[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3118 Introduced in House (IH)]

<DOC>






115th CONGRESS
  1st Session
                                H. R. 3118

   To prevent further access of Iran and Hizballah into the Western 
                  Hemisphere, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 29, 2017

 Mr. Duncan of South Carolina (for himself, Mr. Espaillat, Mr. McCaul, 
Mr. Donovan, Mr. DeSantis, Mrs. Torres, Mr. Suozzi, Mr. Schneider, Mr. 
    Yoho, Mr. Smith of New Jersey, and Mr. Ted Lieu of California) 
 introduced the following bill; which was referred to the Committee on 
    Foreign Affairs, and in addition to the Committees on Financial 
Services, and the Judiciary, 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 further access of Iran and Hizballah into the Western 
                  Hemisphere, 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 ``Iran and Hizballah Western 
Hemisphere Prevention Act of 2017''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) On June 26, 2017, Ali Issa Chamas, a dual Paraguayan-
        Lebanese national reportedly with ties to Hizballah, was 
        indicted by a Miami Federal grand jury for drug trafficking 
        after being arrested in the Tri-Border Area of Argentina, 
        Paraguay, and Brazil for allegedly trying to smuggle cocaine to 
        the United States.
            (2) On June 8, 2017, the Department of Justice announced 
        the arrest of Ali Kourani and Samer El Debek for attempting to 
        provide support to Hizballah, including in Panama, which 
        involved locating the United States and Israeli Embassies and 
        casing security procedures at the Panama Canal.
            (3) In April 2017, Commander, United States Southern 
        Command, Admiral Kurt Tidd testified to Congress that ``as a 
        continuing state sponsor of terrorism, Iranian involvement in 
        the Western Hemisphere is always a matter of concern [and] with 
        the easing of economic sanctions, Iran may be seeking to 
        rebuild its relationships in the region''.
            (4) In February 2017, the United States imposed sanctions 
        on Venezuelan Vice President Tareck El Aissami, designating him 
        as a drug kingpin for facilitating narcotics to the United 
        States. A subsequent CNN investigation linked El Aissami to 
        ``173 Venezuelan passports and IDs that were issued to 
        individuals from the Middle East, including people connected to 
        the terrorist group Hezbollah''.
            (5) In September 2016, Iranian President Hassan Rouhani 
        conducted his first visit to Latin America, visiting Venezuela 
        and Cuba. In the same month, Iran's Foreign Minister Javad 
        Zarif also visited Bolivia, Chile, Cuba, Ecuador, Mexico, 
        Nicaragua, and Venezuela.
            (6) In February 2016, a Federal prosecutor in Argentina 
        alleged that Special Prosecutor Alberto Nisman's death in 
        January 2015 was a homicide. Nisman had previously published 
        two reports documenting Iranian activities in several countries 
        in the region and filed a judicial complaint against former 
        Argentine President Cristina Fernandez de Kirchner for 
        minimizing Iranian involvement in the 1994 terrorist attack 
        against the Argentine-Israeli Mutual Association (AMIA) that 
        killed 85 people.
            (7) In February 2016, the U.S. Drug Enforcement 
        Administration (DEA) announced the disruption of a Hizballah 
        network as part of DEA's ``Project Cassandra'', which affirmed 
        that members of Hizballah's External Security Organization 
        Business Affairs Component (BAC) had established business 
        relationships with South American drug cartels, such as La 
        Oficina de Envigado.
            (8) According to the Department of State's 2015 Country 
        Report on Terrorism, Hezbollah maintains a presence in the 
        Western Hemisphere ``with members, facilitators, and supporters 
        engaging in activity in support of the organization'', which 
        includes ``efforts to build Hezbollah's infrastructure in South 
        America and fundraising, both through licit and illicit 
        means''.
            (9) In 2015, former Commander, United States Southern 
        Command, General Kelly testified to Congress that ``our limited 
        intelligence capabilities make it difficult to fully assess the 
        amount of terrorist financing generated in Latin America, or 
        understand the scope of possible criminal-terrorist 
        collaboration''.
            (10) In November 2014, Brazilian media published police 
        reports that revealed that Hizballah helped a Brazilian prison 
        gang, the First Capital Command (PCC), obtain weapons in 
        exchange for the protection of prisoners of Lebanese origin 
        tied to Hizballah. Those same reports also found that Lebanese 
        traffickers tied to Hizballah helped sell C4 explosives that 
        the PCC allegedly stole in Paraguay.
            (11) In November 2014, Peruvian counterterrorism police 
        arrested Mohammed Amadar, a Lebanese citizen, who was 
        reportedly a Hizballah operative, after finding traces of 
        explosive materials and detonators at his home. His targets 
        reportedly included places associated with Israelis and Jews in 
        Peru, the Israeli embassy in Lima, and Jewish community 
        institutions.
            (12) Hizballah is classified by the Department of State as 
        a Foreign Terrorist Organization, but multiple reports have 
        found that Hizballah has significant and expanding ties to 
        transnational organized crime, drug trafficking, and money-
        laundering activities in the Western Hemisphere, including 
        partnerships with Mexico's Los Zetas, Colombia's Revolutionary 
        Armed Forces of Colombia (FARC), and Brazil's Primeriro Comando 
        de la Capital.
            (13) As of June 2017, the United States has sanctioned 11 
        individuals and four companies in the Tri-Border Area of 
        Argentina, Paraguay, and Brazil for their involvement with 
        Hizballah's terror finance networks. However, multiple reports 
        show that despite United States measures, some of these 
        individuals who are Specially Designated Global Terrorists 
        (SDGTs) under Executive Order 13224 of September 2001 continue 
        to have access to the global financial system.

SEC. 3. STATEMENT OF POLICY.

    Congress declares that it is the policy of the United States to 
continue the policy outlined in the Hizballah International Financing 
Prevention Act of 2015 (Public Law 114-102) and the government-wide 
strategy outlined in Countering Iran in the Western Hemisphere Act of 
2012 (Public Law 112-220) to prevent further penetration of Iran and 
Hizballah into the Western Hemisphere and prioritize United States 
diplomatic efforts to engage countries in the Western Hemisphere to 
disrupt and degrade Hizballah's illicit networks operating in the 
region.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Western hemisphere.--The term ``Western Hemisphere'' 
        has the meaning given such term in section 4(1) of the 
        Countering Iran in the Western Hemisphere Act of 2012 (Public 
        Law 112-220; 22 U.S.C. 8701 note).
            (2) Relevant congressional committees.--The term ``relevant 
        congressional committees'' has the meaning given such term in 
        section 4(2) of the Countering Iran in the Western Hemisphere 
        Act of 2012 (Public Law 112-220; 22 U.S.C. 8701 note).
            (3) Hizballah.--The term ``Hizballah'' has the meaning 
        given such term in section 102(f) of the Hizballah 
        International Financing Prevention Act of 2015 (Public Law 114-
        102; 50 U.S.C. 1701 note).
            (4) Hostile activities.--The term ``hostile activities'' 
        means any activities that promote anti-American or undemocratic 
        views that threaten United States national security through 
        government-to-government, private sector, nongovernmental 
        organizations, or public diplomacy engagement.

SEC. 5. UNITED STATES STRATEGY TO PREVENT HOSTILE ACTIVITIES BY IRAN 
              AND DISRUPT AND DEGRADE HIZBALLAH'S ILLICIT NETWORKS IN 
              THE WESTERN HEMISPHERE.

    (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 
relevant congressional committees a strategy to prevent hostile 
activities by Iran and disrupt and degrade Hizballah's illicit networks 
in the Western Hemisphere that--
            (1) identifies Department of State priorities, in 
        coordination with other executive branch agencies, for defining 
        United States policy to protect United States interests from 
        Iranian and Hizballah threats in the Western Hemisphere;
            (2) involves a whole-of-government approach led by the 
        Secretary of State, in coordination with other executive branch 
        agencies, to ensure that information-sharing, interdictions, 
        arrests, investigations, indictments, sanctions, and 
        designations related to Hizballah individuals or networks in 
        the Western Hemisphere are integrated, coordinated, and 
        publicly communicated by the United States in a manner that 
        supports United States interests;
            (3) outlines a counter-network disruption campaign that 
        includes the input of other executive branch agencies and that 
        uses all appropriate United States national tools;
            (4) describes Iranian and Hizballah activities in the 
        Western Hemisphere, their relationships with transnational 
        criminal organizations in the region, their use of the region's 
        commodities trade to engage in illicit activities, and their 
        use of Latin American and Caribbean visas, including through 
        Citizenship by Investment Programs to seek admittance into the 
        United States, as well as a plan to address any security 
        vulnerabilities to the United States;
            (5) includes a review of all relevant United States 
        sanctions that relate to Hizballah's activities in Latin 
        America and the Caribbean and an assessment of their use, 
        effectiveness, and any capability gaps;
            (6) includes a review of the use of the Department of 
        State's rewards program under section 36 of the State 
        Department Basic Authorities Act (22 U.S.C. 2708) to obtain 
        information related to Latin America-based Hizballah operatives 
        and illicit networks and an assessment of the effectiveness of 
        this program for targeting Hizballah in the Western Hemisphere;
            (7) includes a review of all relevant United States 
        sanctions on financial institutions in Latin America and the 
        Caribbean that engage in activities outlined by section 102 of 
        Hizballah International Financing Prevention Act of 2015 
        (Public Law 114-102; 50 U.S.C. 1701 note) and an assessment of 
        the use of the authorities outlined, their effectiveness, and 
        recommendations for improvement;
            (8) describes Hizballah criminal support networks, 
        including country facilitation, in the Western Hemisphere and 
        outlines a United States approach to partners in the region to 
        address those illicit networks and build country capacity to 
        combat the transnational criminal activities of Hizballah; and
            (9) includes a review of the actions of governments in the 
        Western Hemisphere to identify, investigate, and prosecute 
        Latin America-based Hizballah operatives, and enforce sanctions 
        either personally or to their business interests of Latin 
        America-based Hizballah operatives as well as recommendations 
        for United States action towards governments who refuse to 
        impose sanctions or who willingly facilitate Latin America-
        based Hizballah illicit activities.
    (b) Form.--The strategy required by subsection (b) shall be 
submitted in unclassified form to the greatest extent possible but may 
include a classified annex.

SEC. 6. UNITED STATES BILATERAL AND MULTILATERAL ENGAGEMENT ON 
              HIZBALLAH IN THE WESTERN HEMISPHERE.

    (a) Bilateral Engagement.--Not later than 90 days after the date of 
the enactment of this Act, the President shall instruct the Secretary 
of State to prioritize United States diplomatic engagement with 
countries in the Western Hemisphere to increase cooperation and build 
governments' capacity to prevent hostile activities by Iran and disrupt 
and degrade Hizballah's illicit networks operating in the region. Such 
diplomatic engagement may include--
            (1) efforts to target and expose illicit networks, arrest 
        perpetrators, freeze assets, and attack Iran and Hizballah's 
        use of illicit networks using international trade and banking 
        systems;
            (2) efforts to revoke or deny visas from those implicated 
        in Hizballah activity in the region, including lawyers, 
        accountants, business partners, and service providers and 
        politicians who knowingly facilitate or fail to take measures 
        to counter Hizballah's illicit finance in their own 
        jurisdictions;
            (3) efforts to assist willing nations with the development 
        of counter-organized crime legislation, the strengthening of 
        financial investigative capacity, and a fully-vetted counter-
        organized crime judicial model in places plagued with 
        corruption; and
            (4) efforts to persuade governments in the region to list 
        Hizballah as a terrorist organization.
    (b) Multilateral Engagement.--
            (1) In general.--Title I of the Hizballah International 
        Financing Prevention Act of 2015 (Public Law 114-102; 129 Stat. 
        2206; 50 U.S.C. 1701 note) is amended by adding at the end the 
        following:

``SEC. 103. DIPLOMATIC INITIATIVES.

    ``(a) Sense of Congress.--It is the sense of Congress that--
            ``(1) the designation of Hizballah as a terrorist 
        organization by the Gulf Cooperation Council represents a 
        positive step; and
            ``(2) the United States should provide necessary technical 
        and other advice to the states of the Gulf Cooperation Council 
        to enhance the effectiveness of that designation.
    ``(b) Diplomatic Initiatives.--Not later than 90 days after the 
date of the enactment of this section, the President shall instruct--
            ``(1) the United States Permanent Representative to the 
        Organization of American States to work to secure support at 
        the Organization of American States for a resolution that would 
        declare Hizballah as a terrorist organization and address 
        Hizballah's illicit networks operating in the region;
            ``(2) the United States Ambassador to the Organization for 
        Security and Cooperation in Europe (OSCE) to work to secure a 
        report on compliance by participating states with OSCE Decision 
        Number 1063, the `Consolidated Framework for the Fight Against 
        Terrorism', in regard to Hizballah, with particular focus on 
        the mandate to `suppress the financing of terrorism, including 
        its links with money-laundering and illegal economic 
        activities', especially as it relates transatlantic relations, 
        including with Latin America and the Caribbean; and
            ``(3) United States diplomats to work with international 
        forums, including the Financial Action Task Force, to identify 
        government entities within Latin America and the Caribbean that 
        provide support, facilitation, or assistance to individuals 
        affiliated with Hizballah in the Western Hemisphere.
    ``(c) Report.--Not later than 90 days after the date of enactment 
of this section, and every 180 days thereafter for a period not to 
exceed 3 years, 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 describing efforts of the 
United States Permanent Representative to the Organization of American 
States with respect to matters described in subsection (b)(1), efforts 
of the United States Ambassador to the Organization for Security and 
Cooperation in Europe with respect to the matters described in 
subsection (b)(2), and efforts by United States diplomats with respect 
to the matters described in subsection (b)(3).''.
            (2) Clerical amendment.--The table of contents for the 
        Hizballah International Financing Prevention Act of 2015 is 
        amended by inserting after the item related to section 102 the 
        following new item:

``Sec. 103. Diplomatic initiatives.''.

SEC. 7. CONGRESSIONAL OVERSIGHT BRIEFINGS.

    The Secretary of State provide to the relevant congressional 
committees annual briefings that review Department of State efforts to 
implement the strategy to prevent hostile activities by Iran and 
disrupt and degrade Hizballah's illicit networks in the Western 
Hemisphere under section 5 and United States bilateral and multilateral 
engagement with respect to Hizballah in the Western Hemisphere in 
accordance with section 6 and the amendments made by section 6.

SEC. 8. REGULATORY AUTHORITY.

    (a) In General.--The President shall, not later than 120 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 relevant congressional committees of the proposed 
regulations and the provisions of this Act that the regulations are 
implementing.

SEC. 9. SUNSET.

    This Act shall terminate on the date that is 30 days after the date 
on which the President certifies to Congress that Hizballah meets the 
requirements described in section 303 of Hizballah International 
Financing Prevention Act of 2015 (Public Law 114-102; 50 U.S.C. 1701 
note).
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