SECTION 1. SHORT TITLE.

    This Act may be cited as the ``End Financing to ISIL Act''.

SEC. 2. REPORT ON PERSONS THAT PROVIDE MATERIAL OR FINANCIAL SUPPORT TO 
              ISIL.

    (a) In General.--Not later than 30 days after the date of the 
enactment of this Act, and annually thereafter, the Secretary of the 
Treasury and the Secretary of State shall jointly submit to the 
appropriate congressional committees a report that contains the 
following:
            (1) An identification of each person that provides, 
        directly or indirectly, material or financial support to ISIL, 
        including purchasing oil or other materials that provide 
        funding for ISIL or other terrorist organizations operating in 
        the region.
            (2) An identification of the country in which such person 
        is located and a description of actions taken by the Secretary 
        of the Treasury and the Secretary of State to notify the 
        government of such country that--
                    (A) such person is located in such country; and
                    (B) such person is providing material or financial 
                support to ISIL or other terrorist organizations 
                operating in the region.
            (3) A description of actions taken by the government of 
        such country to restrict such person from providing material or 
        financial support to ISIL.
    (b) Form.--The report required by subsection (a) may be submitted 
in classified form to the extent necessary.
    (c) Appropriate Congressional Committees.--In this section, the 
term ``appropriate congressional committees'' means--
            (1) the Committee on Foreign Affairs, the Committee on 
        Armed Services, and the Permanent Select Committee on 
        Intelligence of the House of Representatives; and
            (2) the Committee on Foreign Relations, the Committee on 
        Armed Services, and the Select Committee on Intelligence of the 
        Senate.

SEC. 3. SUSPENSION OF MILITARY ASSISTANCE TO CERTAIN COUNTRIES.

    (a) In General.--The President shall suspend the provision of 
assistance described in subsection (b) to the government of a country 
that is identified in the report submitted under section 2 if the 
President determines that the government of such country has not taken 
actions to restrict each person that is located in such country from 
providing material or financial support to ISIL by not later than the 
date that is 30 days after the date on which the Secretary of the 
Treasury or the Secretary of State (as the case may be) has notified 
the government of the country as described in section 2(a)(2).
    (b) Assistance Described.--Assistance described in this subsection 
is assistance under the following provisions of law:
            (1) Section 21 of the Arms Export Control Act (22 U.S.C. 
        2761) (relating to Foreign Military Sales authorizations).
            (2) Section 23 of the Arms Export Control Act (22 U.S.C. 
        2763) (relating to the Foreign Military Financing program).
    (c) Notification.--The President shall submit to the Speaker of the 
House of Representatives and the President pro tempore of the Senate a 
notification of suspension of the provision of assistance described in 
subsection (b) to the government of a country under subsection (a) and 
the reasons therefor.

SEC. 4. TRANSACTIONS WITH COUNTRIES HARBORING PERSONS THAT PROVIDE 
              MATERIAL SUPPORT FOR TERRORIST ORGANIZATIONS.

    Chapter 3 of the Arms Export Control Act (22 U.S.C. 2771 et seq.) 
is amended by adding at the end the following new section:

``SEC. 40B. TRANSACTIONS WITH COUNTRIES HARBORING PERSONS THAT PROVIDE 
              MATERIAL SUPPORT FOR TERRORIST ORGANIZATIONS.

    ``(a) In General.--Except to the extent inconsistent with the 
purposes of this section, the prohibitions contained in subsections (a) 
and (b) of section 40 of this Act shall apply in the case of a country 
described in subsection (b) to the same extent and in the same manner 
as such prohibitions apply in the case of a country described in 
subsection (d) of such section.
    ``(b) Country Described.--
            ``(1) In general.--A country described in this subsection 
        is a country the government of which the Secretary of State 
        determines has knowledge of any persons that are located within 
        the territory of the country that provide material support for 
        terrorist organizations, including the selling of materials 
        that produce income for terrorist organizations.
            ``(2) Person defined.--In this paragraph, the term `person' 
        has the meaning given the term in section 5 of the End 
        Financing to ISIL Act.
    ``(c) Applicability of Other Provisions.--Except to the extent 
inconsistent with the purposes of this section, the provisions of 
subsections (e), (f), (g) (other than paragraph (2) of such 
subsection), (h), (i), (j), (k), and (l) (other than paragraphs (1), 
(4), and (5) of such subsection) of section 40 of this Act shall apply 
with respect to the application of this section to the same extent and 
in the same manner as such provisions apply with respect to the 
application of such section 40.''.

SEC. 5. DEFINITIONS.

    In this Act:
            (1) ISIL.--The term ``ISIL'' means any terrorist 
        organization referred to as the Islamic State of Iraq and the 
        Levant, as well as any successor organization.
            (2) Person.--
                    (A) In general.--The term ``person'' means--
                            (i) a natural person;
                            (ii) a corporation, business association, 
                        partnership, society, trust, financial 
                        institution, insurer, underwriter, guarantor, 
                        and any other business organization, any other 
                        nongovernmental entity, organization, or group, 
                        and any governmental entity operating as a 
                        business enterprise; and
                            (iii) any successor to any entity described 
                        in clause (ii).
                    (B) Application to governmental entities.--The term 
                ``person'' does not include a government or 
                governmental entity that is not operating as a business 
                enterprise.
End Financing to ISIL Act - Directs the Secretary of the Treasury and the Secretary of State to jointly submit to Congress an annual report that:   identifies each person that provides material or financial support to the Islamic State of Iraq and the Levant, as well as any successor organization (ISIL), including purchasing oil or other materials that fund ISIL or other terrorist organizations in the region;   identifies the country in which such person is located and describes actions taken by the Secretaries to notify the government of such country of these activities; and   describes actions taken by the government of such country to restrict these activities.  Directs the President to suspend foreign military sales and financing under the Arms Export Control Act to a listed country that has not taken actions to restrict persons in that country from providing material or financial support to ISIL.  Amends the Arms Export Control Act to apply the same transaction prohibitions provided for by that Act against countries supporting acts of international terrorism to a country whose government has knowledge of persons within its territory that provide material support for terrorist organizations, including selling materials that produce income for such organizations.
End Financing to ISIL Act