```

[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2297 Introduced in House (IH)]

114th CONGRESS
  1st Session
                                H. R. 2297

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

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 13, 2015

  Mr. Royce (for himself, Mr. Engel, Mr. Meadows, Mr. Deutch, and Mr. 
   Zeldin) introduced the following bill; which was referred to the 
   Committee on Foreign Affairs, and in addition to the Committee on 
 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 prevent Hezbollah 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 AND TABLE OF CONTENTS.

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

Sec. 1. Short title and table of contents.
Sec. 2. Statement of policy.
 TITLE I--PREVENTION OF ACCESS BY HEZBOLLAH 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 HEZBOLLAH AS A SIGNIFICANT FOREIGN 
     NARCOTICS TRAFFICKER AND A SIGNIFICANT TRANSNATIONAL CRIMINAL 
                              ORGANIZATION

Sec. 201. Report on designation of Hezbollah as a significant foreign 
                            narcotics trafficker.
Sec. 202. Report on designation of Hezbollah as a significant 
                            transnational criminal organization.
Sec. 203. Rewards for Justice and Hezbollah'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 Hezbollah.
Sec. 205. Appropriate congressional committees defined.
                  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 Hezbollah'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 
        Hezbollah as a means to block that organization's ability to 
        fund its global terrorist activities.

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

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

    Not later than 30 days after the date of the enactment of this Act 
and annually thereafter, the Secretary of State shall provide to the 
Committee on Foreign Affairs of the House of Representatives and the 
Committee on Foreign Relations of the Senate a briefing on the 
following:
            (1) The activities of all satellite, broadcast, Internet, 
        or other providers that knowingly provide material support to 
        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 No. 13224 
                (September 23, 2001); and
                    (B) an identification of those providers that have 
                not been sanctioned pursuant to Executive Order No. 
                13224 and, with respect to each such provider, the 
                reason why sanctions have not been imposed.

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 Secretary of the Treasury, with 
        the concurrence of the Secretary of State and in consultation 
        with the heads of other applicable departments and agencies, 
        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 Secretary determines, on or after the date of the 
        enactment of this Act, 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 Hezbollah;
                    (B) knowingly facilitates a significant transaction 
                or transactions of a person designated for acting on 
                behalf of or at the direction of, or owned or 
                controlled by, Hezbollah;
                    (C) knowingly engages in money laundering to carry 
                out an activity described in subparagraph (A) or (B);
                    (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), including--
                            (i) facilitating a significant transaction 
                        or transactions; or
                            (ii) providing significant financial 
                        services that involve a transaction of covered 
                        goods; or
                    (E)(i) knowingly facilitates, or participates or 
                assists in, an activity described in subparagraph (A), 
                (B), (C), or (D), including by acting on behalf of, at 
                the direction of, or as an intermediary for, or 
                otherwise assisting, another person with respect to the 
                activity described in any such subparagraph;
                    (ii) knowingly attempts or conspires to facilitate 
                or participate in an activity described in subparagraph 
                (A), (B), (C), or (D); or
                    (iii) is owned or controlled by a foreign financial 
                institution that the Secretary finds knowingly engages 
                in an activity described in subparagraph (A), (B), (C), 
                or (D).
            (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 paragraph 
        (4) of 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(a).
            (4) Regulations.--The Secretary of the Treasury shall 
        prescribe and implement regulations to carry out this 
        subsection.
    (b) Waiver.--
            (1) In general.--The Secretary of the Treasury, with the 
        concurrence of the Secretary of State and in consultation with 
        the heads of other applicable departments and agencies, 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 such waiver for 
        additional periods of not more than 180 days, on and after the 
        date that the Secretary of the Treasury, with the concurrence 
        of the Secretary of State--
                    (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) Provisions Relating to Foreign Financial Institutions.--
            (1) Report.--Not later than 45 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) Special rule to allow for termination of sanctionable 
        activity.--The Secretary of the Treasury shall not be required 
        to apply sanctions to a foreign financial institution described 
        in subsection (a) if the Secretary, with the concurrence of the 
        Secretary of State and in consultation with the heads of other 
        applicable departments and agencies, certifies in writing to 
        the appropriate congressional committees that--
                    (A) such foreign financial institution--
                            (i) is no longer engaging in the activity 
                        described in subsection (a)(2); or
                            (ii) has taken and is continuing to take 
                        significant verifiable steps toward terminating 
                        the activity described in such subsection; and
                    (B) the Secretary has received reliable assurances 
                from the government with primary jurisdiction over such 
                foreign financial institution that such foreign 
                financial institution will not engage in any activity 
                described in such subsection in the future.
    (d) 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) Covered goods.--The term ``covered goods'' has 
                the meaning given the term in section 1027.100 of title 
                31, Code of Federal Regulations.
                    (D) 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.
                    (E) Foreign financial institution; domestic 
                financial institution.--
                            (i) Foreign financial institution.--The 
                        term ``foreign financial institution'' has the 
                        meaning of such term in section 1010.605 of 
                        title 31, Code of Federal Regulations, and 
                        includes a foreign central bank.
                            (ii) Domestic financial institution.--The 
                        term ``domestic financial institution'' has the 
                        meaning of such term as determined by the 
                        Secretary of the Treasury.
                    (F) Hezbollah.--The term ``Hezbollah'' means--
                            (i) any person--
                                    (I) the property of 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 
                                Hezbollah; and
                            (ii) the entity 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).
                    (G) Money laundering.--The term ``money 
                laundering'' means any of the activities described in 
                paragraph (1), (2), or (3) of section 1956(a) of title 
                18, United States Code, with respect to which penalties 
                may be imposed pursuant to such section.
            (2) Other definitions.--The Secretary of the Treasury may 
        further define the terms used in this section in the 
        regulations prescribed under this section.

TITLE II--REPORTS ON DESIGNATION OF HEZBOLLAH AS A SIGNIFICANT FOREIGN 
     NARCOTICS TRAFFICKER AND A SIGNIFICANT TRANSNATIONAL CRIMINAL 
                              ORGANIZATION

SEC. 201. REPORT ON DESIGNATION OF HEZBOLLAH 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 Hezbollah 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 Hezbollah 
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.

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

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) Hezbollah meets the criteria for designation as a 
        significant transnational criminal organization under Executive 
        Order No. 13581 (76 Fed. Reg. 44757); and
            (2) the President should so designate Hezbollah as a 
        significant transnational criminal organization.
    (b) Report.--
            (1) Report required.--Not later than 120 days after the 
        date of the enactment of this Act, the President shall transmit 
        to the appropriate committees of Congress a detailed report on 
        whether the Hezbollah meets the criteria for designation as a 
        significant transnational criminal organization under Executive 
        Order No. 13581 (76 Fed. Reg. 44757), and if the President 
        determines that Hezbollah 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.

SEC. 203. REWARDS FOR JUSTICE AND HEZBOLLAH'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 Hezbollah 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 HEZBOLLAH.

    (a) Report.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, the President shall transmit to the 
        appropriate congressional committees a report that includes--
                    (A) a list of countries that support Hezbollah, or 
                in which Hezbollah 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 such country is taking adequate measures to 
                        disrupt the global logistics networks of 
                        Hezbollah within the territory of such 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 
                                such government is not taking such 
                                adequate measures; and
                                    (II) a description of measures 
                                being taken by the United States to 
                                encourage such government to improve 
                                measures to disrupt such networks;
                    (C) a list of countries in which Hezbollah, 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 such country is taking adequate measures to 
                        disrupt the fundraising, financing, or money 
                        laundering activities of Hezbollah and its 
                        agents and affiliates within the territory of 
                        such 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 
                                such government is not taking such 
                                adequate measures; and
                                    (II) a description of measures 
                                being taken by the United States to 
                                encourage such government to improve 
                                measures to disrupt such activities; 
                                and
                    (E) a list of methods that Hezbollah, 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 hezbollah.--In this 
        subsection, the term ``global logistics networks of 
        Hezbollah'', ``global logistics networks'', or ``networks'' 
        means financial, material, or technological support for, or 
        financial or other services in support of, Hezbollah.
    (b) Briefing on Hezbollah'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 (or their designees) of other applicable Federal departments 
and agencies shall provide to the appropriate congressional committees 
a briefing on the disposition of Hezbollah'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.

SEC. 205. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.

    Except as otherwise provided, in this title, 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.

                  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 (as such term is 
defined in section 203) of the proposed regulations and the provisions 
of this Act and the amendments made by this Act that the regulations 
are implementing.

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 Hezbollah--
            (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);
            (2) is no longer listed in the Annex to Executive Order No. 
        13224 (September 23, 2001; relating to blocking property and 
        prohibiting transactions with persons who commit, threaten to 
        commit, or support terrorism); and
            (3) poses no significant threat to United States national 
        security, interests, or allies.
                                 <all>
```