S1595 ENR: Hizballah International Financing Prevention Amendments Act of 2018 U.S. Senate text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

One Hundred Fifteenth Congress of the United States of America2d SessionBegun and held at the City of Washington on Wednesday, the third day of January, two thousand and eighteenS. 1595IN THE SENATE OF THE UNITED STATESAN ACTTo amend the Hizballah International Financing Prevention Act of 2015 to impose additional sanctions with respect to Hizballah, and for other purposes.

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 InstitutionsSec. 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 HizballahSec. 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 provisionsSec. 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.

.(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..

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:

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..

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.

Speaker of the House of RepresentativesVice President of the United States and President of the Senate