[Congressional Record Volume 163, Number 172 (Wednesday, October 25, 2017)]
[House]
[Pages H8183-H8191]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
HIZBALLAH INTERNATIONAL FINANCING PREVENTION AMENDMENTS ACT OF 2017
Mr. ROYCE of California. Mr. Speaker, I move to suspend the rules and
pass the bill (H.R. 3329) to amend the Hizballah International
Financing Prevention Act of 2015 to impose additional sanctions with
respect to Hizballah, and for other purposes, as amended.
[[Page H8184]]
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 3329
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Hizballah
International Financing Prevention Amendments Act of 2017''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--PREVENTION OF ACCESS BY HIZBALLAH TO INTERNATIONAL FINANCIAL
AND OTHER INSTITUTIONS
Sec. 101. Mandatory sanctions with respect to fundraising and
recruitment activities for Hizballah.
Sec. 102. Modification of report with respect to financial institutions
that engage in certain transactions.
Sec. 103. Sanctions against foreign states that support Hizballah.
Sec. 104. Prohibitions and conditions with respect to certain accounts
held by foreign financial institutions.
Sec. 105. United States strategy to prevent hostile activities by Iran
and disrupt and degrade Hizballah's illicit networks in
the Western Hemisphere.
TITLE II--NARCOTICS TRAFFICKING AND SIGNIFICANT TRANSNATIONAL CRIMINAL
ACTIVITIES OF HIZBALLAH
Sec. 201. Blocking of property of affiliated networks of Hizballah.
Sec. 202. Report on racketeering activities engaged in by Hizballah.
Sec. 203. Modification of report on activities of foreign governments
to disrupt global logistics networks and fundraising,
financing, and money laundering activities of Hizballah.
Sec. 204. Report on combating the illicit tobacco trafficking networks
used by Hizballah and other foreign terrorist
organizations.
TITLE III--GENERAL PROVISIONS
Sec. 301. Regulatory authority.
Sec. 302. Implementation; penalties; judicial review; exemptions.
TITLE I--PREVENTION OF ACCESS BY HIZBALLAH TO INTERNATIONAL FINANCIAL
AND OTHER INSTITUTIONS
SEC. 101. MANDATORY SANCTIONS WITH RESPECT TO FUNDRAISING AND
RECRUITMENT ACTIVITIES FOR HIZBALLAH.
(a) In General.--Section 101 of the Hizballah International
Financing Prevention Act of 2015 (Public Law 114-102; 50
U.S.C. 1701 note) is amended to read as follows:
``SEC. 101. MANDATORY SANCTIONS WITH RESPECT TO FUNDRAISING
AND RECRUITMENT ACTIVITIES FOR HIZBALLAH.
``(a) In General.--The President shall, on or after the
date of the enactment of this section, impose the sanctions
described in subsection (b) with respect to any foreign
person that the President determines knowingly assists,
sponsors, or, provides significant financial, material, or
technological support for--
``(1) Bayt al-Mal, Jihad al-Bina, the Islamic Resistance
Support Association, the Foreign Relations Department of
Hizballah, the External Security Organization of Hizballah,
or any successor or affiliate thereof;
``(2) al-Manar TV, al Nour Radio, or the Lebanese Media
Group, or any successor or affiliate thereof;
``(3) a foreign person determined by the President to be
engaged in fundraising or recruitment activities for
Hizballah; or
``(4) a foreign person owned or controlled by a foreign
person described in paragraph (1), (2), or (3).
``(b) Sanctions Described.--
``(1) In general.--The sanctions described in this
subsection are the following:
``(A) Asset blocking.--The exercise of all powers granted
to the President by the International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.) (except that the
requirements of section 202 of such Act (50 U.S.C. 1701)
shall not apply) to the extent necessary to block and
prohibit all transactions in all property and interests in
property of a foreign person determined by the President to
be subject to subsection (a) if such property and interests
in property are in the United States, come within the United
States, or are or come within the possession or control of a
United States person.
``(B) Aliens ineligible for visas, admission, or parole.--
``(i) Visas, admission, or parole.--An alien who the
Secretary of State or the Secretary of Homeland Security (or
designee of one of such Secretaries) determines is subject to
subsection (a) is--
``(I) inadmissible to the United States;
``(II) ineligible to receive a visa or other documentation
to enter the United States; and
``(III) otherwise ineligible to be admitted or paroled into
the United States or to receive any other benefit under the
Immigration and Nationality Act (8 U.S.C. 1101 et seq.).
``(ii) Current visas revoked.--
``(I) In general.--The Secretary of State or the Secretary
of Homeland Security shall revoke any visa or other entry
documentation issued to an alien who the President determines
is subject to subsection (a), regardless of when issued.
``(II) Effect of revocation.--A revocation under subclause
(I) shall take effect immediately and shall automatically
cancel any other valid visa or entry documentation that is in
the possession of the alien.
``(2) Penalties.--The penalties provided for in subsections
(b) and (c) of section 206 of the International Emergency
Economic Powers Act (50 U.S.C. 1705) shall apply to a person
that violates, attempts to violate, conspires to violate, or
causes a violation of regulations prescribed under paragraph
(1)(A) to the same extent that such penalties apply to a
person that commits an unlawful act described in subsection
(a) of such section 206.
``(c) Implementation.--The President may exercise all
authorities provided under sections 203 and 205 of the
International Emergency Economic Powers Act (50 U.S.C. 1702
and 1704) to carry out this section.
``(d) Waiver.--
``(1) In general.--The President may, for periods not to
exceed 180 days, waive the imposition of sanctions under this
section with respect to a foreign person or foreign persons
if the President certifies to the appropriate congressional
committees that such waiver is in the national security
interests of the United States.
``(2) Consultation.--
``(A) Before waiver exercised.--Before a waiver under
paragraph (1) takes effect with respect to a foreign person,
the President shall notify and brief the appropriate
congressional committees on the status of the involvement of
the foreign person in activities described in subsection (a).
``(B) After waiver exercised.--Not later than 90 days after
the issuance of a waiver under paragraph (1) with respect to
a foreign person, and every 120 days thereafter while the
waiver remains in effect, the President shall brief the
appropriate congressional committees on the status of the
involvement of the foreign person in activities described in
subsection (a).
``(e) Report.--Not later than 90 days after the date of the
enactment of the Hizballah International Financing Prevention
Amendments Act of 2017, and every 180 days thereafter, the
President shall submit to the appropriate congressional
committees and the Permanent Select Committee on Intelligence
of the House of Representatives and the Select Committee on
Intelligence of the Senate a report that lists the foreign
persons that the President has credible evidence knowingly
assists, sponsors, or provides significant financial,
material, or technological support for the foreign persons
described in paragraph (1), (2), (3), or (4) of subsection
(a).
``(f) Definitions.--In this section:
``(1) Admitted; alien.--The terms `admitted' and `alien'
have meanings given those terms in section 101 of the
Immigration and Nationality Act (8 U.S.C. 1101).
``(2) Appropriate congressional committees.--The term
`appropriate congressional committees' means--
``(A) the Committee on Foreign Affairs, the Committee on
Ways and Means, the Committee on the Judiciary, and the
Committee on Financial Services of the House of
Representatives; and
``(B) the Committee on Foreign Relations, the Committee on
Banking, Housing, and Urban Affairs, and the Committee on the
Judiciary of the Senate.
``(3) Entity.--The term `entity'--
``(A) means a partnership, association, corporation, or
other organization, group, or subgroup; and
``(B) includes a governmental entity
``(4) Fundraising or recruitment activities.--The term
`fundraising or recruitment activities' includes online
fundraising and other online commercial activities, or other
means of such fundraising, recruitment, and retention, as
determined by the President.
``(5) Hizballah.--The term `Hizballah' has the meaning
given such term in section 102(f).
``(6) Person.--The term `person' means an individual or
entity.
``(7) United states person.--The term `United States
person' means a United States citizen, permanent resident
alien, entity organized under the laws of the United States
(including foreign branches), or a person in the United
States.''.
(b) Clerical Amendment.--The table of contents for the
Hizballah International Financing Prevention Act of 2015 is
amended by striking the item relating to section 101 and
inserting the following new item:
``Sec. 101. Mandatory sanctions with respect to fundraising and
recruitment activities for Hizballah.''.
SEC. 102. MODIFICATION OF REPORT WITH RESPECT TO FINANCIAL
INSTITUTIONS THAT ENGAGE IN CERTAIN
TRANSACTIONS.
(a) In General.--Subsection (d) of section 102 of the
Hizballah International Financing Prevention Act of 2015
(Public Law 114-102; 50 U.S.C. 1701 note) is amended to read
as follows:
``(d) Report on Financial Institutions Organized Under the
Laws of State Sponsors of Terrorism.--
``(1) In general.--Not later than 90 days after the date of
the enactment of the Hizballah International Financing
Prevention Amendments Act of 2017, and annually thereafter
for a period not to exceed three years, the President shall
submit to the appropriate congressional committees and the
Committee on Appropriations of the House of Representatives
and the Committee on Appropriations of the Senate a report
that--
[[Page H8185]]
``(A) identifies each foreign financial institution
described in paragraph (2) that the President determines
engages in one or more activities described in subsection
(a)(2);
``(B) provides a detailed description of each such
activity; and
``(C) contains a determination with respect to each such
foreign financial institution that is identified under
subparagraph (A) as engaging in one or more activities
described in subsection (a)(2) as to whether or not such
foreign financial institution is in violation of Executive
Order 13224 (50 U.S.C. 1701 note; relating to blocking
property and prohibiting transactions with persons who
commit, threaten to commit, or support terrorism) or section
2339B of title 18, United States Code, by reason of engaging
in one or more such activities.
``(2) Foreign financial institution described.--
``(A) In general.--A foreign financial institution
described in this paragraph is a foreign financial
institution--
``(i) that, wherever located, is--
``(I) organized under the laws of a state sponsor of
terrorism or any jurisdiction within a state sponsor of
terrorism;
``(II) owned or controlled by the government of a state
sponsor of terrorism;
``(III) located in the territory of a state sponsor of
terrorism; or
``(IV) owned or controlled by a foreign financial
institution described in subclause (I), (II), or (III); and
``(ii) the capitalization of which exceeds $10,000,000.
``(B) State sponsor of terrorism.--In this paragraph, the
term `state sponsor of terrorism' means a country the
government of which the Secretary of State has determined is
a government that has repeatedly provided support for acts of
international terrorism for purposes of--
``(i) section 6(j) of the Export Administration Act of 1979
(50 U.S.C. 4605(j)) (as continued in effect pursuant to the
International Emergency Economic Powers Act (50 U.S.C. 1701
et seq.));
``(ii) section 620A of the Foreign Assistance Act of 1961
(22 U.S.C. 2371);
``(iii) section 40 of the Arms Export Control Act (22
U.S.C. 2780); or
``(iv) any other provision of law.''.
(b) Sense of Congress.--It is the sense of the Congress
that--
(1) all countries should designate the entirety of
Hizballah as a terrorist organization; and
(2) the notion of separate Hizballah political and military
``wings'' is an artificial construct that attempts to
legitimize Hizballah members of parliament and Hizballah
cabinet officials who are complicit in Hizballah's use of
violence and coercion against its political opponents.
(c) Modification of Definition of Hizballah.--Clause (ii)
of section 102(f)(1)(E) of the Hizballah International
Financing Prevention Act of 2015 (Public Law 114-102; 50
U.S.C. 1701 note) is amended--
(1) by striking ``(I)'' and inserting ``(I)(aa)'';
(2) by striking ``(II)'' and inserting ``(bb)'';
(3) by striking ``of Hizballah.'' and inserting ``of
Hizballah; or''; and
(4) by adding at the end the following:
``(II) who the President determines is an agent or
affiliate of, or is owned or controlled by Hizballah.''.
(d) Report.--
(1) In general.--Not later than 120 days after the date of
the enactment of this Act, the President shall transmit to
the appropriate congressional committees a report that
contains a description of any sanctions described in section
102 of the Hizballah International Financing Prevention Act
of 2015 (Public Law 114-102; 50 U.S.C. 1701 note) apply with
respect to a foreign financial institution by reason of
engaging in an activity described in subsection (a)(2) of
such section with a member of the Lebanese parliament or any
cabinet official of the Lebanese Republic who is a member of
Hizballah or identifies as such.
(2) Form.--The report required by this subsection shall be
transmitted in unclassified form but may include a classified
annex.
(3) Appropriate congressional committees defined.--In this
subsection, the term ``appropriate congressional committees''
means--
(A) the Committee on Foreign Affairs, the Committee on
Appropriations, the Permanent Select Committee on
Intelligence, and the Committee on Financial Services of the
House of Representatives; and
(B) the Committee on Foreign Relations, the Committee on
Appropriations, the Select Committee on Intelligence, and the
Committee on Banking, Housing, and Urban Affairs of the
Senate.
SEC. 103. SANCTIONS AGAINST FOREIGN STATES THAT SUPPORT
HIZBALLAH.
(a) In General.--Title I of the Hizballah International
Financing Prevention Act of 2015 (Public Law 114-102; 50
U.S.C. 1701 note) is amended by adding at the end the
following:
``SEC. 103. SANCTIONS AGAINST FOREIGN STATES THAT SUPPORT
HIZBALLAH.
``(a) Sanctions Against Certain Agencies and
Instrumentalities of Foreign States.--
``(1) In general.--Not later than 90 days after the date of
the enactment of this section, and as appropriate thereafter,
the President shall impose the sanctions described in
paragraph (3) with respect to any agency or instrumentality
of a foreign state described in paragraph (2).
``(2) Agency or instrumentality described.--An agency or
instrumentality of a foreign state described in this
paragraph is an agency or instrumentality of a foreign state
that the President determines has, on or after the date of
the enactment of this section, knowingly--
``(A) directly or indirectly conducted combat operations
with, or supported combat operations of, Hizballah or an
entity owned or controlled by Hizballah; or
``(B) directly or indirectly provided significant financial
or material support for, or significant arms or related
material to, Hizballah or an entity owned or controlled by
Hizballah.
``(3) Sanctions described.--The sanctions described in this
paragraph are the exercise of all powers granted to the
President by the International Emergency Economic Powers Act
(50 U.S.C. 1701 et seq.) (except that the requirements of
section 202 of such Act (50 U.S.C. 1701) shall not apply) to
the extent necessary to block and prohibit all transactions
in all property and interests in property of an agency or
instrumentality of a foreign state if such property and
interests in property are in the United States, come within
the United States, or are or come within the possession or
control of a United States person.
``(b) Sanctions Against State Sponsors of Terrorism.--
``(1) In general.--In the case of an agency or
instrumentality of a foreign state that engages in the
activities described in subsection (a) that is an agency or
instrumentality of a foreign state described in paragraph
(3), the President shall, pursuant to section 6 of the Export
Administration Act of 1979 (as continued in effect pursuant
to the International Emergency Economic Powers Act (50 U.S.C.
1701 et seq.)), require a license under the Export
Administration Regulations to export or re-export to that
foreign state any item designated by the Secretary of
Commerce as `EAR 99', other than food, medicine, medical
devices, or similarly licensed items.
``(2) Auditing requirements.--In the case of an agency or
instrumentality of a foreign state that engages in the
activities described in subsection (a) that is an agency or
instrumentality of a foreign state described in paragraph
(3), or the Government of the Russian Federation if the
President determines such Government is engaged in the
activities described in subsection (a), the President shall--
``(A) ensure that United States persons, and foreign
persons subject to United States jurisdiction, exercise
enhanced due diligence in the jurisdiction of that foreign
state to ensure such persons do not directly or indirectly
finance Hizballah or engage in transactions with foreign
persons that directly or indirectly finance Hizballah;
``(B) ensure that United States persons, and foreign
persons subject to United States jurisdiction, maintain--
``(i) internal controls to prevent such persons from
engaging in a transaction or transactions with Hizballah; and
``(ii) full compliance with relevant laws and regulations;
``(C) ensure that United States persons, and foreign
persons subject to United States jurisdiction, engage an
auditor to perform due diligence to ascertain whether--
``(i) the internal controls of such person are effective;
and
``(ii) any transactions of such person are directly or
indirectly financing Hizballah; and
``(D) ensure the accuracy of the independent private sector
audits and other due diligence processes by providing
recommendations for the processes used to carry out such
audits, including to--
``(i) improve the accuracy of such audits; and
``(ii) establish standards of best practices.
``(3) Foreign state described.--A foreign state described
in this paragraph is a foreign state that--
``(A) the President determines has, on or after the date of
the enactment of this section, knowingly provided significant
financial or material support for, or arms or related
material to--
``(i) Hizballah; or
``(ii) an entity owned or controlled by Hizballah; and
``(B) is a state sponsor of terrorism.
``(c) Waiver.--
``(1) In general.--The President may, for periods not to
exceed 180 days, waive the imposition of sanctions under this
section with respect to a foreign state or an agency or
instrumentality of a foreign state if the President certifies
to the appropriate congressional committees that such waiver
is vital to the national security interests of the United
States.
``(2) Consultation.--
``(A) Before waiver exercised.--Before a waiver under
paragraph (1) takes effect with respect to a foreign state or
an agency or instrumentality of a foreign state, the
President shall notify and brief the appropriate
congressional committees on the status of the involvement of
the foreign state in activities described in subsection
(b)(3) or involvement of the agency or instrumentality of a
foreign state in activities described in subsection (a)(2),
as the case may be.
``(B) After waiver exercised.--Not later than 90 days after
the issuance of a waiver under paragraph (1) with respect to
a foreign state or an agency or instrumentality of a foreign
state, and every 120 days thereafter
[[Page H8186]]
while the waiver remains in effect, the President shall brief
the appropriate congressional committees on the status of the
involvement of the foreign state in activities described in
subsection (b)(3) or involvement of the agency or
instrumentality of a foreign state in activities described in
subsection (a)(2), as the case may be.
``(d) Report on Supply Chain of Hizballah's Missile
Production Facilities.--
``(1) In general.--Not later than 120 days after the date
of the enactment of this subsection, the President shall
submit to the appropriate congressional committees and the
Committee on Appropriations and the Permanent Select
Committee on Intelligence of the House of Representatives and
the Committee on Appropriations and the Select Committee on
Intelligence of the Senate on a report that contains the
following:
``(A) An analysis of the foreign and domestic supply chain
that significantly facilitates, supports, or otherwise aids
Hizballah's acquisition or development of missile production
facilities.
``(B) A description of the geographic distribution of the
foreign and domestic supply chain described in subparagraph
(A).
``(C) An assessment of the provision of goods, services, or
technology transferred to Hizballah by the Government of Iran
or its affiliates to indigenously manufacture or otherwise
produce missiles.
``(D) An identification of foreign persons that have, on or
after the date of the enactment of this subsection, and based
on credible evidence--
``(i) knowingly provided significant financial or material
support for, or significant arms or related material to,
Hizballah or an entity owned or controlled by Hizballah; or
``(ii) knowingly facilitated the transfer of significant
arms or related materiel to Hizballah utilizing commercial
aircraft or air carriers.
``(E) A description of the steps that the President is
taking to disrupt the foreign and domestic supply chain
described in subparagraph (A).
``(2) Form.--The report required under paragraph (1) shall
be submitted in unclassified form, but may contain a
classified annex.
``(e) Definitions.--In this section:
``(1) Agency or instrumentality of a foreign state; foreign
state.--The terms `agency or instrumentality of a foreign
state' and `foreign state' have the meanings given those
terms in section 1603 of title 28, United States Code.
``(2) Appropriate congressional committees.--The term
`appropriate congressional committees' means--
``(A) the Committee on Foreign Affairs, the Committee on
Financial Services, the Committee on Ways and Means, the
Committee on the Judiciary, the Committee on Appropriations,
and the Permanent Select Committee on Intelligence of the
House of Representatives; and
``(B) the Committee on Foreign Relations, the Committee on
Banking, Housing, and Urban Affairs, the Committee on
Finance, the Committee on the Judiciary, the Committee on
Appropriations, and the Select Committee on Intelligence of
the Senate.
``(3) Arms or related material.--The term `arms or related
material' means--
``(A) nuclear, biological, chemical, or radiological
weapons or materials or components of such weapons;
``(B) ballistic or cruise missile weapons or materials or
components of such weapons;
``(C) destabilizing numbers and types of advanced
conventional weapons;
``(D) defense articles or defense services, as those terms
are defined in paragraphs (3) and (4), respectively, of
section 47 of the Arms Export Control Act (22 U.S.C. 2794);
or
``(E) defense information, as that term is defined in
section 644 of the Foreign Assistance Act of 1961 (22 U.S.C.
2403).
``(4) Export administration regulations.--The term `Export
Administration Regulations' means subchapter C of chapter VII
of title 15, Code of Federal Regulations (as in effect on the
date of the enactment of this Act).
``(5) Hizballah.--The term `Hizballah' has the meaning
given that term in section 102(f).
``(6) State sponsor of terrorism.--In this paragraph, the
term `state sponsor of terrorism' means a country the
government of which the Secretary of State has determined is
a government that has repeatedly provided support for acts of
international terrorism for purposes of--
``(A) section 6(j) of the Export Administration Act of 1979
(50 U.S.C. 4605(j)) (as continued in effect pursuant to the
International Emergency Economic Powers Act (50 U.S.C. 1701
et seq.));
``(B) section 620A of the Foreign Assistance Act of 1961
(22 U.S.C. 2371);
``(C) section 40 of the Arms Export Control Act (22 U.S.C.
2780); or
``(D) any other provision of law.''.
(b) Clerical Amendment.--The table of contents for the
Hizballah International Financing Prevention Act of 2015 is
amended by inserting after the item relating to section 102
the following new item:
``Sec. 103. Sanctions against foreign states that support Hizballah.''.
(c) Report on Significant Material Support and Arms or
Related Materiel Provided by the Russian Federation to
Hizballah.--
(1) In general.--Not later than 120 days after the date of
the enactment of this Act, the President shall submit to the
appropriate congressional committees a report that contains
the following:
(A) A description of significant material support and arms
or related material that the Government of the Russian
Federation has, on or after the date of the enactment of this
Act, knowingly, directly or indirectly, provided to Hizballah
or an entity owned or controlled by Hizballah.
(B) An analysis of the extent to which Russian strategic
weapons deployed in Syria, including air defense systems,
have provided protection for Hizballah fighters in Syria.
(C) An assessment of whether Russian counter-proliferation
safeguards can ensure that any arms or related materiel
described in subparagraph (A) will not be used against Israel
in the future.
(2) Form.--The report required by paragraph (1) shall be
submitted in unclassified form but may include a classified
annex.
(3) Definitions.--In this subsection:
(A) Appropriate congressional committees.--The term
``appropriate congressional committees'' has the meaning
given such term in section 103 of the Hizballah International
Financing Prevention Act of 2015, as added by this section.
(B) Arms or related material.--The term ``arms or related
material'' has the meaning given such term in section 103 of
the Hizballah International Financing Prevention Act of 2015,
as added by this section.
SEC. 104. PROHIBITIONS AND CONDITIONS WITH RESPECT TO CERTAIN
ACCOUNTS HELD BY FOREIGN FINANCIAL
INSTITUTIONS.
Section 104(c)(2)(A)(ii) of the Comprehensive Iran
Sanctions, Accountability, and Divestment Act of 2010 (22
U.S.C. 8513(c)(2)(A)(ii)) is amended by inserting before ``or
support for acts of international terrorism'' the following
``, including Hizballah (as defined in section 102(f)(1)(E)
of the Hizballah International Financing Prevention Act of
2015 (Public Law 114-102; 50 U.S.C. 1701 note)), and any
affiliates or successors thereof,''.
SEC. 105. UNITED STATES STRATEGY TO PREVENT HOSTILE
ACTIVITIES BY IRAN AND DISRUPT AND DEGRADE
HIZBALLAH'S ILLICIT NETWORKS IN THE WESTERN
HEMISPHERE.
(a) In General.--Not later than 180 days after the date of
the enactment of this Act, the Secretary of State shall
submit to the appropriate congressional committees a strategy
to prevent hostile activities by Iran and disrupt and degrade
Hizballah's illicit networks in the Western Hemisphere that--
(1) identifies Department of State priorities, in
coordination with other executive branch agencies, for
defining United States policy to protect United States
interests from Iranian and Hizballah threats in the Western
Hemisphere;
(2) coordinates with other executive branch agencies to
ensure that information-sharing, interdictions, arrests,
investigations, indictments, sanctions, and designations
related to Hizballah individuals or networks in the Western
Hemisphere are integrated, coordinated, and publicly
communicated by the United States in a manner that supports
United States interests;
(3) describes Iranian and Hizballah activities in the
Western Hemisphere, their relationships with transnational
criminal organizations in the region, their use of the
region's commodities trade to engage in illicit activities,
and their use of Latin American and Caribbean visas,
including through Citizenship by Investment Programs to seek
admittance into the United States, as well as a plan to
address any security vulnerabilities to the United States;
(4) includes a review of all relevant United States
sanctions that relate to Hizballah's activities in Latin
America and the Caribbean and an assessment of their use,
effectiveness, and any capability gaps;
(5) includes a review of the use of the Department of
State's rewards program under section 36 of the State
Department Basic Authorities Act (22 U.S.C. 2708) to obtain
information related to Latin America-based Hizballah
operatives and illicit networks and an assessment of the
effectiveness of this program for targeting Hizballah in the
Western Hemisphere;
(6) includes a review of all relevant United States
sanctions on financial institutions in Latin America and the
Caribbean that engage in activities outlined by section 102
of Hizballah International Financing Prevention Act of 2015
(Public Law 114-102; 50 U.S.C. 1701 note) and an assessment
of the use of the authorities outlined, their effectiveness,
and recommendations for improvement;
(7) describes Hizballah criminal support networks,
including country facilitation, in the Western Hemisphere and
outlines a United States approach to partners in the region
to address those illicit networks and build country capacity
to combat the transnational criminal activities of Hizballah;
and
(8) includes a review of the actions of governments in the
Western Hemisphere to identify, investigate, and prosecute
Latin America-based Hizballah operatives, and enforce
sanctions either personally or to their business interests of
Latin America-based Hizballah operatives as well as
recommendations for United States action towards governments
who refuse to impose sanctions or who willingly facilitate
Latin America-based Hizballah illicit activities.
(b) Form.--The strategy required by subsection (a) shall be
submitted in unclassified form to the greatest extent
possible but may include a classified annex.
[[Page H8187]]
(c) Appropriate Congressional Committees Defined.--In this
section, the term ``appropriate congressional committees''
means--
(1) the Committee on Foreign Affairs, the Committee on
Financial Services, the Committee on Appropriations, and the
Permanent Select Committee on Intelligence of the House of
Representatives; and
(2) the Committee on Foreign Relations, the Committee on
Banking, Housing, and Urban Affairs, the Committee on
Appropriations, and the Select Committee on Intelligence of
the Senate.
(d) Diplomatic Engagement.--
(1) In general.--Title I of the Hizballah International
Financing Prevention Act of 2015 (Public Law 114-102; 129
Stat. 2206; 50 U.S.C. 1701 note), as amended by section 103
of this Act, is further amended by adding at the end the
following:
``SEC. 104. DIPLOMATIC INITIATIVES.
``Not later than 90 days after the date of the enactment of
this section, the President shall instruct--
``(1) the Secretary of State to increase cooperation with
countries in the Western Hemisphere to assist in
strengthening the capacity of governments to prevent hostile
activity by Iran and disrupt and degrade Hizballah's illicit
networks operating in the region, including diplomatic
engagement that involves--
``(A) efforts to target and expose illicit networks, arrest
perpetrators, freeze assets, and attack Iran and Hizballah's
use of illicit networks using international trade and banking
systems;
``(B) efforts to revoke or deny visas from those implicated
in Hizballah's activity in the region, including lawyers,
accountants, business partners, service providers, and
politicians who knowingly facilitate or fail to take measures
to counter Hizballah's illicit finance in their own
jurisdictions;
``(C) efforts to assist willing nations with the
development of counter-organized crime legislation, the
strengthening of financial investigative capacity, and a
fully-vetted counter-organized crime judicial model in places
plagued with corruption; and
``(D) efforts to persuade governments in the region to list
Hizballah as a terrorist organization;
``(2) the United States Permanent Representative to the
Organization of American States to work to secure support at
the Organization of American States for a resolution that
would declare Hizballah as a terrorist organization and
address Hizballah's illicit networks operating in the region;
``(3) the United States Ambassador to the Organization for
Security and Cooperation in Europe (OSCE) to work to secure a
report on compliance by participating states with OSCE
Decision Number 1063, the `Consolidated Framework for the
Fight Against Terrorism', in regard to Hizballah, with
particular focus on the mandate to `suppress the financing of
terrorism, including its links with money-laundering and
illegal economic activities', especially as it relates
transatlantic relations, including with Latin America and the
Caribbean; and
``(4) United States diplomats to work with international
forums, including the Financial Action Task Force, to
identify government entities within Latin America and the
Caribbean that provide support, facilitation, or assistance
to individuals affiliated with Hizballah in the Western
Hemisphere.''.
(2) Clerical amendment.--The table of contents for the
Hizballah International Financing Prevention Act of 2015 is
amended by inserting after the item related to section 103
the following new item:
``Sec. 104. Diplomatic initiatives.''.
TITLE II--NARCOTICS TRAFFICKING AND SIGNIFICANT TRANSNATIONAL CRIMINAL
ACTIVITIES OF HIZBALLAH
SEC. 201. BLOCKING OF PROPERTY OF AFFILIATED NETWORKS OF
HIZBALLAH.
(a) In General.--Section 201 of the Hizballah International
Financing Prevention Act of 2015 (Public Law 114-102; 50
U.S.C. 1701 note) is amended to read as follows:
``SEC. 201. IMPOSITION OF SANCTIONS WITH RESPECT TO
AFFILIATED NETWORKS OF HIZBALLAH.
``(a) In General.--Not later than 120 days after the date
of the enactment of this section, and as appropriate
thereafter, the President shall impose the sanctions
described in subsection (b) with respect to affiliated
networks of Hizballah, including by reason of significant
transnational criminal activities of such networks.
``(b) Sanctions Described.--The sanctions described in this
subsection are sanctions applied with respect to a foreign
person pursuant to Executive Order 13581 (75 Fed. Reg.
44,757) (as such Executive order was in effect on the day
before the date of the enactment of this section).
``(c) Definition.--In this section, the term `Hizballah'
has the meaning given such term in section 102(f).''.
(b) Clerical Amendments.--The table of contents for the
Hizballah International Financing Prevention Act of 2015 is
amended--
(1) by striking the item relating to title II and inserting
the following:
``TITLE II--IMPOSITION OF SANCTIONS WITH RESPECT TO AFFLIATED NETWORKS
OF HIZBALLAH AND REPORTS AND BRIEFINGS ON NARCOTICS TRAFFICKING AND
SIGNIFICANT TRANSNATIONAL CRIMINAL ACTIVITIES OF HIZBALLAH'';
and
(2) by striking the item relating to section 201 and
inserting the following:
``Sec. 201. Imposition of sanctions with respect to affiliated networks
of Hizballah.''.
(c) Effective Date.--The amendments made by this section
take effect on the date that is 90 days after the date of the
enactment of this Act.
SEC. 202. REPORT ON RACKETEERING ACTIVITIES ENGAGED IN BY
HIZBALLAH.
(a) In General.--Section 202 of the Hizballah International
Financing Prevention Act of 2015 (Public Law 114-102; 50
U.S.C. 1701 note) is amended to read as follows:
``SEC. 202. REPORT ON RACKETEERING ACTIVITIES ENGAGED IN BY
HIZBALLAH.
``(a) In General.--Not later than 120 days after the date
of the enactment of the Hizballah International Financing
Prevention Amendments Act of 2017, and annually thereafter
for the following 5 years, the Assistant Attorney General for
the Criminal Division of the Department of Justice and the
Administrator of the Drug Enforcement Administration, in
coordination with the Secretary of the Treasury and the heads
of other applicable Federal agencies, shall jointly submit to
the appropriate congressional committees a report on the
following:
``(1) Activities that Hizballah, and agents and affiliates
of Hizballah, have engaged in that are racketeering
activities.
``(2) The extent to which Hizballah, and agents and
affiliates of Hizballah, engage in a pattern of such
racketeering activities.
``(b) Form of Report.--Each report required under
subsection (a) shall be submitted in an unclassified form but
may contain a classified annex.
``(c) Definitions.--In this section:
``(1) Appropriate congressional committees.--The term
`appropriate congressional committees' means--
``(A) the Committee on the Judiciary, the Committee on
Foreign Affairs, and the Committee on Appropriations of the
House of Representatives; and
``(B) the Committee on the Judiciary, the Committee on
Foreign Relations, and the Committee on Appropriations of the
Senate.
``(2) Hizballah.--The term `Hizballah' has the meaning
given that term in section 102(f).
``(3) Racketeering activity.--The term `racketeering
activity' has the meaning given that term in section 1961(1)
of title 18, United States Code.''.
(b) Clerical Amendment.--The table of contents for the
Hizballah International Financing Prevention Act of 2015 is
amended by striking the item relating to section 202 and
inserting the following:
``Sec. 202. Report on racketeering activities engaged in by
Hizballah.''.
SEC. 203. MODIFICATION OF REPORT ON ACTIVITIES OF FOREIGN
GOVERNMENTS TO DISRUPT GLOBAL LOGISTICS
NETWORKS AND FUNDRAISING, FINANCING, AND MONEY
LAUNDERING ACTIVITIES OF HIZBALLAH.
(a) In General.--Section 204(a)(1) of the Hizballah
International Financing Prevention Act of 2015 (Public Law
114-102; 50 U.S.C. 1701 note) is amended--
(1) in the matter preceding subparagraph (A), by striking
``this Act'' and inserting ``the Hizballah International
Financing Prevention Amendments Act of 2017, and annually
thereafter for the following 5 years'';
(2) in subparagraph (D)(ii)(II), by striking ``and'' at the
end;
(3) in subparagraph (E), by striking ``and free-trade
zones.'' and inserting ``free-trade zones, business
partnerships and joint ventures, and other investments in
small and medium-sized enterprises;''; and
(4) by adding at the end the following:
``(F) a list of provinces, municipalities, and local
governments outside of Lebanon that expressly consent to, or
with knowledge allow, tolerate, or disregard the use of their
territory by Hizballah to carry out terrorist activities,
including training, financing, and recruitment;
``(G) a description of the total aggregate revenues and
remittances that Hizballah receives from the global logistics
networks of Hizballah, including--
``(i) a list of Hizballah's sources of revenue, including
sources of revenue based on illicit activity, revenues from
Iran, charities, and other business activities; and
``(ii) a list of Hizballah's expenditures, including
expenditures for ongoing military operations, social
networks, and external operations;
``(H) a survey of national and transnational legal measures
available to target Hizballah's financial networks;
``(I) an assessment of Hizballah's financial operations in
areas under its operational or political control in Lebanon
and Syria and available measures to target Hizballah's
financial operations in those areas;
``(J) a review of Hizballah's international operational
capabilities, including in the United States; and
``(K) a review of--
``(i) the total number and value of Hizballah-related
assets seized and forfeited; and
``(ii) the total number of indictments, prosecutions, and
extraditions of Hizballah members or affiliates.''.
(b) Report on Estimated Net Worth of and Determination With
Respect to Senior Hizballah Members.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, and not less frequently than
annually thereafter for the following 2 years, the President
[[Page H8188]]
shall submit to the appropriate congressional committees a
report that contains--
(A) the estimated total net worth of each individual
described in paragraph (2);
(B) a description of how funds of each individual described
in paragraph (2) were acquired, and how such funds have been
used or employed; and
(C) a determination of whether each individual described in
paragraph (2) meets the criteria described in paragraph (3)
or (4) of section 1263(a) of the National Defense
Authorization Act for Fiscal Year 2017 (Public Law 114-328;
22 U.S.C. 2656 note).
(2) Individuals described.--The individuals described in
this paragraph are the following:
(A) The Secretary General of Hizballah.
(B) Members of the Hizballah Politburo.
(C) Any other individual that the President determines is a
senior foreign political figure of Hizballah, is associated
with Hizballah, or otherwise provides significant support to
Hizballah.
(3) Form of report; public availability.--
(A) Form.--The report required under paragraph (1) shall be
submitted in unclassified form but may include a classified
annex.
(B) Public availability.--The unclassified portion of the
report required under paragraph (1) shall be made available
to the public and posted on the website of the Department of
State and all United States Embassy websites.
(4) Definitions.--In this subsection:
(A) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(i) the Committee on Foreign Affairs, the Committee on
Financial Services, the Committee on Appropriations, and the
Permanent Select Committee on Intelligence of the House of
Representatives; and
(ii) the Committee on Foreign Relations, the Committee on
Banking, Housing, and Urban Affairs, the Committee on
Appropriations, and the Select Committee on Intelligence of
the Senate.
(B) Funds.--The term ``funds'' means--
(i) cash;
(ii) equity;
(iii) any other intangible asset the value of which is
derived from a contractual claim, including bank deposits,
bonds, stocks, a security (as defined in section 2(a) of the
Securities Act of 1933 (15 U.S.C. 77b(a))), or a security or
an equity security (as those terms are defined in section
3(a) of the Securities Exchange Act of 1934 (15 U.S.C.
78c(a))); and
(iv) anything else of value that the President determines
to be appropriate.
(C) Senior foreign political figure.--The term ``senior
foreign political figure'' has the meaning given that term in
section 1010.605 of title 31, Code of Federal Regulations (or
any successor regulation).
SEC. 204. REPORT ON COMBATING THE ILLICIT TOBACCO TRAFFICKING
NETWORKS USED BY HIZBALLAH AND OTHER FOREIGN
TERRORIST ORGANIZATIONS.
(a) In General.--Not later than 180 days after the date of
the enactment of this Act, the President shall submit to the
appropriate congressional committees a report on combating
the illicit tobacco trafficking networks used by Hizballah
and other foreign terrorist organizations to finance their
operations, as described in the report submitted to Congress
in December 2015 by the Department of State, the Department
of Justice, the Department of the Treasury, the Department of
Homeland Security, and the Department of Health and Human
Services entitled, ``The Global Illicit Trade in Tobacco: A
Threat to National Security.''.
(b) Matters To Be Addressed.--The report required by
subsection (a) shall include the following:
(1) A description of the steps to be taken by Federal
agencies to combat the illicit tobacco trafficking networks
used by Hizballah, other foreign terrorist organizations, and
other illicit actors.
(2) A description of the steps to be taken to engage State
and local law enforcement authorities in efforts to combat
illicit tobacco trafficking networks operating within the
United States.
(3) A description of the steps to be taken to engage
foreign government law enforcement and intelligence
authorities in efforts to combat illicit tobacco trafficking
networks operating outside the United States.
(4) Recommendations for legislative or administrative
action needed to address the threat of illicit tobacco
trafficking networks.
(c) Appropriate Congressional Committees Defined.--In this
section, the term ``appropriate congressional committees''
means--
(1) the Committee on Foreign Affairs, the Committee on
Armed Services, the Committee on Homeland Security, the
Committee on the Judiciary, the Committee on Financial
Services, the Committee on Ways and Means, the Committee on
Appropriations, and the Permanent Select Committee on
Intelligence of the House of Representatives; and
(2) the Committee on Foreign Relations, the Committee on
Armed Services, the Committee on Homeland Security and
Governmental Affairs, the Committee on the Judiciary, the
Committee on Banking, Housing, and Urban Affairs, the
Committee on Finance, the Committee on Appropriations, and
the Select Committee on Intelligence of the Senate.
TITLE III--GENERAL PROVISIONS
SEC. 301. REGULATORY AUTHORITY.
(a) In General.--The President shall, not later than 180
days after the date of the enactment of this Act, prescribe
regulations as necessary for the implementation of this Act
and the amendments made by this Act.
(b) Briefing to Congress.--Not later than 10 days before
the prescription of regulations under subsection (a), the
President shall brief the appropriate congressional
committees of the proposed regulations and the provisions of
this Act and the amendments made by this Act that the
regulations are implementing.
(c) Appropriate Congressional Committees Defined.--In this
section, the term ``appropriate congressional committees''
means--
(1) the Committee on Foreign Affairs, the Committee on
Financial Services, and the Committee on Ways and Means of
the House of Representatives; and
(2) the Committee on Foreign Relations, the Committee on
Banking, Housing, and Urban Affairs, and the Committee on
Finance of the Senate.
SEC. 302. IMPLEMENTATION; PENALTIES; JUDICIAL REVIEW;
EXEMPTIONS.
(a) In General.--Title I of the Hizballah International
Financing Prevention Act of 2015 (Public Law 114-102; 50
U.S.C. 1701 note), as amended by sections 103 and 105 of this
Act, is further amended by adding at the end the following:
``SEC. 105. IMPLEMENTATION; PENALTIES; JUDICIAL REVIEW;
EXEMPTIONS; RULE OF CONSTRUCTION.
``(a) Implementation.--The President may exercise all
authorities provided under sections 203 and 205 of the
International Emergency Economic Powers Act (50 U.S.C. 1702
and 1704) to carry out sections 101 and 103.
``(b) Penalties.--The penalties provided for in subsections
(b) and (c) of section 206 of the International Emergency
Economic Powers Act (50 U.S.C. 1705) shall apply to a person
that violates, attempts to violate, conspires to violate, or
causes a violation of regulations prescribed to carry out
section 101 or 103 to the same extent that such penalties
apply to a person that commits an unlawful act described in
subsection (a) of such section 206.
``(c) Procedures for Judicial Review of Classified
Information.--
``(1) In general.--If a finding, or a prohibition,
condition, or penalty imposed as a result of any such
finding, is based on classified information (as defined in
section 1(a) of the Classified Information Procedures Act (18
U.S.C. App.)) and a court reviews the finding or the
imposition of the prohibition, condition, or penalty, the
President may submit such information to the court ex parte
and in camera.
``(2) Rule of construction.--Nothing in this subsection
shall be construed to confer or imply any right to judicial
review of any finding under section 101 or 103 or any
prohibition, condition, or penalty imposed as a result of any
such finding.
``(d) Exemptions.--The following activities shall be exempt
from sections 101 and 103:
``(1) Any authorized intelligence, law enforcement, or
national security activities of the United States.
``(2) Any transaction necessary to comply with United
States obligations under the Agreement between the United
Nations and the United States of America regarding the
Headquarters of the United States, signed at Lake Success
June 26, 1947, and entered into force November 21, 1947, or
under the Convention on Consular Relations, done at Vienna
April 24, 1963, and entered into force March 19, 1967, or any
other United States international agreement.
``(e) Rule of Construction.--Nothing in section 101 or 103
shall be construed to limit the authority of the President
under the International Emergency Economic Powers Act (50
U.S.C. 1701 et seq.) or under any other provision of law.''.
(b) Clerical Amendment.--The table of contents for the
Hizballah International Financing Prevention Act of 2015 is
amended by inserting after the item relating to section 104,
as added by section 105(c) of this Act, the following new
item:
``Sec. 105. Implementation; penalties; judicial review; exemptions;
rule of construction.''.
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.
General Leave
Mr. ROYCE of California. Mr. Speaker, I ask unanimous consent that
all Members may have 5 legislative days to revise and extend any
remarks and to include extraneous material on this measure in the
Record.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from California?
There was no objection.
Mr. ROYCE of California. Mr. Speaker, I yield myself such time as I
may consume.
Mr. Speaker, today we will consider legislation targeting Hezbollah,
Iran's leading terrorist proxy, with tough, new sanctions.
It was 34 years ago this Monday that a truck bomb filled with
explosives
[[Page H8189]]
detonated outside the United States Marine Corps barracks in Beirut,
Lebanon, killing 241 of our servicemen. Between 1982 and 1984, we had
272 marines, soldiers, and sailors from 39 States and Puerto Rico lose
their lives while serving as peacekeepers in Beirut. Hezbollah was
behind those attacks.
Since that fateful day, Hezbollah has collaborated with Iran to
expand terror throughout the region, taking hundreds of thousands of
lives if we count the lives of human beings lost in Syria, in Yemen, in
Iraq, and in Gaza.
Today, as a leading Iranian proxy, Hezbollah continues to be Iran's
front line against Israel. Since its 2006 war with Israel, Hezbollah
has dramatically grown its supply of rockets and missiles, allowing it
to strike throughout Israel with great precision and force.
It is by putting that military power to very effective use that it
has gleaned through what it has learned on the ground in Syria. In
Syria, its fighters are key to Tehran and its efforts to prop up the
Assad regime, working with the Revolutionary Guard and also working
with Russian troops there.
So now Hezbollah and Iran are reportedly working to introduce game-
changing weapons into Lebanon and Syria, and that is what brings about
this particular bill. What they are trying to do is produce facilities
for sophisticated rockets and missiles there on the ground, on the
border in Syria, on the border, also, in Lebanon, and that could lead
to another war.
It is not a cheap effort to do this. That is why the committee is
focused on dismantling Hezbollah's financial networks. In 2015, we led
the way to enact the Hezbollah International Financing Prevention Act
to target those that facilitate financial transactions for Hezbollah.
Now this bill builds on that effort to further ramp up pressure on
the Iranian proxy, Hezbollah. It sanctions regimes, including Iran and
Syria, that provide weapons to Hezbollah--in other words, an attempt to
stop the transfer of these weapons. It targets Hezbollah's innovative
fundraising and recruiting efforts, including its attempts to
crowdsource small donations to support its fighters, which is the
latest evolution of Hezbollah's efforts.
{time} 1545
Hezbollah launched an online crowdsourcing campaign entitled: ``Equip
a Mujahid,'' which calls for donations, large or small, payable in
installments or in one sum, to equip suicide bombers and Hezbollah
fighters.
This bill recognizes that Hezbollah is no longer only a terrorist
group, but is also a global criminal organization, which has developed
a global criminal network that profits from drug trafficking, money
laundering, counterfeiting, and cigarette smuggling, and it gives the
administration the tools to respond accordingly.
Mr. Speaker, for years, this body has led the way in calling for the
need to respond to the full range of threats from Iran. Hezbollah, the
regime's leading terrorist proxy, ranks among the top of those threats,
in terms of what is being encountered right now.
So I urge my colleagues to support this effort to ensure that the
United States has the tools to respond.
Mr. Speaker, I reserve the balance of my time.
House of Representatives,
Committee on Foreign Affairs,
Washington, DC, October 23, 2017.
Hon. Bob Goodlatte,
Chairman, Committee on the Judiciary, Washington, DC.
Dear Chairman Goodlatte: Thank you for consulting with the
Foreign Affairs Committee and agreeing to be discharged from
further consideration of H.R. 3329, the Hizballah
International Financing Prevention Amendments Act of 2017, so
that the bill may proceed expeditiously to the House floor.
I agree that your forgoing further action on this measure
does not in any way diminish or alter the jurisdiction of
your committee, or prejudice its jurisdictional prerogatives
on this resolution or similar legislation in the future. I
would support your effort to seek appointment of an
appropriate number of conferees from your committee to any
House-Senate conference on this legislation.
I will seek to place our letters on H.R. 3329 into the
Congressional Record during floor consideration of the bill.
I appreciate your cooperation regarding this legislation and
look forward to continuing to work together as this measure
moves through the legislative process.
Sincerely,
Edward R. Royce,
Chairman.
____
House of Representatives,
Committee on Financial Services,
Washington, DC, October 20, 2017.
Hon. Ed Royce,
Chairman, Committee on Foreign Affairs, Washington, DC.
Dear Chairman Royce: I am writing concerning H.R. 3329,
the Hizballah International Financing Prevention Amendments
Act of 2017, as amended.
As a result of your having consulted with the Committee on
Financial Services concerning provisions in the bill that
fall within our Rule X jurisdiction, I agree to forgo action
on 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. 3329, 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 this 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 would appreciate your response to this letter
confirming this understanding with respect to H.R. 3329 and
would ask that a copy of our exchange of letters on this
matter be included in the Committee Report and the
Congressional Record during floor consideration thereof.
Sincerely,
Jeb Hensarling,
Chairman.
____
House of Representatives,
Committee on Foreign Affairs,
Washington, DC, October 23, 2017.
Hon. Jeb Hensarling,
Chairman, Committee on Financial Services, Washington, DC.
Dear Chairman Hensarling: Thank you for consulting with the
Foreign Affairs Committee and agreeing to be discharged from
further consideration of H.R. 3329, the Hizballah
International Financing Prevention Amendments Act of 2017, so
that the bill may proceed expeditiously to the House floor.
I agree that your forgoing further action on this measure
does not in any way diminish or alter the jurisdiction of
your committee, or prejudice its jurisdictional prerogatives
on this resolution or similar legislation in the future. I
would support your effort to seek appointment of an
appropriate number of conferees from your committee to any
House-Senate conference on this legislation.
I will seek to place our letters on H.R. 3329 into the
Congressional Record during floor consideration of the bill.
I appreciate your cooperation regarding this legislation and
look forward to continuing to work together as this measure
moves through the legislative process.
Sincerely,
Edward R. Royce,
Chairman.
____
House of Representatives,
Committee on Ways and Means,
Washington, DC, October 23, 2017.
Hon. Edward R. Royce,
Chairman, Committee on Foreign Affairs, Washington, DC.
Dear Chairman Royce: I am writing with respect to H.R.
3329, the ``Hizballah International Financing Prevention
Amendments Act of 2017.''
As a result of your having consulted with us on this
measure, I agree not to seek a sequential referral on this
bill so that it may move expeditiously to the floor. The
Committee on Ways and Means takes this action with the mutual
understanding that we do not waive any jurisdiction over the
subject matter contained in this or similar legislation, and
the 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
jurisdiction. The 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 such request.
Finally, I would appreciate your response to this letter
confirming this understanding, and would ask that a copy of
our exchange of letters on this matter be included in the
Congressional Record during floor consideration of H.R. 3329.
Sincerely,
Kevin Brady,
Chairman.
____
House of Representatives,
Committee on Foreign Affairs,
Washington, DC, October 23, 2017.
Hon. Kevin Brady,
Chairman, Committee on Ways and Means, Washington, DC.
Dear Chairman Brady: Thank you for consulting with the
Foreign Affairs Committee and agreeing to forgo a sequential
referral request on H.R. 3329, the Hizballah International
Financing Prevention Amendments Act of 2017, so that the bill
may proceed expeditiously to the House floor.
[[Page H8190]]
I agree that your forgoing further action on this measure
does not in any way diminish or alter the jurisdiction of
your committee, or prejudice its jurisdictional prerogatives
on this resolution or similar legislation in the future. I
would support your effort to seek appointment of an
appropriate number of conferees from your committee to any
House-Senate conference on this legislation.
I will seek to place our letters on H.R. 3329 into the
Congressional Record during floor consideration of the bill.
I appreciate your cooperation regarding this legislation and
look forward to continuing to work together as this measure
moves through the legislative process.
Sincerely,
Edward R. Royce,
Chairman.
Mr. ENGEL. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of this measure.
Let me again thank Chairman Royce for his leadership and for his hard
work on this bill. I am glad to be the lead Democratic cosponsor of
this legislation, which builds on a law that Ed Royce and I wrote in
2015.
One of the best ways to stop Hezbollah's dangerous activity is to cut
off its financing, which is what we tried to do 2 years ago. We went
after Hezbollah's financial patrons, including Iran. But again, this is
a group that, if you block one path forward, they will do what it takes
to find another way around.
So with this measure, we are broadening existing law by going after a
bigger universe of Hezbollah supporters and enablers. This bill would
impose mandatory sanctions on any third parties or governments
providing money, equipment, or weapons to Hezbollah.
We know that Iran will again get caught up in this dragnet, and this
bill doesn't run afoul of our obligations under the nuclear deal or any
other deal. After all, Iran's support for Hezbollah is outside the
scope of the JCPOA.
But it is not just Iran. In recent years, we have seen Moscow step up
its support of Hezbollah, particularly on the battlefields of Syria,
where Russia has supplied Hezbollah with weapons. It is really
outrageous. Russia claims to be fighting so-called terrorists as they
bomb schools, hospitals, and marketplaces. Yet Russian weapons are
ending up in Hezbollah hands.
Let me be clear: Hezbollah is a terrorist group. It is as simple as
that. Chairman Royce and I have said this many times. The Russia-
Hezbollah relationship threatens to undermine global antiterrorism
efforts.
This bill sends a message that any government in cahoots with
Hezbollah, anyone who wants to do business with this terrorist group or
support its violent aims, is going to face the consequences.
This is a timely bill. Iran is building weapons factories in southern
Lebanon that would be buried far underground, out of Israel's reach.
The missiles that will come off that assembly line are more precise and
have a longer range, putting virtually the whole of Israel in their
sights.
Iran's and Hezbollah's presence in Syria, particularly in the south,
right on Israel's borders, is a very serious concern. I worry about the
deescalation zones the United States helped to establish in southern
Syria. We don't want those zones to become hotbeds of Hezbollah.
Several weeks ago, I was in Israel, and we trekked up to the border
between Israel and Lebanon. At the border, as far as the eye can see,
when you are in Israel and you are looking down at Lebanon, you see a
number of flags. Are they the Lebanese flag? No. It is the Hezbollah
flag.
Hezbollah has virtually taken over large parts of Lebanon, strangling
the Lebanese people as well. The Lebanese people are suffering under a
brutal terrorist group that is embedded in a society that disallows
them to act as a free and open society.
My heart really goes out to the Lebanese people, who have a terrorist
group virtually sitting in their lap, refusing to move, and putting
them in all kinds of danger.
These areas have the potential to create a safe haven for Hezbollah
and Iranian actors. They will stoke existing tensions and could create
a corridor from Tehran to the Mediterranean through Iraq, Syria, and
Lebanon. This would present a major shift in the regional balance of
power, and it would present threats to Israel that it could not ignore.
If these deescalation zones end up empowering Iran and Hezbollah,
then we will have betrayed our ally, Israel, at the most critical
moment. That is why we are passing this bill.
I, again, thank Chairman Royce for his continued strong leadership on
this issue. I strongly support this measure.
Mr. Speaker, I reserve the balance of my time.
Mr. ROYCE of California. Mr. Speaker, in view of the National Defense
Authorization conference, and in view of the fact that, from the House
side, Mr. Engel and I both serve on that conference, I yield the
balance of my time to the gentlewoman from Florida (Ms. Ros-Lehtinen),
and I ask unanimous consent that she may control that time on this
legislation.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from California?
There was no objection.
Mr. ENGEL. Mr. Speaker, since I, too, will go over to the Senate
side, I yield the balance of my time to the gentleman from Florida (Mr.
Deutch), and I ask unanimous consent that he may control the time on
this bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from New York?
There was no objection.
Ms. ROS-LEHTINEN. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I thank the chairman of our committee, Mr. Royce from
California, and the ranking member, Mr. Engel from New York, once again
for their leadership. They are the dynamic duo of the Foreign Affairs
Committee on this issue. This is a very important day, in terms of
sanctioning evildoers in the world.
Mr. Speaker, I am proud to cosponsor the bill promoted by Chairman
Royce and Ranking Member Eliot Engel, H.R. 3329, the Hizballah
International Financing Prevention Amendments Act. This is yet another
strong, bipartisan bill that they have authored and brought to the
floor, aimed at holding Iran and its proxy, Hezbollah, accountable for
their illicit activity.
I was pleased that my amendment to this bill was included to ensure
that we identify those Hezbollah parliamentarians and cabinet officials
who are subject to the sanctions in this bill and the underlying bill
that it amends.
This is important, Mr. Speaker, because Hezbollah members have
prominent positions in Lebanon's Government, and we want to ensure that
they cannot use government funds to divert to Hezbollah's terror
activity, and, if they do, those institutions that help facilitate such
activity are held to account.
I was also pleased to see other provisions approved that would allow
us to identify and track individuals and entities that are being used
by Iran to supply Hezbollah with arms or support for its missile
production facilities in Syria.
We know that Iran uses commercial civilian aircraft to fly weapons,
arms, and fighters to Syria in support of Hezbollah. We cannot allow
Iran to use these civilian aircraft for such activity. This is the
first step toward making sure that, once these aircraft are identified,
responsible nations will think twice about allowing these Iranian
planes to land in their countries.
This bill also addresses Iran's and Hezbollah's ability to finance
their illicit activities, which is so important, Mr. Speaker. We must
go after those individuals and those institutions that provide
financial safe havens to these terror groups, and we have got to
disrupt their financial networks.
That is why this bill is so important, and I urge my colleagues to
support Chairman Royce's and Ranking Member Engel's measure before us
today.
Mr. Speaker, I reserve the balance of my time.
Mr. DEUTCH. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, it is good to be on the floor with my friend and
colleague from Florida to speak in support of H.R. 3329, an important
bipartisan effort brought forward by Chairman Royce and Ranking Member
Engel, an important measure to further combat Hezbollah's terrorist
activity.
We made great strides 2 years ago when we passed the Hezbollah
International Financing Act, which has already begun to sever the
terror group
[[Page H8191]]
from its funding sources. However, it is clear that more needs to be
done.
The new bill will further restrict Hezbollah's ability to recruit and
fundraise by targeting foreign state sponsors, including Iran, while
also increasing pressure on banks and other international financial
institutions that serve Hezbollah.
It is important to remember why it is in America's interest to combat
Hezbollah terrorism. Not that anyone here or at home needs a reminder,
we all remember, or we have all learned about, the 1983 attacks in
Beirut on our Embassy and the Marine Corps barracks that killed
hundreds of Americans; the attacks in Argentina on the Israeli Embassy
in 1992, and the AMIA Jewish center in 1994 that, in total, killed over
100 more; the 1996 Khobar Towers bombing in Saudi Arabia; and more
recent attacks in Europe, including the 2012 bus bombing of Israeli
tourists in Bulgaria.
But it has been Hezbollah's support for the horrific Assad regime in
Syria that has led even Arab governments in the region to acknowledge
Hezbollah's dangerous role as an Iranian terror proxy. Last year, the
Gulf Cooperation Council and the Arab League took the dynamic step of
designating Hezbollah as a terrorist organization.
Yet, even while Hezbollah is focused on the war in Syria, its leader,
Hassan Nasrallah, continues to vow Israel's destruction, a threat
Israel's leaders don't take lightly, given two previous wars and
intelligence suggesting Hezbollah now has over 150,000 missiles and
rockets in Lebanon aimed at every corner of Israel's map.
In a future war, Israeli defense officials fear that Hezbollah will
launch over a thousand rockets a day with the capacity to hit civilians
in Israel's north, across Tel Aviv and Jerusalem, and even in the
southernmost city, Eilat.
This is made all the more troubling by reports that Iran, in addition
to transferring advanced precision-guided missiles to Hezbollah, is now
helping the terror group set up indigenous missile development
facilities in both Syria and Lebanon.
These are unacceptable developments. They underscore the importance
of today's legislation: cut off Hezbollah's most critical sources of
funding and support, including from its primary sponsor, Iran.
I am proud to support this bipartisan legislation, and I urge my
colleagues to support it as well.
Mr. Speaker, I reserve the balance of my time.
Ms. ROS-LEHTINEN. Mr. Speaker, we have no further speakers, and I
reserve the balance of my time.
Mr. DEUTCH. Mr. Speaker, I thank my friend from Florida for her
tireless leadership in standing up for all those pushing back against
Iran's influence in the region, Iran's support for Hezbollah, and
specifically here, cutting off sources of funding for Hezbollah.
Mr. Speaker, I yield back the balance of my time.
Ms. ROS-LEHTINEN. Mr. Speaker, I yield myself such time as I may
consume.
For 30 years, Hezbollah has remained Iran's proxy and Iran remains
Hezbollah's primary source of financial support--a cozy relationship.
In April 2015, its leader, Hassan Nasrallah, boasted that, even under
sanctions, Iran still funds Hezbollah's terror. He anticipated that ``a
rich and powerful Iran, which will be open to the world'' will be able
to do even more.
The Iran nuclear agreement has made it possible for Iran to provide
Hezbollah with a windfall. But Tehran is not Hezbollah's only source of
income. Since its inception, Hezbollah has developed a broad criminal
network involved in a range of illicit activities, from drug
trafficking to cigarette smuggling, to money laundering to
counterfeiting.
These global terrorists double as global criminals. This is why we
must employ a combination of law enforcement, financial, criminal,
civil, and regulatory tools to deter, disrupt, and publicly illuminate
the global illicit Hezbollah network.
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I want to thank Chairman Royce and Ranking Member Engel for closely
collaborating and developing this critical legislation, as well as
Senator Rubio and Senator Shaheen in the Senate that have taken the
lead on this effort in the Senate. I look forward to continuing to work
with them to get this critical legislation signed into law.
Mr. Speaker, I yield back the balance of my time.
Mr. SCHNEIDER. Mr. Speaker, I rise in strong support of H.R. 3329,
the Hizballah International Financing Prevention Amendments Act. This
important legislation builds on the Hizballah International Financing
Prevention Act of 2015. I was pleased to have originally introduced
this bill in 2014 with my colleague Mark Meadows.
Hizballah at the behest and assistance of Iran is active in Syria and
has helped Assad maintain regime control. Hizballah fighters are
returning to Lebanon more battle-tested and more capable than ever
before.
In Lebanon, again with assistance from Iran, Hizballah has been able
to amass more than 150,000 rockets--a ten-fold increase compared to
15,000 in 2006.
Iran uses several means to transfer weapons to Hizballah, including
by land, sea, and air and is now reportedly building missile production
facilities in Lebanon to enable an indigenous rocket-producing
capability for Hizballah.
Hizballah is not only a grave threat to our ally Israel, they are a
threat to regional security and America's national security interests.
Hizballah will be far more dangerous than ever before with an
indigenous rocket-producing capability.
That is why I am pleased that an amendment I offered during the full
committee markup of H.R. 3329 was included in the bill to ensure the
U.S. Government is focused on this urgent threat. My amendment would
require the President to report to Congress on the foreign and domestic
supply chain that advances Hizballah's domestic missile capabilities.
This includes how Iran is able to transfer goods and technology, a list
of those who facilitate missile transfers, and the steps being taken to
disrupt the supply chain that advances Hizballah's missile
capabilities.
The United States cannot stand by while Israel faces such a grave
threat on its northern border. We must decisively act and we deserve to
know what exactly the U.S. Government is doing to combat this threat.
I urge my colleagues to support H.R. 3329.
The SPEAKER pro tempore (Mr. Duncan of Tennessee). 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. 3329, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
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