[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4411 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 4411
To prevent Hezbollah and associated entities from gaining access to
international financial and other institutions, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 7, 2014
Mr. Meadows (for himself, Mr. Schneider, Mr. Royce, and Mr. Engel)
introduced the following bill; which was referred to the Committee on
Foreign Affairs, and in addition to the Committee on Financial
Services, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To prevent Hezbollah and associated entities from gaining access to
international financial and other institutions, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Hezbollah International Financing
Prevention Act of 2014''.
TITLE I--PREVENTION OF ACCESS BY HEZBOLLAH TO INTERNATIONAL FINANCIAL
AND OTHER INSTITUTIONS
SEC. 101. FINDINGS; STATEMENT OF POLICY.
(a) Findings.--Congress finds the following:
(1) The United States Government holds Hezbollah
responsible for the largest number of American deaths overseas
by a terrorist organization prior to the attacks of September
11, 2001, including a number of attacks on and hostage takings
targeting Americans in Lebanon during the 1980s, including the
bombing of the United States Embassy in Beirut in April 1983,
and the bombing of the United States Marine barracks in October
1983.
(2) Hezbollah's operations outside of Lebanon, including
its participation in bombings of Israeli and Jewish
institutions in Argentina during the 1990s, recent support to
Shiite insurgents in Iraq, recent attacks and attempted attacks
in Europe, Southeast Asia, and elsewhere, and extensive
international operational, logistical, and financial networks
have rendered it a capable and deadly adversary with global
reach.
(3) Hezbollah has been designated as a terrorist
organization by the United States since 1995, and remains on
foreign terrorist organization and Specially Designated
Terrorist lists.
(4) In March 2013, a Cypriot court convicted a Hezbollah
member for participation in a criminal organization, planning
to commit a crime and money laundering. In July 2013, the
Bulgarian government concluded that Hezbollah was responsible
for the 2012 Burgas bombing, which killed six people.
(5) In July 2013, the European Union designated the
military wing of Hezbollah as a terrorist organization. The
designation helps to facilitate European law enforcement
agencies' actions against Hezbollah's fundraising, logistical
activity, and terrorist plotting on European soil.
(6) In July 2013, the Gulf Cooperation Council, consisting
of Saudi Arabia, Qatar, Bahrain, Kuwait, Oman and the United
Arab Emirates, declared Hezbollah a terrorist organization.
(7) Hezbollah continues to provide material assistance,
including assuming a combat role, in Syria, and aids the
Government of Iran and the Government of Syria in their human
rights and other abuses perpetrated against the Syrian people.
(8) An estimated 5,000 Hezbollah fighters are supporting
the Assad regime in Syria by fighting on his behalf and by
providing military training, advice and logistical support to
regime forces.
(9) Hezbollah continues to serve as a proxy of Iran, in its
effort to target the United States and its allies and
interests.
(10) Hezbollah's global logistics and financial network
serves as a lifeline to the organization, and enables it to
consolidate power within Lebanon and provides it with the
capabilities to perpetrate complex attacks internationally.
(11) Hezbollah has evolved into a significant drug
smuggling organization, and also engages in other serious
criminal activity, including money laundering, counterfeiting
pharmaceuticals, and trade in conflict diamonds.
(12) In April 2013, the Department of the Treasury
blacklisted two Lebanese exchange houses, Kassem Rmeiti & Co.
and Halawi Exchange Co., for laundering drug profits for
Hezbollah, and stated that Hezbollah was operating like ``an
international drug cartel''.
(13) In 2009, the Department of the Treasury blacklisted
the Lebanese Canadian Bank as a primary money laundering
concern, alleging that it is part of a drug trafficking network
that profited Hezbollah by moving approximately $200,000,000
per month.
(14) The Department of Justice reports that 29 of the 63
organizations on its FY 2010 Consolidated Priority Organization
Targets list, which includes the most significant international
drug trafficking organizations (DTOs) threatening the United
States, were associated with terrorist groups. There is concern
about Hezbollah's drug and criminal activities, as well as
indications of links between al-Qa`ida in the Lands of the
Islamic Maghreb and the drug trade.
(15) Al-Manar, the Lebanese satellite television station
affiliated with Hezbollah broadcasting from Beirut, Lebanon,
was designated as a Specially Designated Global Terrorist
entity in 2004, but continues to be carried by international
broadcasting agents.
(16) Hezbollah continues to present a threat to the United
States and its allies and interests.
(b) Statement of Policy.--It shall be the policy of the United
States to--
(1) prevent Hezbollah's global logistics and financial
network from operating in order to curtail funding of its
domestic and international activities; and
(2) utilize all available diplomatic, legislative, and
executive avenues to combat the criminal activities of
Hezbollah as a means to block that organization's ability to
fund its global terrorist activities.
SEC. 102. REPORT ON IMPOSITION OF SANCTIONS ON CERTAIN SATELLITE
PROVIDERS THAT CARRY AL-MANAR TV.
(a) In General.--Not later than 30 days after the date of the
enactment of this Act, the President shall submit to the Committee on
Foreign Affairs of the House of Representatives and the Committee on
Foreign Relations of the Senate a report that includes--
(1) a list of all satellite, broadcast, or other providers
that knowingly transmits or otherwise broadcasts the content of
al-Manar TV, and any affiliates or successors thereof; and
(2) with respect to all providers included on the list
pursuant to paragraph (1)--
(A) an identification of those providers that have
been sanctioned pursuant to Executive Order 13224
(September 23, 2001); and
(B) an identification of those providers that have
not been sanctioned pursuant to Executive Order 13224
and, with respect to each such provider, the reason why
sanctions have not been imposed.
(b) Form.--The report required by subsection (a) shall be submitted
in unclassified form to the greatest extent possible, and may contain a
classified annex.
SEC. 103. SANCTIONS WITH RESPECT TO FINANCIAL INSTITUTIONS THAT ENGAGE
IN CERTAIN TRANSACTIONS.
(a) Prohibitions and Conditions With Respect to Certain Accounts
Held by Foreign Financial Institutions.--
(1) In general.--Not later than 90 days after the date of
the enactment of this Act, the Secretary of the Treasury, with
the concurrence of the Secretary of State and in consultation
with the heads of other applicable departments and agencies,
shall prohibit, or impose strict conditions on, the opening or
maintaining in the United States of a correspondent account or
a payable-through account by a foreign financial institution
that the Secretary finds engages in an activity described in
paragraph (2).
(2) Activities described.--A foreign financial institution
engages in an activity described in this paragraph if the
foreign financial institution--
(A) knowingly facilitates the activities of
Hezbollah, including its agents, instrumentalities,
affiliates, or successors;
(B) knowingly facilitates the activities of a
person acting on behalf of or at the direction of, or
owned or controlled by, a person described in
subparagraph (A);
(C) knowingly engages in money laundering to carry
out an activity described in subparagraph (A) or (B);
(D) knowingly facilitates a significant transaction
or transactions or provides significant financial
services to carry out an activity described in
subparagraph (A), (B), or (C), including facilitating a
significant transaction or transactions or providing
significant financial services that involve a
transaction of gold, silver, platinum, or other
precious metals; or
(E)(i) knowingly facilitates, or participates or
assists in, an activity described in subparagraph (A),
(B), (C), or (D), including by acting on behalf of, at
the direction of, or as an intermediary for, or
otherwise assisting, another person with respect to the
activity described in any such subparagraph;
(ii) knowingly attempts or conspires to facilitate
or participate in an activity described in subparagraph
(A), (B), (C), or (D); or
(iii) is owned or controlled by a foreign financial
institution that the Secretary finds knowingly engages
in an activity described in subparagraph (A), (B), (C),
or (D).
(3) Penalties.--The penalties provided for in subsections
(b) and (c) of section 206 of the International Emergency
Economic Powers Act (50 U.S.C. 1705) shall apply to a person
that violates, attempts to violate, conspires to violate, or
causes a violation of regulations prescribed under paragraph
(1) of this subsection to the same extent that such penalties
apply to a person that commits an unlawful act described in
section 206(a) of that Act.
(4) Regulations.--The Secretary of the Treasury shall
prescribe and implement regulations to carry out this
subsection.
(b) Requirements for Financial Institutions Maintaining Accounts
for Foreign Financial Institutions.--
(1) In general.--Not later than 90 days after the date of
the enactment of this Act, the Secretary of the Treasury shall
prescribe regulations to require a domestic financial
institution maintaining a correspondent account or payable-
through account in the United States for a foreign financial
institution to do one or more of the following:
(A) Report to the Department of the Treasury with
respect to financial transactions or other financial
services provided with respect to any activity
described in subsection (a).
(B) Provide timely and accurate information to
domestic financial institutions maintaining a
correspondent account or payable-through account in the
United States for a foreign financial institution with
respect to any activity described in subsection (a).
(C) Establish due diligence policies, procedures,
and controls, such as the due diligence policies,
procedures, and controls described in section 5318(i)
of title 31, United States Code, reasonably designed to
detect whether the Secretary of the Treasury has found
the foreign financial institution to knowingly engage
in any activity described in subsection (a).
(2) Penalties.--The penalties provided for in sections
5321(a) and 5322 of title 31, United States Code, shall apply
to a person that violates a regulation prescribed under
paragraph (1) of this subsection, in the same manner and to the
same extent as such penalties would apply to any person that is
otherwise subject to such section 5321(a) or 5322.
(c) Waiver.--The Secretary of the Treasury, with the concurrence of
the Secretary of State and in consultation with the heads of other
applicable departments and agencies, may waive the application of a
prohibition or condition imposed with respect to a foreign financial
institution pursuant to subsection (a) on and after the date that is 30
days after the Secretary of the Treasury, with the concurrence of the
Secretary of State--
(1) determines that such a waiver is vital to the national
security interests of the United States; and
(2) submits to the appropriate congressional committees a
report describing the reasons for the determination.
(d) Provisions Relating to Foreign Central Banks.--
(1) Report.--Not later than 45 days after the date of the
enactment of this Act, and every 180 days thereafter, the
Secretary of the Treasury shall submit to the appropriate
congressional committees a report that--
(A) identifies each foreign central bank that the
Secretary finds engages in one or more activities
described in subsection (a)(2)(D); and
(B) provides a detailed description of each such
activity.
(2) Special rule to allow for termination of sanctionable
activity.--The Secretary of the Treasury shall not be required
to apply sanctions to a foreign central bank described in the
report required under paragraph (1) if the Secretary of the
Treasury, with the concurrence of the Secretary of State and in
consultation with the heads of other applicable departments and
agencies, certifies in writing to the appropriate congressional
committees that--
(A) the foreign central bank--
(i) is no longer engaging in the activity
described in subsection (a)(2)(D); or
(ii) has taken significant verifiable steps
toward terminating the activity described in
subsection (a)(2)(D) not later than 90 days
after the date on which the Secretary makes
such certification; and
(B) the Secretary has received reliable assurances
from the government with primary jurisdiction over the
foreign central bank that the foreign central bank will
not engage in any activity described in subsection
(a)(2)(D) in the future.
(e) Definitions.--
(1) In general.--In this section:
(A) Account; correspondent account; payable-through
account.--The terms ``account'', ``correspondent
account'', and ``payable-through account'' have the
meanings given those terms in section 5318A of title
31, United States Code.
(B) Agent.--The term ``agent'' includes an entity
established by a person for purposes of conducting
transactions on behalf of the person in order to
conceal the identity of the person.
(C) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(i) the Committee on Foreign Affairs and
the Committee on Financial Services of the
House of Representatives; and
(ii) the Committee on Foreign Relations and
the Committee on Banking, Housing, and Urban
Affairs of the Senate.
(D) Financial institution.--The term ``financial
institution'' means a financial institution specified
in subparagraph (A), (B), (C), (D), (E), (F), (G), (H),
(I), (J), (K), (M), (N), (R), or (Y) of section
5312(a)(2) of title 31, United States Code.
(E) Foreign financial institution; domestic
financial institution.--
(i) Foreign financial institution.--The
term ``foreign financial institution''--
(I) has the meaning of such term as
determined by the Secretary of the
Treasury; and
(II) includes a foreign central
bank.
(ii) Domestic financial institution.--The
term ``domestic financial institution'' has the
meaning of such term as determined by the
Secretary of the Treasury.
(F) Money laundering.--The term ``money
laundering'' means any of the activities described in
paragraph (1), (2), or (3) of section 1956(a) of title
18, United States Code, with respect to which penalties
may be imposed pursuant to such section.
(2) Other definitions.--The Secretary of the Treasury may
further define the terms used in this section in the
regulations prescribed under this section.
TITLE II--DESIGNATION OF HEZBOLLAH AS A MAJOR DRUG SMUGGLING ENTERPRISE
AND A TRANSNATIONAL CRIMINAL ORGANIZATION
SEC. 201. DESIGNATION OF HEZBOLLAH AS SIGNIFICANT FOREIGN NARCOTICS
TRAFFICKERS.
(a) In General.--Not later than 30 days after the date of the
enactment of this Act, the President shall determine if Hezbollah meets
the criteria specified for designation of a significant foreign
narcotics trafficker under the Foreign Narcotics Kingpin Designation
Act (21 U.S.C. 1901 et seq.).
(b) Affirmative Determination.--If the President determines under
subsection (a) that Hezbollah meets the criteria set forth under the
Foreign Narcotics Kingpin Designation Act (21 U.S.C. 1901 et seq.), the
President shall designate Hezbollah as a significant foreign narcotics
trafficker under such Act.
(c) Negative Determination.--
(1) In general.--If the President determines under
subsection (a) that Hezbollah does not meet the criteria set
forth under the Foreign Narcotics Kingpin Designation Act (21
U.S.C. 1901 et seq.), the President shall submit to the
appropriate congressional committees a report that contains a
detailed justification as to which criteria have not been met.
(2) Form.--The report required under paragraph (1) shall be
submitted in unclassified form, but may contain classified
annex, if necessary.
SEC. 202. DESIGNATION OF HEZBOLLAH AS A SIGNIFICANT TRANSNATIONAL
CRIMINAL ORGANIZATION.
(a) In General.--Not later than 30 days after the date of the
enactment of this Act, the President shall determine if Hezbollah meets
the criteria specified for designation as a significant transnational
criminal organization under Executive Order 13581 (76 Fed. Reg. 44757),
and the authorities granted to the President under the International
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), the National
Emergencies Act (50 U.S.C. 1601 et seq.), and section 301 of title 3,
United States Code.
(b) Affirmative Determination.--If the President determines under
subsection (a) that Hezbollah meets the criteria set forth under the
orders and statutes specified in subsection (a), the President shall
designate Hezbollah a significant transnational criminal organization
under such orders and statutes.
(c) Negative Determination.--
(1) In general.--If the President determines under
subsection (a) that Hezbollah does not meet the criteria set
forth under the orders and statutes specified in subsection
(a), the President shall submit to the appropriate
congressional committees a report that contains a detailed
justification as to which criteria have not been met.
(2) Form.--The report required under paragraph (1) shall be
submitted in unclassified form, but may contain classified
annex, if necessary.
SEC. 203. REPORT ON HEZBOLLAH'S INVOLVEMENT IN THE TRADE OF CONFLICT
DIAMONDS.
(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
Committee on Foreign Affairs of the House of Representatives and the
Committee on Foreign Relations of the Senate a report detailing
Hezbollah's involvement in the trade in rough diamonds outside of the
Kimberly Process Certification Scheme.
(b) Form.--The report required by subsection (a) shall be submitted
in unclassified form, but may contain a classified annex.
SEC. 204. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.
In this title, the term ``appropriate congressional committees''
means--
(1) the Committee on Foreign Affairs, the Committee on
Financial Services, and the Committee on the Judiciary of the
House of Representatives; and
(2) the Committee on Foreign Relations, the Committee on
Finance, and the Committee on the Judiciary of the Senate.
TITLE III--MISCELLANEOUS PROVISIONS
SEC. 301. RULE OF CONSTRUCTION.
Nothing in this Act or any amendment made by this Act shall apply
to the authorized intelligence activities of the United States.
SEC. 302. REGULATORY AUTHORITY.
(a) In General.--The President shall, not later than 90 days after
the date of the enactment of this Act, promulgate regulations as
necessary for the implementation of this Act and the amendments made by
this Act.
(b) Notification to Congress.--Not less than 10 days prior to the
promulgation of regulations under subsection (a), the President shall
notify the appropriate congressional committees (as defined in section
204) of the proposed regulations and the provisions of this Act and the
amendments made by this Act that the regulations are implementing.
SEC. 303. TERMINATION.
Any provision of this Act or amendment made by this Act shall cease
to be in effect beginning 30 days after the date on which the President
certifies to Congress that Hezbollah--
(1) is no longer designated as a foreign terrorist
organization pursuant to section 219 of the Immigration and
Nationality Act (8 U.S.C. 1189);
(2) is no longer listed in the Annex to Executive Order
13224 (September 23, 2001; relating to blocking property and
prohibiting transactions with persons who commit, threaten to
commit, or support terrorism); and
(3) poses no significant threat to United States national
security, interests, or allies.
<all>