[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3329 Engrossed in House (EH)]

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115th CONGRESS
  1st Session
                                H. R. 3329

_______________________________________________________________________

                                 AN ACT


 
 To amend the Hizballah International Financing Prevention Act of 2015 
to impose additional sanctions with respect to Hizballah, 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 ``Hizballah 
International Financing Prevention Amendments Act of 2017''.
    (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 HIZBALLAH TO INTERNATIONAL FINANCIAL 
                         AND OTHER INSTITUTIONS

Sec. 101. Mandatory sanctions with respect to fundraising and 
                            recruitment activities for Hizballah.
Sec. 102. Modification of report with respect to financial institutions 
                            that engage in certain transactions.
Sec. 103. Sanctions against foreign states that support Hizballah.
Sec. 104. Prohibitions and conditions with respect to certain accounts 
                            held by foreign financial institutions.
Sec. 105. United States strategy to prevent hostile activities by Iran 
                            and disrupt and degrade Hizballah's illicit 
                            networks in the Western Hemisphere.
TITLE II--NARCOTICS TRAFFICKING AND SIGNIFICANT TRANSNATIONAL CRIMINAL 
                        ACTIVITIES OF HIZBALLAH

Sec. 201. Blocking of property of affiliated networks of Hizballah.
Sec. 202. Report on racketeering activities engaged in by Hizballah.
Sec. 203. Modification of report on activities of foreign governments 
                            to disrupt global logistics networks and 
                            fundraising, financing, and money 
                            laundering activities of Hizballah.
Sec. 204. Report on combating the illicit tobacco trafficking networks 
                            used by Hizballah and other foreign 
                            terrorist organizations.
                     TITLE III--GENERAL PROVISIONS

Sec. 301. Regulatory authority.
Sec. 302. Implementation; penalties; judicial review; exemptions.

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

SEC. 101. MANDATORY SANCTIONS WITH RESPECT TO FUNDRAISING AND 
              RECRUITMENT ACTIVITIES FOR HIZBALLAH.

    (a) In General.--Section 101 of the Hizballah International 
Financing Prevention Act of 2015 (Public Law 114-102; 50 U.S.C. 1701 
note) is amended to read as follows:

``SEC. 101. MANDATORY SANCTIONS WITH RESPECT TO FUNDRAISING AND 
              RECRUITMENT ACTIVITIES FOR HIZBALLAH.

    ``(a) In General.--The President shall, on or after the date of the 
enactment of this section, impose the sanctions described in subsection 
(b) with respect to any foreign person that the President determines 
knowingly assists, sponsors, or, provides significant financial, 
material, or technological support for--
            ``(1) Bayt al-Mal, Jihad al-Bina, the Islamic Resistance 
        Support Association, the Foreign Relations Department of 
        Hizballah, the External Security Organization of Hizballah, or 
        any successor or affiliate thereof;
            ``(2) al-Manar TV, al Nour Radio, or the Lebanese Media 
        Group, or any successor or affiliate thereof;
            ``(3) a foreign person determined by the President to be 
        engaged in fundraising or recruitment activities for Hizballah; 
        or
            ``(4) a foreign person owned or controlled by a foreign 
        person described in paragraph (1), (2), or (3).
    ``(b) Sanctions Described.--
            ``(1) In general.--The sanctions described in this 
        subsection are the following:
                    ``(A) Asset blocking.--The exercise of all powers 
                granted to the President by the International Emergency 
                Economic Powers Act (50 U.S.C. 1701 et seq.) (except 
                that the requirements of section 202 of such Act (50 
                U.S.C. 1701) shall not apply) to the extent necessary 
                to block and prohibit all transactions in all property 
                and interests in property of a foreign person 
                determined by the President to be subject to subsection 
                (a) if such property and interests in property are in 
                the United States, come within the United States, or 
                are or come within the possession or control of a 
                United States person.
                    ``(B) Aliens ineligible for visas, admission, or 
                parole.--
                            ``(i) Visas, admission, or parole.--An 
                        alien who the Secretary of State or the 
                        Secretary of Homeland Security (or designee of 
                        one of such Secretaries) determines is subject 
                        to subsection (a) is--
                                    ``(I) inadmissible to the United 
                                States;
                                    ``(II) ineligible to receive a visa 
                                or other documentation to enter the 
                                United States; and
                                    ``(III) otherwise ineligible to be 
                                admitted or paroled into the United 
                                States or to receive any other benefit 
                                under the Immigration and Nationality 
                                Act (8 U.S.C. 1101 et seq.).
                            ``(ii) Current visas revoked.--
                                    ``(I) In general.--The Secretary of 
                                State or the Secretary of Homeland 
                                Security shall revoke any visa or other 
                                entry documentation issued to an alien 
                                who the President determines is subject 
                                to subsection (a), regardless of when 
                                issued.
                                    ``(II) Effect of revocation.--A 
                                revocation under subclause (I) shall 
                                take effect immediately and shall 
                                automatically cancel any other valid 
                                visa or entry documentation that is in 
                                the possession of the alien.
            ``(2) 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)(A) to the same extent that such penalties apply to a person 
        that commits an unlawful act described in subsection (a) of 
        such section 206.
    ``(c) 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.
    ``(d) Waiver.--
            ``(1) In general.--The President may, for periods not to 
        exceed 180 days, waive the imposition of sanctions under this 
        section with respect to a foreign person or foreign persons if 
        the President certifies to the appropriate congressional 
        committees that such waiver is in the national security 
        interests of the United States.
            ``(2) Consultation.--
                    ``(A) Before waiver exercised.--Before a waiver 
                under paragraph (1) takes effect with respect to a 
                foreign person, the President shall notify and brief 
                the appropriate congressional committees on the status 
                of the involvement of the foreign person in activities 
                described in subsection (a).
                    ``(B) After waiver exercised.--Not later than 90 
                days after the issuance of a waiver under paragraph (1) 
                with respect to a foreign person, and every 120 days 
                thereafter while the waiver remains in effect, the 
                President shall brief the appropriate congressional 
                committees on the status of the involvement of the 
                foreign person in activities described in subsection 
                (a).
    ``(e) Report.--Not later than 90 days after the date of the 
enactment of the Hizballah International Financing Prevention 
Amendments Act of 2017, and every 180 days thereafter, the President 
shall submit to the appropriate congressional committees and the 
Permanent Select Committee on Intelligence of the House of 
Representatives and the Select Committee on Intelligence of the Senate 
a report that lists the foreign persons that the President has credible 
evidence knowingly assists, sponsors, or provides significant 
financial, material, or technological support for the foreign persons 
described in paragraph (1), (2), (3), or (4) of subsection (a).
    ``(f) Definitions.--In this section:
            ``(1) Admitted; alien.--The terms `admitted' and `alien' 
        have meanings given those terms in section 101 of the 
        Immigration and Nationality Act (8 U.S.C. 1101).
            ``(2) Appropriate congressional committees.--The term 
        `appropriate congressional committees' means--
                    ``(A) the Committee on Foreign Affairs, the 
                Committee on Ways and Means, the Committee on the 
                Judiciary, and the Committee on Financial Services of 
                the House of Representatives; and
                    ``(B) the Committee on Foreign Relations, the 
                Committee on Banking, Housing, and Urban Affairs, and 
                the Committee on the Judiciary of the Senate.
            ``(3) Entity.--The term `entity'--
                    ``(A) means a partnership, association, 
                corporation, or other organization, group, or subgroup; 
                and
                    ``(B) includes a governmental entity
            ``(4) Fundraising or recruitment activities.--The term 
        `fundraising or recruitment activities' includes online 
        fundraising and other online commercial activities, or other 
        means of such fundraising, recruitment, and retention, as 
        determined by the President.
            ``(5) Hizballah.--The term `Hizballah' has the meaning 
        given such term in section 102(f).
            ``(6) Person.--The term `person' means an individual or 
        entity.
            ``(7) United states person.--The term `United States 
        person' means a United States citizen, permanent resident 
        alien, entity organized under the laws of the United States 
        (including foreign branches), or a person in the United 
        States.''.
    (b) Clerical Amendment.--The table of contents for the Hizballah 
International Financing Prevention Act of 2015 is amended by striking 
the item relating to section 101 and inserting the following new item:

``Sec. 101. Mandatory sanctions with respect to fundraising and 
                            recruitment activities for Hizballah.''.

SEC. 102. MODIFICATION OF REPORT WITH RESPECT TO FINANCIAL INSTITUTIONS 
              THAT ENGAGE IN CERTAIN TRANSACTIONS.

    (a) In General.--Subsection (d) of section 102 of the Hizballah 
International Financing Prevention Act of 2015 (Public Law 114-102; 50 
U.S.C. 1701 note) is amended to read as follows:
    ``(d) Report on Financial Institutions Organized Under the Laws of 
State Sponsors of Terrorism.--
            ``(1) In general.--Not later than 90 days after the date of 
        the enactment of the Hizballah International Financing 
        Prevention Amendments Act of 2017, and annually thereafter for 
        a period not to exceed 3 years, the President shall submit to 
        the appropriate congressional committees and the Committee on 
        Appropriations of the House of Representatives and the 
        Committee on Appropriations of the Senate a report that--
                    ``(A) identifies each foreign financial institution 
                described in paragraph (2) that the President 
                determines engages in one or more activities described 
                in subsection (a)(2);
                    ``(B) provides a detailed description of each such 
                activity; and
                    ``(C) contains a determination with respect to each 
                such foreign financial institution that is identified 
                under subparagraph (A) as engaging in one or more 
                activities described in subsection (a)(2) as to whether 
                or not such foreign financial institution is in 
                violation of Executive Order No. 13224 (50 U.S.C. 1701 
                note; relating to blocking property and prohibiting 
                transactions with persons who commit, threaten to 
                commit, or support terrorism) or section 2339B of title 
                18, United States Code, by reason of engaging in one or 
                more such activities.
            ``(2) Foreign financial institution described.--
                    ``(A) In general.--A foreign financial institution 
                described in this paragraph is a foreign financial 
                institution--
                            ``(i) that, wherever located, is--
                                    ``(I) organized under the laws of a 
                                state sponsor of terrorism or any 
                                jurisdiction within a state sponsor of 
                                terrorism;
                                    ``(II) owned or controlled by the 
                                government of a state sponsor of 
                                terrorism;
                                    ``(III) located in the territory of 
                                a state sponsor of terrorism; or
                                    ``(IV) owned or controlled by a 
                                foreign financial institution described 
                                in subclause (I), (II), or (III); and
                            ``(ii) the capitalization of which exceeds 
                        $10,000,000.
                    ``(B) State sponsor of terrorism.--In this 
                paragraph, the term `state sponsor of terrorism' means 
                a country the government of which the Secretary of 
                State has determined is a government that has 
                repeatedly provided support for acts of international 
                terrorism for purposes of--
                            ``(i) section 6(j) of the Export 
                        Administration Act of 1979 (50 U.S.C. 4605(j)) 
                        (as continued in effect pursuant to the 
                        International Emergency Economic Powers Act (50 
                        U.S.C. 1701 et seq.));
                            ``(ii) section 620A of the Foreign 
                        Assistance Act of 1961 (22 U.S.C. 2371);
                            ``(iii) section 40 of the Arms Export 
                        Control Act (22 U.S.C. 2780); or
                            ``(iv) any other provision of law.''.
    (b) Sense of Congress.--It is the sense of the Congress that--
            (1) all countries should designate the entirety of 
        Hizballah as a terrorist organization; and
            (2) the notion of separate Hizballah political and military 
        ``wings'' is an artificial construct that attempts to 
        legitimize Hizballah members of parliament and Hizballah 
        cabinet officials who are complicit in Hizballah's use of 
        violence and coercion against its political opponents.
    (c) Modification of Definition of Hizballah.--Clause (ii) of 
section 102(f)(1)(E) of the Hizballah International Financing 
Prevention Act of 2015 (Public Law 114-102; 50 U.S.C. 1701 note) is 
amended--
            (1) by striking ``(I)'' and inserting ``(I)(aa)'';
            (2) by striking ``(II)'' and inserting ``(bb)'';
            (3) by striking ``of Hizballah.'' and inserting ``of 
        Hizballah; or''; and
            (4) by adding at the end the following:
                                    ``(II) who the President determines 
                                is an agent or affiliate of, or is 
                                owned or controlled by Hizballah.''.
    (d) Report.--
            (1) In general.--Not later than 120 days after the date of 
        the enactment of this Act, the President shall transmit to the 
        appropriate congressional committees a report that contains a 
        description of any sanctions described in section 102 of the 
        Hizballah International Financing Prevention Act of 2015 
        (Public Law 114-102; 50 U.S.C. 1701 note) apply with respect to 
        a foreign financial institution by reason of engaging in an 
        activity described in subsection (a)(2) of such section with a 
        member of the Lebanese parliament or any cabinet official of 
        the Lebanese Republic who is a member of Hizballah or 
        identifies as such.
            (2) Form.--The report required by this subsection shall be 
        transmitted in unclassified form but may include a classified 
        annex.
            (3) Appropriate congressional committees defined.--In this 
        subsection, the term ``appropriate congressional committees'' 
        means--
                    (A) the Committee on Foreign Affairs, the Committee 
                on Appropriations, the Permanent Select Committee on 
                Intelligence, and the Committee on Financial Services 
                of the House of Representatives; and
                    (B) the Committee on Foreign Relations, the 
                Committee on Appropriations, the Select Committee on 
                Intelligence, and the Committee on Banking, Housing, 
                and Urban Affairs of the Senate.

SEC. 103. SANCTIONS AGAINST FOREIGN STATES THAT SUPPORT HIZBALLAH.

    (a) In General.--Title I of the Hizballah International Financing 
Prevention Act of 2015 (Public Law 114-102; 50 U.S.C. 1701 note) is 
amended by adding at the end the following:

``SEC. 103. SANCTIONS AGAINST FOREIGN STATES THAT SUPPORT HIZBALLAH.

    ``(a) Sanctions Against Certain Agencies and Instrumentalities of 
Foreign States.--
            ``(1) In general.--Not later than 90 days after the date of 
        the enactment of this section, and as appropriate thereafter, 
        the President shall impose the sanctions described in paragraph 
        (3) with respect to any agency or instrumentality of a foreign 
        state described in paragraph (2).
            ``(2) Agency or instrumentality described.--An agency or 
        instrumentality of a foreign state described in this paragraph 
        is an agency or instrumentality of a foreign state that the 
        President determines has, on or after the date of the enactment 
        of this section, knowingly--
                    ``(A) directly or indirectly conducted combat 
                operations with, or supported combat operations of, 
                Hizballah or an entity owned or controlled by 
                Hizballah; or
                    ``(B) directly or indirectly provided significant 
                financial or material support for, or significant arms 
                or related material to, Hizballah or an entity owned or 
                controlled by Hizballah.
            ``(3) Sanctions described.--The sanctions described in this 
        paragraph are the exercise of all powers granted to the 
        President by the International Emergency Economic Powers Act 
        (50 U.S.C. 1701 et seq.) (except that the requirements of 
        section 202 of such Act (50 U.S.C. 1701) shall not apply) to 
        the extent necessary to block and prohibit all transactions in 
        all property and interests in property of an agency or 
        instrumentality of a foreign state if such property and 
        interests in property are in the United States, come within the 
        United States, or are or come within the possession or control 
        of a United States person.
    ``(b) Sanctions Against State Sponsors of Terrorism.--
            ``(1) In general.--In the case of an agency or 
        instrumentality of a foreign state that engages in the 
        activities described in subsection (a) that is an agency or 
        instrumentality of a foreign state described in paragraph (3), 
        the President shall, pursuant to section 6 of the Export 
        Administration Act of 1979 (as continued in effect pursuant to 
        the International Emergency Economic Powers Act (50 U.S.C. 1701 
        et seq.)), require a license under the Export Administration 
        Regulations to export or re-export to that foreign state any 
        item designated by the Secretary of Commerce as `EAR 99', other 
        than food, medicine, medical devices, or similarly licensed 
        items.
            ``(2) Auditing requirements.--In the case of an agency or 
        instrumentality of a foreign state that engages in the 
        activities described in subsection (a) that is an agency or 
        instrumentality of a foreign state described in paragraph (3), 
        or the Government of the Russian Federation if the President 
        determines such Government is engaged in the activities 
        described in subsection (a), the President shall--
                    ``(A) ensure that United States persons, and 
                foreign persons subject to United States jurisdiction, 
                exercise enhanced due diligence in the jurisdiction of 
                that foreign state to ensure such persons do not 
                directly or indirectly finance Hizballah or engage in 
                transactions with foreign persons that directly or 
                indirectly finance Hizballah;
                    ``(B) ensure that United States persons, and 
                foreign persons subject to United States jurisdiction, 
                maintain--
                            ``(i) internal controls to prevent such 
                        persons from engaging in a transaction or 
                        transactions with Hizballah; and
                            ``(ii) full compliance with relevant laws 
                        and regulations;
                    ``(C) ensure that United States persons, and 
                foreign persons subject to United States jurisdiction, 
                engage an auditor to perform due diligence to ascertain 
                whether--
                            ``(i) the internal controls of such person 
                        are effective; and
                            ``(ii) any transactions of such person are 
                        directly or indirectly financing Hizballah; and
                    ``(D) ensure the accuracy of the independent 
                private sector audits and other due diligence processes 
                by providing recommendations for the processes used to 
                carry out such audits, including to--
                            ``(i) improve the accuracy of such audits; 
                        and
                            ``(ii) establish standards of best 
                        practices.
            ``(3) Foreign state described.--A foreign state described 
        in this paragraph is a foreign state that--
                    ``(A) the President determines has, on or after the 
                date of the enactment of this section, knowingly 
                provided significant financial or material support for, 
                or arms or related material to--
                            ``(i) Hizballah; or
                            ``(ii) an entity owned or controlled by 
                        Hizballah; and
                    ``(B) is a state sponsor of terrorism.
    ``(c) Waiver.--
            ``(1) In general.--The President may, for periods not to 
        exceed 180 days, waive the imposition of sanctions under this 
        section with respect to a foreign state or an agency or 
        instrumentality of a foreign state if the President certifies 
        to the appropriate congressional committees that such waiver is 
        vital to the national security interests of the United States.
            ``(2) Consultation.--
                    ``(A) Before waiver exercised.--Before a waiver 
                under paragraph (1) takes effect with respect to a 
                foreign state or an agency or instrumentality of a 
                foreign state, the President shall notify and brief the 
                appropriate congressional committees on the status of 
                the involvement of the foreign state in activities 
                described in subsection (b)(3) or involvement of the 
                agency or instrumentality of a foreign state in 
                activities described in subsection (a)(2), as the case 
                may be.
                    ``(B) After waiver exercised.--Not later than 90 
                days after the issuance of a waiver under paragraph (1) 
                with respect to a foreign state or an agency or 
                instrumentality of a foreign state, and every 120 days 
                thereafter while the waiver remains in effect, the 
                President shall brief the appropriate congressional 
                committees on the status of the involvement of the 
                foreign state in activities described in subsection 
                (b)(3) or involvement of the agency or instrumentality 
                of a foreign state in activities described in 
                subsection (a)(2), as the case may be.
    ``(d) Report on Supply Chain of Hizballah's Missile Production 
Facilities.--
            ``(1) In general.--Not later than 120 days after the date 
        of the enactment of this subsection, the President shall submit 
        to the appropriate congressional committees and the Committee 
        on Appropriations and the Permanent Select Committee on 
        Intelligence of the House of Representatives and the Committee 
        on Appropriations and the Select Committee on Intelligence of 
        the Senate on a report that contains the following:
                    ``(A) An analysis of the foreign and domestic 
                supply chain that significantly facilitates, supports, 
                or otherwise aids Hizballah's acquisition or 
                development of missile production facilities.
                    ``(B) A description of the geographic distribution 
                of the foreign and domestic supply chain described in 
                subparagraph (A).
                    ``(C) An assessment of the provision of goods, 
                services, or technology transferred to Hizballah by the 
                Government of Iran or its affiliates to indigenously 
                manufacture or otherwise produce missiles.
                    ``(D) An identification of foreign persons that 
                have, on or after the date of the enactment of this 
                subsection, and based on credible evidence--
                            ``(i) knowingly provided significant 
                        financial or material support for, or 
                        significant arms or related material to, 
                        Hizballah or an entity owned or controlled by 
                        Hizballah; or
                            ``(ii) knowingly facilitated the transfer 
                        of significant arms or related materiel to 
                        Hizballah utilizing commercial aircraft or air 
                        carriers.
                    ``(E) A description of the steps that the President 
                is taking to disrupt the foreign and domestic supply 
                chain described in subparagraph (A).
            ``(2) Form.--The report required under paragraph (1) shall 
        be submitted in unclassified form, but may contain a classified 
        annex.
    ``(e) Definitions.--In this section:
            ``(1) Agency or instrumentality of a foreign state; foreign 
        state.--The terms `agency or instrumentality of a foreign 
        state' and `foreign state' have the meanings given those terms 
        in section 1603 of title 28, United States Code.
            ``(2) Appropriate congressional committees.--The term 
        `appropriate congressional committees' means--
                    ``(A) the Committee on Foreign Affairs, the 
                Committee on Financial Services, the Committee on Ways 
                and Means, the Committee on the Judiciary, the 
                Committee on Appropriations, and the Permanent Select 
                Committee on Intelligence of the House of 
                Representatives; and
                    ``(B) the Committee on Foreign Relations, the 
                Committee on Banking, Housing, and Urban Affairs, the 
                Committee on Finance, the Committee on the Judiciary, 
                the Committee on Appropriations, and the Select 
                Committee on Intelligence of the Senate.
            ``(3) Arms or related material.--The term `arms or related 
        material' means--
                    ``(A) nuclear, biological, chemical, or 
                radiological weapons or materials or components of such 
                weapons;
                    ``(B) ballistic or cruise missile weapons or 
                materials or components of such weapons;
                    ``(C) destabilizing numbers and types of advanced 
                conventional weapons;
                    ``(D) defense articles or defense services, as 
                those terms are defined in paragraphs (3) and (4), 
                respectively, of section 47 of the Arms Export Control 
                Act (22 U.S.C. 2794); or
                    ``(E) defense information, as that term is defined 
                in section 644 of the Foreign Assistance Act of 1961 
                (22 U.S.C. 2403).
            ``(4) Export administration regulations.--The term `Export 
        Administration Regulations' means subchapter C of chapter VII 
        of title 15, Code of Federal Regulations (as in effect on the 
        date of the enactment of this Act).
            ``(5) Hizballah.--The term `Hizballah' has the meaning 
        given that term in section 102(f).
            ``(6) State sponsor of terrorism.--In this paragraph, the 
        term `state sponsor of terrorism' means a country the 
        government of which the Secretary of State has determined is a 
        government that has repeatedly provided support for acts of 
        international terrorism for purposes of--
                    ``(A) section 6(j) of the Export Administration Act 
                of 1979 (50 U.S.C. 4605(j)) (as continued in effect 
                pursuant to the International Emergency Economic Powers 
                Act (50 U.S.C. 1701 et seq.));
                    ``(B) section 620A of the Foreign Assistance Act of 
                1961 (22 U.S.C. 2371);
                    ``(C) section 40 of the Arms Export Control Act (22 
                U.S.C. 2780); or
                    ``(D) any other provision of law.''.
    (b) Clerical Amendment.--The table of contents for the Hizballah 
International Financing Prevention Act of 2015 is amended by inserting 
after the item relating to section 102 the following new item:

``Sec. 103. Sanctions against foreign states that support Hizballah.''.
    (c) Report on Significant Material Support and Arms or Related 
Materiel Provided by the Russian Federation to Hizballah.--
            (1) In general.--Not later than 120 days after the date of 
        the enactment of this Act, the President shall submit to the 
        appropriate congressional committees a report that contains the 
        following:
                    (A) A description of significant material support 
                and arms or related material that the Government of the 
                Russian Federation has, on or after the date of the 
                enactment of this Act, knowingly, directly or 
                indirectly, provided to Hizballah or an entity owned or 
                controlled by Hizballah.
                    (B) An analysis of the extent to which Russian 
                strategic weapons deployed in Syria, including air 
                defense systems, have provided protection for Hizballah 
                fighters in Syria.
                    (C) An assessment of whether Russian counter-
                proliferation safeguards can ensure that any arms or 
                related materiel described in subparagraph (A) will not 
                be used against Israel in the future.
            (2) Form.--The report required by paragraph (1) shall be 
        submitted in unclassified form but may include a classified 
        annex.
            (3) Definitions.--In this subsection:
                    (A) Appropriate congressional committees.--The term 
                ``appropriate congressional committees'' has the 
                meaning given such term in section 103 of the Hizballah 
                International Financing Prevention Act of 2015, as 
                added by this section.
                    (B) Arms or related material.--The term ``arms or 
                related material'' has the meaning given such term in 
                section 103 of the Hizballah International Financing 
                Prevention Act of 2015, as added by this section.

SEC. 104. PROHIBITIONS AND CONDITIONS WITH RESPECT TO CERTAIN ACCOUNTS 
              HELD BY FOREIGN FINANCIAL INSTITUTIONS.

    Section 104(c)(2)(A)(ii) of the Comprehensive Iran Sanctions, 
Accountability, and Divestment Act of 2010 (22 U.S.C. 
8513(c)(2)(A)(ii)) is amended by inserting before ``or support for acts 
of international terrorism'' the following ``, including Hizballah (as 
defined in section 102(f)(1)(E) of the Hizballah International 
Financing Prevention Act of 2015 (Public Law 114-102; 50 U.S.C. 1701 
note)), and any affiliates or successors thereof,''.

SEC. 105. 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 
appropriate 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) coordinates 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) 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;
            (4) 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;
            (5) 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;
            (6) 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;
            (7) 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
            (8) 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 (a) shall be 
submitted in unclassified form to the greatest extent possible but may 
include a classified annex.
    (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, the Committee on Appropriations, 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, the Committee on 
        Appropriations, and the Select Committee on Intelligence of the 
        Senate.
    (d) Diplomatic 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), as amended by section 103 of this 
        Act, is further amended by adding at the end the following:

``SEC. 104. DIPLOMATIC INITIATIVES.

    ``Not later than 90 days after the date of the enactment of this 
section, the President shall instruct--
            ``(1) the Secretary of State to increase cooperation with 
        countries in the Western Hemisphere to assist in strengthening 
        the capacity of governments to prevent hostile activity by Iran 
        and disrupt and degrade Hizballah's illicit networks operating 
        in the region, including diplomatic engagement that involves--
                    ``(A) 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;
                    ``(B) efforts to revoke or deny visas from those 
                implicated in Hizballah's activity in the region, 
                including lawyers, accountants, business partners, 
                service providers, and politicians who knowingly 
                facilitate or fail to take measures to counter 
                Hizballah's illicit finance in their own jurisdictions;
                    ``(C) 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
                    ``(D) efforts to persuade governments in the region 
                to list Hizballah as a terrorist organization;
            ``(2) 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;
            ``(3) 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
            ``(4) 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.''.
            (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 103 the 
        following new item:

``Sec. 104. Diplomatic initiatives.''.

TITLE II--NARCOTICS TRAFFICKING AND SIGNIFICANT TRANSNATIONAL CRIMINAL 
                        ACTIVITIES OF HIZBALLAH

SEC. 201. BLOCKING OF PROPERTY OF AFFILIATED NETWORKS OF HIZBALLAH.

    (a) In General.--Section 201 of the Hizballah International 
Financing Prevention Act of 2015 (Public Law 114-102; 50 U.S.C. 1701 
note) is amended to read as follows:

``SEC. 201. IMPOSITION OF SANCTIONS WITH RESPECT TO AFFILIATED NETWORKS 
              OF HIZBALLAH.

    ``(a) In General.--Not later than 120 days after the date of the 
enactment of this section, and as appropriate thereafter, the President 
shall impose the sanctions described in subsection (b) with respect to 
affiliated networks of Hizballah, including by reason of significant 
transnational criminal activities of such networks.
    ``(b) Sanctions Described.--The sanctions described in this 
subsection are sanctions applied with respect to a foreign person 
pursuant to Executive Order No. 13581 (75 Fed. Reg. 44,757) (as such 
Executive order was in effect on the day before the date of the 
enactment of this section).
    ``(c) Definition.--In this section, the term `Hizballah' has the 
meaning given such term in section 102(f).''.
    (b) Clerical Amendments.--The table of contents for the Hizballah 
International Financing Prevention Act of 2015 is amended--
            (1) by striking the item relating to title II and inserting 
        the following:

``TITLE II--IMPOSITION OF SANCTIONS WITH RESPECT TO AFFLIATED NETWORKS 
  OF HIZBALLAH AND REPORTS AND BRIEFINGS ON NARCOTICS TRAFFICKING AND 
     SIGNIFICANT TRANSNATIONAL CRIMINAL ACTIVITIES OF HIZBALLAH'';

        and
            (2) by striking the item relating to section 201 and 
        inserting the following:

``Sec. 201. Imposition of sanctions with respect to affiliated networks 
                            of Hizballah.''.
    (c) Effective Date.--The amendments made by this section take 
effect on the date that is 90 days after the date of the enactment of 
this Act.

SEC. 202. REPORT ON RACKETEERING ACTIVITIES ENGAGED IN BY HIZBALLAH.

    (a) In General.--Section 202 of the Hizballah International 
Financing Prevention Act of 2015 (Public Law 114-102; 50 U.S.C. 1701 
note) is amended to read as follows:

``SEC. 202. REPORT ON RACKETEERING ACTIVITIES ENGAGED IN BY HIZBALLAH.

    ``(a) In General.--Not later than 120 days after the date of the 
enactment of the Hizballah International Financing Prevention 
Amendments Act of 2017, and annually thereafter for the following 5 
years, the Assistant Attorney General for the Criminal Division of the 
Department of Justice and the Administrator of the Drug Enforcement 
Administration, in coordination with the Secretary of the Treasury and 
the heads of other applicable Federal agencies, shall jointly submit to 
the appropriate congressional committees a report on the following:
            ``(1) Activities that Hizballah, and agents and affiliates 
        of Hizballah, have engaged in that are racketeering activities.
            ``(2) The extent to which Hizballah, and agents and 
        affiliates of Hizballah, engage in a pattern of such 
        racketeering activities.
    ``(b) Form of Report.--Each report required under subsection (a) 
shall be submitted in an unclassified form but may contain a classified 
annex.
    ``(c) Definitions.--In this section:
            ``(1) Appropriate congressional committees.--The term 
        `appropriate congressional committees' means--
                    ``(A) the Committee on the Judiciary, the Committee 
                on Foreign Affairs, and the Committee on Appropriations 
                of the House of Representatives; and
                    ``(B) the Committee on the Judiciary, the Committee 
                on Foreign Relations, and the Committee on 
                Appropriations of the Senate.
            ``(2) Hizballah.--The term `Hizballah' has the meaning 
        given that term in section 102(f).
            ``(3) Racketeering activity.--The term `racketeering 
        activity' has the meaning given that term in section 1961(1) of 
        title 18, United States Code.''.
    (b) Clerical Amendment.--The table of contents for the Hizballah 
International Financing Prevention Act of 2015 is amended by striking 
the item relating to section 202 and inserting the following:

``Sec. 202. Report on racketeering activities engaged in by 
                            Hizballah.''.

SEC. 203. MODIFICATION OF REPORT ON ACTIVITIES OF FOREIGN GOVERNMENTS 
              TO DISRUPT GLOBAL LOGISTICS NETWORKS AND FUNDRAISING, 
              FINANCING, AND MONEY LAUNDERING ACTIVITIES OF HIZBALLAH.

    (a) In General.--Section 204(a)(1) of the Hizballah International 
Financing Prevention Act of 2015 (Public Law 114-102; 50 U.S.C. 1701 
note) is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``this Act'' and inserting ``the Hizballah International 
        Financing Prevention Amendments Act of 2017, and annually 
        thereafter for the following 5 years'';
            (2) in subparagraph (D)(ii)(II), by striking ``and'' at the 
        end;
            (3) in subparagraph (E), by striking ``and free-trade 
        zones.'' and inserting ``free-trade zones, business 
        partnerships and joint ventures, and other investments in small 
        and medium-sized enterprises;''; and
            (4) by adding at the end the following:
                    ``(F) a list of provinces, municipalities, and 
                local governments outside of Lebanon that expressly 
                consent to, or with knowledge allow, tolerate, or 
                disregard the use of their territory by Hizballah to 
                carry out terrorist activities, including training, 
                financing, and recruitment;
                    ``(G) a description of the total aggregate revenues 
                and remittances that Hizballah receives from the global 
                logistics networks of Hizballah, including--
                            ``(i) a list of Hizballah's sources of 
                        revenue, including sources of revenue based on 
                        illicit activity, revenues from Iran, 
                        charities, and other business activities; and
                            ``(ii) a list of Hizballah's expenditures, 
                        including expenditures for ongoing military 
                        operations, social networks, and external 
                        operations;
                    ``(H) a survey of national and transnational legal 
                measures available to target Hizballah's financial 
                networks;
                    ``(I) an assessment of Hizballah's financial 
                operations in areas under its operational or political 
                control in Lebanon and Syria and available measures to 
                target Hizballah's financial operations in those areas;
                    ``(J) a review of Hizballah's international 
                operational capabilities, including in the United 
                States; and
                    ``(K) a review of--
                            ``(i) the total number and value of 
                        Hizballah-related assets seized and forfeited; 
                        and
                            ``(ii) the total number of indictments, 
                        prosecutions, and extraditions of Hizballah 
                        members or affiliates.''.
    (b) Report on Estimated Net Worth of and Determination With Respect 
to Senior Hizballah Members.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, and not less frequently than 
        annually thereafter for the following 2 years, the President 
        shall submit to the appropriate congressional committees a 
        report that contains--
                    (A) the estimated total net worth of each 
                individual described in paragraph (2);
                    (B) a description of how funds of each individual 
                described in paragraph (2) were acquired, and how such 
                funds have been used or employed; and
                    (C) a determination of whether each individual 
                described in paragraph (2) meets the criteria described 
                in paragraph (3) or (4) of section 1263(a) of the 
                National Defense Authorization Act for Fiscal Year 2017 
                (Public Law 114-328; 22 U.S.C. 2656 note).
            (2) Individuals described.--The individuals described in 
        this paragraph are the following:
                    (A) The Secretary General of Hizballah.
                    (B) Members of the Hizballah Politburo.
                    (C) Any other individual that the President 
                determines is a senior foreign political figure of 
                Hizballah, is associated with Hizballah, or otherwise 
                provides significant support to Hizballah.
            (3) Form of report; public availability.--
                    (A) Form.--The report required under paragraph (1) 
                shall be submitted in unclassified form but may include 
                a classified annex.
                    (B) Public availability.--The unclassified portion 
                of the report required under paragraph (1) shall be 
                made available to the public and posted on the website 
                of the Department of State and all United States 
                Embassy websites.
            (4) Definitions.--In this subsection:
                    (A) Appropriate congressional committees.--The term 
                ``appropriate congressional committees'' means--
                            (i) the Committee on Foreign Affairs, the 
                        Committee on Financial Services, the Committee 
                        on Appropriations, and the Permanent Select 
                        Committee on Intelligence of the House of 
                        Representatives; and
                            (ii) the Committee on Foreign Relations, 
                        the Committee on Banking, Housing, and Urban 
                        Affairs, the Committee on Appropriations, and 
                        the Select Committee on Intelligence of the 
                        Senate.
                    (B) Funds.--The term ``funds'' means--
                            (i) cash;
                            (ii) equity;
                            (iii) any other intangible asset the value 
                        of which is derived from a contractual claim, 
                        including bank deposits, bonds, stocks, a 
                        security (as defined in section 2(a) of the 
                        Securities Act of 1933 (15 U.S.C. 77b(a))), or 
                        a security or an equity security (as those 
                        terms are defined in section 3(a) of the 
                        Securities Exchange Act of 1934 (15 U.S.C. 
                        78c(a))); and
                            (iv) anything else of value that the 
                        President determines to be appropriate.
                    (C) Senior foreign political figure.--The term 
                ``senior foreign political figure'' has the meaning 
                given that term in section 1010.605 of title 31, Code 
                of Federal Regulations (or any successor regulation).

SEC. 204. REPORT ON COMBATING THE ILLICIT TOBACCO TRAFFICKING NETWORKS 
              USED BY HIZBALLAH AND OTHER FOREIGN TERRORIST 
              ORGANIZATIONS.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the President shall submit to the appropriate 
congressional committees a report on combating the illicit tobacco 
trafficking networks used by Hizballah and other foreign terrorist 
organizations to finance their operations, as described in the report 
submitted to Congress in December 2015 by the Department of State, the 
Department of Justice, the Department of the Treasury, the Department 
of Homeland Security, and the Department of Health and Human Services 
entitled, ``The Global Illicit Trade in Tobacco: A Threat to National 
Security.''.
    (b) Matters To Be Addressed.--The report required by subsection (a) 
shall include the following:
            (1) A description of the steps to be taken by Federal 
        agencies to combat the illicit tobacco trafficking networks 
        used by Hizballah, other foreign terrorist organizations, and 
        other illicit actors.
            (2) A description of the steps to be taken to engage State 
        and local law enforcement authorities in efforts to combat 
        illicit tobacco trafficking networks operating within the 
        United States.
            (3) A description of the steps to be taken to engage 
        foreign government law enforcement and intelligence authorities 
        in efforts to combat illicit tobacco trafficking networks 
        operating outside the United States.
            (4) Recommendations for legislative or administrative 
        action needed to address the threat of illicit tobacco 
        trafficking networks.
    (c) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means--
            (1) the Committee on Foreign Affairs, the Committee on 
        Armed Services, the Committee on Homeland Security, the 
        Committee on the Judiciary, the Committee on Financial 
        Services, the Committee on Ways and Means, the Committee on 
        Appropriations, and the Permanent Select Committee on 
        Intelligence of the House of Representatives; and
            (2) the Committee on Foreign Relations, the Committee on 
        Armed Services, the Committee on Homeland Security and 
        Governmental Affairs, the Committee on the Judiciary, the 
        Committee on Banking, Housing, and Urban Affairs, the Committee 
        on Finance, the Committee on Appropriations, and the Select 
        Committee on Intelligence of the Senate.

                     TITLE III--GENERAL PROVISIONS

SEC. 301. REGULATORY AUTHORITY.

    (a) In General.--The President shall, not later than 180 days after 
the date of the enactment of this Act, prescribe regulations as 
necessary for the implementation of this Act and the amendments made by 
this Act.
    (b) Briefing to Congress.--Not later than 10 days before the 
prescription of regulations under subsection (a), the President shall 
brief the appropriate congressional committees of the proposed 
regulations and the provisions of this Act and the amendments made by 
this Act that the regulations are implementing.
    (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 Committee on Ways and Means of the 
        House of Representatives; and
            (2) the Committee on Foreign Relations, the Committee on 
        Banking, Housing, and Urban Affairs, and the Committee on 
        Finance of the Senate.

SEC. 302. IMPLEMENTATION; PENALTIES; JUDICIAL REVIEW; EXEMPTIONS.

    (a) In General.--Title I of the Hizballah International Financing 
Prevention Act of 2015 (Public Law 114-102; 50 U.S.C. 1701 note), as 
amended by sections 103 and 105 of this Act, is further amended by 
adding at the end the following:

``SEC. 105. IMPLEMENTATION; PENALTIES; JUDICIAL REVIEW; EXEMPTIONS; 
              RULE OF CONSTRUCTION.

    ``(a) 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 sections 101 
and 103.
    ``(b) 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 to carry out section 101 or 103 to the same extent that such 
penalties apply to a person that commits an unlawful act described in 
subsection (a) of such section 206.
    ``(c) Procedures for Judicial Review of Classified Information.--
            ``(1) In general.--If a finding, 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 President may submit 
        such information to the court ex parte and in camera.
            ``(2) Rule of construction.--Nothing in this subsection 
        shall be construed to confer or imply any right to judicial 
        review of any finding under section 101 or 103 or any 
        prohibition, condition, or penalty imposed as a result of any 
        such finding.
    ``(d) Exemptions.--The following activities shall be exempt from 
sections 101 and 103:
            ``(1) Any authorized intelligence, law enforcement, or 
        national security activities of the United States.
            ``(2) Any transaction necessary to comply with United 
        States obligations under the Agreement between the United 
        Nations and the United States of America regarding the 
        Headquarters of the United States, signed at Lake Success June 
        26, 1947, and entered into force November 21, 1947, or under 
        the Convention on Consular Relations, done at Vienna April 24, 
        1963, and entered into force March 19, 1967, or any other 
        United States international agreement.
    ``(e) Rule of Construction.--Nothing in section 101 or 103 shall be 
construed to limit the authority of the President under the 
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) or 
under any other provision of law.''.
    (b) Clerical Amendment.--The table of contents for the Hizballah 
International Financing Prevention Act of 2015 is amended by inserting 
after the item relating to section 104, as added by section 105(c) of 
this Act, the following new item:

``Sec. 105. Implementation; penalties; judicial review; exemptions; 
                            rule of construction.''.

            Passed the House of Representatives October 25, 2017.

            Attest:

                                                                 Clerk.
115th CONGRESS

  1st Session

                               H. R. 3329

_______________________________________________________________________

                                 AN ACT

 To amend the Hizballah International Financing Prevention Act of 2015 
to impose additional sanctions with respect to Hizballah, and for other 
                               purposes.