[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2297 Referred in Senate (RFS)]
114th CONGRESS
1st Session
H. R. 2297
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 18, 2015
Received, read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
AN ACT
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 AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Hezbollah
International Financing Prevention Act of 2015''.
(b) Table of Contents.--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. Rewards for Justice and Hezbollah's fundraising, financing,
and money laundering activities.
Sec. 204. Report on activities of foreign governments to disrupt global
logistics networks and fundraising,
financing, and money laundering activities
of Hezbollah.
Sec. 205. Appropriate congressional committees defined.
TITLE III--MISCELLANEOUS PROVISIONS
Sec. 301. Rule of construction.
Sec. 302. Regulatory authority.
Sec. 303. Termination.
SEC. 2. 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 global criminal activities of
Hezbollah as a means to block that organization's ability to
fund its global terrorist activities.
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.
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:
(1) 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.
(2) With respect to all providers described in paragraph
(1)--
(A) an identification of those providers that have
been sanctioned pursuant to Executive Order No. 13224
(September 23, 2001); and
(B) 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.
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 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).
(2) Activities described.--A foreign financial institution
engages in an activity described in this paragraph if the
foreign financial institution--
(A) knowingly facilitates a significant transaction
or transactions for Hezbollah;
(B) 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;
(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--
(i) facilitating a significant transaction
or transactions; or
(ii) providing significant financial
services that involve a transaction of covered
goods; 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
(4) of this subsection to the same extent that such penalties
apply to a person that commits an unlawful act described in
subsection (a) of such section 206(a).
(4) Regulations.--The Secretary of the Treasury shall
prescribe and implement regulations to carry out this
subsection.
(b) Waiver.--
(1) In general.--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 such 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--
(A) determines that such a waiver is in the
national security interests of the United States; and
(B) submits to the appropriate congressional
committees a report describing the reasons for such
determination.
(2) Form.--The report required by paragraph (1)(B) shall be
submitted in unclassified form, but may contain a classified
annex.
(c) Provisions Relating to Foreign Financial Institutions.--
(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 determines 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 financial institution described
in subsection (a) if the Secretary, 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) such foreign financial institution--
(i) is no longer engaging in the activity
described in subsection (a)(2); or
(ii) has taken and is continuing to take
significant verifiable steps toward terminating
the activity described in such subsection; and
(B) the Secretary has received reliable assurances
from the government with primary jurisdiction over such
foreign financial institution that such foreign
financial institution will not engage in any activity
described in such subsection in the future.
(d) 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) 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.
(C) Covered goods.--The term ``covered goods'' has
the meaning given the term in section 1027.100 of title
31, Code of Federal Regulations.
(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), (P), (R), (T), (Y), or (Z) 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'' has the
meaning of such term in section 1010.605 of
title 31, Code of Federal Regulations, and
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) Hezbollah.--The term ``Hezbollah'' means--
(i) any person--
(I) the property of or interests in
property of which are blocked pursuant
to the International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.);
and
(II) 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
(ii) the entity designated by the Secretary
of State as a foreign terrorist organization
pursuant to section 219 of the Immigration and
Nationality Act (8 U.S.C. 1189).
(G) 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--REPORTS ON DESIGNATION OF HEZBOLLAH AS A SIGNIFICANT FOREIGN
NARCOTICS TRAFFICKER AND A SIGNIFICANT TRANS-
NATIONAL CRIMINAL ORGANIZATION
SEC. 201. REPORT ON DESIGNATION OF HEZBOLLAH AS A SIGNIFICANT FOREIGN
NARCOTICS TRAFFICKER.
(a) Report Required.--Not later than 120 days after the date of the
enactment of this Act, the President shall transmit to the appropriate
congressional committees a detailed report on whether Hezbollah meets
the criteria for designation under the Foreign Narcotics Kingpin
Designation Act (21 U.S.C. 1901 et seq.) as a significant foreign
narcotics trafficker, and if the President determines that Hezbollah
does not meet such criteria, a detailed justification as to which
criteria have not been met.
(b) Form.--The report required by subsection (a) shall be
transmitted in unclassified form, but may include a classified annex.
SEC. 202. REPORT ON DESIGNATION OF HEZBOLLAH AS A SIGNIFICANT
TRANSNATIONAL CRIMINAL ORGANIZATION.
(a) Sense of Congress.--It is the sense of Congress that--
(1) Hezbollah meets the criteria for designation as a
significant transnational criminal organization under Executive
Order No. 13581 (76 Fed. Reg. 44757); and
(2) the President should so designate Hezbollah as a
significant transnational criminal organization.
(b) Report.--
(1) Report required.--Not later than 120 days after the
date of the enactment of this Act, the President shall transmit
to the appropriate committees of Congress 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 if the President
determines that Hezbollah does not meet such criteria, a
detailed justification as to which criteria have not been met.
(2) Form.--The report required by paragraph (1) shall be
transmitted in unclassified form, but may include a classified
annex.
SEC. 203. REWARDS FOR JUSTICE AND HEZBOLLAH'S FUNDRAISING, FINANCING,
AND MONEY LAUNDERING ACTIVITIES.
(a) Report.--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
under section 36 of the State Department Basic Authorities Act (22
U.S.C. 2708) to obtain information on fundraising, financing, and money
laundering activities of Hezbollah and its agents and affiliates.
(b) Briefing.--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).
(c) Appropriate Congressional Committees Defined.--In this section,
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.
SEC. 204. REPORT ON ACTIVITIES OF FOREIGN GOVERNMENTS TO DISRUPT GLOBAL
LOGISTICS NETWORKS AND FUNDRAISING, FINANCING, AND MONEY
LAUNDERING ACTIVITIES OF HEZBOLLAH.
(a) Report.--
(1) In general.--Not later than 90 days after the date of
the enactment of this Act, the President shall transmit to the
appropriate congressional committees a report that includes--
(A) a list of countries that support Hezbollah, or
in which Hezbollah maintains important portions of its
global logistics networks;
(B) with respect to each country on the list
required by subparagraph (A)--
(i) an assessment of whether the government
of such country is taking adequate measures to
disrupt the global logistics networks of
Hezbollah within the territory of such country;
and
(ii) in the case of a country the
government of which is not taking adequate
measures to disrupt such networks--
(I) an assessment of the reasons
such government is not taking such
adequate measures; and
(II) a description of measures
being taken by the United States to
encourage such government to improve
measures to disrupt such networks;
(C) a list of countries in which Hezbollah, or any
of its agents or affiliates, conducts significant
fundraising, financing, or money laundering activities;
(D) with respect to each country on the list
required by subparagraph (C)--
(i) an assessment of whether the government
of such 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
such country; and
(ii) in the case of a country the
government of which is not taking adequate
measures to disrupt such activities--
(I) an assessment of the reasons
such government is not taking such
adequate measures; and
(II) a description of measures
being taken by the United States to
encourage such government to improve
measures to disrupt such activities;
and
(E) 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.
(2) Form.--The report required by paragraph (1) shall be
submitted in unclassified form to the greatest extent possible,
and may contain a classified annex.
(3) Global logistics networks of hezbollah.--In this
subsection, the term ``global logistics networks of
Hezbollah'', ``global logistics networks'', or ``networks''
means financial, material, or technological support for, or
financial or other services in support of, Hezbollah.
(b) Briefing on Hezbollah's Assets and Activities Related to
Fundraising, Financing, and Money Laundering Worldwide.--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 (or their designees) of other applicable Federal departments
and agencies 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.
(c) Appropriate Congressional Committees Defined.--In this section,
the term ``appropriate congressional committees'' means--
(1) the Committee on Foreign Affairs, the Committee on
Financial Services, and the Permanent Select Committee on
Intelligence of the House of Representatives; and
(2) the Committee on Foreign Relations, the Committee on
Banking, Housing, and Urban Affairs, and the Select Committee
on Intelligence of the Senate.
SEC. 205. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.
Except as otherwise provided, 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 before the
promulgation of regulations under subsection (a), the President shall
notify the appropriate congressional committees (as such term is
defined in section 203) 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.
This Act shall terminate on the date that is 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 No.
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.
Passed the House of Representatives May 14, 2015.
Attest:
KAREN L. HAAS,
Clerk.
By Robert F. Reeves,
Deputy Clerk.