II 

115TH CONGRESS 

1ST SESSION S. 1595 

To amend the Hizballah International Financing Prevention Act of 2015 

to impose additional sanctions with respect to Hizballah, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 20, 2017 

Mr. RUBIO (for himself and Mrs. SHAHEEN) introduced the following bill; 

which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To amend the Hizballah International Financing Prevention 

Act of 2015 to impose additional sanctions with respect 

to Hizballah, 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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Hizballah International Financing Prevention Amend6 ments Act of 2017’’. 

7 (b) TABLE OF CONTENTS.—The table of contents for 

8 this Act is as follows: 

Sec. 1. Short title; table of contents. 


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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 agencies and instrumentalities of foreign states 

that support Hizballah. 

TITLE II—NARCOTICS TRAFFICKING AND SIGNIFICANT 

TRANSNATIONAL CRIMINAL ACTIVITIES OF HIZBALLAH 

Sec. 201. Blocking of property 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. Exceptions. 

Sec. 303. Rule of construction. 

1 TITLE I—PREVENTION OF AC2 CESS BY HIZBALLAH TO 

3 INTERNATIONAL FINANCIAL 

4 AND OTHER INSTITUTIONS 

5 SEC. 101. MANDATORY SANCTIONS WITH RESPECT TO 

6 FUNDRAISING AND RECRUITMENT ACTIVI7 TIES FOR HIZBALLAH. 

8 (a) IN GENERAL.—Section 101 of the Hizballah 

9 International Financing Prevention Act of 2015 (Public 

10 Law 114–102; 50 U.S.C. 1701 note) is amended to read 

11 as follows: 


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1 ‘‘SEC. 101. MANDATORY SANCTIONS WITH RESPECT TO 

2 FUNDRAISING AND RECRUITMENT ACTIVI3 TIES FOR HIZBALLAH. 

4 ‘‘(a) IN GENERAL.—The President shall impose the 

5 sanctions described in subsection (b) with respect to any 

6 foreign person that the President determines knowingly 

7 assists, sponsors, or provides significant financial, mate8 rial, or technological support for— 

9 ‘‘(1) Bayt al-Mal, Jihad al-Bina, the Islamic 

10 Resistance Support Association, or any successor or 

11 affiliate thereof; 

12 ‘‘(2) al-Manar TV, al Nour Radio, or the Leba13 nese Media Group, or any successor or affiliate 

14 thereof; 

15 ‘‘(3) a foreign person determined by the Presi16 dent to be engaged in fundraising or recruitment ac17 tivities for Hizballah; or 

18 ‘‘(4) a foreign person owned or controlled by a 

19 foreign person described in paragraph (1), (2), or 

20 (3). 

21 ‘‘(b) SANCTIONS DESCRIBED.— 

22 ‘‘(1) IN GENERAL.—The sanctions described in 

23 this subsection are the following: 

24 ‘‘(A) ASSET BLOCKING.—The exercise of 

25 all powers granted to the President by the 

26 International Emergency Economic Powers Act 


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1 (50 U.S.C. 1701 et seq.) (except that the re2 quirements of section 202 of such Act (50 

3 U.S.C. 1701) shall not apply) to the extent nec4 essary to block and prohibit all transactions in 

5 all property and interests in property of a for6 eign person determined by the President to be 

7 subject to subsection (a) if such property and 

8 interests in property are in the United States, 

9 come within the United States, or are or come 

10 within the possession or control of a United 

11 States person. 

12 ‘‘(B) ALIENS INELIGIBLE FOR VISAS, AD13 MISSION, OR PAROLE.— 

14 ‘‘(i) VISAS, ADMISSION, OR PAROLE.— 

15 An alien who the President determines is 

16 subject to subsection (a) is— 

17 ‘‘(I) inadmissible to the United 

18 States; 

19 ‘‘(II) ineligible to receive a visa 

20 or other documentation to enter the 

21 United States; and 

22 ‘‘(III) otherwise ineligible to be 

23 admitted or paroled into the United 

24 States or to receive any other benefit 


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1 under the Immigration and Nation2 ality Act (8 U.S.C. 1101 et seq.). 

3 ‘‘(ii) CURRENT VISAS REVOKED.— 

4 ‘‘(I) IN GENERAL.—The issuing 

5 consular officer, the Secretary of 

6 State, or the Secretary of Homeland 

7 Security shall revoke any visa or other 

8 entry documentation issued to an 

9 alien who the President determines is 

10 subject to subsection (a), regardless of 

11 when issued. 

12 ‘‘(II) EFFECT OF REVOCATION.— 

13 A revocation under subclause (I) shall 

14 take effect immediately and shall 

15 automatically cancel any other valid 

16 visa or entry documentation that is in 

17 the possession of the alien. 

18 ‘‘(2) PENALTIES.—The penalties provided for 

19 in subsections (b) and (c) of section 206 of the 

20 International Emergency Economic Powers Act (50 

21 U.S.C. 1705) shall apply to a person that violates, 

22 attempts to violate, conspires to violate, or causes a 

23 violation of regulations prescribed under paragraph 

24 (1)(A) to the same extent that such penalties apply 


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1 to a person that commits an unlawful act described 

2 in subsection (a) of such section 206. 

3 ‘‘(c) IMPLEMENTATION.—The President may exercise 

4 all authorities provided under sections 203 and 205 of the 

5 International Emergency Economic Powers Act (50 

6 U.S.C. 1702 and 1704) to carry out this section. 

7 ‘‘(d) PROCEDURES FOR JUDICIAL REVIEW OF CLAS8 SIFIED INFORMATION.— 

9 ‘‘(1) IN GENERAL.—If a finding under this sec10 tion, or a prohibition, condition, or penalty imposed 

11 as a result of any such finding, is based on classified 

12 information (as defined in section 1(a) of the Classi13 fied Information Procedures Act (18 U.S.C. App.)) 

14 and a court reviews the finding or the imposition of 

15 the prohibition, condition, or penalty, the President 

16 may submit such information to the court ex parte 

17 and in camera. 

18 ‘‘(2) RULE OF CONSTRUCTION.—Nothing in 

19 this subsection shall be construed to confer or imply 

20 any right to judicial review of any finding under this 

21 section or any prohibition, condition, or penalty im22 posed as a result of any such finding. 

23 ‘‘(e) WAIVER.— 

24 ‘‘(1) IN GENERAL.—The President may, for pe25 riods not to exceed 180 days, waive the imposition 


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1 of sanctions under this section if the President cer2 tifies to the appropriate congressional committees 

3 that such waiver is in the national security interests 

4 of the United States. 

5 ‘‘(2) CONSULTATION.— 

6 ‘‘(A) BEFORE WAIVER ISSUED.—Before a 

7 waiver under paragraph (1) takes effect with 

8 respect to a foreign person, the President shall 

9 notify and brief the appropriate congressional 

10 committees on the status of the involvement of 

11 the foreign person in activities described in sub12 section (a). 

13 ‘‘(B) AFTER WAIVER ISSUED.—Not later 

14 than 90 days after the issuance of a waiver 

15 under paragraph (1) with respect to a foreign 

16 person, and every 120 days thereafter while the 

17 waiver remains in effect, the President shall 

18 brief the appropriate congressional committees 

19 on the status of the involvement of the foreign 

20 person in activities described in subsection (a). 

21 ‘‘(f) REPORT.—Not later than 90 days after the date 

22 of the enactment of the Hizballah International Financing 

23 Prevention Amendments Act of 2017, and every 180 days 

24 thereafter, the President shall submit to the appropriate 

25 congressional committees a report that lists the foreign 


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1 persons that the President has credible evidence knowingly 

2 assists, sponsors, or provides significant financial, mate3 rial, or technological support for the foreign persons de4 scribed in paragraph (1), (2), (3), or (4) of subsection (a). 

5 ‘‘(g) DEFINITIONS.—In this section: 

6 ‘‘(1) ADMITTED; ALIEN.—The terms ‘admitted’ 

7 and ‘alien’ have meanings given those terms in sec8 tion 101 of the Immigration and Nationality Act (8 

9 U.S.C. 1101). 

10 ‘‘(2) APPROPRIATE CONGRESSIONAL COMMIT11 TEES.—The term ‘appropriate congressional com12 mittees’ means— 

13 ‘‘(A) the Committee on Foreign Affairs, 

14 the Committee on Ways and Means, the Com15 mittee on the Judiciary, and the Committee on 

16 Financial Services of the House of Representa17 tives; and 

18 ‘‘(B) the Committee on Foreign Relations, 

19 the Committee on Finance, the Committee on 

20 Banking, Housing, and Urban Affairs, and the 

21 Committee on the Judiciary of the Senate. 

22 ‘‘(3) ENTITY.—The term ‘entity’ means a part23 nership, association, corporation, or other organiza24 tion, group, or subgroup. 


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1 ‘‘(4) HIZBALLAH.—The term ‘Hizballah’ has 

2 the meaning given such term in section 102(f). 

3 ‘‘(5) PERSON.—The term ‘person’ means an in4 dividual or entity. 

5 ‘‘(6) UNITED STATES PERSON.—The term 

6 ‘United States person’ means a United States cit7 izen, permanent resident alien, entity organized 

8 under the laws of the United States (including for9 eign branches), or a person in the United States.’’. 

10 (b) CLERICAL AMENDMENT.—The table of contents 

11 for the Hizballah International Financing Prevention Act 

12 of 2015 is amended by striking the item relating to section 

13 101 and inserting the following new item: 

‘‘Sec. 101. Mandatory sanctions with respect to fundraising and recruitment 

activities for Hizballah.’’. 

14 SEC. 102. MODIFICATION OF REPORT WITH RESPECT TO FI15 NANCIAL INSTITUTIONS THAT ENGAGE IN 

16 CERTAIN TRANSACTIONS. 

17 Subsection (d) of section 102 of the Hizballah Inter18 national Financing Prevention Act of 2015 (Public Law 

19 114–102; 50 U.S.C. 1701 note) is amended to read as 

20 follows: 

21 ‘‘(d) REPORT ON FINANCIAL INSTITUTIONS ORGA22 NIZED UNDER THE LAWS OF STATE SPONSORS OF TER23 RORISM.— 


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1 ‘‘(1) IN GENERAL.—Not later than 90 days 

2 after the date of the enactment of the Hizballah 

3 International Financing Prevention Amendments 

4 Act of 2017, and every 180 days thereafter, the 

5 President shall submit to the appropriate congres6 sional committees a report that— 

7 ‘‘(A) identifies each foreign financial insti8 tution described in paragraph (2) that the 

9 President determines engages in one or more 

10 activities described in subsection (a)(2); 

11 ‘‘(B) provides a detailed description of 

12 each such activity; and 

13 ‘‘(C) contains a determination with respect 

14 to each such foreign financial institution that is 

15 identified under subparagraph (A) as engaging 

16 in one or more activities described in subsection 

17 (a)(2) as to whether such foreign financial in18 stitution is in violation of Executive Order 

19 13224 (50 U.S.C. 1701 note; relating to block20 ing property and prohibiting transactions with 

21 persons who commit, threaten to commit, or 

22 support terrorism) by reason of engaging in one 

23 or more such activities. 

24 ‘‘(2) FOREIGN FINANCIAL INSTITUTION DE25 SCRIBED.— 


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1 ‘‘(A) IN GENERAL.—A foreign financial in2 stitution described in this paragraph is a for3 eign financial institution— 

4 ‘‘(i) that, wherever located, is— 

5 ‘‘(I) organized under the laws of 

6 a state sponsor of terrorism or any ju7 risdiction within a state sponsor of 

8 terrorism; 

9 ‘‘(II) owned or controlled by the 

10 government of a state sponsor of ter11 rorism; 

12 ‘‘(III) located in the territory of 

13 a state sponsor of terrorism; or 

14 ‘‘(IV) owned or controlled by a 

15 foreign financial institution described 

16 in subclause (I), (II), or (III); and 

17 ‘‘(ii) the capitalization of which ex18 ceeds $10,000,000. 

19 ‘‘(B) STATE SPONSOR OF TERRORISM.—In 

20 this paragraph, the term ‘state sponsor of ter21 rorism’ means a country the government of 

22 which the Secretary of State has determined is 

23 a government that has repeatedly provided sup24 port for acts of international terrorism for pur25 poses of— 


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1 ‘‘(i) section 6(j) of the Export Admin2 istration Act of 1979 (50 U.S.C. 4605(j)) 

3 (as continued in effect pursuant to the 

4 International Emergency Economic Powers 

5 Act (50 U.S.C. 1701 et seq.)); 

6 ‘‘(ii) section 620A of the Foreign As7 sistance Act of 1961 (22 U.S.C. 2371); 

8 ‘‘(iii) section 40 of the Arms Export 

9 Control Act (22 U.S.C. 2780); or 

10 ‘‘(iv) any other provision of law.’’. 

11 SEC. 103. SANCTIONS AGAINST AGENCIES AND INSTRUMEN12 TALITIES OF FOREIGN STATES THAT SUP13 PORT HIZBALLAH. 

14 (a) IN GENERAL.—Title I of the Hizballah Inter15 national Financing Prevention Act of 2015 (Public Law 

16 114–102; 50 U.S.C. 1701 note) is amended by adding at 

17 the end the following: 

18 ‘‘SEC. 103. SANCTIONS AGAINST AGENCIES AND INSTRU19 MENTALITIES OF FOREIGN STATES THAT 

20 SUPPORT HIZBALLAH. 

21 ‘‘(a) IN GENERAL.—Not later than 120 days after 

22 the date of the enactment of this section, and as appro23 priate thereafter, the President shall block and prohibit 

24 all transactions in all property and interests in property 

25 of any agency or instrumentality of a foreign state deVerDate Sep 11 2014 04:00 Jul 28, 2017 Jkt 069200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S1595.IS S1595

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1 scribed in subsection (b) if such property and interests in 

2 property are in the United States, come within the United 

3 States, or are or come within the possession or control 

4 of a United States person. 

5 ‘‘(b) AGENCY OR INSTRUMENTALITY OF A FOREIGN

6 STATE DESCRIBED.—An agency or instrumentality of a 

7 foreign state described in this subsection is an agency or 

8 instrumentality of a foreign state that the President deter9 mines knowingly and materially assists, sponsors, or pro10 vides significant financial, material, or technological sup11 port for, goods or services to or in support of, or arms 

12 or related material to— 

13 ‘‘(1) Hizballah; 

14 ‘‘(2) an entity owned or controlled by Hizballah; 

15 or 

16 ‘‘(3) an entity that the President determines 

17 has acted or purported to act for or on behalf of 

18 Hizballah. 

19 ‘‘(c) PENALTIES.—The penalties provided for in sub20 sections (b) and (c) of section 206 of the International 

21 Emergency Economic Powers Act (50 U.S.C. 1705) shall 

22 apply to a person that violates, attempts to violate, con23 spires to violate, or causes a violation of regulations pre24 scribed under subsection (a) to the same extent that such 


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1 penalties apply to a person that commits an unlawful act 

2 described in subsection (a) of such section 206. 

3 ‘‘(d) IMPLEMENTATION.—The President may exer4 cise all authorities provided under sections 203 and 205 

5 of the International Emergency Economic Powers Act (50 

6 U.S.C. 1702 and 1704) to carry out this section. 

7 ‘‘(e) PROCEDURES FOR JUDICIAL REVIEW OF CLAS8 SIFIED INFORMATION.— 

9 ‘‘(1) IN GENERAL.—If a finding under this sec10 tion, or a prohibition, condition, or penalty imposed 

11 as a result of any such finding, is based on classified 

12 information (as defined in section 1(a) of the Classi13 fied Information Procedures Act (18 U.S.C. App.)) 

14 and a court reviews the finding or the imposition of 

15 the prohibition, condition, or penalty, the President 

16 may submit such information to the court ex parte 

17 and in camera. 

18 ‘‘(2) RULE OF CONSTRUCTION.—Nothing in 

19 this subsection shall be construed to confer or imply 

20 any right to judicial review of any finding under this 

21 section or any prohibition, condition, or penalty im22 posed as a result of any such finding. 

23 ‘‘(f) WAIVER.— 

24 ‘‘(1) IN GENERAL.—The President may, for pe25 riods not to exceed 180 days, waive the imposition 


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1 of sanctions under this section with respect to an 

2 agency or instrumentality of a foreign state if the 

3 President certifies to the appropriate congressional 

4 committees that such waiver is in the national secu5 rity interests of the United States. 

6 ‘‘(2) CONSULTATION.— 

7 ‘‘(A) BEFORE WAIVER ISSUED.—Before a 

8 waiver under paragraph (1) takes effect with 

9 respect to an agency or instrumentality of a 

10 foreign state, the President shall notify and 

11 brief the appropriate congressional committees 

12 on the status of the involvement of the agency 

13 or instrumentality in activities described in sub14 section (b). 

15 ‘‘(B) AFTER WAIVER ISSUED.—Not later 

16 than 90 days after the issuance of a waiver 

17 under paragraph (1) with respect to an agency 

18 or instrumentality of a foreign state, and every 

19 120 days thereafter while the waiver remains in 

20 effect, the President shall brief the appropriate 

21 congressional committees on the status of the 

22 involvement of the agency or instrumentality in 

23 activities described in subsection (b). 

24 ‘‘(g) DEFINITIONS.—In this section: 


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1 ‘‘(1) AGENCY OR INSTRUMENTALITY OF A FOR2 EIGN STATE; FOREIGN STATE.—The terms ‘agency 

3 or instrumentality of a foreign state’ and ‘foreign 

4 state’ have the meanings given those terms in sec5 tion 1603 of title 28, United States Code. 

6 ‘‘(2) APPROPRIATE CONGRESSIONAL COMMIT7 TEES.—The term ‘appropriate congressional com8 mittees’ means— 

9 ‘‘(A) the Committee on Foreign Affairs, 

10 the Committee on Financial Services, the Com11 mittee on Ways and Means, and the Committee 

12 on the Judiciary of the House of Representa13 tives; and 

14 ‘‘(B) the Committee on Foreign Relations, 

15 the Committee on Banking, Housing, and 

16 Urban Affairs, and the Committee on the Judi17 ciary of the Senate. 

18 ‘‘(3) ARMS OR RELATED MATERIAL.—The term 

19 ‘arms or related material’ means— 

20 ‘‘(A) nuclear, biological, chemical, or radio21 logical weapons or materials or components of 

22 such weapons; 

23 ‘‘(B) ballistic or cruise missile weapons or 

24 materials or components of such weapons; 


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1 ‘‘(C) destabilizing numbers and types of 

2 advanced conventional weapons; 

3 ‘‘(D) defense articles or defense services, 

4 as those terms are defined in paragraphs (3) 

5 and (4), respectively, of section 47 of the Arms 

6 Export Control Act (22 U.S.C. 2794); 

7 ‘‘(E) defense information, as that term is 

8 defined in section 644 of the Foreign Assist9 ance Act of 1961 (22 U.S.C. 2403); or 

10 ‘‘(F) items designated by the President for 

11 purposes of the United States Munitions List 

12 under section 38(a)(1) of the Arms Export 

13 Control Act (22 U.S.C. 2778(a)(1)). 

14 ‘‘(4) HIZBALLAH.—The term ‘Hizballah’ has 

15 the meaning given that term in section 102(f).’’. 

16 (b) CLERICAL AMENDMENT.—The table of contents 

17 for the Hizballah International Financing Prevention Act 

18 of 2015 is amended by inserting after the item relating 

19 to section 102 the following new item: 

‘‘Sec. 103. Sanctions against agencies and instrumentalities of foreign states 

that support Hizballah.’’. 


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1 TITLE II—NARCOTICS TRAF2 FICKING AND SIGNIFICANT 

3 TRANSNATIONAL CRIMINAL 

4 ACTIVITIES OF HIZBALLAH 

5 SEC. 201. BLOCKING OF PROPERTY OF HIZBALLAH. 

6 (a) IN GENERAL.—Section 201 of the Hizballah 

7 International Financing Prevention Act of 2015 (Public 

8 Law 114–102; 50 U.S.C. 1701 note) is amended to read 

9 as follows: 

10 ‘‘SEC. 201. BLOCKING OF PROPERTY OF HIZBALLAH. 

11 ‘‘(a) FINDINGS.—Congress finds that Hizballah con12 ducts narcotics trafficking and significant transnational 

13 criminal activities. 

14 ‘‘(b) BLOCKING OF PROPERTY.—Not later than 120 

15 days after the date of the enactment of the Hizballah 

16 International Financing Prevention Amendments Act of 

17 2017, and as appropriate thereafter, the President shall 

18 block and prohibit all transactions in all property and in19 terests in property of Hizballah if such property and inter20 ests in property are in the United States, come within the 

21 United States, or are or come within the possession or 

22 control of a United States person. 

23 ‘‘(c) PENALTIES.—The penalties provided for in sub24 sections (b) and (c) of section 206 of the International 

25 Emergency Economic Powers Act (50 U.S.C. 1705) shall 


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1 apply to a person that violates, attempts to violate, con2 spires to violate, or causes a violation of regulations pre3 scribed under subsection (b) to the same extent that such 

4 penalties apply to a person that commits an unlawful act 

5 described in subsection (a) of such section 206. 

6 ‘‘(d) IMPLEMENTATION.—The President may exer7 cise all authorities provided under sections 203 and 205 

8 of the International Emergency Economic Powers Act (50 

9 U.S.C. 1702 and 1704) to carry out this section. 

10 ‘‘(e) PROCEDURES FOR JUDICIAL REVIEW OF CLAS11 SIFIED INFORMATION.— 

12 ‘‘(1) IN GENERAL.—If a finding under this sec13 tion, or a prohibition, condition, or penalty imposed 

14 as a result of any such finding, is based on classified 

15 information (as defined in section 1(a) of the Classi16 fied Information Procedures Act (18 U.S.C. App.)) 

17 and a court reviews the finding or the imposition of 

18 the prohibition, condition, or penalty, the President 

19 may submit such information to the court ex parte 

20 and in camera. 

21 ‘‘(2) RULE OF CONSTRUCTION.—Nothing in 

22 this subsection shall be construed to confer or imply 

23 any right to judicial review of any finding under this 

24 section or any prohibition, condition, or penalty im25 posed as a result of any such finding. 


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1 ‘‘(f) WAIVER.—The President may, for periods not 

2 to exceed 180 days, waive the imposition of sanctions 

3 under this section if the President certifies to the appro4 priate congressional committees that such waiver is in the 

5 national security interests of the United States. 

6 ‘‘(g) DEFINITION.—In this section, the term 

7 ‘Hizballah’ has the meaning given that term in section 

8 102(f).’’. 

9 (b) CLERICAL AMENDMENTS.—The table of contents 

10 for the Hizballah International Financing Prevention Act 

11 of 2015 is amended— 

12 (1) by striking the item relating to title II and 

13 inserting the following: 

‘‘TITLE II—IMPOSITION OF SANCTIONS WITH RESPECT TO 

HIZBALLAH AND REPORTS RELATING TO NARCOTICS TRAFFICKING AND SIGNIFICANT TRANSNATIONAL CRIMINAL ACTIVITIES OF HIZBALLAH’’; 

14 and 

15 (2) by striking the item relating to section 201 

16 and inserting the following: 

‘‘Sec. 201. Blocking of property of Hizballah.’’. 

17 SEC. 202. REPORT ON RACKETEERING ACTIVITIES EN18 GAGED IN BY HIZBALLAH. 

19 (a) IN GENERAL.—Section 202 of the Hizballah 

20 International Financing Prevention Act of 2015 (Public 

21 Law 114–102; 50 U.S.C. 1701 note) is amended to read 

22 as follows: 


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1 ‘‘SEC. 202. REPORT ON RACKETEERING ACTIVITIES EN2 GAGED IN BY HIZBALLAH. 

3 ‘‘(a) IN GENERAL.—Not later than 120 days after 

4 the date of the enactment of the Hizballah International 

5 Financing Prevention Amendments Act of 2017, and an6 nually thereafter for the following 5 years, the President 

7 shall submit to the appropriate congressional committees 

8 a report on the following: 

9 ‘‘(1) Activities that Hizballah, and agents and 

10 affiliates of Hizballah, have engaged in that are 

11 racketeering activities. 

12 ‘‘(2) The extent to which Hizballah, and agents 

13 and affiliates of Hizballah, engage in a pattern of 

14 such racketeering activities. 

15 ‘‘(b) FORM OF REPORT.—Each report required under 

16 subsection (a) shall be submitted in an unclassified form 

17 but may contain a classified annex. 

18 ‘‘(c) DEFINITIONS.—In this section: 

19 ‘‘(1) APPROPRIATE CONGRESSIONAL COMMIT20 TEES.—The term ‘appropriate congressional com21 mittees’ means— 

22 ‘‘(A) the Committee on the Judiciary, the 

23 Committee on Foreign Affairs, and the Com24 mittee on Financial Services of the House of 

25 Representatives; and 


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1 ‘‘(B) the Committee on the Judiciary, the 

2 Committee on Foreign Relations, and the Com3 mittee on Banking, Housing, and Urban Affairs 

4 of the Senate. 

5 ‘‘(2) HIZBALLAH.—The term ‘Hizballah’ has 

6 the meaning given that term in section 102(f). 

7 ‘‘(3) RACKETEERING ACTIVITY.—The term 

8 ‘racketeering activity’ has the meaning given that 

9 term in section 1961(1) of title 18, United States 

10 Code.’’. 

11 (b) CLERICAL AMENDMENT.—The table of contents 

12 for the Hizballah International Financing Prevention Act 

13 of 2015 is amended by striking the item relating to section 

14 202 and inserting the following: 

‘‘Sec. 202. Report on racketeering activities engaged in by Hizballah.’’. 

15 SEC. 203. MODIFICATION OF REPORT ON ACTIVITIES OF 

16 FOREIGN GOVERNMENTS TO DISRUPT GLOB17 AL LOGISTICS NETWORKS AND FUND18 RAISING, FINANCING, AND MONEY LAUN19 DERING ACTIVITIES OF HIZBALLAH. 

20 (a) IN GENERAL.—Section 204 of the Hizballah 

21 International Financing Prevention Act of 2015 (Public 

22 Law 114–102; 50 U.S.C. 1701 note) is amended— 

23 (1) in subsection (a)(1)— 

24 (A) in the matter preceding subparagraph 

25 (A), by striking ‘‘this Act’’ and inserting ‘‘the 


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1 Hizballah International Financing Prevention 

2 Amendments Act of 2017, and annually there3 after for the following 5 years’’; 

4 (B) in subparagraph (D)(ii)(II), by strik5 ing ‘‘and’’ at the end; 

6 (C) in subparagraph (E), by striking ‘‘and 

7 free-trade zones.’’ and inserting ‘‘free-trade 

8 zones, business partnerships and joint ventures, 

9 and other investments in small and medium10 sized enterprises;’’; and 

11 (D) by adding at the end the following: 

12 ‘‘(F) a list of provinces, municipalities, and 

13 local governments outside of Lebanon that ex14 pressly consent to, or with knowledge allow, tol15 erate, or disregard the use of their territory by 

16 Hizballah to carry out terrorist activities, in17 cluding training, financing, and recruitment; 

18 ‘‘(G) a description of the total aggregate 

19 revenues and remittances that Hizballah re20 ceives from the global logistics networks of 

21 Hizballah, including— 

22 ‘‘(i) a list of Hizballah’s sources of 

23 revenue, including sources of revenue 

24 based on illicit activity, revenues from 


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1 Iran, charities, and other business activi2 ties; and 

3 ‘‘(ii) a list of Hizballah’s expenditures, 

4 including expenditures for ongoing military 

5 operations, social networks, and external 

6 operations; and 

7 ‘‘(H) a survey of national and 

8 transnational legal measures available to target 

9 Hizballah’s financial networks.’’; 

10 (2) by redesignating subsections (b) and (c) as 

11 subsections (c) and (d), respectively; 

12 (3) by inserting after subsection (a) the fol13 lowing: 

14 ‘‘(b) ENHANCED DUE DILIGENCE.— 

15 ‘‘(1) IN GENERAL.—The President shall pre16 scribe, as necessary, enhanced due diligence policies, 

17 procedures, and controls for United States financial 

18 institutions, and foreign financial institutions main19 taining correspondent accounts or payable-through 

20 accounts with United States financial institutions, 

21 that provide significant financial services for persons 

22 and entities operating in a jurisdiction included in 

23 the list required under subsection (a)(1)(F) if the 

24 President certifies and reports to the appropriate 


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1 congressional committees that it is in the national 

2 security interest of the United States to do so. 

3 ‘‘(2) DEFINITIONS.—In this subsection, the 

4 terms ‘correspondent account’ and ‘payable-through 

5 account’ have the meanings given those terms in sec6 tion 5318A of title 31, United States Code.’’; and 

7 (4) in subsection (c), as redesignated by para8 graph (2) by adding before the period at the end the 

9 following: ‘‘and on any requirements for enhanced 

10 due diligence prescribed under subsection (b)’’. 

11 (b) REPORT ON ESTIMATED NET WORTH OF SENIOR

12 HIZBALLAH MEMBERS.— 

13 (1) IN GENERAL.—Not later than 180 days 

14 after the date of the enactment of this Act, and not 

15 less frequently than annually thereafter for the fol16 lowing 2 years, the Secretary of the Treasury shall 

17 submit to the appropriate congressional committees 

18 a report that contains— 

19 (A) the estimated total net worth of each 

20 individual described in paragraph (2); and 

21 (B) a description of how funds of each in22 dividual described in paragraph (2) were ac23 quired, and how such funds have been used or 

24 employed. 


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1 (2) INDIVIDUALS DESCRIBED.—The individuals 

2 described in this paragraph are the following: 

3 (A) The Secretary General of Hizballah. 

4 (B) Members of the Hizballah Politburo. 

5 (C) Any other individual that the President 

6 determines is a senior foreign political figure of 

7 Hizballah. 

8 (3) FORM OF REPORT; PUBLIC AVAILABILITY.— 

9 (A) FORM.—The report required under 

10 paragraph (1) shall be submitted in unclassified 

11 form but may contain a classified annex. 

12 (B) PUBLIC AVAILABILITY.—The unclassi13 fied portion of the report required under para14 graph (1) shall be made available to the public 

15 and posted on the website of the Department of 

16 the Treasury in precompressed, easily 

17 downloadable versions that are made available 

18 in all appropriate formats. 

19 (4) SOURCES OF INFORMATION.—In preparing 

20 the report required under paragraph (1), the Sec21 retary of the Treasury may use any credible publica22 tion, database, or web-based resource, and any cred23 ible information compiled by any government agen24 cy, nongovernmental organization, or other entity 

25 provided to or made available to the Secretary. 


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1 (5) DEFINITIONS.—In this subsection: 

2 (A) APPROPRIATE CONGRESSIONAL COM3 MITTEES.—The term ‘‘appropriate congres4 sional committees’’ means— 

5 (i) the Committee on Foreign Affairs 

6 and the Committee on Financial Services 

7 of the House of Representatives; and 

8 (ii) the Committee on Foreign Rela9 tions and the Committee on Banking, 

10 Housing, and Urban Affairs of the Senate. 

11 (B) FUNDS.—The term ‘‘funds’’ means— 

12 (i) cash; 

13 (ii) equity; 

14 (iii) any other intangible asset the 

15 value of which is derived from a contrac16 tual claim, including bank deposits, bonds, 

17 stocks, a security (as defined in section 

18 2(a) of the Securities Act of 1933 (15 

19 U.S.C. 77b(a))), or a security or an equity 

20 security (as those terms are defined in sec21 tion 3(a) of the Securities Exchange Act of 

22 1934 (15 U.S.C. 78c(a))); and 

23 (iv) anything else of value that the 

24 Secretary of the Treasury determines to be 

25 appropriate. 


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1 (C) SENIOR FOREIGN POLITICAL FIG2 URE.—The term ‘‘senior foreign political fig3 ure’’ has the meaning given that term in section 

4 1010.605 of title 31, Code of Federal Regula5 tions (or any successor regulation). 

6 SEC. 204. REPORT ON COMBATING THE ILLICIT TOBACCO 

7 TRAFFICKING NETWORKS USED BY 

8 HIZBALLAH AND OTHER FOREIGN TER9 RORIST ORGANIZATIONS. 

10 (a) IN GENERAL.—Not later than 180 days after the 

11 date of the enactment of this Act, the President shall sub12 mit to the appropriate congressional committees a report 

13 on combating the illicit tobacco trafficking networks used 

14 by Hizballah and other foreign terrorist organizations to 

15 finance their operations, as described in the report sub16 mitted to Congress in December 2015 by the Department 

17 of State, the Department of Justice, the Department of 

18 the Treasury, the Department of Homeland Security, and 

19 the Department of Health and Human Services entitled, 

20 ‘‘The Global Illicit Trade in Tobacco: A Threat to Na21 tional Security.’’. 

22 (b) MATTERS TO BE ADDRESSED.—The report re23 quired by subsection (a) shall include the following: 

24 (1) A description of the steps to be taken by 

25 Federal agencies to combat the illicit tobacco trafVerDate Sep 11 2014 04:00 Jul 28, 2017 Jkt 069200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\S1595.IS S1595

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1 ficking networks used by Hizballah, other foreign 

2 terrorist organizations, and other illicit actors. 

3 (2) A description of the steps to be taken to en4 gage State and local law enforcement authorities in 

5 efforts to combat illicit tobacco trafficking networks 

6 operating within the United States. 

7 (3) A description of the steps to be taken to en8 gage foreign government law enforcement and intel9 ligence authorities in efforts to combat illicit tobacco 

10 trafficking networks operating outside the United 

11 States. 

12 (4) Recommendations for legislative or adminis13 trative action needed to address the threat of illicit 

14 tobacco trafficking networks. 

15 (c) APPROPRIATE CONGRESSIONAL COMMITTEES DE16 FINED.—In this section, the term ‘‘appropriate congres17 sional committees’’ means— 

18 (1) the Committee on Foreign Affairs, the 

19 Committee on Armed Services, the Committee on 

20 Homeland Security, the Committee on the Judiciary, 

21 the Committee on Financial Services, and the Com22 mittee on Ways and Means of the House of Rep23 resentatives; and 

24 (2) the Committee on Foreign Relations, the 

25 Committee on Armed Services, the Committee on 


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1 Homeland Security and Governmental Affairs, the 

2 Committee on the Judiciary, the Committee on 

3 Banking, Housing, and Urban Affairs, and the Com4 mittee on Finance of the Senate. 

5 TITLE III—GENERAL 

6 PROVISIONS 

7 SEC. 301. REGULATORY AUTHORITY. 

8 (a) IN GENERAL.—The President shall, not later 

9 than 180 days after the date of the enactment of this Act, 

10 prescribe regulations as necessary for the implementation 

11 of this Act and the amendments made by this Act. 

12 (b) NOTIFICATION TO CONGRESS.—Not later than 10 

13 days before the prescription of regulations under sub14 section (a), the President shall notify the appropriate con15 gressional committees regarding the proposed regulations 

16 and the provisions of this Act and the amendments made 

17 by this Act that the regulations are implementing. 

18 (c) APPROPRIATE CONGRESSIONAL COMMITTEES DE19 FINED.—In this section, the term ‘‘appropriate congres20 sional committees’’ means— 

21 (1) the Committee on Foreign Affairs and the 

22 Committee on Financial Services of the House of 

23 Representatives; and 


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1 (2) the Committee on Foreign Relations and 

2 the Committee on Banking, Housing, and Urban Af3 fairs of the Senate. 

4 SEC. 302. EXCEPTIONS. 

5 This Act and the amendments made by this Act shall 

6 not apply to the following: 

7 (1) Any authorized intelligence, law enforce8 ment, or national security activities of the United 

9 States. 

10 (2) Any transaction necessary to comply with 

11 United States obligations under— 

12 (A) the Agreement between the United Na13 tions and the United States of America regard14 ing the Headquarters of the United Nations, 

15 signed at Lake Success June 26, 1947, and en16 tered into force November 21, 1947; 

17 (B) the Convention on Consular Relations, 

18 done at Vienna April 24, 1963, and entered 

19 into force March 19, 1967; or 

20 (C) any other international treaty. 

21 SEC. 303. RULE OF CONSTRUCTION. 

22 Nothing in this Act or an amendment made by this 

23 Act shall be construed to limit the authority of the Presi24 dent under the International Emergency Economic Powers 


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1 Act (50 U.S.C. 1701 et seq.) or any other provision of 

2 law. 

Æ 


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