with respect to financial institutions that engage 
                            in certain transactions.
Sec. 103. Report on imposition of sanctions on certain satellite 
                            providers that carry al-Manar TV.
Sec. 104. Report on activities of foreign governments to disrupt global 
                            logistics networks and fundraising, 
                            financing, and money laundering activities 
                            of Hezbollah.
Sec. 105. Appropriate congressional committees defined.
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.
Sec. 202. Designation of Hezbollah as a significant transnational 
                            criminal organization.
Sec. 203. Appropriate congressional committees defined.
                  TITLE III--MISCELLANEOUS PROVISIONS

Sec. 301. Rule of construction.
Sec. 302. Regulatory authority.
Sec. 303. Termination.

 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 June 2013, the 
        Government of Bulgaria concluded that Hezbollah was responsible 
        for the 2012 Burgas bombing, which killed 6 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 regime of Bashar al-Assad 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.
            (13) In February 2011, the Department of the Treasury 
        blacklisted the Lebanese Canadian Bank as of primary money 
        laundering concern, alleging that it moved approximately 
        $200,000,000 as part of a drug trafficking network that 
        profited Hezbollah.
            (14) The Department of Justice reports that 29 of the 63 
        organizations on its Fiscal Year 2010 Consolidated Priority 
        Organization Targets list, which includes the most significant 
        international drug trafficking organizations 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-Qaeda 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 May 2006, 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 the ability of Hezbollah to fund 
        its global terrorist activities.

SEC. 102. 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, in 
        consultation with the Secretary of State, 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 or any of its agents or affiliates the 
                property or interests in property of which are blocked 
                pursuant to the International Emergency Economic Powers 
                Act (50 U.S.C. 1701 et seq.);
                    (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); 
                or
                    (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).
            (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 this subsection, or an order or 
        regulation prescribed under 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) Procedures for judicial review of classified 
        information.--
                    (A) In general.--If a finding under this subsection 
                or a prohibition, condition, or penalty imposed as a 
                result of any such finding, is based on classified 
                information (as defined in section 1(a) of the 
                Classified Information Procedures Act (18 U.S.C. App.)) 
                and a court reviews the finding or the imposition of 
                the prohibition, condition, or penalty, the Secretary 
                of the Treasury may submit such information to the 
                court ex parte and in camera.
                    (B) Rule of construction.--Nothing in this 
                paragraph shall be construed to confer or imply any 
                right to judicial review of any finding under this 
                subsection or any prohibition, condition, or penalty 
                imposed as a result of any such finding.
            (5) 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 180 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)(2).
                    (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)(2).
                    (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).
            (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, in consultation with 
the Secretary of State, 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 90 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 under subsection (a) to a foreign central 
        bank described in the report required under paragraph (1) if 
        the Secretary of the Treasury, in consultation with the 
        Secretary of State, 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) for which the 
                        bank was identified in the report; or
                            (ii) has taken significant verifiable steps 
                        toward terminating the activity 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) Implementation.--The President may exercise all authorities 
provided under sections 203 and 205 of the International Emergency 
Economic Powers Act (50 U.S.C. 1702 and 1704) to carry out this 
section.
    (f) 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) 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.
                    (D) Foreign financial institution; domestic 
                financial institution.--
                            (i) Foreign financial institution.--The 
                        term ``foreign financial institution''--
                                    (I) has the meaning of that 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 that term as determined by the 
                        Secretary of the Treasury.
                    (E) 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 that 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.

SEC. 103. REPORT ON IMPOSITION OF SANCTIONS ON CERTAIN SATELLITE 
              PROVIDERS THAT CARRY AL-MANAR TV.

    (a) In General.--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--
            (1) a list of all satellite, broadcast, Internet, or other 
        providers that knowingly transmit or otherwise broadcast 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 (66 
                Fed. Reg. 49079; relating to blocking property and 
                prohibiting transactions with persons who commit, 
                threaten to commit, or support terrorism); 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. 104. REPORT ON ACTIVITIES OF FOREIGN GOVERNMENTS TO DISRUPT GLOBAL 
              LOGISTICS NETWORKS AND FUNDRAISING, FINANCING, AND MONEY 
              LAUNDERING ACTIVITIES OF HEZBOLLAH.

    (a) In General.--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--
            (1) a list of countries in which Hezbollah maintains 
        important portions of its global logistics networks;
            (2) with respect to each country on the list required by 
        paragraph (1)--
                    (A) 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
                    (B) in the case of a country the government of 
                which is not taking adequate measures to disrupt those 
                networks--
                            (i) an assessment of the reasons that 
                        government is not taking adequate measures to 
                        disrupt those networks; and
                            (ii) a description of measures being taken 
                        by the United States Government to encourage 
                        that government to improve measures to disrupt 
                        those networks;
            (3) a list of countries in which Hezbollah, or any of its 
        agents or affiliates, conducts significant fundraising, 
        financing, or money laundering activities; and
            (4) with respect to each country on the list required by 
        paragraph (3)--
                    (A) 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
                    (B) in the case of a country the government of 
                which is not taking adequate measures to disrupt those 
                activities--
                            (i) an assessment of the reasons that 
                        government is not taking adequate measures to 
                        disrupt those activities; and
                            (ii) 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.
    (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. 105. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.

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

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 90 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 foreign 
narcotics trafficker under section 804 of the Foreign Narcotics Kingpin 
Designation Act (21 U.S.C. 1903).
    (b) Affirmative Determination.--If the President determines under 
subsection (a) that Hezbollah meets the criteria specified for 
designation as a significant foreign narcotics trafficker under section 
804 of the Foreign Narcotics Kingpin Designation Act (21 U.S.C. 1903), 
the President shall designate Hezbollah as a significant foreign 
narcotics trafficker under that section.
    (c) Negative Determination.--
            (1) In general.--If the President determines under 
        subsection (a) that Hezbollah does not meet the criteria 
        specified for designation as a significant foreign narcotics 
        trafficker under section 804 of the Foreign Narcotics Kingpin 
        Designation Act (21 U.S.C. 1903), 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 a classified 
        annex, if necessary.

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

    (a) In General.--Not later than 90 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; 
relating to blocking property of transnational criminal organizations).
    (b) Affirmative Determination.--If the President determines under 
subsection (a) that Hezbollah meets the criteria specified for 
designation as a significant transnational criminal organization under 
Executive Order 13581, the President shall designate Hezbollah a 
significant transnational criminal organization under that order.
    (c) Negative Determination.--
            (1) In general.--If the President determines under 
        subsection (a) that Hezbollah does not meet the criteria 
        specified for designation as a significant transnational 
        criminal organization under Executive Order 13581, 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 a classified 
        annex, if necessary.

SEC. 203. 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 
        Banking, Housing, and Urban Affairs, and the Committee on the 
        Judiciary of the Senate.

                  TITLE III--MISCELLANEOUS PROVISIONS

SEC. 301. RULE OF CONSTRUCTION.

    Nothing in this Act shall apply to the authorized intelligence 
activities of the United States.

SEC. 302. REGULATORY AUTHORITY.

    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.

SEC. 303. TERMINATION.

    Each provision of 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); and
            (2) is no longer listed in the Annex to Executive Order 
        13224 (66 Fed. Reg. 49079; relating to blocking property and 
        prohibiting transactions with persons who commit, threaten to 
        commit, or support terrorism).
                                 <all>