[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1595 Engrossed Amendment House (EAH)]

<DOC>
                In the House of Representatives, U. S.,

                                                    September 25, 2018.
    Resolved, That the bill from the Senate (S. 1595) entitled ``An Act 
to amend the Hizballah International Financing Prevention Act of 2015 
to impose additional sanctions with respect to Hizballah, and for other 
purposes.'', do pass with the following

                               AMENDMENT:

            Strike out all after the enacting clause and insert:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Hizballah 
International Financing Prevention Amendments Act of 2018''.
    (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 certain agencies and instrumentalities of 
                            foreign states.
Sec. 104. Diplomatic initiatives to prevent hostile activities by Iran 
                            and disrupt and degrade Hizballah's illicit 
                            networks.

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

Sec. 201. Imposition of sanctions with respect to affiliated networks 
                            of Hizballah for transnational criminal 
                            activities.
Sec. 202. Report on racketeering activities engaged in by Hizballah.
Sec. 203. Modification of report on activities of foreign governments 
                            to disrupt activities of Hizballah; reports 
                            on membership in Hizballah.

                     TITLE III--GENERAL PROVISIONS

Sec. 301. Regulatory authority.
Sec. 302. Implementation; penalties; judicial review; exemptions; rule 
                            of construction; exception relating to 
                            importation of goods.
Sec. 303. Report consolidation and modification.

 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 the Hizballah International Financing Prevention 
Amendments Act of 2018, impose the sanctions described in subsection 
(b) with respect to any foreign person that the President determines 
knowingly provides significant financial, material, or technological 
support for or to--
            ``(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 as designated by the 
        President;
            ``(2) al-Manar TV, al Nour Radio, or the Lebanese Media 
        Group, or any successor or affiliate thereof as designated by 
        the President;
            ``(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 person 
        described in paragraph (1), (2), or (3).
    ``(b) Sanctions Described.--The sanctions described in this 
subsection are the following:
            ``(1) 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.
            ``(2) Aliens ineligible for visas, admission, or parole.--
                    ``(A) 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.).
                    ``(B) Current visas revoked.--
                            ``(i) In general.--The Secretary of State 
                        or the Secretary of Homeland Security (or 
                        designee of one of such Secretaries) 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 clause (i) shall take effect immediately 
                        and shall automatically cancel any other valid 
                        visa or entry documentation that is in the 
                        possession of the alien.
    ``(c) Waiver.--
            ``(1) In general.--The President may, for periods not to 
        exceed 180 days, waive the imposition of sanctions under this 
        section if the President certifies to the appropriate 
        congressional committees that such waiver is in the national 
        security interests of the United States.
            ``(2) Briefing.--Not later than 30 days after the issuance 
        of a waiver under paragraph (1) with respect to a foreign 
        person, and every 180 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).
    ``(d) 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, the Committee on Financial Services, and the 
                Permanent Select Committee on Intelligence of the House 
                of Representatives; and
                    ``(B) the Committee on Foreign Relations, the 
                Committee on Finance, the Committee on Banking, 
                Housing, and Urban Affairs, the Committee on the 
                Judiciary, and the Select Committee on Intelligence of 
                the Senate.
            ``(3) Entity.--The term `entity' means a partnership, 
        association, corporation, or other organization, group, or 
        subgroup.
            ``(4) Foreign person.--The term `foreign person' means any 
        person that is not a United States person.
            ``(5) Hizballah.--The term `Hizballah' has the meaning 
        given such term in section 102(e).
            ``(6) Person.--The term `person' means an individual or 
        entity.
            ``(7) United states person.--The term `United States 
        person' means a United States citizen, an alien lawfully 
        admitted for permanent residence, an 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.

    Section 102(d) 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 180 days after the date 
        of the enactment of the Hizballah International Financing 
        Prevention Amendments Act of 2018, and every 2 years thereafter 
        for a period not to exceed 4 years, the President shall submit 
        to the appropriate congressional committees 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); and
                    ``(B) provides a detailed description of each such 
                activity.
            ``(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 defined.--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 1754(c) of the Export Control 
                        Reform Act of 2018;
                            ``(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.''.

SEC. 103. SANCTIONS AGAINST CERTAIN AGENCIES AND INSTRUMENTALITIES OF 
              FOREIGN STATES.

    (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 CERTAIN AGENCIES AND INSTRUMENTALITIES OF 
              FOREIGN STATES.

    ``(a) Sanctions.--
            ``(1) In general.--Not later than 180 days after the date 
        of the enactment of the Hizballah International Financing 
        Prevention Amendments Act of 2018, and as appropriate 
        thereafter, the President shall impose the sanctions described 
        in paragraph (3) with respect to an agency or instrumentality 
        of a foreign state described in paragraph (2).
            ``(2) Agency or instrumentality of a foreign state 
        described.--An agency or instrumentality of a foreign state is 
        described in this paragraph if the President determines that 
        the agency or instrumentality has, on or after the date of the 
        enactment of the Hizballah International Financing Prevention 
        Amendments Act of 2018, knowingly--
                    ``(A) conducted significant joint combat operations 
                with, or significantly supported combat operations of, 
                Hizballah; or
                    ``(B) provided significant financial support for or 
                to, or significant arms or related materiel to, 
                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) 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 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) Briefing.--Not later than 30 days after the issuance 
        of a waiver under paragraph (1) with respect to an agency or 
        instrumentality of a foreign state, and every 180 days 
        thereafter while the waiver remains in effect, the President 
        shall brief the appropriate congressional committees on the 
        status of the involvement of the agency or instrumentality in 
        activities described in subsection (a)(2).
    ``(c) Special Rule.--The President shall not be required to impose 
sanctions under this section with respect to an agency or 
instrumentality of a foreign state if the Secretary certifies in 
writing to the appropriate congressional committees that--
            ``(1) the agency or instrumentality--
                    ``(A) is no longer engaging in activities described 
                in subsection (a)(2); or
                    ``(B) has taken and is continuing to take 
                significant verifiable steps toward terminating such 
                activities; and
            ``(2) the President has received reliable assurances from 
        the government of the foreign state that the agency or 
        instrumentality will not engage in any activity described in 
        subsection (a)(2) in the future.
    ``(d) Definitions.--In this section:
            ``(1) Agency or instrumentality of a foreign state.--The 
        term `agency or instrumentality of a foreign state' has the 
        meaning given the term in section 1603(b) 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 the Judiciary, Committee on Finance, 
                Committee on Appropriations, and the Select Committee 
                on Intelligence of the Senate.
            ``(3) Arms or related materiel.--The term `arms or related 
        materiel' 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; and
                    ``(C) destabilizing numbers and types of advanced 
                conventional weapons.
            ``(4) Hizballah.--The term `Hizballah' has the meaning 
        given such term in section 102(e).
            ``(5) United states person.--The term `United States 
        person' has the meaning given such term in section 101(d).''.
    (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 certain agencies and instrumentalities of 
                            foreign states.''.

SEC. 104. DIPLOMATIC INITIATIVES TO PREVENT HOSTILE ACTIVITIES BY IRAN 
              AND DISRUPT AND DEGRADE HIZBALLAH'S ILLICIT NETWORKS.

    (a) Diplomatic Engagement.--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 TO PREVENT HOSTILE ACTIVITIES BY 
              IRAN AND DISRUPT AND DEGRADE HIZBALLAH'S ILLICIT 
              NETWORKS.

    ``Not later than 180 days after the date of the enactment of the 
Hizballah International Financing Prevention Amendments Act of 2018, 
the President shall instruct the Secretary of State, in consultation 
with the Secretary of the Treasury, to increase cooperation with 
foreign governments to assist in strengthening the capacity of such 
governments to prevent hostile activity by Iran and disrupt and degrade 
Hizballah's illicit activities, including diplomatic engagement that 
involves--
            ``(1) efforts to target and expose illicit finance 
        networks, arrest perpetrators, freeze assets, and address Iran 
        and Hizballah's use of illicit financial networks using 
        international trade and banking systems;
            ``(2) efforts to assist willing governments with the 
        development of counter-organized crime legislation, the 
        strengthening of financial investigative capacity, and a fully-
        vetted counter-organized crime judicial model in jurisdictions 
        plagued with corruption; and
            ``(3) efforts to persuade governments to list Hizballah as 
        a terrorist organization.''.
    (b) 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, as added by section 103(b) of 
this Act, the following new item:

``Sec. 104. Diplomatic initiatives to prevent hostile activities by 
                            Iran and disrupt and degrade Hizballah's 
                            illicit networks.''.

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

SEC. 201. IMPOSITION OF SANCTIONS WITH RESPECT TO AFFILIATED NETWORKS 
              OF HIZBALLAH FOR TRANSNATIONAL CRIMINAL ACTIVITIES.

    (a) Statement of Policy.--It is the policy of the United States to 
determine if individuals and entities that are designated by the United 
States Government on or after the date of the enactment of this Act as 
being associated with Hizballah are engaged in transnational organized 
crime or related activities on or after such date of enactment.
    (b) 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 FOR TRANSNATIONAL CRIMINAL ACTIVITIES.

    ``(a) In General.--The President shall, on or after the date of the 
enactment of the Hizballah International Financing Prevention 
Amendments Act of 2018, impose the sanctions described in subsection 
(b) with respect to affiliated networks of Hizballah, including, as 
appropriate, by reason of significant transnational criminal activities 
engaged in by such networks.
    ``(b) Sanctions Described.--The sanctions described in this 
subsection are sanctions applicable with respect to Hizballah pursuant 
to any provision of law, including Executive Order 13581 (50 U.S.C. 
1701 note; relating to blocking property of transnational criminal 
organizations) (as such Executive Order was in effect on the day before 
the date of the enactment of the Hizballah International Financing 
Prevention Amendments Act of 2018).
    ``(c) Waiver.--The President may, for periods not to exceed 180 
days, waive the imposition of sanctions under this section if the 
President certifies to the appropriate congressional committees that 
such waiver is in the national security interests of the United States.
    ``(d) Definitions.--In this section:
            ``(1) Appropriate congressional committees.--The term 
        `appropriate congressional committees' means--
                    ``(A) the Committee on Foreign Affairs, the 
                Committee on Ways and Means, the Committee on 
                Appropriations, the Committee on Financial Services, 
                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 Appropriations, and the Select Committee 
                on Intelligence of the Senate.
            ``(2) Hizballah.--The term `Hizballah' has the meaning 
        given such term in section 102(e).''.
    (c) Conforming Amendment.--The title heading for title II of the 
Hizballah International Financing Prevention Act of 2015 is amended to 
read as follows:

``TITLE II--SANCTIONS AND REPORTS RELATING TO NARCOTICS TRAFFICKING AND 
     SIGNIFICANT TRANSNATIONAL CRIMINAL ACTIVITIES OF HIZBALLAH''.

    (d) 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--SANCTIONS AND REPORTS RELATING TO 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 for transnational criminal 
                            activities.''.

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 180 days after the date of the 
enactment of the Hizballah International Financing Prevention 
Amendments Act of 2018, the President shall submit to the appropriate 
congressional committees a report on information regarding activities 
that Hizballah, and agents and affiliates of Hizballah, have engaged in 
that are racketeering activities, including any patterns regarding 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, the Committee on Financial 
                Services, and the Committee on Appropriations of the 
                House of Representatives; and
                    ``(B) the Committee on the Judiciary, the Committee 
                on Foreign Relations, the Committee on Banking, 
                Housing, and Urban Affairs, and the Committee on 
                Appropriations of the Senate.
            ``(2) Hizballah.--The term `Hizballah' has the meaning 
        given such term in section 102(e).
            ``(3) Racketeering activity.--The term `racketeering 
        activity' means any activity that would be considered a 
        racketeering activity (as defined in section 1961(1) of title 
        18, United States Code) if the activity were engaged in the 
        United States or by a United States person.
            ``(4) United states person.--The term `United States 
        person' has the meaning given such term in section 101(d).''.
    (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 ACTIVITIES OF HIZBALLAH; REPORTS ON MEMBERSHIP 
              IN HIZBALLAH.

    (a) In General.--Section 204 of the Hizballah International 
Financing Prevention Act of 2015 (Public Law 114-102; 50 U.S.C. 1701 
note) is amended--
            (1) in subsection (a)(1)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``this Act'' and inserting ``the Hizballah 
                International Financing Prevention Amendments Act of 
                2018, and once every 2 years thereafter for the 
                following 4 years'';
                    (B) in subparagraph (D)(ii)(II), by striking 
                ``and'' at the end;
                    (C) 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
                    (D) by adding at the end the following:
                    ``(F) a list of jurisdictions outside of Lebanon 
                that expressly consent to, or with knowledge allow, 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;
                    ``(H) a list of Hizballah's sources of revenue, 
                including sources of revenue based on illicit activity, 
                revenues from Iran, charities, and other business 
                activities;
                    ``(I) a list of Hizballah's expenditures, including 
                expenditures for ongoing military operations, social 
                networks, and external operations;
                    ``(J) a description of steps to be taken by Federal 
                agencies to combat the illicit tobacco trafficking 
                networks used by Hizballah;
                    ``(K) 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;
                    ``(L) a review of Hizballah's international 
                operational capabilities, including in the United 
                States;
                    ``(M) 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; and
                    ``(N) a review of efforts by the United States to 
                prevent hostile activities by Iran and disrupt and 
                degrade Hizballah's illicit networks in the Western 
                Hemisphere, including interagency coordination 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.'';
            (2) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively;
            (3) by inserting after subsection (a) the following:
    ``(b) Enhanced Due Diligence.--
            ``(1) In general.--The President is authorized to require 
        each financial institution in the United States that knowingly 
        maintains a correspondent account or a payable-through account 
        in the United States for a foreign financial institution 
        described in paragraph (2) to establish enhanced due diligence 
        policies, procedures, and controls in accordance with section 
        5318(i)(2)(B) of title 31, United States Code, and regulations 
        to implement such section with respect to such accounts.
            ``(2) Foreign financial institution described.--A foreign 
        financial institution described in this paragraph is a foreign 
        financial institution that the President determines provides 
        significant financial services to persons operating in a 
        jurisdiction identified in unclassified form in the list 
        required under subsection (a)(1)(F).
            ``(3) Definitions.--In this subsection, the terms 
        `correspondent account' and `payable-through account' have the 
        meanings given those terms in section 5318A of title 31, United 
        States Code.''; and
            (4) in subsection (c), as redesignated by paragraph (2)--
                    (A) by striking ``this Act, and every 180 days 
                thereafter,'' and inserting ``the Hizballah 
                International Financing Prevention Amendments Act of 
                2018, and every 180 days thereafter for the following 4 
                years,''; and
                    (B) by adding before the period at the end the 
                following: ``and on any requirements for enhanced due 
                diligence prescribed under subsection (b)''.
    (b) Report on Estimated Net Worth of Senior Hizballah Members.--
            (1) 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 that contains--
                    (A) the estimated total net worth of each 
                individual described in paragraph (2); and
                    (B) to the extent feasible, a description of how 
                funds of each individual described in paragraph (2) 
                were acquired, and how such funds have been used or 
                employed.
            (2) Individuals described.--The individuals described in 
        this paragraph are the following:
                    (A) The Secretary General of Hizballah.
                    (B) Members of Hizballah's senior leadership or 
                senior associates of Hizballah that the President 
                determines materially assist or support Hizballah.
                    (C) Any other individual that the President 
                determines is a senior foreign political figure of 
                Hizballah.
            (3) Form of report; public availability.--
                    (A) Form.--The report required under paragraph (1) 
                shall be submitted in unclassified form but may contain 
                a classified annex.
                    (B) Public availability.--The unclassified portion 
                of the report required under paragraph (1) shall be 
                made available to the public in precompressed, easily 
                downloadable versions that are made available in all 
                appropriate formats.
            (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, 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, 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 
                        Secretary of the Treasury 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).
    (c) Report on Individuals Who Are Members of the Lebanese 
Parliament and Who Identify as Members of Hizballah.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the President shall transmit to the 
        appropriate congressional committees a report that contains the 
        following:
                    (A) A list of individuals who are members of the 
                Lebanese Parliament and who identify as members of 
                Hizballah.
                    (B) A description of any significant conduct of 
                individuals on the list required under subparagraph (A) 
                that the President determines may be grounds for 
                designation pursuant to Executive Order 13224 (50 
                U.S.C. 1701 note; relating to blocking property and 
                prohibiting transactions with persons who commit, 
                threaten to commit, or support terrorism).
            (2) Form.--The report required under paragraph (1) 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 Financial Services, 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, 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) Notification to Congress.--Not later than 10 days before the 
prescription of regulations under subsection (a), the President shall 
notify the appropriate congressional committees regarding 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 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. 302. IMPLEMENTATION; PENALTIES; JUDICIAL REVIEW; EXEMPTIONS; RULE 
              OF CONSTRUCTION; EXCEPTION RELATING TO IMPORTATION OF 
              GOODS.

    (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 104 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, 102, 103, and 201 of this Act.
    ``(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, 102, 103, or 201 of this Act 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 under section 101, 102, 
        103, or 201 of this Act, 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, 102, 103, or 201 of 
        this Act, 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, 102, 103, and 201 of this Act:
            ``(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 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, 102, 103, or 
201 of this Act 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.
    ``(f) Exception Relating to Importation of Goods.--
            ``(1) In general.--The authorities and requirements to 
        impose sanctions under this Act shall not include the authority 
        or requirement to impose sanctions on the importation of goods.
            ``(2) Definition.--In this subsection, the term `good' 
        means any article, natural or manmade substance, material, 
        supply or manufactured product, including inspection and test 
        equipment, and excluding technical data.''.
    (b) Clerical Amendment.--The table of contents for the Hizballah 
International Financing Prevention Act of 2015, as amended by this Act, 
is further amended by inserting after the item relating to section 104, 
as added by section 104(b) of this Act, the following new item:

``Sec. 105. Implementation; penalties; judicial review; exemptions; 
                            rule of construction.''.
    (c) Conforming Amendments.--Section 102 of the Hizballah 
International Financing Prevention Act of 2015 (Public Law 114-102; 50 
U.S.C. 1701 note) is amended--
            (1) in subsection (a), by striking paragraphs (3) and (4);
            (2) by striking subsection (e); and
            (3) by redesignating subsection (f) as subsection (e).

SEC. 303. REPORT CONSOLIDATION AND MODIFICATION.

    (a) In General.--Any and all reports required to be submitted to 
Congress under this Act or the Hizballah International Financing 
Prevention Act of 2015 (Public Law 114-102; 50 U.S.C. 1701 note) that 
are subject to a deadline for submission consisting of the same unit of 
time may be consolidated into a single report that is submitted to 
Congress pursuant to such deadline.
    (b) Matters to Be Included.--Any report that is consolidated into a 
single report as described in subsection (a) shall contain all 
information required under this Act or the Hizballah International 
Financing Prevention Act of 2015 in addition to all other elements 
required by previous law.
    (c) Reports Modification.--The North Korea Sanctions and Policy 
Enhancement Act of 2016 is amended as follows:
            (1) In section 209(a)(3)(A) (22 U.S.C. 9229(a)(3)(A)), by 
        striking ``not later than 90 days after the date of the 
        enactment of this Act, and every 180 days thereafter'' and 
        inserting ``not later than 90 days after the date of the 
        enactment of the Hizballah International Financing Prevention 
        Amendments Act of 2018, and every 180 days thereafter for 5 
        years''.
            (2) In section 302(a) (22 U.S.C. 9241(a)), by striking 
        ``Not later than 180 days after the date of the enactment of 
        this Act'' and inserting ``Not later than 120 days after the 
        date of the enactment of the Hizballah International Financing 
        Prevention Amendments Act of 2018, and periodically 
        thereafter''.

            Attest:

                                                                 Clerk.
115th CONGRESS

  2d Session

                                S. 1595

_______________________________________________________________________

                               AMENDMENT