[Congressional Record Volume 160, Number 115 (Tuesday, July 22, 2014)]
[House]
[Pages H6620-H6626]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
{time} 1715
HEZBOLLAH INTERNATIONAL FINANCING PREVENTION ACT OF 2014
Mr. ROYCE. Mr. Speaker, I move to suspend the rules and pass the bill
(H.R. 4411) to prevent Hezbollah and associated entities from gaining
access to international financial and other institutions, and for other
purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 4411
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Hezbollah
International Financing Prevention Act of 2014''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title and table of contents.
Sec. 2. Statement of policy.
TITLE I--PREVENTION OF ACCESS BY HEZBOLLAH TO INTERNATIONAL FINANCIAL
AND OTHER INSTITUTIONS
Sec. 101. Briefing on imposition of sanctions on certain satellite
providers that carry al-Manar TV.
Sec. 102. Sanctions with respect to financial institutions that engage
in certain transactions.
TITLE II--REPORTS ON DESIGNATION OF HEZBOLLAH AS A SIGNIFICANT FOREIGN
NARCOTICS TRAFFICKER AND A SIGNIFICANT TRANSNATIONAL CRIMINAL
ORGANIZATION
Sec. 201. Report on designation of Hezbollah as a significant foreign
narcotics trafficker.
Sec. 202. Report on designation of Hezbollah as a significant
transnational criminal organization.
Sec. 203. Report on Hezbollah's involvement in the trade of conflict
diamonds.
Sec. 204. Rewards for justice and Hezbollah's fundraising, financing,
and money laundering activities.
Sec. 205. Report on activities of foreign governments to disrupt global
logistics networks and fundraising, financing, and money
laundering activities of Hezbollah.
Sec. 206. Appropriate congressional committees defined.
TITLE III--MISCELLANEOUS PROVISIONS
Sec. 301. Rule of construction.
Sec. 302. Regulatory authority.
Sec. 303. Offset.
Sec. 304. Termination.
SEC. 2. STATEMENT OF POLICY.
It shall be the policy of the United States to--
(1) prevent Hezbollah's global logistics and financial
network from operating in order to curtail funding of its
domestic and international activities; and
(2) utilize all available diplomatic, legislative, and
executive avenues to combat the global criminal activities of
Hezbollah as a means to block that organization's ability to
fund its global terrorist activities.
TITLE I--PREVENTION OF ACCESS BY HEZBOLLAH TO INTERNATIONAL FINANCIAL
AND OTHER INSTITUTIONS
SEC. 101. BRIEFING ON IMPOSITION OF SANCTIONS ON CERTAIN
SATELLITE PROVIDERS THAT CARRY AL-MANAR TV.
Not later than 30 days after the date of the enactment of
this Act, and annually thereafter, the Secretary of State
shall provide to the Committee on Foreign Affairs of the
House of Representatives and the Committee on Foreign
Relations of the Senate a briefing on the following:
(1) The activities of all satellite, broadcast, Internet,
or other providers that knowingly provide material support to
al-Manar TV, and any affiliates or successors thereof.
(2) With respect to all providers described in paragraph
(1)--
(A) an identification of those providers that have been
sanctioned pursuant to Executive Order 13224 (September 23,
2001); and
(B) an identification of those providers that have not been
sanctioned pursuant to Executive Order 13224 and, with
respect to each such provider, the reason why sanctions have
not been imposed.
SEC. 102. SANCTIONS WITH RESPECT TO FINANCIAL INSTITUTIONS
THAT ENGAGE IN CERTAIN TRANSACTIONS.
(a) Prohibitions and Conditions With Respect to Certain
Accounts Held by Foreign Financial Institutions.--
(1) In general.--Not later than 120 days after the date of
the enactment of this Act, the Secretary of the Treasury,
with the concurrence of the Secretary of State and in
consultation with the heads of other applicable departments
and agencies, shall prohibit, or impose strict conditions on,
the opening or maintaining in the United States of a
correspondent account or a payable-through account by a
foreign financial institution that the Secretary determines,
on or after the date of the enactment of this Act, engages in
an activity described in paragraph (2).
(2) Activities described.--A foreign financial institution
engages in an activity described in this paragraph if the
foreign financial institution--
(A) knowingly facilitates a significant transaction or
transactions for Hezbollah;
(B) knowingly facilitates a significant transaction or
transactions of a person designated for acting on behalf of
or at the direction of, or owned or controlled by, Hezbollah;
(C) knowingly engages in money laundering to carry out an
activity described in subparagraph (A) or (B);
(D) knowingly facilitates a significant transaction or
transactions or provides significant financial services to
carry out an activity described in subparagraph (A), (B), or
(C), including--
(i) facilitating a significant transaction or transactions;
or
(ii) providing significant financial services that involve
a transaction of covered goods; or
(E)(i) knowingly facilitates, or participates or assists
in, an activity described in subparagraph (A), (B), (C), or
(D), including by acting on behalf of, at the direction of,
or as an intermediary for, or otherwise assisting, another
person with respect to the activity described in any such
subparagraph;
[[Page H6621]]
(ii) knowingly attempts or conspires to facilitate or
participate in an activity described in subparagraph (A),
(B), (C), or (D); or
(iii) is owned or controlled by a foreign financial
institution that the Secretary finds knowingly engages in an
activity described in subparagraph (A), (B), (C), or (D).
(3) Penalties.--The penalties provided for in subsections
(b) and (c) of section 206 of the International Emergency
Economic Powers Act (50 U.S.C. 1705) shall apply to a person
that violates, attempts to violate, conspires to violate, or
causes a violation of regulations prescribed under paragraph
(1) of this subsection to the same extent that such penalties
apply to a person that commits an unlawful act described in
section 206(a) of that Act.
(4) Regulations.--The Secretary of the Treasury shall
prescribe and implement regulations to carry out this
subsection.
(b) Waiver.--
(1) In general.--The Secretary of the Treasury, with the
concurrence of the Secretary of State and in consultation
with the heads of other applicable departments and agencies,
may waive, on a case-by-case basis, the application of a
prohibition or condition imposed with respect to a foreign
financial institution pursuant to subsection (a) for a period
of not more than 180 days, and may renew that waiver for
additional periods of not more than 180 days, on and after
the date that the Secretary of the Treasury, with the
concurrence of the Secretary of State--
(A) determines that such a waiver is in the national
security interests of the United States; and
(B) submits to the appropriate congressional committees a
report describing the reasons for the determination.
(2) Form.--The report required by subparagraph (1) shall be
submitted in unclassified form, but may contain a classified
annex.
(c) Provisions Relating to Foreign Financial
Institutions.--
(1) Report.--Not later than 45 days after the date of the
enactment of this Act, and every 180 days thereafter, the
Secretary of the Treasury shall submit to the appropriate
congressional committees a report that--
(A) identifies each foreign central bank that the Secretary
determines engages in one or more activities described in
subsection (a)(2)(D); and
(B) provides a detailed description of each such activity.
(2) Special rule to allow for termination of sanctionable
activity.--The Secretary of the Treasury shall not be
required to apply sanctions to a foreign financial
institution described in subsection (a) if the Secretary of
the Treasury, with the concurrence of the Secretary of State
and in consultation with the heads of other applicable
departments and agencies, certifies in writing to the
appropriate congressional committees that--
(A) the foreign financial institution--
(i) is no longer engaging in the activity described in
subsection (a)(2); or
(ii) has taken and is continuing to take significant
verifiable steps toward terminating the activity described in
subsection (a)(2); and
(B) the Secretary has received reliable assurances from the
government with primary jurisdiction over the foreign
financial institution that the foreign financial institution
will not engage in any activity described in subsection
(a)(2) in the future.
(d) Definitions.--
(1) In general.--In this section:
(A) Account; correspondent account; payable-through
account.--The terms ``account'', ``correspondent account'',
and ``payable-through account'' have the meanings given those
terms in section 5318A of title 31, United States Code.
(B) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(i) the Committee on Foreign Affairs and the Committee on
Financial Services of the House of Representatives; and
(ii) the Committee on Foreign Relations and the Committee
on Banking, Housing, and Urban Affairs of the Senate.
(C) Covered goods.--The term ``covered goods'' has the
meaning given the term in section 1027.100 of title 31, Code
of Federal Regulations.
(D) Financial institution.--The term ``financial
institution'' means a financial institution specified in
subparagraph (A), (B), (C), (D), (E), (F), (G), (H), (I),
(J), (K), (M), (N), (P), (R), (T), (Y), or (Z) of section
5312(a)(2) of title 31, United States Code.
(E) Foreign financial institution; domestic financial
institution.--
(i) Foreign financial institution.--The term ``foreign
financial institution'' has the meaning of such term in
section 1010.605 of title 31, Code of Federal Regulations,
and includes a foreign central bank.
(ii) Domestic financial institution.--The term ``domestic
financial institution'' has the meaning of such term as
determined by the Secretary of the Treasury.
(F) Hezbollah.--The term ``Hezbollah'' means--
(i) any person--
(I) the property of or interests in property of which are
blocked pursuant to the International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.); and
(II) who is identified on the list of specially designated
nationals and blocked persons maintained by the Office of
Foreign Asset Control of the Department of the Treasury as an
agent, instrumentality, or affiliate of Hezbollah; and
(ii) the entity designated by the Secretary of State as a
foreign terrorist organization pursuant to section 219 of the
Immigration and Nationality Act (8 U.S.C. 1189).
(G) Money laundering.--The term ``money laundering'' means
any of the activities described in paragraph (1), (2), or (3)
of section 1956(a) of title 18, United States Code, with
respect to which penalties may be imposed pursuant to such
section.
(2) Other definitions.--The Secretary of the Treasury may
further define the terms used in this section in the
regulations prescribed under this section.
TITLE II--REPORTS ON DESIGNATION OF HEZBOLLAH AS A SIGNIFICANT FOREIGN
NARCOTICS TRAFFICKER AND A SIGNIFICANT TRANSNATIONAL CRIMINAL
ORGANIZATION
SEC. 201. REPORT ON DESIGNATION OF HEZBOLLAH AS A SIGNIFICANT
FOREIGN NARCOTICS TRAFFICKER.
(a) Findings.--Congress makes the following findings:
(1) In 2008, after the two year Operation Titan run by the
U.S. Drug Enforcement Administration and Colombian
authorities dismantled an international narcotics ring that
smuggled cocaine into the United States, Europe, and the
Middle East, and was run by Chekry Harb, also known as
``Taliban''. According to lead prosecutor for the special
prosecutor's office in Bogota, Gladys Sanchez, ``The profits
from the sales of drugs went to finance Hezbollah.''.
(2) In 2011, the Department of the Treasury blacklisted the
Lebanese Canadian Bank as a primary money laundering concern,
alleging that it is part of a drug trafficking network that
profited Hezbollah by moving approximately $200,000,000 per
month.
(3) In April 2013, when the Department of the Treasury
blacklisted two Lebanese exchange houses, Kassem Rmeiti & Co.
and Halawi Exchange Co., for laundering drug profits for
Hezbollah, it stated that Hezbollah was operating like ``an
international drug cartel,'' adding that the ``Halawi
Exchange, through its network of established international
exchange houses, initiated wire transfers from its bank
accounts to the United States without using the Lebanese
banking system in order to avoid scrutiny associated with
Treasury's designations of Hassan Ayash Exchange, Elissa
Exchange, and its Lebanese Canadian Bank Section 311 Action.
. . . Money was then wire transferred via Halawi's banking
relationships indirectly to the United States through
countries that included China, Singapore, and the UAE, which
were perceived to receive less scrutiny by the U.S.
Government.''.
(4) The Department of Justice reported that 29 of the 63
organizations on its FY 2010 Consolidated Priority
Organization Targets list, which includes the most
significant international drug trafficking organizations
(DTOs) threatening the United States, were associated with
terrorist groups, and noted with concern Hezbollah's
international drug and criminal activities.
(b) Sense of Congress.--It is the sense of Congress that--
(1) Hezbollah meets the criteria for designation as a
significant foreign narcotics trafficker as set forth in the
Foreign Narcotics Kingpin Designation Act (21 U.S.C. 1901 et
seq.); and
(2) the President should so designate Hezbollah as a
significant foreign narcotics trafficker.
(c) Report.--
(1) Report required.--Not later than 120 days after the
date of the enactment of this Act, the President shall submit
to the appropriate congressional committees--
(A) a detailed report on whether the Hezbollah meets the
criteria for designation under the Foreign Narcotics Kingpin
Designation Act (21 U.S.C. 1901 et seq.) as a significant
foreign narcotics trafficker; and
(B) if the President determines that Hezbollah does not
meet the criteria for designation under the Foreign Narcotics
Kingpin Designation Act as a significant foreign narcotics
trafficker, a detailed justification as to which criteria
have not been met.
(2) Form.--The report required by paragraph (1) shall be
submitted in unclassified form, but may include a classified
annex.
SEC. 202. REPORT ON DESIGNATION OF HEZBOLLAH AS A SIGNIFICANT
TRANSNATIONAL CRIMINAL ORGANIZATION.
(a) Findings.--Congress makes the following findings:
(1) Hezbollah is engaged array of illicit activities, from
counterfeiting currencies, passport documents, to stolen
automobile rings and other illicit activities.
(2) In 2002, authorities in Charlotte, North Carolina
arrested members of a cell run by Mohammed and Chawki Hamoud
and convicted them on various charges, including funding the
activities of Hezbollah from proceeds of interstate cigarette
smuggling and money laundering.
(3) In 2006 the Department of the Treasury designated
operations of Assad Barakat, treasurer for Hezbollah, as
providing material support for a foreign terrorist
organization and noted that Barakat had engaged in mafia-
style shakedowns and ``threatened TBA (triborder area)
shopkeepers who are sympathetic to Hezbollah's cause with
having family members in Lebanon placed on a `Hezbollah
blacklist' if they did not pay their quota to Hezbollah'' and
also was ``involved in a counterfeiting ring that distributes
fake
[[Page H6622]]
U.S. dollars and generates cash to fund Hezbollah
operations''.
(4) In 2009, Paraguayan authorities arrested Moussa Hamdan
and three other individuals for selling fraudulent passports
and trafficking in counterfeit money and sporting goods,
illegally obtained consumer electronics and automobiles and
then using the proceeds to buy arms for Hezbollah.
(5) In October 2011, a group of businessmen pled guilty to
attempting to ship electronics to a shopping center in South
America that the Department of the Treasury had designated as
a Hezbollah front.
(6) A June 2014 ``threat assessment'' report by Canada's
Integrated Terrorism Assessment Centre indicated that
Hezbollah members in Canada are involved in organized crime.
(b) Sense of Congress.--It is the sense of Congress that--
(1) Hezbollah meets the criteria for designation as a
significant transnational criminal organization under
Executive Order 13581 (76 Fed. Reg. 44757); and
(2) the President should so designate Hezbollah as a
significant transnational criminal organization.
(c) Report.--
(1) Report required.--Not later than 120 days after the
date of the enactment of this Act, the President shall submit
to the appropriate committees of Congress--
(A) a detailed report on whether the Hezbollah meets the
criteria for designation as a significant transnational
criminal organization under Executive Order 13581 (76 Fed.
Reg. 44757); and
(B) if the President determines that Hezbollah does not
meet the criteria for designation as a significant
transnational criminal organization under Executive Order
13581, a detailed justification as to which criteria have not
been met.
(2) Form.--The report required by paragraph (1) shall be
submitted in unclassified form, but may include a classified
annex.
SEC. 203. REPORT ON HEZBOLLAH'S INVOLVEMENT IN THE TRADE OF
CONFLICT DIAMONDS.
(a) In General.--Not later than 120 days after the date of
the enactment of this Act, the Secretary of State shall
submit to appropriate congressional committees a report
detailing Hezbollah's involvement in the trade in rough
diamonds outside of the Kimberley Process Certification
Scheme.
(b) Form.--The report required by subsection (a) shall be
submitted in unclassified form, but may contain 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 Ways
and Means, and the Committee on Financial Services of the
House of Representatives; and
(2) the Committee on Foreign Relations and the Committee on
Banking, Housing, and Urban Affairs of the Senate.
SEC. 204. REWARDS FOR JUSTICE AND HEZBOLLAH'S FUNDRAISING,
FINANCING, AND MONEY LAUNDERING ACTIVITIES.
(a) Report.--Not later than 90 days after the date of the
enactment of this Act, the Secretary of State shall submit to
the appropriate congressional committees a report that
details actions taken by the Department of State through the
Department of State rewards program (22 U.S.C. 2708) to
obtain information on fundraising, financing, and money
laundering activities of Hezbollah and its agents and
affiliates.
(b) Briefing.--Not later than 90 days after the date of the
enactment of this Act, and annually thereafter, the Secretary
of State shall provide a briefing to the appropriate
congressional committees on the status of the actions
described in subsection (a).
(c) Appropriate Congressional Committees Defined.--In this
section, the term ``appropriate congressional committees''
means--
(1) the Committee on Foreign Affairs and the Committee on
Financial Services of the House of Representatives; and
(2) the Committee on Foreign Relations and the Committee on
Banking, Housing, and Urban Affairs of the Senate.
SEC. 205. REPORT ON ACTIVITIES OF FOREIGN GOVERNMENTS TO
DISRUPT GLOBAL LOGISTICS NETWORKS AND
FUNDRAISING, FINANCING, AND MONEY LAUNDERING
ACTIVITIES OF HEZBOLLAH.
(a) Report.--
(1) In general.--Not later than 90 days after the date of
the enactment of this Act, the President shall submit to the
appropriate congressional committees a report that includes--
(A) a list of countries that support Hezbollah, or in which
Hezbollah maintains important portions of its global
logistics networks;
(B) with respect to each country on the list required by
subparagraph (A)--
(i) an assessment of whether the government of the country
is taking adequate measures to disrupt the global logistics
networks of Hezbollah within the territory of the country;
and
(ii) in the case of a country the government of which is
not taking adequate measures to disrupt those networks--
(I) an assessment of the reasons that government is not
taking adequate measures to disrupt those networks; and
(II) a description of measures being taken by the United
States Government to encourage that government to improve
measures to disrupt those networks;
(C) a list of countries in which Hezbollah, or any of its
agents or affiliates, conducts significant fundraising,
financing, or money laundering activities;
(D) with respect to each country on the list required by
subparagraph (C)--
(i) an assessment of whether the government of the country
is taking adequate measures to disrupt the fundraising,
financing, or money laundering activities of Hezbollah and
its agents and affiliates within the territory of the
country; and
(ii) in the case of a country the government of which is
not taking adequate measures to disrupt those activities--
(I) an assessment of the reasons that government is not
taking adequate measures to disrupt those activities; and
(II) a description of measures being taken by the United
States Government to encourage the government of that country
to improve measures to disrupt those activities; and
(E) a list of methods that Hezbollah, or any of its agents
or affiliates, utilizes to raise or transfer funds, including
trade-based money laundering, the use of foreign exchange
houses, and free-trade zones.
(2) Form.--The report required by paragraph (1) shall be
submitted in unclassified form to the greatest extent
possible, and may contain a classified annex.
(3) Global logistics networks of hezbollah.--In this
subsection, the term ``global logistics networks of
Hezbollah'', ``global logistics networks'', or ``networks''
means financial, material, or technological support for, or
financial or other services in support of, Hezbollah.
(b) Briefing on Hezbollah's Assets and Activities Related
to Fundraising, Financing, and Money Laundering Worldwide.--
Not later than 90 days after the date of the enactment of
this Act, and every 180 days thereafter, the Secretary of
State, the Secretary of the Treasury, and the heads of other
applicable Federal departments and agencies (or their
designees) shall provide to the appropriate congressional
committees a briefing on the disposition of Hezbollah's
assets and activities related to fundraising, financing, and
money laundering worldwide.
(c) Appropriate Congressional Committees Defined.--In this
section, the term ``appropriate congressional committees''
means--
(1) the Committee on Foreign Affairs, the Committee on
Financial Services, and the Permanent Select Committee on
Intelligence of the House of Representatives; and
(2) the Committee on Foreign Relations, the Committee on
Banking, Housing, and Urban Affairs, and the Select Committee
on Intelligence of the Senate.
SEC. 206. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.
Except as otherwise provided, in this title, the term
``appropriate congressional committees'' means--
(1) the Committee on Foreign Affairs, the Committee on
Financial Services, and the Committee on the Judiciary of the
House of Representatives; and
(2) the Committee on Foreign Relations, the Committee on
Finance, and the Committee on the Judiciary of the Senate.
TITLE III--MISCELLANEOUS PROVISIONS
SEC. 301. RULE OF CONSTRUCTION.
Nothing in this Act or any amendment made by this Act shall
apply to the authorized intelligence activities of the United
States.
SEC. 302. REGULATORY AUTHORITY.
(a) In General.--The President shall, not later than 90
days after the date of the enactment of this Act, promulgate
regulations as necessary for the implementation of this Act
and the amendments made by this Act.
(b) Notification to Congress.--Not less than 10 days prior
to the promulgation of regulations under subsection (a), the
President shall notify the appropriate congressional
committees (as defined in section 204) of the proposed
regulations and the provisions of this Act and the amendments
made by this Act that the regulations are implementing.
SEC. 303. OFFSET.
Section 102(a) of the Enhanced Partnership with Pakistan
Act of 2009 (22 U.S.C. 8412(a); Public Law 111-73; 123 Stat.
2068) is amended by striking ``$1,500,000,000'' and inserting
``$1,497,000,000''.
SEC. 304. TERMINATION.
This Act shall cease to be in effect beginning 30 days
after the date on which the President certifies to Congress
that Hezbollah--
(1) is no longer designated as a foreign terrorist
organization pursuant to section 219 of the Immigration and
Nationality Act (8 U.S.C. 1189);
(2) is no longer listed in the Annex to Executive Order
13224 (September 23, 2001; relating to blocking property and
prohibiting transactions with persons who commit, threaten to
commit, or support terrorism); and
(3) poses no significant threat to United States national
security, interests, or allies.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
California (Mr. Royce) and the gentleman from New York (Mr. Engel) each
will control 20 minutes.
The Chair recognizes the gentleman from California.
[[Page H6623]]
General Leave
Mr. ROYCE. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days to revise and extend their remarks and to
include any extraneous material on this measure into the Record.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from California?
There was no objection.
Mr. ROYCE. Mr. Speaker, I yield myself such time as I may consume.
I rise in very strong support of this measure.
I want to thank the gentleman from North Carolina, Mr. Mark Meadows,
who is the author of this legislation, along with Mr. Schneider of
Illinois and Ranking Member Eliot Engel of New York, for their
bipartisan leadership on this critically important subject.
Today, Israel is at war with Hamas. Thousands of rockets--over 2,000
so far--including advanced Iranian-supplied rockets, have been fired
indiscriminantly, aimed at civilians--from Tel Aviv to Jerusalem and
all across Israel--for the past 2 weeks. At the outset, Hamas was
estimated to have 10,000 missiles. Hamas, which has been attacking
Israeli civilians, is also using a sophisticated tunneling network, and
it is a sophisticated terrorist organization--but, my friends, it pales
in comparison with Hezbollah.
Hezbollah, the ``Party of God,'' has over 25,000 sophisticated
missiles right now in southern Lebanon, nearly all of which were
supplied by Iran. Hezbollah has carried out a number of terrorist
attacks across the globe, from Bulgaria to Cyprus to India to Thailand,
also here in the Western Hemisphere. Now, I saw firsthand in 2006 the
work of Hezbollah. I was in Haifa as they were targeting civilian
neighborhoods, and those Iranian-made and Syrian-made rockets were
slamming into people's homes and were being targeted on the hospital,
itself. Every one of these had 90,000 ball bearings. The only intent
was to create mass casualties, and in that trauma hospital in Rambam,
there were over 600 victims. That is the work of Hezbollah.
Hezbollah has actively targeted the United States now for 30 years,
and I ask my colleagues to reflect on their history. Prior to the
attacks of September 11, 2001, frankly, Hezbollah was responsible for
the largest number of American deaths by terrorist organizations up
until that point when al Qaeda carried out that attack. By the way,
these include the 1983 bombing of the United States Embassy in Beirut
and the bombing of the United States Marine Corps barracks there again
in the same year. Hezbollah was behind the kidnappings of Beirut
throughout the 1980s as well as international airline hijackings and
efforts to target U.S. military personnel in Saudi Arabia. Hezbollah
provided the funding and provided the weapons to Iraqi militias--to do
what?--to target American personnel and kill them in Iraq. Lethal, yes,
but Hezbollah is also vulnerable. It is vulnerable to steps we can
take.
Severe international sanctions against its patron, Iran, have
reportedly led to a decrease in the funding to Hezbollah, and as a
result, this organization has been forced to turn increasingly to its
transnational organized criminal enterprises in order to expand its
operational capabilities. In 2011, we saw the tip of the iceberg when a
massive drug and money laundering operation for Hezbollah's benefit in
weapons, logistics, and training was uncovered.
We must remember that any sanctions relief that we provide to Iran
for a nuclear agreement will have an impact on Iran's ability to
further support Hezbollah. In response to the Hezbollah International
Financing Prevention Act of 2014, this bill, written by Mark Meadows,
builds on the existing sanctions regime by placing Hezbollah's sources
of financing under additional scrutiny, particularly those resources
outside of Lebanon. In addition to targeting the terrorist
organization's diverse financial network, the legislation also requires
the U.S. Government to report on Hezbollah's global logistics network
and its transnational organized criminal enterprises, including all of
its drug smuggling operations.
The goal is to improve coordination and cooperation with allies and
other responsible countries in confronting the increasing threat posed
by Hezbollah, and I strongly urge my colleagues to support this
critical measure.
I reserve the balance of my time.
Mr. ENGEL. Mr. Speaker, I yield myself such time as I may consume.
Before I begin, the Foreign Affairs Committee is acting in a
bipartisan way by speaking with one voice to say ``no'' to terrorism. I
want to thank Chairman Royce for the bipartisan way that he has
conducted this committee. We believe that foreign policy is best when
it is bipartisan, and there is no difference here between Members. We
all condemn terrorist organizations like Hezbollah.
I rise in strong support of H.R. 4411, the Hezbollah International
Financing Prevention Act. This legislation will greatly enhance our
ability to confront Hezbollah as they continue to sow terror around the
globe.
As the chairman pointed out, Hezbollah is a terrorist organization,
just like its cousin, Hamas; and terrorism must be confronted whenever
it raises its ugly head, be it in Israel or be it here in the United
States of America. Everywhere around the globe, we must confront
terrorism and speak with one voice and say that we will not accept it--
ever.
Ten years ago, I wrote the Syria Accountability Act, which Congress
passed, and it was signed into law by President Bush. At that time,
Syria was already working closely with Iran to strengthen Hezbollah by
facilitating the shipment of thousands of Iranian rockets and missiles
to the group. A decade later, Hezbollah has become a more sophisticated
terrorist organization, but their goal remains the same: supporting
Iran's nefarious agenda throughout the region.
Once dependent on Assad in Syria, Hezbollah is now returning the
favor. Hezbollah's intervention in the Syrian civil war on the side of
Assad has provided a new lease on life to the Assad regime. In fact, it
is the reason Assad believes he is winning this war and can continue to
kill his own people, can continue to use starvation as an act of war,
and can continue to do horrific things to hundreds of thousands of its
citizens. Hezbollah has also had a corrosive effect on Lebanese
politics, holding the Lebanese people hostage to its demand that the
country accept its illegal armed force--a terrorist army which is
perpetually at war with Lebanon's southern neighbor, Israel.
Mr. Speaker, claims that Hezbollah is just a political organization
or some kind of a social services agency are simply naive, untrue, just
plain lies. This bill exposes the group for what it is--a vicious
terrorist organization with a global reach, including an operational
capacity in the United States.
The United States is responding to this threat, and last week, the
Treasury Department sanctioned companies for procuring engines,
communications electronics, and navigation equipment for Hezbollah. It
is time to impose even stronger sanctions on Hezbollah. It is time to
focus on their evolving efforts to raise money all over the world
whether through kidnapping and ransom, conflict diamonds,
narcotrafficking, and other criminal enterprises. This bill would
sanction foreign banks for knowingly facilitating transactions with
Hezbollah and would designate Hezbollah as a narcotics trafficking
organization.
We are currently in negotiation with Iran. Iran didn't come to the
table because they are a good government or nice people. They came to
the table because our sanctions passed by Congress are crippling their
economy. We must do the same thing and cripple Hezbollah.
This bill shines a bright light on Al-Manar, Hezbollah's television
station, which is itself a Specially Designated Terrorist group.
Hezbollah uses Al-Manar for logistical, propaganda, and fundraising
purposes. It is shocking that this station is still carried by
satellite providers all over the world. It is just an outrage. By
passing this legislation, Congress is seeking to give the
administration every tool it needs to confront Hezbollah in this
dangerous world.
I want to thank Representative Meadows for the extraordinary work he
has put into this legislation. I want to thank Representative Schneider
for also doing yeoman's work in making
[[Page H6624]]
sure that this legislation is here. Again, it is another example of the
bipartisan cooperation we have on the Foreign Affairs Committee so that
this Congress will speak with one voice and say that we will never
accept this scourge of terrorism, be it Hezbollah or be it Hamas. Mr.
Meadows and Mr. Schneider have made sure that this is a responsible and
a targeted bill, focused on cutting off Hezbollah's financial lifeline
without unintended consequences.
Mr. Speaker, as Hezbollah doubles down to defend the Assad regime and
expands its political presence in Europe and elsewhere, now is the time
for us to ramp up our efforts to disrupt its global logistics and
financial network. It is a disgrace that the European Union, while
designating Hezbollah's armed wing as a terrorist organization, tries
to separate it from its social services wing and pretend that, somehow,
Hezbollah's social services aren't a terrorist organization. They are a
terrorist organization. That is an umbrella group, and it confronts
everything. They must be boycotted, and we are doing that today. I urge
my colleagues to support this important legislation.
I reserve the balance of my time.
Mr. ROYCE. Mr. Speaker, I yield such time as he may consume to the
gentleman from North Carolina, Mr. Mark Meadows. Although he is a new
member to the committee, he is a very active member on Foreign Affairs
and is the author of this important legislation.
Mr. MEADOWS. I would like to thank the chairman of the full
committee, Chairman Royce, for his leadership and his kind words but,
really, for bringing forth this bill so that the American people can,
once again, unify against what we all know is a blight on our country,
a blight on our world. When terrorism prevails, we must stand firm, and
I want to thank the chairman for his leadership on that.
I also want to echo the comments of the ranking member when he talked
about this being a bipartisan effort. Indeed, we have the chairman and
the ranking member taking the lead. My colleague Mr. Schneider from
Illinois is working with us on this, and the committee staff--our
staff--has worked very hard for many, many months to make sure that
this is a targeted bill. Today, we have an opportunity to place a
critical blow to Hezbollah.
Mr. Speaker, I rise today in support of H.R. 4411, the Hezbollah
International Financing Prevention Act. It is to make sure that those
who are innocent are protected. As the chairman so eloquently said
earlier, over 2,000 rockets have gone into Israel in the last few days,
but, today, some 20,000 to 30,000 rockets are aimed at Israel. The
trigger person--the trigger organization--is Hezbollah, so we must pass
this legislation to make sure that what we can do is cripple their
ability to finance and put people in harm's way.
Hezbollah has many different faces. In some areas, they are called a
charitable organization. In others, they are talked about as a
political organization. In Latin America, they are talked about as ones
who would traffic narcotics. In North America, they are money
launderers and counterfeit ring producers. We have many faces for
Hezbollah but one soul, and that soul is dedicated to, really,
eliminating a people off the face of this world.
Today, I rise in support of this, asking my colleagues to join me to
make sure that we send a clear message, not only to the United States,
but to the world as a whole.
Some people would say: Why should we be doing this?
{time} 1730
This may only deal with Europe or Israel or Syria. It doesn't really
affect me.
But I am going to close with this, Mr. Speaker. These words are not
my words. They are the words of the U.S. attorney from the Western
District of North Carolina, Anne Tompkins.
She was talking about Mohamad Hammoud, who was a student and a member
of Hezbollah as a youth in his home country. And he came to the United
States on a Hezbollah-driven mission, one that he loyally carried out,
creating millions of dollars to send back for terrorism in a faraway
place.
But it wasn't just a faraway place, because when he was waiting in
jail, he ordered the death of a prosecutor who was prosecuting him,
ordered the bombing of a courthouse in Charlotte, North Carolina.
So if it is not for Israel and it is not for Syria and it is not for
Europe or Latin America, maybe it is for the United States of America.
Let's come together and make sure that we pass this critical piece of
legislation.
Mr. ENGEL. Mr. Speaker, I yield 5 minutes to my friend and colleague
from Illinois (Mr. Schneider), the coauthor of this bill.
Mr. SCHNEIDER. Mr. Speaker, I rise in strong support of H.R. 4411,
the Hezbollah International Financing Prevention Act.
I would particularly like to thank the ranking member for the time
this afternoon and for the tremendous bipartisan support shown in the
Foreign Affairs Committee to address one of our most critical national
security challenges.
The way this committee has run, both by the ranking member and the
chairman, making a difference and taking the challenges of our world in
a bipartisan way is most remarkable and worthy of our Nation.
I want to thank my friend, Mark Meadows, along with the chairman and
ranking member, for their tireless efforts on this important piece of
legislation.
I would also like to thank the outstanding effort of the majority and
minority staff, along with Mr. Meadows' staff and my own team, who have
put so much time and effort into perfecting this bill.
The United States has designated Hezbollah as a terrorist
organization since 1995. As earlier noted, with the sole exception of
al Qaeda, Hezbollah is responsible for more American deaths abroad than
any other terrorist organization.
The legislation we are considering today would give the
administration the means necessary to combat Hezbollah's global
financial network. The bill not only broadens the Treasury Department's
ability to sanction Hezbollah finances, but it also gives the
administration another tool to go after Hezbollah for its narcotics and
counterfeit goods trafficking.
Furthermore, the bill cripples Al-Manar, a television station that
broadcasts pro-Hezbollah propaganda around the area. The Hezbollah
International Financing Prevention Act is a leap forward in combating
the threat of global terrorist financing.
We have known for years that the international organization Hezbollah
has planned, funded, and executed terrorist attacks in the Middle East,
Europe, and the Western Hemisphere. It continues to use underground
networks and elicit materials to fundraise its global instability
efforts.
It has used U.S. and European banks along with their subsidiaries to
hide and launder money out of the South American and European finance
arenas, financing thousands of Hezbollah operatives around the globe.
One need only look at some of Hezbollah's attacks to understand the
true threat they pose to U.S. national security.
In 1983, Hezbollah bombed the U.S. barracks in Beirut, Lebanon,
killing 241 Marines.
In 1992, Hezbollah bombed the Israeli Embassy in Buenos Aires,
killing 29.
Twenty years ago last year, in 1994, Hezbollah bombed the AMIA Jewish
cultural center in Argentina, killing 85.
In 2006, Hezbollah operatives conducted cross-border raids into
Israel, kidnapping IDF soldiers, which led to a 34-day military
conflict between Israel and Lebanon.
In 2011, reports indicated that Hezbollah was behind a bombing in
Istanbul that wounded eight Turkish citizens.
In 2012, authorities apprehended a Hezbollah operative planning
terrorist activity in Cyprus against civilian commercial airlines.
In 2012, Hezbollah bombed a bus in Burgas, Bulgaria, killing six
Israeli tourists and the Bulgarian bus driver.
Mr. Speaker, these are just a scarce few of the activities of
Hezbollah that have targeted U.S. interests or our allies around the
world.
In particular, over the last 2 weeks, we have seen the incredible
destabilizing force that Iran continues to play in the Middle East.
Stockpiles of Iranian-made rockets have allowed
[[Page H6625]]
Hamas and Islamic Jihad to put all of Israel's major population centers
under threat of indiscriminate attack on civilians. In the last 2 weeks
alone, over 2,000 rockets have rained down on Israel.
In Lebanon, the threat is even greater. Hezbollah maintains a massive
stockpile of Iranian arms with greater range and far greater lethality
than those launched from Gaza. Tens of thousands of rockets are aimed
at Israel and could be unleashed at any moment.
That is why, today, it is such a critical first step towards
thwarting the unrelenting force. The sanctions included in this
legislation will stem the ability of Hezbollah to purchase arms and
employ operatives throughout the Middle East and the rest of the globe.
We can and must do more to stem the global financing of these
activities. Today, we have that opportunity, and I hope that you will
join us in combating this pressing threat to U.S. national security.
The Hezbollah International Financing Prevention Act provides the
administration with vital tools to go after financial institutions and
satellite providers that deliver material support and propaganda tools
to Hezbollah.
This important effort will result in fewer resources falling into the
hands of terrorists, who have shown great resilience in attacking
Western targets, in addition to the destabilizing efforts in the Middle
East.
I want to thank the chairman and ranking member again, along with my
friend, Mark Meadows, for working with us to introduce this important
legislation.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. ENGEL. I yield the gentleman another minute.
Mr. SCHNEIDER. With more than 319 cosponsors in the House, I hope
that this body will strongly support its passage, and that the Senate
will move swiftly to enact legislation as well.
Mr. ROYCE. Mr. Speaker, I am absolutely going to reserve the right to
close, should there be anymore speakers that Mr. Engel has on his side.
Mr. ENGEL. Mr. Speaker, let me just close. Let me sum up by saying
that, in closing, this legislation comes at a very, very critical time.
Anyone can turn on the TV or go online and know the region seems to be
falling further into chaos.
As we seek greater stability, cutting Hezbollah off from its
financial lifeline is an important step to that end. We did this before
with Iran, and the naysayers said what Congress did wouldn't be
important because it wouldn't have that much effect. We proved them
wrong.
Again, as I mentioned, there are negotiations now going on between
the United States and Iran to end their nuclear program. They are at
the negotiating table only because we slapped tough sanctions on them,
brought their economy to its knees.
This can be done with Hezbollah. This is what we are trying to do
today. So I urge passage of this important legislation.
I want to thank Chairman Royce again, Mr. Meadows and Mr. Schneider.
Mr. Speaker, I yield back the balance of my time.
Mr. ROYCE. Mr. Speaker, I will place into the Record the letters
exchanged with the other committees with jurisdictional interests in
this bill; Financial Services would be one, and Judiciary.
In closing, let me agree with Mr. Engel's observation that this is a
critical time in the Middle East, and also, with our frustration that,
during this time, Iran should continue to increase its support for its
patron, Hezbollah, because for those of us with a longer memory, we
remember how much they have increased their capability to do harm.
As a result of that funding that has come from Iran, Hezbollah-
initiated killings and bombings have occurred, to the frustration of
our European allies, to those in Asia and those in Latin America,
today, on virtually every continent.
In 2012, Hezbollah carried out a bus bombing in Bulgaria--many of us
remember that--and plotted an attack in Cyprus, leading to the European
Union's designation of Hezbollah's military wing as a terrorist
organization.
Furthermore, Hezbollah continues to fight on behalf of the Assad
regime in Syria's brutal civil war. One of the things we have seen is
missiles being brought over the border from Syria into southern Lebanon
by Hezbollah.
We have seen the deaths in Syria at the hands of Hezbollah fighters.
It has resulted in the deaths of thousands and thousands of people.
And most importantly, Hezbollah has been responsible for the deaths
of hundreds of Americans, and that is a third reason why we are focused
on this terrorist organization.
We must do everything in our power to target Hezbollah's lifeline, to
target their financing, and I urge all Members to support this
legislation.
Mr. Speaker, I yield back the balance of my time.
House of Representatives,
Committee on the Judiciary,
Washington, DC, July 8, 2014.
Hon. Ed Royce,
Chairman, Committee on Foreign Affairs,
Washington, DC.
Dear Chairman Royce, I am writing concerning H.R. 4411, the
``Hezbollah International Financing Prevention Act of 2014,''
which your Committee ordered reported on June 26, 2014.
As a result of your having consulted with the Committee on
the provisions in our jurisdiction and in order to expedite
the House's consideration of H.R. 4411, the Committee on the
Judiciary will not assert is jurisdictional claim over this
bill by seeking a sequential referral. However, this is
conditional on our mutual understanding and agreement that
doing so will in no way diminish or alter the jurisdiction of
the Committee on the Judiciary with respect to the
appointment of conferees or to any future jurisdictional
claim over the subject matters contained in the bill or
similar legislation.
I would appreciate your response to this letter confirming
this understanding, and would request that you include a copy
of this letter and your response in the Committee Report and
in the Congressional Record during the floor consideration of
this bill.
Sincerely,
Bob Goodlatte,
Chairman.
____
House of Representatives,
Committee on Foreign Affairs,
Washington, DC, July 9, 2014.
Hon. Bob Goodlatte,
Chairman, Committee on the Judiciary,
Washington, DC.
Dear Chairman Goodlatte: Thank you for consulting with the
Committee on Foreign Affairs on H.R. 4411, the Hezbollah
International Financing Prevention Act, and for agreeing to
forgo a sequential referral request so that the bill may
proceed expeditiously to the Floor.
I agree that your forgoing further action on this measure
does not in any way diminish or alter the jurisdiction of the
Committee on the Judiciary, or prejudice its jurisdictional
prerogatives on this bill or similar legislation in the
future.
I will seek to place our letters on H.R. 4411 into our
Committee Report and into the Congressional Record during
floor consideration of the bill. I appreciate your
cooperation regarding this legislation and look forward to
continuing to work with the Committee on the Judiciary as
this measure moves through the legislative process.
Sincerely,
Edward R. Royce,
Chairman.
____
House of Representatives,
Committee on Foreign Affairs,
Washington, DC, July 11, 2014.
Hon. Jeb Hensarling,
Chairman, Committee on Financial Services,
Washington, DC.
Dear Chairman Hensarling: Thank you for consulting with the
Committee on Foreign Affairs on H.R. 4411, the Hezbollah
International Financing Prevention Act, and for agreeing to
be discharged from further consideration of that bill so that
it may proceed expeditiously to the House Floor. The
suspension text contains edits to portions of the bill within
the Rule X jurisdiction of the Committee on Financial
Services that you have requested.
I agree that your forgoing further action on this measure
does not in any way diminish or alter the jurisdiction of the
Committee on Financial Services, or prejudice its
jurisdictional prerogatives on this bill or similar
legislation in the future. I would support your effort to
seek appointment of an appropriate number of conferees to any
House-Senate conference involving this legislation.
I will seek to place our letters on H.R. 4411 into our
Committee Report and into the Congressional Record during
floor consideration of the bill. I appreciate your
cooperation regarding this legislation and look forward to
continuing to work with the Committee on Financial Services
as this measure moves through the legislative process.
Sincerely,
Edward R. Royce,
Chairman.
[[Page H6626]]
____
House of Representatives,
Committee on Financial Services,
Washington, DC, July 15, 2014.
Hon. Howard R. Royce,
Chairman, House Committee on Foreign Affairs, Washington, DC.
Dear Chairman Royce: On June 26, 2014, the Committee on
Foreign Affairs ordered H.R. 4411, the Hezbollah
International Financing Prevention Act of 2014, to be
reported favorably to the House with an amendment. As a
result of your having consulted with the Committee on
Financial Services concerning provisions of the bill that
fall within our Rule X jurisdiction, I agree to discharge our
committee from further consideration of the bill so that it
may proceed expeditiously to the House Floor.
The Committee on Financial Services takes this action with
our mutual understanding that by foregoing consideration of
H.R. 4411, as amended, at this time, we do not waive any
jurisdiction over the subject matter contained in this or
similar legislation, and that our committee will be
appropriately consulted and involved as the bill or similar
legislation moves forward so that we may address any
remaining issues that fall within our Rule X jurisdiction.
Our committee also reserves the right to seek appointment of
an appropriate number of conferees to any House-Senate
conference involving this or similar legislation, and
requests your support for any such request.
Finally, I appreciate your July 11 letter confirming this
understanding with respect to H.R. 4411, as amended, and your
inclusion of a copy of our exchange of letters on this matter
be included in your committee's report to accompany the
legislation and in the Congressional Record during floor
consideration thereof.
Sincerely,
Jeb Hensarling
Chairman.
Mr. GENE GREEN of Texas. Mr. Speaker, I rise today in support of H.R.
4411, the Hezbollah International Financing Prevention Act.
The bill has more than 300 co-sponsors and is truly a bipartisan
effort.
I commend my colleague from North Carolina, Mr. Meadows for leading
this legislation.
Hezbollah is a militant group that has been designated by the U.S.
and E.U. governments as a terrorist organization.
As part of our counter-terrorism operations, the U.S. continues to
fight the flow of funding to organizations that have dedicated
themselves to the destabilization of democracy.
For the record, it is important to recall all the atrocities that
Hezbollah has perpetrated against the U.S. and its allies, including
Israel.
Hezbollah actions include:
Suicide truck bombings targeting U.S. and French forces in Beirut (in
1983 and 1984)
Targeting U.S. forces again in Saudi Arabia (in 1996),
Suicide bombing attacks targeting Jewish and Israeli interests such
as those in Argentina (1992 and 1994) and in Thailand (attempted in
1994), and
Many other plots targeting American, French, German, British citizens
from Europe to Southeast Asia to the Middle East.
We must continue our efforts to stem the tide against organizations
like Hezbollah and other terrorist organizations but cutting off
funding and targeting their key money-making industries like narco-
trafficking.
I continue to support efforts like H.R. 4411 and I urge my colleagues
to do the same.
Mr. POE of Texas. Mr. Speaker, I rise in support of H.R. 4411.
My amendment to the bill that passed in committee encourages the
State Department to go after Hezbollah's money.
It does this by pushing the State Department to use its Rewards
Program is an old-fashioned idea. It's like putting out a reward on a
wanted poster. If we get good information that can be used for an
arrest or conviction of a Hezbollah member, we're willing to pay a
reward.
This is a strategy that works.
The Rewards Program paid $2 million to a source who helped reveal the
location of Ramzi Yousef [YOU-sef], the mastermind of the 1993 World
Trade Center bombing. Yousef [YOU-sef] was arrested in 1995.
All too often, the challenge with going after the finances of
terrorist groups is knowing where they get their money and how they
move it.
This bill will help bring more of that important information to light
so we can seize Hezbollah's money and stop their evildoing ways.
And that is just the way it is.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from California (Mr. Royce) that the House suspend the rules
and pass the bill, H.R. 4411, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. ROYCE. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this motion will be postponed.
____________________