I 

109TH CONGRESS 

1ST SESSION H. R. 3007 

To combat terrorism financing, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 21, 2005 

Ms. HART introduced the following bill; which was referred to the Committee 

on the Judiciary, and in addition to the Committee on International Relations, 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 combat terrorism financing, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Combating Terrorism 

5 Financing Act of 2005’’. 

6 SEC. 2. INCREASED PENALTIES FOR TERRORISM FINANC7 ING. 

8 Section 206 of the International Emergency Eco9 nomic Powers Act (50 U.S.C. 1705) is amended— 
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1 (1) in subsection (a), by deleting ‘‘$10,000’’ 

2 and inserting ‘‘$50,000’’; and 

3 (2) in subsection (b), by deleting ‘‘ten years’’ 

4 and inserting ‘‘twenty years’’. 

5 SEC. 3. TERRORISM-RELATED SPECIFIED ACTIVITIES FOR 

6 MONEY LAUNDERING. 

7 (a) AMENDMENTS TO RICO.—Section 1961(1) of 

8 title 18, United States Code, is amended— 

9 (1) in subparagraph (B), by inserting ‘‘section 

10 1960 (relating to illegal money transmitters),’’ be11 fore ‘‘sections 2251’’; and 

12 (2) in subparagraph (F), by inserting ‘‘section 

13 274A (relating to unlawful employment of aliens),’’ 

14 before ‘‘section 277’’. 

15 (b) AMENDMENTS TO SECTION 1956(C)(7).—Section 

16 1956(c)(7)(D) of title 18, United States Code, is amended 

17 by— 

18 (1) inserting ‘‘, or section 2339C (relating to fi19 nancing of terrorism)’’ before ‘‘of this title’’; and 

20 (2) striking ‘‘or any felony violation of the For21 eign Corrupt Practices Act’’ and inserting ‘‘any fel22 ony violation of the Foreign Corrupt Practices Act, 

23 or any violation of section 208 of the Social Security 

24 Act (relating to obtaining funds through misuse of 

25 a social security number)’’. 
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1 (c) CONFORMING AMENDMENTS TO SECTIONS

2 1956(e) AND 1957(e).—

3 (1) Section 1956(e) of title 18, United States 

4 Code, is amended to read as follows: 

5 ‘‘(e) Violations of this section may be investigated by 

6 such components of the Department of Justice as the At7 torney General may direct, and by such components of the 

8 Department of the Treasury as the Secretary of the Treas9 ury may direct, as appropriate, and, with respect to of10 fenses over which the Department of Homeland Security 

11 has jurisdiction, by such components of the Department 

12 of Homeland Security as the Secretary of Homeland Secu13 rity may direct, and, with respect to offenses over which 

14 the United States Postal Service has jurisdiction, by the 

15 Postal Service. Such authority of the Secretary of the 

16 Treasury, the Secretary of Homeland Security, and the 

17 Postal Service shall be exercised in accordance with an 

18 agreement which shall be entered into by the Secretary 

19 of the Treasury, the Secretary of Homeland Security, the 

20 Postal Service, and the Attorney General. Violations of 

21 this section involving offenses described in paragraph 

22 (c)(7)(E) may be investigated by such components of the 

23 Department of Justice as the Attorney General may di24 rect, and the National Enforcement Investigations Center 

25 of the Environmental Protection Agency.’’. 
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1 (2) Section 1957(e) of title 18, United States 

2 Code, is amended to read as follows: 

3 ‘‘(e) Violations of this section may be investigated by 

4 such components of the Department of Justice as the At5 torney General may direct, and by such components of the 

6 Department of the Treasury as the Secretary of the Treas7 ury may direct, as appropriate, and, with respect to of8 fenses over which the Department of Homeland Security 

9 has jurisdiction, by such components of the Department 

10 of Homeland Security as the Secretary of Homeland Secu11 rity may direct, and, with respect to offenses over which 

12 the United States Postal Service has jurisdiction, by the 

13 Postal Service. Such authority of the Secretary of the 

14 Treasury, the Secretary of Homeland Security, and the 

15 Postal Service shall be exercised in accordance with an 

16 agreement which shall be entered into by the Secretary 

17 of the Treasury, the Secretary of Homeland Security, the 

18 Postal Service, and the Attorney General.’’. 

19 SEC. 4. ASSETS OF PERSONS COMMITTING TERRORIST 

20 ACTS AGAINST FOREIGN COUNTRIES OR 

21 INTERNATIONAL ORGANIZATIONS. 

22 Section 981(a)(1)(G) of title 18, United States Code, 

23 is amended— 

24 (1) by striking ‘‘or’’ at the end of clause (ii); 
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1 (2) by striking the period at the end of clause 

2 (iii) and inserting ‘‘; or’’; and 

3 (3) by inserting the following after clause (iii): 

4 ‘‘(iv) of any individual, entity, or or5 ganization engaged in planning or perpe6 trating any act of international terrorism 

7 (as defined in section 2331) against any 

8 international organization (as defined in 

9 section 209 of the State Department Basic 

10 Authorities Act of 1956 (22 U.S.C. 

11 4309(b)) or against any foreign Govern12 ment. Where the property sought for for13 feiture is located beyond the territorial 

14 boundaries of the United States, an act in 

15 furtherance of such planning or perpetra16 tion must have occurred within the juris17 diction of the United States.’’. 

18 SEC. 5. MONEY LAUNDERING THROUGH HAWALAS. 

19 Section 1956 of title 18, United States Code, is 

20 amended by adding at the end the following: 

21 ‘‘(j)(1) For the purposes of subsections (a)(1) and 

22 (a)(2), a transaction, transportation, transmission, or 

23 transfer of funds shall be considered to be one involving 

24 the proceeds of specified unlawful activity, if the trans25 action, transportation, transmission, or transfer is part of 
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1 a set of parallel or dependent transactions, any one of 

2 which involves the proceeds of specified unlawful activity. 

3 ‘‘(2) As used in this section, a ‘dependent trans4 action’ is one that completes or complements another 

5 transaction or one that would not have occurred but for 

6 another transaction.’’. 

7 SEC. 6. TECHNICAL AND CONFORMING AMENDMENTS RE8 LATING TO THE USA PATRIOT ACT. 

9 (a) TECHNICAL CORRECTIONS.— 

10 (1) Section 322 of Public Law 107–56 is 

11 amended by striking ‘‘title 18’’ and inserting ‘‘title 

12 28’’. 

13 (2) Section 5332(a)(1) of title 31, United 

14 States Code, is amended by striking ‘‘article of lug15 gage’’ and inserting ‘‘article of luggage or mail’’. 

16 (3) Section 1956(b)(3) and (4) of title 18, 

17 United States Code, are amended by striking ‘‘de18 scribed in paragraph (2)’’ each time it appears. 

19 (4) Section 981(k) of title 18, United States 

20 Code, is amended by striking ‘‘foreign bank’’ each 

21 time it appears and inserting ‘‘foreign bank or fi22 nancial institution’’. 

23 (b) CODIFICATION OF SECTION 316 OF THE USA 

24 PATRIOT ACT.— 
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1 (1) Chapter 46 of title 18, United States Code, 

2 is amended— 

3 (A) by inserting at the end the following: 

4 ‘‘§ 987. Anti-terrorist forfeiture protection 

5 ‘‘(a) RIGHT TO CONTEST.—An owner of property 

6 that is confiscated under this chapter or any other provi7 sion of law relating to the confiscation of assets of sus8 pected international terrorists, may contest that confisca9 tion by filing a claim in the manner set forth in the Fed10 eral Rules of Civil Procedure (Supplemental Rules for Cer11 tain Admiralty and Maritime Claims), and asserting as an 

12 affirmative defense that— 

13 ‘‘(1) the property is not subject to confiscation 

14 under such provision of law; or 

15 ‘‘(2) the innocent owner provisions of section 

16 983(d) apply to the case. 

17 ‘‘(b) EVIDENCE.—In considering a claim filed under 

18 this section, a court may admit evidence that is otherwise 

19 inadmissible under the Federal Rules of Evidence, if the 

20 court determines that the evidence is reliable, and that 

21 compliance with the Federal Rules of Evidence may jeop22 ardize the national security interests of the United States. 

23 ‘‘(c) CLARIFICATIONS.— 

24 ‘‘(1) PROTECTION OF RIGHTS.—The exclusion 

25 of certain provisions of Federal law from the defini-
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1 tion of the term ‘civil forfeiture statute’ in section 

2 983(i) shall not be construed to deny an owner of 

3 property the right to contest the confiscation of as4 sets of suspected international terrorists under— 

5 ‘‘(A) subsection (a) of this section; 

6 ‘‘(B) the Constitution; or 

7 ‘‘(C) subchapter II of chapter 5 of title 5, 

8 United States Code (commonly known as the 

9 ‘Administrative Procedure Act’). 

10 ‘‘(2) SAVINGS CLAUSE.—Nothing in this section 

11 shall limit or otherwise affect any other remedies 

12 that may be available to an owner of property under 

13 section 983 or any other provision of law.’’; and 

14 (B) in the chapter analysis, by inserting at 

15 the end the following: 

‘‘987. Anti-terrorist forfeiture protection.’’. 

16 (2) Subsections (a), (b), and (c) of section 316 

17 of Public Law 107–56 are repealed. 

18 (c) CONFORMING AMENDMENTS CONCERNING CON19 SPIRACIES.— 

20 (1) Section 33(a) of title 18, United States 

21 Code is amended by inserting ‘‘or conspires’’ before 

22 ‘‘to do any of the aforesaid acts’’. 

23 (2) Section 1366(a) of title 18, United States 

24 Code, is amended— 
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1 (A) by striking ‘‘attempts’’ each time it ap2 pears and inserting ‘‘attempts or conspires’’; 

3 and 

4 (B) by inserting ‘‘, or if the object of the 

5 conspiracy had been achieved,’’ after ‘‘the at6 tempted offense had been completed’’. 

7 SEC. 7. TECHNICAL CORRECTIONS TO FINANCING OF TER8 RORISM STATUTE. 

9 Section 2332b(g)(5)(B) of title 18, United States 

10 Code, is amended by inserting ‘‘)’’ after ‘‘2339C (relating 

11 to financing of terrorism’’. 

12 SEC. 8. CROSS REFERENCE CORRECTION. 

13 Section 5318(n)(4)(A) of title 31, United States 

14 Code, is amended by striking ‘‘National Intelligence Re15 form Act of 2004’’ and inserting ‘‘Intelligence Reform and 

16 Terrorism Prevention Act of 2004’’. 

17 SEC. 9. AMENDMENT TO AMENDATORY LANGUAGE. 

18 Section 6604 of the Intelligence Reform and Ter19 rorism Prevention Act of 2004 is amended [,effective on 

20 the date of the enactment of that Act]— 

21 (1) by striking ‘‘Section 2339c(c)(2)’’ and in22 serting ‘‘Section 2339C(c)(2)’’; and 

23 (2) by striking ‘‘Section 2339c(e)’’ and insert24 ing ‘‘Section 2339C(e)’’. 
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1 SEC. 10. DESIGNATION OF ADDITIONAL MONEY LAUN2 DERING PREDICATE. 

3 Section 1956(c)(7)(D) of title 18, United States 

4 Code, is amended— 

5 (1) by inserting ‘‘, or section 2339D (relating 

6 to receiving military-type training from a foreign 

7 terrorist organization)’’ after ‘‘section 2339A or 

8 2339B (relating to providing material support to 

9 terrorists)’’; and 

10 (2) by striking ‘‘or’’ before ‘‘section 2339A or 

11 2339B’’. 

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