[Congressional Record Volume 163, Number 160 (Thursday, October 5, 2017)]
[Senate]
[Pages S6369-S6372]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 1110. Mr. McCONNELL (for Mr. Rubio (for himself, Mrs. Shaheen, Mr. 
Crapo, Mr. Kaine, Mr. Cornyn, Mr. Menendez, Mr. Perdue, Ms. Heitkamp, 
Mr. Blunt, Mr. Tester, Mrs. Capito, Mr. Blumenthal, Mr. Moran, Mr. 
Gardner, Mr. Boozman, Mrs. Ernst, Mr. Kennedy, Mr. Wicker, Mr. Rounds, 
Mr. Heller, Mr. Wyden, Mr. Cruz, Mr. Sasse, Mr. Roberts, Ms. Collins, 
Mr. Cotton, Mr. Young, Ms. Cortez Masto, Ms. Baldwin, Mr. Durbin, Ms. 
Klobuchar, Mr. Coons, Mr. Casey, Mr. Nelson, and Mr. Manchin)) proposed 
an amendment to the bill S. 1595, to amend the Hizballah International 
Financing Prevention Act of 2015 to impose additional sanctions with 
respect to Hizballah, and for other purposes; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Hizballah 
     International Financing Prevention Amendments Act of 2017''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

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

Sec. 101. Mandatory sanctions with respect to fundraising and 
              recruitment activities for Hizballah.
Sec. 102. Modification of report with respect to financial institutions 
              that engage in certain transactions.
Sec. 103. Sanctions against agencies and instrumentalities of foreign 
              states that support Hizballah.

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

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

                     TITLE III--GENERAL PROVISIONS

Sec. 301. Regulatory authority.
Sec. 302. Exceptions.

 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 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--
       ``(1) Bayt al-Mal, Jihad al-Bina, the Islamic Resistance 
     Support Association, 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 foreign 
     person described in paragraph (1), (2), or (3).
       ``(b) Sanctions Described.--
       ``(1) In general.--The sanctions described in this 
     subsection are the following:
       ``(A) Asset blocking.--The exercise of all powers granted 
     to the President by the International Emergency Economic 
     Powers Act (50 U.S.C. 1701 et seq.) (except that the 
     requirements of section 202 of such Act (50 U.S.C. 1701) 
     shall not apply) to the extent necessary to block and 
     prohibit all transactions in all property and interests in 
     property of a foreign person determined by the President to 
     be subject to subsection (a) if such property and interests 
     in property are in the United States, come within the United 
     States, or are or come within the possession or control of a 
     United States person.
       ``(B) Aliens ineligible for visas, admission, or parole.--
       ``(i) Visas, admission, or parole.--An alien who the 
     President determines is subject to subsection (a) is--

[[Page S6370]]

       ``(I) inadmissible to the United States;
       ``(II) ineligible to receive a visa or other documentation 
     to enter the United States; and
       ``(III) otherwise ineligible to be admitted or paroled into 
     the United States or to receive any other benefit under the 
     Immigration and Nationality Act (8 U.S.C. 1101 et seq.).

       ``(ii) Current visas revoked.--

       ``(I) In general.--The issuing consular officer, the 
     Secretary of State, or the Secretary of Homeland Security 
     shall revoke any visa or other entry documentation issued to 
     an alien who the President determines is subject to 
     subsection (a), regardless of when issued.
       ``(II) Effect of revocation.--A revocation under subclause 
     (I) shall take effect immediately and shall automatically 
     cancel any other valid visa or entry documentation that is in 
     the possession of the alien.

       ``(2) Penalties.--The penalties provided for in subsections 
     (b) and (c) of section 206 of the International Emergency 
     Economic Powers Act (50 U.S.C. 1705) shall apply to a person 
     that violates, attempts to violate, conspires to violate, or 
     causes a violation of regulations prescribed under paragraph 
     (1)(A) to the same extent that such penalties apply to a 
     person that commits an unlawful act described in subsection 
     (a) of such section 206.
       ``(c) Implementation.--The President may exercise all 
     authorities provided under sections 203 and 205 of the 
     International Emergency Economic Powers Act (50 U.S.C. 1702 
     and 1704) to carry out this section.
       ``(d) Procedures for Judicial Review of Classified 
     Information.--
       ``(1) In general.--If a finding under this section, 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 this section or any prohibition, 
     condition, or penalty imposed as a result of any such 
     finding.
       ``(e) 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).
       ``(f) Report.--Not later than 90 days after the date of the 
     enactment of the Hizballah International Financing Prevention 
     Amendments Act of 2017, and every 180 days thereafter for the 
     following 5 years, the President shall submit to the 
     appropriate congressional committees a report that lists the 
     foreign persons that the President determines are described 
     in subsection (a).
       ``(g) Definitions.--In this section:
       ``(1) Admitted; alien.--The terms `admitted' and `alien' 
     have meanings given those terms in section 101 of the 
     Immigration and Nationality Act (8 U.S.C. 1101).
       ``(2) Appropriate congressional committees.--The term 
     `appropriate congressional committees' means--
       ``(A) the Committee on Foreign Affairs, the Committee on 
     Ways and Means, the Committee on the Judiciary, and the 
     Committee on Financial Services of the House of 
     Representatives; and
       ``(B) the Committee on Foreign Relations, the Committee on 
     Finance, the Committee on Banking, Housing, and Urban 
     Affairs, and the Committee on the Judiciary of the Senate.
       ``(3) Entity.--The term `entity' means a partnership, 
     association, corporation, or other organization, group, or 
     subgroup.
       ``(4) Hizballah.--The term `Hizballah' has the meaning 
     given such term in section 102(f).
       ``(5) Person.--The term `person' means an individual or 
     entity.
       ``(6) United states person.--The term `United States 
     person' means a United States citizen, permanent resident 
     alien, entity organized under the laws of the United States 
     (including foreign branches), or a person in the United 
     States.''.
       (b) Clerical Amendment.--The table of contents for the 
     Hizballah International Financing Prevention Act of 2015 is 
     amended by striking the item relating to section 101 and 
     inserting the following new item:

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

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

       Subsection (d) of section 102 of the Hizballah 
     International Financing Prevention Act of 2015 (Public Law 
     114-102; 50 U.S.C. 1701 note) is amended to read as follows:
       ``(d) Report on Financial Institutions Organized Under the 
     Laws of State Sponsors of Terrorism.--
       ``(1) In general.--Not later than 90 days after the date of 
     the enactment of the Hizballah International Financing 
     Prevention Amendments Act of 2017, and every 180 days 
     thereafter for the following 5 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);
       ``(B) provides a detailed description of each such 
     activity; and
       ``(C) contains a determination with respect to each such 
     foreign financial institution that is identified under 
     subparagraph (A) as engaging in one or more activities 
     described in subsection (a)(2) as to whether such foreign 
     financial institution is in violation of 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) by reason of engaging in one or 
     more such activities.
       ``(2) Foreign financial institution described.--
       ``(A) In general.--A foreign financial institution 
     described in this paragraph is a foreign financial 
     institution--
       ``(i) that, wherever located, is--

       ``(I) organized under the laws of a state sponsor of 
     terrorism or any jurisdiction within a state sponsor of 
     terrorism;
       ``(II) owned or controlled by the government of a state 
     sponsor of terrorism;
       ``(III) located in the territory of a state sponsor of 
     terrorism; or
       ``(IV) owned or controlled by a foreign financial 
     institution described in subclause (I), (II), or (III); and

       ``(ii) the capitalization of which exceeds $10,000,000.
       ``(B) State sponsor of terrorism.--In this paragraph, the 
     term `state sponsor of terrorism' means a country the 
     government of which the Secretary of State has determined is 
     a government that has repeatedly provided support for acts of 
     international terrorism for purposes of--
       ``(i) section 6(j) of the Export Administration Act of 1979 
     (50 U.S.C. 4605(j)) (as continued in effect pursuant to the 
     International Emergency Economic Powers Act (50 U.S.C. 1701 
     et seq.));
       ``(ii) section 620A of the Foreign Assistance Act of 1961 
     (22 U.S.C. 2371);
       ``(iii) section 40 of the Arms Export Control Act (22 
     U.S.C. 2780); or
       ``(iv) any other provision of law.''.

     SEC. 103. SANCTIONS AGAINST AGENCIES AND INSTRUMENTALITIES OF 
                   FOREIGN STATES THAT SUPPORT HIZBALLAH.

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

     ``SEC. 103. SANCTIONS AGAINST AGENCIES AND INSTRUMENTALITIES 
                   OF FOREIGN STATES THAT SUPPORT HIZBALLAH.

       ``(a) In General.--Not later than 180 days after the date 
     of the enactment of this section, and as appropriate 
     thereafter, the President shall block and prohibit all 
     transactions in all property and interests in property of any 
     agency or instrumentality of a foreign state described in 
     subsection (b) 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) Agency or Instrumentality of a Foreign State 
     Described.--An agency or instrumentality of a foreign state 
     described in this subsection is an agency or instrumentality 
     of a foreign state that the President determines knowingly 
     provides significant financial, material, or technological 
     support for, goods or services to or in support of, or arms 
     or related material to--
       ``(1) Hizballah;
       ``(2) an entity owned or controlled by Hizballah; or
       ``(3) an entity that the President determines has acted for 
     or on behalf of Hizballah.
       ``(c) 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 subsection 
     (a) to the same extent that such penalties apply to a person 
     that commits an unlawful act described in subsection (a) of 
     such section 206.
       ``(d) Implementation.--The President may exercise all 
     authorities provided under sections 203 and 205 of the 
     International Emergency Economic Powers Act (50 U.S.C. 1702 
     and 1704) to carry out this section.
       ``(e) Procedures for Judicial Review of Classified 
     Information.--
       ``(1) In general.--If a finding under this section, 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 this section or any prohibition, 
     condition, or penalty imposed as a result of any such 
     finding.
       ``(f) Waiver.--
       ``(1) In general.--The President may, for periods not to 
     exceed 180 days, waive the imposition of sanctions under this 
     section with

[[Page S6371]]

     respect to an agency or instrumentality of a foreign state 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 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 (b).
       ``(g) Definitions.--In this section:
       ``(1) Agency or instrumentality of a foreign state; foreign 
     state.--The terms `agency or instrumentality of a foreign 
     state' and `foreign state' have the meanings given those 
     terms in section 1603 of title 28, United States Code.
       ``(2) Appropriate congressional committees.--The term 
     `appropriate congressional committees' means--
       ``(A) the Committee on Foreign Affairs, the Committee on 
     Financial Services, the Committee on Ways and Means, and the 
     Committee on the Judiciary of the House of Representatives; 
     and
       ``(B) the Committee on Foreign Relations, the Committee on 
     Banking, Housing, and Urban Affairs, and the Committee on the 
     Judiciary of the Senate.
       ``(3) Arms or related material.--The term `arms or related 
     material' means--
       ``(A) nuclear, biological, chemical, or radiological 
     weapons or materials or components of such weapons;
       ``(B) ballistic or cruise missile weapons or materials or 
     components of such weapons;
       ``(C) destabilizing numbers and types of advanced 
     conventional weapons;
       ``(D) defense articles or defense services, as those terms 
     are defined in paragraphs (3) and (4), respectively, of 
     section 47 of the Arms Export Control Act (22 U.S.C. 2794);
       ``(E) defense information, as that term is defined in 
     section 644 of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2403); or
       ``(F) items designated by the President for purposes of the 
     United States Munitions List under section 38(a)(1) of the 
     Arms Export Control Act (22 U.S.C. 2778(a)(1)).
       ``(4) Hizballah.--The term `Hizballah' has the meaning 
     given that term in section 102(f).''.
       (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 agencies and instrumentalities of foreign 
              states that support Hizballah.''.

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

     SEC. 201. BLOCKING OF PROPERTY OF HIZBALLAH.

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

     ``SEC. 201. BLOCKING OF PROPERTY OF HIZBALLAH.

       ``(a) Findings.--Congress finds that Hizballah conducts 
     narcotics trafficking and significant transnational criminal 
     activities.
       ``(b) Blocking of Property.--Not later than 180 days after 
     the date of the enactment of the Hizballah International 
     Financing Prevention Amendments Act of 2017, and as 
     appropriate thereafter, the President shall block and 
     prohibit all transactions in all property and interests in 
     property of Hizballah 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.
       ``(c) 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 subsection 
     (b) to the same extent that such penalties apply to a person 
     that commits an unlawful act described in subsection (a) of 
     such section 206.
       ``(d) Implementation.--The President may exercise all 
     authorities provided under sections 203 and 205 of the 
     International Emergency Economic Powers Act (50 U.S.C. 1702 
     and 1704) to carry out this section.
       ``(e) Procedures for Judicial Review of Classified 
     Information.--
       ``(1) In general.--If a finding under this section, 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 this section or any prohibition, 
     condition, or penalty imposed as a result of any such 
     finding.
       ``(f) 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.
       ``(g) Definition.--In this section, the term `Hizballah' 
     has the meaning given that term in section 102(f).''.
       (b) Clerical Amendments.--The table of contents for the 
     Hizballah International Financing Prevention Act of 2015 is 
     amended--
       (1) by striking the item relating to title II and inserting 
     the following:

   ``TITLE II--IMPOSITION OF SANCTIONS WITH RESPECT TO HIZBALLAH 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. Blocking of property of Hizballah.''.

     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 2017, and annually thereafter 
     for the following 5 years, the President shall submit to the 
     appropriate congressional committees a report on the 
     following:
       ``(1) Activities that Hizballah, and agents and affiliates 
     of Hizballah, have engaged in that are racketeering 
     activities.
       ``(2) The extent to which Hizballah, and agents and 
     affiliates of Hizballah, engage in a pattern of such 
     racketeering activities.
       ``(b) Form of Report.--Each report required under 
     subsection (a) shall be submitted in an unclassified form but 
     may contain a classified annex.
       ``(c) Definitions.--In this section:
       ``(1) Appropriate congressional committees.--The term 
     `appropriate congressional committees' means--
       ``(A) the Committee on the Judiciary, the Committee on 
     Foreign Affairs, and the Committee on Financial Services of 
     the House of Representatives; and
       ``(B) the Committee on the Judiciary, the Committee on 
     Foreign Relations, and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate.
       ``(2) Hizballah.--The term `Hizballah' has the meaning 
     given that term in section 102(f).
       ``(3) Racketeering activity.--The term `racketeering 
     activity' has the meaning given that term in section 1961(1) 
     of title 18, United States Code.''.
       (b) Clerical Amendment.--The table of contents for the 
     Hizballah International Financing Prevention Act of 2015 is 
     amended by striking the item relating to section 202 and 
     inserting the following:

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

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

       (a) In General.--Section 204 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 2017, and annually 
     thereafter for the following 5 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.'';
       (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 shall prescribe, as 
     necessary, enhanced due diligence policies, procedures, and 
     controls for United States financial institutions, and 
     foreign financial institutions maintaining correspondent 
     accounts or payable-through accounts with United States 
     financial institutions, that the President determines provide 
     significant financial services for persons and entities 
     operating in a jurisdiction included in the list required 
     under subsection (a)(1)(F) if the President determines and 
     reports to the appropriate congressional committees that it 
     is in the national security interest of the United States to 
     do so.
       ``(2) 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) by 
     adding before the period at

[[Page S6372]]

     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, and not less frequently than 
     annually thereafter for the following 2 years, the President 
     shall submit to the appropriate congressional committees a 
     report that contains--
       (A) the estimated total net worth of each individual 
     described in paragraph (2); and
       (B) 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) 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) Sources of information.--In preparing the report 
     required under paragraph (1), the President may use any 
     credible publication, database, or web-based resource, and 
     any credible information compiled by any government agency, 
     nongovernmental organization, or other entity provided to or 
     made available to the President.
       (5) Definitions.--In this subsection:
       (A) 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.
       (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).

     SEC. 204. REPORT ON COMBATING THE ILLICIT TOBACCO TRAFFICKING 
                   NETWORKS USED BY HIZBALLAH.

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

       (a) In General.--This Act and the amendments made by this 
     Act shall not apply to the following:
       (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--
       (A) the Agreement between the United Nations and the United 
     States of America regarding the Headquarters of the United 
     Nations, signed at Lake Success June 26, 1947, and entered 
     into force November 21, 1947;
       (B) the Convention on Consular Relations, done at Vienna 
     April 24, 1963, and entered into force March 19, 1967; or
       (C) any other international treaty.
       (b) Exception Relating to Importation of Goods.--The 
     authorities and requirements to impose sanctions under this 
     Act and the amendments made by this Act shall not include the 
     authority or requirement to impose sanctions on the 
     importation of goods.

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