I 

108TH CONGRESS 

1ST SESSION H. R. 3016

To combat terrorism financing, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 5, 2003

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

on the Judiciary, and in addition to the Committees on International Relations and 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 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 2003’’. 

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’’. 

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. CLASSIFIED INFORMATION IN MONEY LAUNDERING 

8 PROCEEDINGS. 

9 Section 5318A of title 31, United States Code (as 

10 added by section 311 of the USA PATRIOT Act of 2001) 

11 is amended by adding at the end the following new sub12 section: 

13 ‘‘(f) CLASSIFIED INFORMATION.—In any judicial re14 view of a finding of the existence of a primary money laun15 dering concern, or the requirement for one or more special 

16 measures with respect to a primary money laundering con17 cern, made under this section, if the designation or imposi18 tion or both were based on classified information (as de19 fined in section 1(a) of the Classified Information Proce20 dures Act), such information may be submitted by the 

21 Secretary to the reviewing court ex parte and in camera. 

22 This subsection does not confer or imply any right to judi23 cial review of any finding made or requirement imposed 

24 under this section.’’. 
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1 SEC. 7. TECHNICAL AND CONFORMING AMENDMENTS RE2 LATING TO THE USA PATRIOT ACT. 

3 (a) TECHNICAL CORRECTIONS.—

4 (1) Sections 5312(a)(3)(C) and 5324(b) of title 

5 31 are amended by striking ‘‘5333’’ each time it ap6 pears and inserting ‘‘5331’’. 

7 (2) Section 322 of Public Law 107–56 is 

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

9 28’’. 

10 (3) Section 5318(k)(1)(B) of title 31, United 

11 States Code, is amended by striking 

12 ‘‘5318A(f)(1)(B)’’ and inserting ‘‘5318A(e)(1)(B)’’. 

13 (4) 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 (5) 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; and 

19 (6) 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.—

25 (1) Chapter 46 of title 18, United States Code, 

26 is amended—
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1 (A) by inserting at the end the following: 

2 ‘‘§ 987. Anti-terrorist forfeiture protection 

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

4 that is confiscated under this chapter or any other provi5 sion of law relating to the confiscation of assets of sus6 pected international terrorists, may contest that confisca7 tion by filing a claim in the manner set forth in the Fed8 eral Rules of Civil Procedure (Supplemental Rules for Cer9 tain Admiralty and Maritime Claims), and asserting as an 

10 affirmative defense that—

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

12 under such provision of law; or 

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

14 983(d) apply to the case. 

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

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

17 inadmissible under the Federal Rules of Evidence, if the 

18 court determines that the evidence is reliable, and that 

19 compliance with the Federal Rules of Evidence may jeop20 ardize the national security interests of the United States. 

21 ‘‘(c) CLARIFICATIONS.—

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

23 of certain provisions of Federal law from the defini24 tion of the term ‘civil forfeiture statute’ in section 

25 983(i) shall not be construed to deny an owner of 
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1 property the right to contest the confiscation of as2 sets of suspected international terrorists under—

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

4 ‘‘(B) the Constitution; or 

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

6 United States Code (commonly known as the 

7 ‘Administrative Procedure Act’). 

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

9 shall limit or otherwise affect any other remedies 

10 that may be available to an owner of property under 

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

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

13 the end the following:

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

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

15 of Public Law 107–56 are repealed. 

16 (c) CONFORMING AMENDMENTS CONCERNING CON17 SPIRACIES.—

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

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

20 ‘‘to do any of the foregoing’’. 

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

22 Code, is amended—

23 (A) by striking ‘‘attempts’’ each time it ap24 pears and inserting ‘‘attempts or conspires’’; 

25 and 
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1 (B) by inserting ‘‘, or if the object of the 

2 conspiracy had been achieved,’’ after ‘‘the at3 tempted offense had been completed’’. 

4 SEC. 8. TECHNICAL CORRECTIONS TO FINANCING OF TER5 RORISM STATUTE. 

6 (a) Section 2339C(c)(2) of title 18, United States 

7 Code, is amended—

8 (1) by striking ‘‘resources, or funds’’ and in9 serting ‘‘resources, or any funds or proceeds of such 

10 funds’’; 

11 (2) in subparagraph (A), striking ‘‘were pro12 vided’’ and inserting ‘‘are to be provided, or knowing 

13 that the support or resources were provided,’’; and 

14 (3) in subparagraph (B)—

15 (A) by striking ‘‘or any proceeds of such 

16 funds’’; and 

17 (B) by striking ‘‘were provided or col18 lected’’ and inserting ‘‘are to be provided or col19 lected, or knowing that the funds were provided 

20 or collected,’’. 

21 (b) Section 2339C(e) is amended—

22 (1) by striking ‘‘and’’ at the end of paragraph 

23 (12); 

24 (2) by redesignating paragraph (13) as para25 graph (14); and 
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1 (3) by inserting after paragraph (12) the fol2 lowing new paragraph: 

3 ‘‘(13) the term ‘material support or resources’ 

4 has the same meaning as in section 2339A(b) of this 

5 title; and’’. 

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

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

8 to financing of terrorism’’.

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