[Congressional Record (Bound Edition), Volume 163 (2017), Part 11]
[House]
[Pages 16514-16522]
[From the U.S. 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.
  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;

[[Page 16515]]

       ``(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--
       ``(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

[[Page 16516]]

       (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 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).

[[Page 16517]]

       ``(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.
       (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

[[Page 16518]]

     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 
     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

[[Page 16519]]

     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 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

[[Page 16520]]

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.
       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

[[Page 16521]]

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 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

[[Page 16522]]

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.

                              {time}  1600

  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.
  Mr. JOHNSON of Georgia. Mr. Speaker, I rise to support H.R. 3329, the 
Hizballah International Financing Prevention Amendments Act of 2017. 
This is an important piece of legislation strengthening economic and 
financial sanctions on Hizballah and its enablers, and I am pleased to 
support it.
  Hizballah is an organization based in Lebanon that plays a major role 
in regional tensions in the Middle East. Based on existing 
intelligence, it is believed that Hizballah is simply being used as a 
proxy by foreign governments to fight against Israel and other western 
influences in the area. In order to prevent the situation from 
escalating, the first step is to prevent the group from being able to 
fund further military actions. H.R. 3329 would direct the President to 
apply sanctions that would freeze Hizballah's assets, prevent 
fundraising, and prevent financial institutions from working with the 
group. Furthermore, this legislation would extend financial sanctions 
to any foreign entity that provides funding to the group. The bill 
would also authorize the proper congressional committees to create 
reports on Hizballah's racketeering and international narcotics 
trafficking.
  This legislation requires the President to report valuable 
information to Congress regarding the relationships among Iran, other 
foreign countries, and the Hizballah organization. Opening up this line 
of communication will help Congress better decide how to apply future 
sanctions against these state sponsors of terrorism.
  With as many military bases as Georgia accommodates, I understand how 
conflict affects not only our nation, but also the young men and women 
who will be thrust into a needless international conflict. It is 
important that we take the necessary steps to prevent an escalation to 
prevent losing American lives in any conflict, which is why I 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.

                          ____________________