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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1617 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                S. 1617

  To prevent Hizballah and associated entities from gaining access to 
international financial and other institutions, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             June 18, 2015

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 prevent Hizballah 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Hizballah 
International Financing Prevention Act of 2015''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Statement of policy.
 TITLE I--PREVENTION OF ACCESS BY HIZBALLAH TO INTERNATIONAL FINANCIAL 
                         AND OTHER INSTITUTIONS

Sec. 101. Briefing on imposition of sanctions on certain satellite 
                            providers that carry al-Manar TV.
Sec. 102. Sanctions with respect to financial institutions that engage 
                            in certain transactions.
TITLE II--REPORTS ON DESIGNATION OF HIZBALLAH AS A SIGNIFICANT FOREIGN 
     NARCOTICS TRAFFICKER AND A SIGNIFICANT TRANSNATIONAL CRIMINAL 
                              ORGANIZATION

Sec. 201. Report on designation of Hizballah as a significant foreign 
                            narcotics trafficker.
Sec. 202. Report on designation of Hizballah as a significant 
                            transnational criminal organization.
Sec. 203. Rewards for Justice and Hizballah's fundraising, financing, 
                            and money laundering activities.
Sec. 204. Report on activities of foreign governments to disrupt global 
                            logistics networks and fundraising, 
                            financing, and money laundering activities 
                            of Hizballah.
                  TITLE III--MISCELLANEOUS PROVISIONS

Sec. 301. Rule of construction.
Sec. 302. Regulatory authority.
Sec. 303. Termination.

SEC. 2. STATEMENT OF POLICY.

    It shall be the policy of the United States to--
            (1) prevent Hizballah'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 global criminal activities of 
        Hizballah as a means to block that organization's ability to 
        fund its global terrorist activities.

 TITLE I--PREVENTION OF ACCESS BY HIZBALLAH TO INTERNATIONAL FINANCIAL 
                         AND OTHER INSTITUTIONS

SEC. 101. BRIEFING ON IMPOSITION OF SANCTIONS ON CERTAIN SATELLITE 
              PROVIDERS THAT CARRY AL-MANAR TV.

    (a) In General.--Not later than 90 days after the date of the 
enactment of this Act, and annually thereafter, the President shall 
provide to the appropriate congressional committees a briefing on the 
following:
            (1) The activities of all satellite, broadcast, Internet, 
        or other providers that have knowingly entered into a 
        contractual relationship with al-Manar TV, and any affiliates 
        or successors thereof.
            (2) With respect to all providers described in paragraph 
        (1)--
                    (A) an identification of those providers that have 
                been sanctioned pursuant to Executive Order 13224 (50 
                U.S.C. 1701 note; relating to blocking property and 
                prohibiting transactions with persons who commit, 
                threaten to commit, or support terrorism); 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) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means--
            (1) the Committee on Foreign Affairs and the Committee on 
        Financial Services of the House of Representatives; and
            (2) the Committee on Foreign Relations and the Committee on 
        Banking, Housing, and Urban Affairs of the Senate.

SEC. 102. 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 120 days after the date of 
        the enactment of this Act, the President 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 President 
        determines, on or after such date of enactment, 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 a significant transaction 
                or transactions for Hizballah;
                    (B) knowingly facilitates a significant transaction 
                or transactions of a person identified on the list of 
                specially designated nationals and blocked persons 
                maintained by the Office of Foreign Asset Control of 
                the Department of the Treasury and the property and 
                interests in property of which are blocked pursuant to 
                the International Emergency Economic Powers Act (50 
                U.S.C. 1701 et seq.) for acting on behalf of or at the 
                direction of, or owned or controlled by, Hizballah;
                    (C) knowingly engages in money laundering to carry 
                out an activity described in subparagraph (A) or (B); 
                or
                    (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).
            (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 this 
        subsection to the same extent that such penalties apply to a 
        person that commits an unlawful act described in subsection (a) 
        of such section 206.
            (4) Procedures for judicial review of classified 
        information.--
                    (A) In general.--If a finding under this 
                subsection, or a prohibition, condition, or penalty 
                imposed as a result of any such finding, is based on 
                classified information (as defined in section 1(a) of 
                the Classified Information Procedures Act (18 U.S.C. 
                App.)) and a court reviews the finding or the 
                imposition of the prohibition, condition, or penalty, 
                the President may submit such information to the court 
                ex parte and in camera.
                    (B) Rule of construction.--Nothing in this 
                paragraph shall be construed to confer or imply any 
                right to judicial review of any finding under this 
                subsection or any prohibition, condition, or penalty 
                imposed as a result of any such finding.
            (5) Regulations.--The President shall prescribe and 
        implement regulations to carry out this subsection.
    (b) Waiver.--
            (1) In general.--The President may waive, on a case-by-case 
        basis, the application of a prohibition or condition imposed 
        with respect to a foreign financial institution pursuant to 
        subsection (a) for a period of not more than 180 days, and may 
        renew the waiver for additional periods of not more than 180 
        days, on and after the date on which the President--
                    (A) determines that such a waiver is in the 
                national security interests of the United States; and
                    (B) submits to the appropriate congressional 
                committees a report describing the reasons for such 
                determination.
            (2) Form.--The report required by paragraph (1)(B) shall be 
        submitted in unclassified form, but may contain a classified 
        annex.
    (c) Special Rule To Allow for Termination of Sanctionable 
Activity.--The President shall not be required to apply sanctions to a 
foreign financial institution described in subsection (a) if the 
President certifies in writing to the appropriate congressional 
committees that--
            (1) the foreign financial institution--
                    (A) is no longer engaging in the activity described 
                in subsection (a)(2); or
                    (B) has taken and is continuing to take significant 
                verifiable steps toward terminating the activity 
                described in that subsection; and
            (2) the President has received reliable assurances from the 
        government with primary jurisdiction over the foreign financial 
        institution that the foreign financial institution will not 
        engage in any activity described in subsection (a)(2) in the 
        future.
    (d) Report on Foreign Central Banks.--
            (1) In general.--Not later than 90 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 determines engages in one or more activities 
                described in subsection (a)(2)(D); and
                    (B) provides a detailed description of each such 
                activity.
            (2) Form of report.--Each report required by paragraph (1) 
        shall be submitted in unclassified form, but may include a 
        classified annex.
    (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) 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.
                    (C) 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), (P), (R), (T), (Y), or (Z) of 
                section 5312(a)(2) of title 31, United States Code.
                    (D) Foreign financial institution; domestic 
                financial institution.--
                            (i) Foreign financial institution.--The 
                        term ``foreign financial institution'' has the 
                        meaning given that term in section 1010.605 of 
                        title 31, Code of Federal Regulations, and 
                        excludes the Central Bank of Lebanon.
                            (ii) Domestic financial institution.--The 
                        term ``domestic financial institution'' has the 
                        meaning of that term as determined by the 
                        Secretary of the Treasury.
                    (E) Hizballah.--The term ``Hizballah'' means--
                            (i) the entity known as Hizballah and 
                        designated by the Secretary of State as a 
                        foreign terrorist organization pursuant to 
                        section 219 of the Immigration and Nationality 
                        Act (8 U.S.C. 1189); or
                            (ii) any person--
                                    (I) the property or interests in 
                                property of which are blocked pursuant 
                                to the International Emergency Economic 
                                Powers Act (50 U.S.C. 1701 et seq.); 
                                and
                                    (II) who is identified on the list 
                                of specially designated nationals and 
                                blocked persons maintained by the 
                                Office of Foreign Asset Control of the 
                                Department of the Treasury as an agent, 
                                instrumentality, or affiliate of 
                                Hizballah.
                    (F) Money laundering.--The term ``money 
                laundering'' means the movement of illicit cash or cash 
                equivalent proceeds into, out of, or through a country, 
                or into, out of, or through a financial institution.
            (2) Other definitions.--The President may further define 
        the terms used in this section in the regulations prescribed 
        under this section.

TITLE II--REPORTS ON DESIGNATION OF HIZBALLAH AS A SIGNIFICANT FOREIGN 
             NARCOTICS TRAFFICKER AND A SIGNIFICANT TRANS-
                     NATIONAL CRIMINAL ORGANIZATION

SEC. 201. REPORT ON DESIGNATION OF HIZBALLAH AS A SIGNIFICANT FOREIGN 
              NARCOTICS TRAFFICKER.

    (a) Report Required.--Not later than 120 days after the date of the 
enactment of this Act, the President shall transmit to the appropriate 
congressional committees a detailed report on whether Hizballah meets 
the criteria for designation under the Foreign Narcotics Kingpin 
Designation Act (21 U.S.C. 1901 et seq.) as a significant foreign 
narcotics trafficker, and if the President determines that Hizballah 
does not meet such criteria, a detailed justification as to which 
criteria have not been met.
    (b) Form.--The report required by subsection (a) shall be 
transmitted in unclassified form, but may include a classified annex.
    (c) Appropriate Congressional Committees Defined.--In this section, 
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.

SEC. 202. REPORT ON DESIGNATION OF HIZBALLAH AS A SIGNIFICANT 
              TRANSNATIONAL CRIMINAL ORGANIZATION.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) Hizballah appears to meet the criteria for designation 
        as a significant transnational criminal organization under 
        Executive Order 13581 (76 Fed. Reg. 44,757; relating to 
        blocking property of transnational criminal organizations); and
            (2) the President should designate Hizballah as a 
        significant transnational criminal organization.
    (b) Report.--
            (1) In general.--Not later than 120 days after the date of 
        the enactment of this Act, the President shall submit to the 
        appropriate congressional committees a detailed report on 
        whether Hizballah meets the criteria for designation as a 
        significant transnational criminal organization under Executive 
        Order 13581, and if the President determines that Hizballah 
        does not meet such criteria, a detailed justification as to 
        which criteria have not been met.
            (2) Form.--The report required by paragraph (1) shall be 
        transmitted in unclassified form, but may include a classified 
        annex.
    (c) Appropriate Congressional Committees Defined.--In this section, 
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.

SEC. 203. REWARDS FOR JUSTICE AND HIZBALLAH'S FUNDRAISING, FINANCING, 
              AND MONEY LAUNDERING ACTIVITIES.

    (a) Report.--Not later than 90 days after the date of the enactment 
of this Act, the Secretary of State shall submit to the appropriate 
congressional committees a report that details actions taken by the 
Department of State through the Department of State rewards program 
under section 36 of the State Department Basic Authorities Act (22 
U.S.C. 2708) to obtain information on fundraising, financing, and money 
laundering activities of Hizballah and its agents and affiliates.
    (b) Briefing.--Not later than 90 days after the date of the 
enactment of this Act, and annually thereafter, the Secretary of State 
shall provide a briefing to the appropriate congressional committees on 
the status of the actions described in subsection (a).
    (c) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means--
            (1) the Committee on Foreign Affairs and the Committee on 
        Financial Services of the House of Representatives; and
            (2) the Committee on Foreign Relations and the Committee on 
        Banking, Housing, and Urban Affairs of the Senate.

SEC. 204. REPORT ON ACTIVITIES OF FOREIGN GOVERNMENTS TO DISRUPT GLOBAL 
              LOGISTICS NETWORKS AND FUNDRAISING, FINANCING, AND MONEY 
              LAUNDERING ACTIVITIES OF HIZBALLAH.

    (a) Report.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, the President shall submit to the 
        appropriate congressional committees a report that includes--
                    (A) a list of countries that support Hizballah or 
                in which Hizballah maintains important portions of its 
                global logistics networks;
                    (B) with respect to each country on the list 
                required by subparagraph (A)--
                            (i) an assessment of whether the government 
                        of the country is taking adequate measures to 
                        disrupt the global logistics networks of 
                        Hizballah within the territory of the country; 
                        and
                            (ii) in the case of a country the 
                        government of which is not taking adequate 
                        measures to disrupt such networks--
                                    (I) an assessment of the reasons 
                                that government is not taking such 
                                adequate measures; and
                                    (II) a description of measures 
                                being taken by the United States to 
                                encourage that government to improve 
                                measures to disrupt such networks;
                    (C) a list of countries in which Hizballah, or any 
                of its agents or affiliates, conducts significant 
                fundraising, financing, or money laundering activities;
                    (D) with respect to each country on the list 
                required by subparagraph (C)--
                            (i) an assessment of whether the government 
                        of the country is taking adequate measures to 
                        disrupt the fundraising, financing, or money 
                        laundering activities of Hizballah and its 
                        agents and affiliates within the territory of 
                        the country; and
                            (ii) in the case of a country the 
                        government of which is not taking adequate 
                        measures to disrupt such activities--
                                    (I) an assessment of the reasons 
                                that government is not taking such 
                                adequate measures; and
                                    (II) a description of measures 
                                being taken by the United States to 
                                encourage that government to improve 
                                measures to disrupt such activities; 
                                and
                    (E) a list of methods that Hizballah, or any of its 
                agents or affiliates, utilizes to raise or transfer 
                funds, including trade-based money laundering, the use 
                of foreign exchange houses, and free-trade zones.
            (2) Form.--The report required by paragraph (1) shall be 
        submitted in unclassified form to the greatest extent possible, 
        and may contain a classified annex.
            (3) Global logistics networks of hizballah.--In this 
        subsection, the term ``global logistics networks of 
        Hizballah'', ``global logistics networks'', or ``networks'' 
        means financial, material, or technological support for, or 
        financial or other services in support of, Hizballah.
    (b) Briefing on Hizballah's Assets and Activities Related to 
Fundraising, Financing, and Money Laundering Worldwide.--Not later than 
90 days after the date of the enactment of this Act, and every 180 days 
thereafter, the Secretary of State, the Secretary of the Treasury, and 
the heads of other applicable Federal departments and agencies shall 
provide to the appropriate congressional committees a briefing on the 
disposition of Hizballah's assets and activities related to 
fundraising, financing, and money laundering worldwide.
    (c) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means--
            (1) the Committee on Foreign Affairs, the Committee on 
        Financial Services, and the Permanent Select Committee on 
        Intelligence of the House of Representatives; and
            (2) the Committee on Foreign Relations, the Committee on 
        Banking, Housing, and Urban Affairs, and the Select Committee 
        on Intelligence 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 before the 
promulgation of regulations under subsection (a), the President shall 
notify the appropriate congressional committees of the proposed 
regulations and the provisions of this Act and the amendments made by 
this Act that the regulations are implementing.
    (c) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means--
            (1) the Committee on Foreign Affairs and the Committee on 
        Financial Services of the House of Representatives; and
            (2) the Committee on Foreign Relations and the Committee on 
        Banking, Housing, and Urban Affairs of the Senate.

SEC. 303. TERMINATION.

    This Act shall terminate on the date that is 30 days after the date 
on which the President certifies to Congress that Hizballah--
            (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); and
            (2) is no longer listed in the Annex to Executive Order 
        13224 (50 U.S.C. 1701 note; relating to blocking property and 
        prohibiting transactions with persons who commit, threaten to 
        commit, or support terrorism).
                                 <all>
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