[Congressional Record Volume 164, Number 158 (Tuesday, September 25, 2018)]
[House]
[Pages H8872-H8878]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
HIZBALLAH INTERNATIONAL FINANCING PREVENTION AMENDMENTS ACT OF 2018
Ms. ROS-LEHTINEN. Mr. Speaker, I move to suspend the rules and pass
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 amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
S. 1595
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 2018''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--PREVENTION OF ACCESS BY HIZBALLAH TO INTERNATIONAL FINANCIAL
AND OTHER INSTITUTIONS
Sec. 101. Mandatory sanctions with respect to fundraising and
recruitment activities for Hizballah.
Sec. 102. Modification of report with respect to financial institutions
that engage in certain transactions.
Sec. 103. Sanctions against certain agencies and instrumentalities of
foreign states.
Sec. 104. Diplomatic initiatives to prevent hostile activities by Iran
and disrupt and degrade Hizballah's illicit networks.
TITLE II--NARCOTICS TRAFFICKING AND TRANSNATIONAL CRIMINAL ACTIVITIES
OF HIZBALLAH
Sec. 201. Imposition of sanctions with respect to affiliated networks
of Hizballah for transnational criminal activities.
Sec. 202. Report on racketeering activities engaged in by Hizballah.
Sec. 203. Modification of report on activities of foreign governments
to disrupt activities of Hizballah; reports on membership
in Hizballah.
TITLE III--GENERAL PROVISIONS
Sec. 301. Regulatory authority.
Sec. 302. Implementation; penalties; judicial review; exemptions; rule
of construction; exception relating to importation of
goods.
Sec. 303. Report consolidation and modification.
TITLE I--PREVENTION OF ACCESS BY HIZBALLAH TO INTERNATIONAL FINANCIAL
AND OTHER INSTITUTIONS
SEC. 101. MANDATORY SANCTIONS WITH RESPECT TO FUNDRAISING AND
RECRUITMENT ACTIVITIES FOR HIZBALLAH.
(a) In General.--Section 101 of the Hizballah International
Financing Prevention Act of 2015 (Public Law 114-102; 50
U.S.C. 1701 note) is amended to read as follows:
``SEC. 101. MANDATORY SANCTIONS WITH RESPECT TO FUNDRAISING
AND RECRUITMENT ACTIVITIES FOR HIZBALLAH.
``(a) In General.--The President shall, on or after the
date of the enactment of the Hizballah International
Financing Prevention Amendments Act of 2018, impose the
sanctions described in subsection (b) with respect to any
foreign person that the President determines knowingly
provides significant financial, material, or technological
support for or to--
``(1) Bayt al-Mal, Jihad al-Bina, the Islamic Resistance
Support Association, the Foreign Relations Department of
Hizballah, the External Security Organization of Hizballah,
or any successor or affiliate thereof as designated by the
President;
``(2) al-Manar TV, al Nour Radio, or the Lebanese Media
Group, or any successor or affiliate thereof as designated by
the President;
``(3) a foreign person determined by the President to be
engaged in fundraising or recruitment activities for
Hizballah; or
``(4) a foreign person owned or controlled by a person
described in paragraph (1), (2), or (3).
``(b) Sanctions Described.--The sanctions described in this
subsection are the following:
``(1) Asset blocking.--The exercise of all powers granted
to the President by the International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.) (except that the
requirements of section 202 of such Act (50 U.S.C. 1701)
shall not apply) to the extent necessary to block and
prohibit all transactions in all property and interests in
property of a foreign person determined by the President to
be subject to subsection (a) if such property and interests
in property are in the United States, come within the United
States, or are or come within the possession or control of a
United States person.
``(2) Aliens ineligible for visas, admission, or parole.--
``(A) Visas, admission, or parole.--An alien who the
Secretary of State or the Secretary of Homeland Security (or
designee of one of such Secretaries) determines is subject to
subsection (a) is--
``(i) inadmissible to the United States;
``(ii) ineligible to receive a visa or other documentation
to enter the United States; and
``(iii) otherwise ineligible to be admitted or paroled into
the United States or to receive any other benefit under the
Immigration and Nationality Act (8 U.S.C. 1101 et seq.).
``(B) Current visas revoked.--
``(i) In general.--The Secretary of State or the Secretary
of Homeland Security (or designee of one of such Secretaries)
shall revoke any visa or other entry documentation issued to
an alien who the President determines is subject to
subsection (a), regardless of when issued.
``(ii) Effect of revocation.--A revocation under clause (i)
shall take effect immediately and shall automatically cancel
any other valid visa or entry documentation that is in the
possession of the alien.
``(c) Waiver.--
``(1) In general.--The President may, for periods not to
exceed 180 days, waive the imposition of sanctions under this
section if the President certifies to the appropriate
congressional committees that such waiver is in the national
security interests of the United States.
``(2) Briefing.--Not later than 30 days after the issuance
of a waiver under paragraph (1) with respect to a foreign
person, and every 180 days thereafter while the waiver
remains in effect, the President shall brief the appropriate
congressional committees on the status of the involvement of
the foreign person in activities described in subsection (a).
``(d) Definitions.--In this section:
``(1) Admitted; alien.--The terms `admitted' and `alien'
have meanings given those terms in section 101 of the
Immigration and Nationality Act (8 U.S.C. 1101).
``(2) Appropriate congressional committees.--The term
`appropriate congressional committees' means--
[[Page H8873]]
``(A) the Committee on Foreign Affairs, the Committee on
Ways and Means, the Committee on the Judiciary, the Committee
on Financial Services, and the Permanent Select Committee on
Intelligence of the House of Representatives; and
``(B) the Committee on Foreign Relations, the Committee on
Finance, the Committee on Banking, Housing, and Urban
Affairs, the Committee on the Judiciary, and the Select
Committee on Intelligence of the Senate.
``(3) Entity.--The term `entity' means a partnership,
association, corporation, or other organization, group, or
subgroup.
``(4) Foreign person.--The term `foreign person' means any
person that is not a United States person.
``(5) Hizballah.--The term `Hizballah' has the meaning
given such term in section 102(e).
``(6) Person.--The term `person' means an individual or
entity.
``(7) United states person.--The term `United States
person' means a United States citizen, an alien lawfully
admitted for permanent residence, an entity organized under
the laws of the United States (including foreign branches),
or a person in the United States.''.
(b) Clerical Amendment.--The table of contents for the
Hizballah International Financing Prevention Act of 2015 is
amended by striking the item relating to section 101 and
inserting the following new item:
``Sec. 101. Mandatory sanctions with respect to fundraising and
recruitment activities for Hizballah.''.
SEC. 102. MODIFICATION OF REPORT WITH RESPECT TO FINANCIAL
INSTITUTIONS THAT ENGAGE IN CERTAIN
TRANSACTIONS.
Section 102(d) of the Hizballah International Financing
Prevention Act of 2015 (Public Law 114-102; 50 U.S.C. 1701
note) is amended to read as follows:
``(d) Report on Financial Institutions Organized Under the
Laws of State Sponsors of Terrorism.--
``(1) In general.--Not later than 180 days after the date
of the enactment of the Hizballah International Financing
Prevention Amendments Act of 2018, and every 2 years
thereafter for a period not to exceed 4 years, the President
shall submit to the appropriate congressional committees a
report that--
``(A) identifies each foreign financial institution
described in paragraph (2) that the President determines
engages in one or more activities described in subsection
(a)(2); and
``(B) provides a detailed description of each such
activity.
``(2) Foreign financial institution described.--
``(A) In general.--A foreign financial institution
described in this paragraph is a foreign financial
institution--
``(i) that, wherever located, is--
``(I) organized under the laws of a state sponsor of
terrorism or any jurisdiction within a state sponsor of
terrorism;
``(II) owned or controlled by the government of a state
sponsor of terrorism;
``(III) located in the territory of a state sponsor of
terrorism; or
``(IV) owned or controlled by a foreign financial
institution described in subclause (I), (II), or (III); and
``(ii) the capitalization of which exceeds $10,000,000.
``(B) State sponsor of terrorism defined.--In this
paragraph, the term `state sponsor of terrorism' means a
country the government of which the Secretary of State has
determined is a government that has repeatedly provided
support for acts of international terrorism for purposes of--
``(i) section 1754(c) of the Export Control Reform Act of
2018;
``(ii) section 620A of the Foreign Assistance Act of 1961
(22 U.S.C. 2371);
``(iii) section 40 of the Arms Export Control Act (22
U.S.C. 2780); or
``(iv) any other provision of law.''.
SEC. 103. SANCTIONS AGAINST CERTAIN AGENCIES AND
INSTRUMENTALITIES OF FOREIGN STATES.
(a) In General.--Title I of the Hizballah International
Financing Prevention Act of 2015 (Public Law 114-102; 50
U.S.C. 1701 note) is amended by adding at the end the
following:
``SEC. 103. SANCTIONS AGAINST CERTAIN AGENCIES AND
INSTRUMENTALITIES OF FOREIGN STATES.
``(a) Sanctions.--
``(1) In general.--Not later than 180 days after the date
of the enactment of the Hizballah International Financing
Prevention Amendments Act of 2018, and as appropriate
thereafter, the President shall impose the sanctions
described in paragraph (3) with respect to an agency or
instrumentality of a foreign state described in paragraph
(2).
``(2) Agency or instrumentality of a foreign state
described.--An agency or instrumentality of a foreign state
is described in this paragraph if the President determines
that the agency or instrumentality has, on or after the date
of the enactment of the Hizballah International Financing
Prevention Amendments Act of 2018, knowingly--
``(A) conducted significant joint combat operations with,
or significantly supported combat operations of, Hizballah;
or
``(B) provided significant financial support for or to, or
significant arms or related materiel to, Hizballah.
``(3) Sanctions described.--The sanctions described in this
paragraph are the exercise of all powers granted to the
President by the International Emergency Economic Powers Act
(50 U.S.C. 1701 et seq.) (except that the requirements of
section 202 of such Act (50 U.S.C. 1701) shall not apply) to
the extent necessary to block and prohibit all transactions
in all property and interests in property of an agency or
instrumentality of a foreign state if such property and
interests in property are in the United States, come within
the United States, or are or come within the possession or
control of a United States person.
``(b) Waiver.--
``(1) In general.--The President may, for periods not to
exceed 180 days, waive the imposition of sanctions under this
section with respect to an agency or instrumentality of a
foreign state if the President certifies to the appropriate
congressional committees that such waiver is vital to the
national security interests of the United States.
``(2) Briefing.--Not later than 30 days after the issuance
of a waiver under paragraph (1) with respect to an agency or
instrumentality of a foreign state, and every 180 days
thereafter while the waiver remains in effect, the President
shall brief the appropriate congressional committees on the
status of the involvement of the agency or instrumentality in
activities described in subsection (a)(2).
``(c) Special Rule.--The President shall not be required to
impose sanctions under this section with respect to an agency
or instrumentality of a foreign state if the Secretary
certifies in writing to the appropriate congressional
committees that--
``(1) the agency or instrumentality--
``(A) is no longer engaging in activities described in
subsection (a)(2); or
``(B) has taken and is continuing to take significant
verifiable steps toward terminating such activities; and
``(2) the President has received reliable assurances from
the government of the foreign state that the agency or
instrumentality will not engage in any activity described in
subsection (a)(2) in the future.
``(d) Definitions.--In this section:
``(1) Agency or instrumentality of a foreign state.--The
term `agency or instrumentality of a foreign state' has the
meaning given the term in section 1603(b) of title 28, United
States Code.
``(2) Appropriate congressional committees.--The term
`appropriate congressional committees' means--
``(A) the Committee on Foreign Affairs, the Committee on
Financial Services, the Committee on Ways and Means, the
Committee on the Judiciary, the Committee on Appropriations,
and the Permanent Select Committee on Intelligence of the
House of Representatives; and
``(B) the Committee on Foreign Relations, the Committee on
Banking, Housing, and Urban Affairs, the Committee on the
Judiciary, Committee on Finance, Committee on Appropriations,
and the Select Committee on Intelligence of the Senate.
``(3) Arms or related materiel.--The term `arms or related
materiel' means--
``(A) nuclear, biological, chemical, or radiological
weapons or materials or components of such weapons;
``(B) ballistic or cruise missile weapons or materials or
components of such weapons; and
``(C) destabilizing numbers and types of advanced
conventional weapons.
``(4) Hizballah.--The term `Hizballah' has the meaning
given such term in section 102(e).
``(5) United states person.--The term `United States
person' has the meaning given such term in section 101(d).''.
(b) Clerical Amendment.--The table of contents for the
Hizballah International Financing Prevention Act of 2015 is
amended by inserting after the item relating to section 102
the following new item:
``Sec. 103. Sanctions against certain agencies and instrumentalities of
foreign states.''.
SEC. 104. DIPLOMATIC INITIATIVES TO PREVENT HOSTILE
ACTIVITIES BY IRAN AND DISRUPT AND DEGRADE
HIZBALLAH'S ILLICIT NETWORKS.
(a) Diplomatic Engagement.--Title I of the Hizballah
International Financing Prevention Act of 2015 (Public Law
114-102; 129 Stat. 2206; 50 U.S.C. 1701 note), as amended by
section 103 of this Act, is further amended by adding at the
end the following:
``SEC. 104. DIPLOMATIC INITIATIVES TO PREVENT HOSTILE
ACTIVITIES BY IRAN AND DISRUPT AND DEGRADE
HIZBALLAH'S ILLICIT NETWORKS.
``Not later than 180 days after the date of the enactment
of the Hizballah International Financing Prevention
Amendments Act of 2018, the President shall instruct the
Secretary of State, in consultation with the Secretary of the
Treasury, to increase cooperation with foreign governments to
assist in strengthening the capacity of such governments to
prevent hostile activity by Iran and disrupt and degrade
Hizballah's illicit activities, including diplomatic
engagement that involves--
``(1) efforts to target and expose illicit finance
networks, arrest perpetrators, freeze assets, and address
Iran and Hizballah's use of illicit financial networks using
international trade and banking systems;
``(2) efforts to assist willing governments with the
development of counter-organized crime legislation, the
strengthening of financial investigative capacity, and a
fully-vetted counter-organized crime judicial model in
jurisdictions plagued with corruption; and
[[Page H8874]]
``(3) efforts to persuade governments to list Hizballah as
a terrorist organization.''.
(b) Clerical Amendment.--The table of contents for the
Hizballah International Financing Prevention Act of 2015 is
amended by inserting after the item related to section 103,
as added by section 103(b) of this Act, the following new
item:
``Sec. 104. Diplomatic initiatives to prevent hostile activities by
Iran and disrupt and degrade Hizballah's illicit
networks.''.
TITLE II--NARCOTICS TRAFFICKING AND TRANSNATIONAL CRIMINAL ACTIVITIES
OF HIZBALLAH
SEC. 201. IMPOSITION OF SANCTIONS WITH RESPECT TO AFFILIATED
NETWORKS OF HIZBALLAH FOR TRANSNATIONAL
CRIMINAL ACTIVITIES.
(a) Statement of Policy.--It is the policy of the United
States to determine if individuals and entities that are
designated by the United States Government on or after the
date of the enactment of this Act as being associated with
Hizballah are engaged in transnational organized crime or
related activities on or after such date of enactment.
(b) In General.--Section 201 of the Hizballah International
Financing Prevention Act of 2015 (Public Law 114-102; 50
U.S.C. 1701 note) is amended to read as follows:
``SEC. 201. IMPOSITION OF SANCTIONS WITH RESPECT TO
AFFILIATED NETWORKS OF HIZBALLAH FOR
TRANSNATIONAL CRIMINAL ACTIVITIES.
``(a) In General.--The President shall, on or after the
date of the enactment of the Hizballah International
Financing Prevention Amendments Act of 2018, impose the
sanctions described in subsection (b) with respect to
affiliated networks of Hizballah, including, as appropriate,
by reason of significant transnational criminal activities
engaged in by such networks.
``(b) Sanctions Described.--The sanctions described in this
subsection are sanctions applicable with respect to Hizballah
pursuant to any provision of law, including Executive Order
13581 (50 U.S.C. 1701 note; relating to blocking property of
transnational criminal organizations) (as such Executive
Order was in effect on the day before the date of the
enactment of the Hizballah International Financing Prevention
Amendments Act of 2018).
``(c) Waiver.--The President may, for periods not to exceed
180 days, waive the imposition of sanctions under this
section if the President certifies to the appropriate
congressional committees that such waiver is in the national
security interests of the United States.
``(d) Definitions.--In this section:
``(1) Appropriate congressional committees.--The term
`appropriate congressional committees' means--
``(A) the Committee on Foreign Affairs, the Committee on
Ways and Means, the Committee on Appropriations, the
Committee on Financial Services, and the Permanent Select
Committee on Intelligence of the House of Representatives;
and
``(B) the Committee on Foreign Relations, the Committee on
Banking, Housing, and Urban Affairs, the Committee on
Appropriations, and the Select Committee on Intelligence of
the Senate.
``(2) Hizballah.--The term `Hizballah' has the meaning
given such term in section 102(e).''.
(c) Conforming Amendment.--The title heading for title II
of the Hizballah International Financing Prevention Act of
2015 is amended to read as follows:
``TITLE II--SANCTIONS AND REPORTS RELATING TO NARCOTICS TRAFFICKING AND
SIGNIFICANT TRANSNATIONAL CRIMINAL ACTIVITIES OF HIZBALLAH''.
(d) Clerical Amendments.--The table of contents for the
Hizballah International Financing Prevention Act of 2015 is
amended--
(1) by striking the item relating to title II and inserting
the following:
``TITLE II--SANCTIONS AND REPORTS RELATING TO NARCOTICS TRAFFICKING AND
SIGNIFICANT TRANSNATIONAL CRIMINAL ACTIVITIES OF HIZBALLAH''; and
(2) by striking the item relating to section 201 and
inserting the following:
``Sec. 201. Imposition of sanctions with respect to affiliated networks
of Hizballah for transnational criminal activities.''.
SEC. 202. REPORT ON RACKETEERING ACTIVITIES ENGAGED IN BY
HIZBALLAH.
(a) In General.--Section 202 of the Hizballah International
Financing Prevention Act of 2015 (Public Law 114-102; 50
U.S.C. 1701 note) is amended to read as follows:
``SEC. 202. REPORT ON RACKETEERING ACTIVITIES ENGAGED IN BY
HIZBALLAH.
``(a) In General.--Not later than 180 days after the date
of the enactment of the Hizballah International Financing
Prevention Amendments Act of 2018, the President shall submit
to the appropriate congressional committees a report on
information regarding activities that Hizballah, and agents
and affiliates of Hizballah, have engaged in that are
racketeering activities, including any patterns regarding
such racketeering activities.
``(b) Form of Report.--Each report required under
subsection (a) shall be submitted in an unclassified form but
may contain a classified annex.
``(c) Definitions.--In this section:
``(1) Appropriate congressional committees.--The term
`appropriate congressional committees' means--
``(A) the Committee on the Judiciary, the Committee on
Foreign Affairs, the Committee on Financial Services, and the
Committee on Appropriations of the House of Representatives;
and
``(B) the Committee on the Judiciary, the Committee on
Foreign Relations, the Committee on Banking, Housing, and
Urban Affairs, and the Committee on Appropriations of the
Senate.
``(2) Hizballah.--The term `Hizballah' has the meaning
given such term in section 102(e).
``(3) Racketeering activity.--The term `racketeering
activity' means any activity that would be considered a
racketeering activity (as defined in section 1961(1) of title
18, United States Code) if the activity were engaged in the
United States or by a United States person.
``(4) United states person.--The term `United States
person' has the meaning given such term in section 101(d).''.
(b) Clerical Amendment.--The table of contents for the
Hizballah International Financing Prevention Act of 2015 is
amended by striking the item relating to section 202 and
inserting the following:
``Sec. 202. Report on racketeering activities engaged in by
Hizballah.''.
SEC. 203. MODIFICATION OF REPORT ON ACTIVITIES OF FOREIGN
GOVERNMENTS TO DISRUPT ACTIVITIES OF HIZBALLAH;
REPORTS ON MEMBERSHIP IN HIZBALLAH.
(a) In General.--Section 204 of the Hizballah International
Financing Prevention Act of 2015 (Public Law 114-102; 50
U.S.C. 1701 note) is amended--
(1) in subsection (a)(1)--
(A) in the matter preceding subparagraph (A), by striking
``this Act'' and inserting ``the Hizballah International
Financing Prevention Amendments Act of 2018, and once every 2
years thereafter for the following 4 years'';
(B) in subparagraph (D)(ii)(II), by striking ``and'' at the
end;
(C) in subparagraph (E), by striking ``and free-trade
zones.'' and inserting ``free-trade zones, business
partnerships and joint ventures, and other investments in
small and medium-sized enterprises;''; and
(D) by adding at the end the following:
``(F) a list of jurisdictions outside of Lebanon that
expressly consent to, or with knowledge allow, the use of
their territory by Hizballah to carry out terrorist
activities, including training, financing, and recruitment;
``(G) a description of the total aggregate revenues and
remittances that Hizballah receives from the global logistics
networks of Hizballah;
``(H) a list of Hizballah's sources of revenue, including
sources of revenue based on illicit activity, revenues from
Iran, charities, and other business activities;
``(I) a list of Hizballah's expenditures, including
expenditures for ongoing military operations, social
networks, and external operations;
``(J) a description of steps to be taken by Federal
agencies to combat the illicit tobacco trafficking networks
used by Hizballah;
``(K) an assessment of Hizballah's financial operations in
areas under its operational or political control in Lebanon
and Syria and available measures to target Hizballah's
financial operations in those areas;
``(L) a review of Hizballah's international operational
capabilities, including in the United States;
``(M) a review of--
``(i) the total number and value of Hizballah-related
assets seized and forfeited; and
``(ii) the total number of indictments, prosecutions, and
extraditions of Hizballah members or affiliates; and
``(N) a review of efforts by the United States to prevent
hostile activities by Iran and disrupt and degrade
Hizballah's illicit networks in the Western Hemisphere,
including interagency coordination to ensure that
information-sharing, interdictions, arrests, investigations,
indictments, sanctions, and designations related to Hizballah
individuals or networks in the Western Hemisphere are
integrated, coordinated, and publicly communicated by the
United States in a manner that supports United States
interests.'';
(2) by redesignating subsections (b) and (c) as subsections
(c) and (d), respectively;
(3) by inserting after subsection (a) the following:
``(b) Enhanced Due Diligence.--
``(1) In general.--The President is authorized to require
each financial institution in the United States that
knowingly maintains a correspondent account or a payable-
through account in the United States for a foreign financial
institution described in paragraph (2) to establish enhanced
due diligence policies, procedures, and controls in
accordance with section 5318(i)(2)(B) of title 31, United
States Code, and regulations to implement such section with
respect to such accounts.
``(2) Foreign financial institution described.--A foreign
financial institution described in this paragraph is a
foreign financial institution that the President determines
provides significant financial services
[[Page H8875]]
to persons operating in a jurisdiction identified in
unclassified form in the list required under subsection
(a)(1)(F).
``(3) Definitions.--In this subsection, the terms
`correspondent account' and `payable-through account' have
the meanings given those terms in section 5318A of title 31,
United States Code.''; and
(4) in subsection (c), as redesignated by paragraph (2)--
(A) by striking ``this Act, and every 180 days
thereafter,'' and inserting ``the Hizballah International
Financing Prevention Amendments Act of 2018, and every 180
days thereafter for the following 4 years,''; and
(B) by adding before the period at the end the following:
``and on any requirements for enhanced due diligence
prescribed under subsection (b)''.
(b) Report on Estimated Net Worth of Senior Hizballah
Members.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the President shall submit to the
appropriate congressional committees a report that contains--
(A) the estimated total net worth of each individual
described in paragraph (2); and
(B) to the extent feasible, a description of how funds of
each individual described in paragraph (2) were acquired, and
how such funds have been used or employed.
(2) Individuals described.--The individuals described in
this paragraph are the following:
(A) The Secretary General of Hizballah.
(B) Members of Hizballah's senior leadership or senior
associates of Hizballah that the President determines
materially assist or support Hizballah.
(C) Any other individual that the President determines is a
senior foreign political figure of Hizballah.
(3) Form of report; public availability.--
(A) Form.--The report required under paragraph (1) shall be
submitted in unclassified form but may contain a classified
annex.
(B) Public availability.--The unclassified portion of the
report required under paragraph (1) shall be made available
to the public in precompressed, easily downloadable versions
that are made available in all appropriate formats.
(4) Definitions.--In this subsection:
(A) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(i) the Committee on Foreign Affairs, the Committee on
Financial Services, and the Permanent Select Committee on
Intelligence of the House of Representatives; and
(ii) the Committee on Foreign Relations, the Committee on
Banking, Housing, and Urban Affairs, and the Select Committee
on Intelligence of the Senate.
(B) Funds.--The term ``funds'' means--
(i) cash;
(ii) equity;
(iii) any other intangible asset the value of which is
derived from a contractual claim, including bank deposits,
bonds, stocks, a security (as defined in section 2(a) of the
Securities Act of 1933 (15 U.S.C. 77b(a))), or a security or
an equity security (as those terms are defined in section
3(a) of the Securities Exchange Act of 1934 (15 U.S.C.
78c(a))); and
(iv) anything else of value that the Secretary of the
Treasury determines to be appropriate.
(C) Senior foreign political figure.--The term ``senior
foreign political figure'' has the meaning given that term in
section 1010.605 of title 31, Code of Federal Regulations (or
any successor regulation).
(c) Report on Individuals Who Are Members of the Lebanese
Parliament and Who Identify as Members of Hizballah.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the President shall transmit to
the appropriate congressional committees a report that
contains the following:
(A) A list of individuals who are members of the Lebanese
Parliament and who identify as members of Hizballah.
(B) A description of any significant conduct of individuals
on the list required under subparagraph (A) that the
President determines may be grounds for designation pursuant
to Executive Order 13224 (50 U.S.C. 1701 note; relating to
blocking property and prohibiting transactions with persons
who commit, threaten to commit, or support terrorism).
(2) Form.--The report required under paragraph (1) shall be
transmitted in unclassified form, but may include a
classified annex.
(3) Appropriate congressional committees defined.--In this
subsection, the term ``appropriate congressional committees''
means--
(A) the Committee on Foreign Affairs, the Committee on
Financial Services, and the Permanent Select Committee on
Intelligence of the House of Representatives; and
(B) the Committee on Foreign Relations, the Committee on
Banking, Housing, and Urban Affairs, and the Select Committee
on Intelligence of the Senate.
TITLE III--GENERAL PROVISIONS
SEC. 301. REGULATORY AUTHORITY.
(a) In General.--The President shall, not later than 180
days after the date of the enactment of this Act, prescribe
regulations as necessary for the implementation of this Act
and the amendments made by this Act.
(b) Notification to Congress.--Not later than 10 days
before the prescription of regulations under subsection (a),
the President shall notify the appropriate congressional
committees regarding the proposed regulations and the
provisions of this Act and the amendments made by this Act
that the regulations are implementing.
(c) Appropriate Congressional Committees Defined.--In this
section, the term ``appropriate congressional committees''
means--
(1) the Committee on Foreign Affairs and the Committee on
Financial Services of the House of Representatives; and
(2) the Committee on Foreign Relations and the Committee on
Banking, Housing, and Urban Affairs of the Senate.
SEC. 302. IMPLEMENTATION; PENALTIES; JUDICIAL REVIEW;
EXEMPTIONS; RULE OF CONSTRUCTION; EXCEPTION
RELATING TO IMPORTATION OF GOODS.
(a) In General.--Title I of the Hizballah International
Financing Prevention Act of 2015 (Public Law 114-102; 50
U.S.C. 1701 note), as amended by sections 103 and 104 of this
Act, is further amended by adding at the end the following:
``SEC. 105. IMPLEMENTATION; PENALTIES; JUDICIAL REVIEW;
EXEMPTIONS; RULE OF CONSTRUCTION.
``(a) Implementation.--The President may exercise all
authorities provided under sections 203 and 205 of the
International Emergency Economic Powers Act (50 U.S.C. 1702
and 1704) to carry out sections 101, 102, 103, and 201 of
this Act.
``(b) Penalties.--The penalties provided for in subsections
(b) and (c) of section 206 of the International Emergency
Economic Powers Act (50 U.S.C. 1705) shall apply to a person
that violates, attempts to violate, conspires to violate, or
causes a violation of regulations prescribed to carry out
section 101, 102, 103, or 201 of this Act to the same extent
that such penalties apply to a person that commits an
unlawful act described in subsection (a) of such section 206.
``(c) Procedures for Judicial Review of Classified
Information.--
``(1) In general.--If a finding under section 101, 102,
103, or 201 of this Act, or a prohibition, condition, or
penalty imposed as a result of any such finding, is based on
classified information (as defined in section 1(a) of the
Classified Information Procedures Act (18 U.S.C. App.)) and a
court reviews the finding or the imposition of the
prohibition, condition, or penalty, the President may submit
such information to the court ex parte and in camera.
``(2) Rule of construction.--Nothing in this subsection
shall be construed to confer or imply any right to judicial
review of any finding under section 101, 102, 103, or 201 of
this Act, or any prohibition, condition, or penalty imposed
as a result of any such finding.
``(d) Exemptions.--The following activities shall be exempt
from sections 101, 102, 103, and 201 of this Act:
``(1) Any authorized intelligence, law enforcement, or
national security activities of the United States.
``(2) Any transaction necessary to comply with United
States obligations under the Agreement between the United
Nations and the United States of America regarding the
Headquarters of the United States, signed at Lake Success
June 26, 1947, and entered into force November 21, 1947, or
the Convention on Consular Relations, done at Vienna April
24, 1963, and entered into force March 19, 1967, or any other
United States international agreement.
``(e) Rule of Construction.--Nothing in section 101, 102,
103, or 201 of this Act shall be construed to limit the
authority of the President under the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.) or under any
other provision of law.
``(f) Exception Relating to Importation of Goods.--
``(1) In general.--The authorities and requirements to
impose sanctions under this Act shall not include the
authority or requirement to impose sanctions on the
importation of goods.
``(2) Definition.--In this subsection, the term `good'
means any article, natural or manmade substance, material,
supply or manufactured product, including inspection and test
equipment, and excluding technical data.''.
(b) Clerical Amendment.--The table of contents for the
Hizballah International Financing Prevention Act of 2015, as
amended by this Act, is further amended by inserting after
the item relating to section 104, as added by section 104(b)
of this Act, the following new item:
``Sec. 105. Implementation; penalties; judicial review; exemptions;
rule of construction.''.
(c) Conforming Amendments.--Section 102 of the Hizballah
International Financing Prevention Act of 2015 (Public Law
114-102; 50 U.S.C. 1701 note) is amended--
(1) in subsection (a), by striking paragraphs (3) and (4);
(2) by striking subsection (e); and
(3) by redesignating subsection (f) as subsection (e).
SEC. 303. REPORT CONSOLIDATION AND MODIFICATION.
(a) In General.--Any and all reports required to be
submitted to Congress under this Act or the Hizballah
International Financing Prevention Act of 2015 (Public Law
114-102; 50 U.S.C. 1701 note) that are subject to a deadline
for submission consisting of the same unit of time may be
consolidated into a single report that is submitted to
Congress pursuant to such deadline.
(b) Matters to Be Included.--Any report that is
consolidated into a single report as
[[Page H8876]]
described in subsection (a) shall contain all information
required under this Act or the Hizballah International
Financing Prevention Act of 2015 in addition to all other
elements required by previous law.
(c) Reports Modification.--The North Korea Sanctions and
Policy Enhancement Act of 2016 is amended as follows:
(1) In section 209(a)(3)(A) (22 U.S.C. 9229(a)(3)(A)), by
striking ``not later than 90 days after the date of the
enactment of this Act, and every 180 days thereafter'' and
inserting ``not later than 90 days after the date of the
enactment of the Hizballah International Financing Prevention
Amendments Act of 2018, and every 180 days thereafter for 5
years''.
(2) In section 302(a) (22 U.S.C. 9241(a)), by striking
``Not later than 180 days after the date of the enactment of
this Act'' and inserting ``Not later than 120 days after the
date of the enactment of the Hizballah International
Financing Prevention Amendments Act of 2018, and periodically
thereafter''.
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
Florida (Ms. Ros-Lehtinen) and the gentleman from New York (Mr. Engel)
each will control 20 minutes.
The Chair recognizes the gentlewoman from Florida.
General Leave
Ms. ROS-LEHTINEN. Mr. Speaker, I ask unanimous consent that all
Members have 5 legislative days to revise and extend their remarks and
to include extraneous material on this measure.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from Florida?
There was no objection.
Ms. ROS-LEHTINEN. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, today, we will consider a House-Senate agreement on
additional measures targeting Hezbollah, Iran's leading terrorist
proxy, with tough new sanctions that we will impose with this bill.
Last Congress, the Hizballah International Financing Prevention Act
was signed into law. This legislation threatened to cut off any
financial institution that knowingly facilitates significant
transactions for Hezbollah from the U.S. financial system. That was a
major step in the financial fight against Hezbollah.
In the immediate aftermath of the law's enactment, Hezbollah's leader
gave a public speech blasting U.S. sanctions as ``unjust and false
accusations.''
Hezbollah also asserted that it ``does not have any funds in any bank
in the world . . . or in Lebanese banks and the central bank and the
directors of banks must not panic.''
Well, if a terrorist organization must publicly state that they are
not panicking, then they are definitely panicking. And Hezbollah was
panicking, Mr. Speaker, following the passage of this landmark
legislation.
Hezbollah reportedly had to cut salaries, defer payments to
suppliers, and slash money stipends to allied parties. Facing increased
financial pressure, Hezbollah has also lashed out most recently by
bombing a Lebanese bank in an effort to intimidate the board members
into noncompliance. But Hezbollah's cowardly stance and its scare
tactics have not worked.
Lebanese banks have gone above and beyond the letter of the new U.S.
law to proactively offload Hezbollah-linked bank accounts, forcing
Hezbollah to look elsewhere for financial services.
Yet, as time has progressed, Hezbollah has found temporary, albeit
cumbersome, workarounds. It is time to send Hezbollah into a panic
again, and this new legislation that we are considering tonight will do
just that.
First, the legislation mandates the application of sanctions against
agencies of foreign states that provide weapons to Hezbollah--namely,
Iran. Iran is the principal, external financial backer of Hezbollah, a
fact that the leader of Hezbollah has openly admitted to for years.
It is estimated that Iranian funding to Hezbollah exceeds $700
million per year. This is in addition to a rapid expansion in both the
quantity and the quality of weapons provided to Hezbollah by Iran.
In May, the Treasury Department imposed sanctions on the governor of
the Central Bank of Iran and another senior bank official, accusing
them of funneling millions of dollars to Hezbollah. But more can be
done, and more must be done.
This new legislation takes aim at Hezbollah's enablers, both inside
and outside of Lebanon. It mandates sanctions against any person or
entity that engages in a transaction with anyone aiding Hezbollah's
fundraising or recruitment.
This includes Hezbollah's foreign relations department, its
television station, and its companies that maintain Hezbollah's social
media accounts.
This legislation also requires the administration to issue a report
laying out the assets of senior Hezbollah members and associates. This
should clearly be applicable to Hezbollah's senior allies in the
Lebanese Government.
Hezbollah is constantly expanding and exploiting its extensive
criminal networks from narcotics trafficking to human trafficking in
order to escape sanctions and attack Western interests. So to address
this new threat, this legislation also imposes transnational organized
criminal organization sanctions on Hezbollah's criminal networks, and
it requires the administration to report to us in Congress on
Hezbollah's racketeering activities, which can serve as a basis for
applying RICO penalties to Hezbollah.
In sum, Mr. Speaker, this legislation is an important expansion of
our efforts to take aim at Hezbollah, to take aim at its enablers, and
to take aim at its state sponsor, Iran.
Mr. Speaker, I urge my colleagues to support this effort to ensure
that the United States continues to have the tools to respond to the
threats caused by Hezbollah.
Mr. Speaker, I reserve the balance of my time.
House of Representatives,
Committee on Financial Services,
Washington, DC, September 7, 2018.
Hon. Ed Royce,
Chairman, Committee on Foreign Affairs,
Washington, DC.
Dear Chairman Chairman Royce: I am writing concerning S.
1595, the Hizballah International Financing Prevention
Amendments Act of 2017.
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 S. 1595, 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 S. 1595 and
would ask that a copy of our exchange of letters on this
matter be included in the Congressional Record during floor
consideration thereof.
Sincerely,
Jeb Hensarling,
Chairman.
____
House of Representatives,
Committee on Foreign Affairs,
Washington, DC, September 7, 2018.
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 S. 1595, 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 bill 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 S. 1595 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 the Judiciary,
Washington, DC, September 7, 2018.
Hon. Edward R. Royce,
Chairman, Committee on Foreign Affairs,
Washington, DC.
Dear Chairman Royce, I write with respect to S. 1595, the
``Hizballah International Financing Prevention Amendments
Act.'' As
[[Page H8877]]
a result of your having consulted with us on provisions
within S. 1595 that fall within the Rule X jurisdiction of
the Committee on the Judiciary, I forego any further
consideration of this bill so that it may proceed
expeditiously to the House floor for consideration.
The Judiciary Committee takes this action with our mutual
understanding that by foregoing consideration of S. 1595 at
this time, we do not waive any jurisdiction over subject
matter contained in this or similar legislation and that our
committee will be appropriately consulted and involved as
this bill or similar legislation moves forward so that we may
address any remaining issues in our 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 asks
that you support any such request.
I would appreciate a response to this letter confirming
this understanding with respect to S. 1595 and would ask that
a copy of our exchange of letters on this matter be included
in the Congressional Record during floor consideration of the
bill.
Sincerely,
Bob Goodlatte,
Chairman.
____
House of Representatives,
Committee on Foreign Affairs,
Washington, DC, September 7, 2018.
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 S. 1595, 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 bill 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 S. 1595 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 strong support of this measure. Let me first
thank our chairman on the Foreign Affairs Committee, Ed Royce, who has
done great work to get this bill to the finish line.
I want to especially thank my dear friend and colleague, Ileana Ros-
Lehtinen, who was so instrumental in crafting this bill and then
getting it passed, like so many other things she has done for so many
years on the Foreign Affairs Committee. It has just been an honor and a
pleasure to work with her, and we are going to miss her. But she has
done some great work, and people's lives will be saved because of the
work that Ileana Ros-Lehtinen has done, so I want to thank her.
I am also grateful to the Members of the other body who have helped
push this measure forward. This bill is the product of a good,
bipartisan effort aimed at a clear goal to isolate Hezbollah, one of
the world's most dangerous terrorist organizations.
With hundreds of thousands of rockets pointed at Israel and fighters
returning home, battle-hardened from years fighting alongside the Assad
regime in Syria, Hezbollah has become more sophisticated and more
lethal.
Hezbollah, with support from Iran, has served as a lifeline to Assad,
allowing his regime to butcher the Syrian people. Without Hezbollah's
support, Assad would have been swept out of power years ago.
When he was losing, Hezbollah came in. Iran unleashed Hezbollah, and
they turned the tide in the war. Birds of a feather flock together,
unfortunately, and Hezbollah has also gained from this relationship.
The war in Syria bound Hezbollah and Russia together. The result was
deeper coordination and training between the two. Russia talks a good
game about fighting terrorism, but its partnership with Hezbollah has
shown that Moscow is eager to collaborate with a group that has
American blood on its hands.
Now is the time to choke Hezbollah off from its patrons. This bill
would give the administration every tool it needs to confront this
dangerous group. With this measure, we build on a 2015 law by imposing
sanctions on anyone who knowingly supports Hezbollah's fundraising and
recruitment efforts.
As terrorist groups, including Hezbollah, rely more and more on
online crowd sourcing and social media to spread their message, we need
to be one step ahead.
This bipartisan legislation also imposes sanctions on any part of a
foreign government that supplies material support or arms to Hezbollah.
{time} 2230
That could include Russia and Iran for the training and assistance
they provide to Hezbollah in Syria.
This measure would also ramp up oversight on the administration's
strategies when it comes to diplomatic engagement to shut off
Hezbollah's networks and safe havens. This legislation is meant to
signal to anyone who supports Hezbollah: Your time is up.
Let me add a final note about Hezbollah as it concerns Lebanon. I
have been a friend of Lebanon for many years. Back in 2003, I wrote the
Syria Accountability and Lebanese Sovereignty Restoration Act with my
friend Congresswoman Ileana Ros-Lehtinen. We pressed Syria to get out
of Lebanon and allow Lebanon to secure its own independence, free from
Syria's outside influence.
Unfortunately, Hezbollah has, so far, endured as a fact of life in
Lebanese politics. The Lebanese people deserve better. Hezbollah should
stop holding the Lebanese people hostage to its radical agenda.
Mr. Speaker, I urge my colleagues to support this legislation, and I
reserve the balance of my time.
Ms. ROS-LEHTINEN. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I thank the chairman of our very bipartisan committee,
the Foreign Affairs Committee, Chairman Ed Royce, as well as Matt Zweig
on his staff--he will be embarrassed that I say that--and Ranking
Member Eliot Engel. I thank Mr. Engel for those wonderful words. I am
going to miss working with him greatly. We have worked on so many
important pieces of legislation together. And Mira Resnick and Edmund
Rice on his staff, what a delight they have been. I thank them for
their collaboration in developing this critical legislation. I am going
to miss working with all of them.
I also want to thank Senate Banking Chairman Mike Crapo and Ranking
Member Sherrod Brown, and John O'Hara and Colin McGinnis of their
staff, for their hard work and commitment to achieving the strong,
sound, bipartisan agreement that we have before us today.
Finally, I thank my hometown Senator, Senator Rubio, as well as
Senator Shaheen, who have taken the lead on this effort on the other
side.
For 30 years, Mr. Speaker, Hezbollah has remained Iran's proxy. Iran
remains Hezbollah's primary source of financial support. What a
terrible relationship these two have had.
This bill builds on our past efforts. It ramps up pressure on this
dangerous terrorist group. It sanctions regimes, including Iran and
Syria, because they are providing weapons to Hezbollah. It targets
Hezbollah's innovative fund-raising and recruiting efforts, including
its attempt to crowdsource small donations to support its fighters. And
it recognizes that Hezbollah is more than a terrorist group; it is also
a global criminal organization, an enterprise that profits from drug
trafficking, money laundering, and counterfeiting.
This bill gives the administration the tools to respond accordingly.
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. And we have to continue to work
together to confront this threat.
Mr. Speaker, I reserve the balance of my time.
Mr. ENGEL. Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, in closing, Hezbollah is a threat to peace and stability
across the Middle East. This group is emerging from the Syrian civil
war even more dangerous and determined to spread its hatred and
violence. Their tactics have grown more sophisticated, and we need to
give the administration every tool we can to crack down on this group.
This bill is a strong move in that direction. It is a great example of
what we can produce when we work
[[Page H8878]]
across the aisle on national security issues.
Let me say, I never hesitate to say how proud I am of the Foreign
Affairs Committee and Chairman Ed Royce and the leadership of the
committee on both sides of the aisle for what we think as being the
most bipartisan committee in Congress. It is important when we are
talking about foreign policy that America speak with one voice, and it
is important when we talk about foreign policy that politics stops at
the water's edge.
This bill is a very important bill. It is a great example of what we
can produce when we work across the aisle, and I am glad we are getting
it across the finish line before we wrap up our work this month.
Mr. Speaker, I urge a ``yes'' vote, and I yield back the balance of
my time.
Ms. ROS-LEHTINEN. Mr. Speaker, I echo Mr. Engel's remarks that, under
the leadership of Chairman Royce and Ranking Member Engel, our Foreign
Affairs Committee is one of the most bipartisan committees of the
House.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentlewoman from Florida (Ms. Ros-Lehtinen) that the House suspend the
rules and pass the bill, S. 1595, 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.
____________________