IB 

Union Calendar No. 409 

113TH CONGRESS 

2D SESSION H. R. 4411 

[Report No. 113–543, Part I] 

To prevent Hezbollah and associated entities from gaining access to 

international financial and other institutions, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 7, 2014 

Mr. MEADOWS (for himself, Mr. SCHNEIDER, Mr. ROYCE, and Mr. ENGEL) 

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 

JULY 22, 2014 

Additional sponsors: Mr. DESANTIS, Mr. WEBER of Texas, Mr. COLLINS of 

Georgia, Mr. CONNOLLY, Mr. KINZINGER of Illinois, Mr. SALMON, Ms. 

MENG, Mr. DEUTCH, Mr. COOK, Mr. WESTMORELAND, Mr. 

FARENTHOLD, Mr. LANKFORD, Mr. HIGGINS, Mr. MCCAUL, Mr. LONG, 

Mr. KING of New York, Mr. BISHOP of Utah, Mr. PEARCE, Mr. ROKITA, 

Mr. JORDAN, Mr. WILSON of South Carolina, Mr. SESSIONS, Ms. BROWN

of Florida, Ms. FOXX, Mr. NADLER, Mr. GRIFFIN of Arkansas, Mr. STIVERS, Mr. LAMALFA, Mr. COBLE, Mr. WAXMAN, Mr. GRAVES of Missouri, 

Mr. SMITH of New Jersey, Mr. LAMBORN, Mr. BILIRAKIS, Mr. MULLIN, 

Mr. MCKINLEY, Mr. FINCHER, Mr. LATTA, Mr. SIRES, Mr. HOLDING, 

Mr. ROSKAM, Mr. MURPHY of Florida, Mr. SCHWEIKERT, Mr. 

PITTENGER, Mr. GINGREY of Georgia, Mr. WALBERG, Mr. PRICE of 

Georgia, Mr. SHERMAN, Mr. BENTIVOLIO, Mr. ROGERS of Alabama, Mr. 

BUTTERFIELD, Mr. MEEKS, Ms. GABBARD, Mr. COTTON, Mr. HUDSON, 

Mr. KENNEDY, Mr. SCHOCK, Mr. VEASEY, Mrs. WAGNER, Mr. DUFFY, 

Mr. VARGAS, Mr. BISHOP of New York, Mr. FLEISCHMANN, Mr. GRAVES

of Georgia, Mr. GRAYSON, Mr. ISRAEL, Mr. FORTENBERRY, Mr. BURGESS, Mr. DIAZ-BALART, Mr. RODNEY DAVIS of Illinois, Ms. FRANKEL

of Florida, Ms. VELA ́ZQUEZ, Mr. LOWENTHAL, Mr. BROUN of Georgia, 

Ms. WASSERMAN SCHULTZ, Mr. LANGEVIN, Mr. GIBBS, Ms. TITUS, Mr. 


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BARLETTA, Mr. RUSH, Ms. JENKINS, Mr. LANCE, Mr. WILLIAMS, Ms. 

LINDA T. SA ́NCHEZ of California, Mr. BERA of California, Mr. 

CICILLINE, Mr. CRAMER, Mr. DUNCAN of South Carolina, Mr. FRANKS

of Arizona, Mr. GENE GREEN of Texas, Mr. KILMER, Mr. MESSER, Mr. 

MULVANEY, Mr. RIBBLE, Mr. SCHIFF, Mr. VALADAO, Mr. NOLAN, Mr. 

YOUNG of Indiana, Mr. STOCKMAN, Mr. JOYCE, Mr. GARCIA, Mrs. 

BLACK, Mr. COOPER, Mr. COSTA, Mr. COURTNEY, Ms. DEGETTE, Ms. 

HAHN, Mr. SEAN PATRICK MALONEY of New York, Mr. POCAN, Mr. 

AMODEI, Mr. SHIMKUS, Mr. WOMACK, Mr. JOHNSON of Ohio, Mr. 

CRAWFORD, Mr. QUIGLEY, Mr. PASCRELL, Mr. SWALWELL of California, 

Mr. HORSFORD, Mr. RANGEL, Mr. GARDNER, Mr. RUIZ, Mrs. ELLMERS, 

Mr. AUSTIN SCOTT of Georgia, Mr. MICA, Mr. HUELSKAMP, Ms. CASTOR

of Florida, Mrs. HARTZLER, Ms. WILSON of Florida, Mr. BEN RAY

LUJA ́N of New Mexico, Mr. STEWART, Mr. KILDEE, Ms. DELBENE, Mr. 

FITZPATRICK, Mr. HALL, Mr. FOSTER, Mr. HIMES, Mr. REICHERT, Mr. 

PALLONE, Mr. PITTS, Mr. MEEHAN, Mr. PERRY, Mr. SMITH of Missouri, 

Mr. KLINE, Mr. WALDEN, Mr. SCHRADER, Mr. BARBER, Mr. HARPER, 

Ms. BROWNLEY of California, Mr. TURNER, Mrs. WALORSKI, Mr. 

JEFFRIES, Ms. BONAMICI, Mr. GIBSON, Mr. CONAWAY, Mr. PAULSEN, 

Mr. HARRIS, Mr. DAINES, Mr. SERRANO, Mrs. CAPITO, Mr. CHAFFETZ, 

Mr. SARBANES, Mr. BARR, Mr. POMPEO, Mr. NUNES, Ms. HANABUSA, 

Mr. BACHUS, Mr. YODER, Mr. COLLINS of New York, Mr. HANNA, Ms. 

KELLY of Illinois, Mr. LUETKEMEYER, Mr. BRIDENSTINE, Mr. UPTON, 

Mrs. MCCARTHY of New York, Ms. LOFGREN, Mrs. KIRKPATRICK, Mr. 

O’ROURKE, Mrs. BUSTOS, Mr. PETERS of Michigan, Ms. ROS-LEHTINEN, 

Mr. PALAZZO, Mr. THOMPSON of Pennsylvania, Mr. MARCHANT, Mr. 

PETERS of California, Mr. SHUSTER, Mr. DUNCAN of Tennessee, Mr. 

VISCLOSKY, Mr. RIGELL, Mr. GOSAR, Mr. TIPTON, Mr. SOUTHERLAND, 

Mrs. BLACKBURN, Mr. LATHAM, Mr. BRADY of Texas, Mr. KINGSTON, 

Mr. KING of Iowa, Mr. SCALISE, Mrs. MCMORRIS RODGERS, Mr. GOWDY, 

Mr. GRIMM, Mr. ROTHFUS, Mr. YOHO, Mr. ADERHOLT, Ms. ESTY, Mr. 

LOBIONDO, Mrs. BROOKS of Indiana, Mr. WENSTRUP, Mr. NEUGEBAUER, Mr. COFFMAN, Mr. BROOKS of Alabama, Mr. RICHMOND, Mr. 

REED, Ms. SEWELL of Alabama, Mr. RYAN of Ohio, Mr. GARAMENDI, 

Mr. DENHAM, Mr. FRELINGHUYSEN, Mr. RYAN of Wisconsin, Mr. 

WOODALL, Mr. MCHENRY, Mr. BISHOP of Georgia, Mr. FLEMING, Mr. 

HUNTER, Ms. BORDALLO, Mr. LARSON of Connecticut, Mr. GALLEGO, 

Mr. CARSON of Indiana, Mr. TIBERI, Mr. CRENSHAW, Mr. STUTZMAN, 

Ms. CLARK of Massachusetts, Mr. TERRY, Mr. SMITH of Nebraska, Mr. 

LEVIN, Mr. PERLMUTTER, Mr. LOEBSACK, Mr. OWENS, Mr. HUFFMAN, 

Mr. LIPINSKI, Mrs. NOEM, Mr. NUGENT, Mr. PRICE of North Carolina, 

Mr. BUCSHON, Mr. OLSON, Ms. DELAURO, Mr. FATTAH, Mr. DELANEY, 

Mrs. LOWEY, Mr. SENSENBRENNER, Mr. VAN HOLLEN, Mr. MATHESON, 

Mr. GARRETT, Mr. RENACCI, Ms. MATSUI, Mr. ENYART, Mr. MILLER of 

Florida, Mr. HENSARLING, Mr. TAKANO, Mr. BARROW of Georgia, Mrs. 

MILLER of Michigan, Mr. ROONEY, Mr. ROSS, Mr. HUIZENGA of Michigan, Mr. POE of Texas, Mr. SMITH of Washington, Ms. DUCKWORTH, 

Ms. HERRERA BEUTLER, Mr. FLORES, Mr. DOYLE, Mr. BRADY of Pennsylvania, Mr. CROWLEY, Mr. GERLACH, Ms. SCHWARTZ, Mr. NUNNELEE, 

Mr. HONDA, Mr. SIMPSON, Mr. KIND, Mr. HASTINGS of Washington, Ms. 

FUDGE, Mr. WEBSTER of Florida, Mr. POLIS, Mr. HURT, Mr. 


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BUCHANAN, Ms. SHEA-PORTER, Mrs. BEATTY, Ms. MICHELLE LUJAN

GRISHAM of New Mexico, Mr. TIERNEY, Mr. DESJARLAIS, Mr. DANNY

K. DAVIS of Illinois, Mr. ROE of Tennessee, Mr. ROHRABACHER, Mr. 

WOLF, Mr. KELLY of Pennsylvania, Mr. GUTHRIE, Mr. MCCLINTOCK, 

Mr. MCALLISTER, Mr. BYRNE, Mr. CARTWRIGHT, Mr. VELA, Mr. WHITFIELD, Mr. FORBES, Ms. BASS, Mr. GOHMERT, Mr. LABRADOR, Ms. 

CHU, Mr. BRALEY of Iowa, Mr. DENT, Mr. KEATING, Mr. CHABOT, Mr. 

SAM JOHNSON of Texas, Mr. HOLT, Mr. POSEY, Mr. GOODLATTE, Mr. 

CA ́RDENAS, Mr. CARNEY, Mr. CLAWSON of Florida, Mr. HASTINGS of 

Florida, and Mr. CUMMINGS

JULY 22, 2014 

Reported from the Committee on Foreign Affairs with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

JULY 22, 2014 

The Committee on Financial Services discharged; committed to the Committee 

of the Whole House on the State of the Union and ordered to be printed 

[For text of introduced bill, see copy of bill as introduced on April 7, 2014] 


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A BILL 

To prevent Hezbollah and associated entities from gaining 

access to international financial and other institutions, 

and for other purposes. 


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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 AND TABLE OF CONTENTS. 

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

5 ‘‘Hezbollah International Financing Prevention Act of 

6 2014’’. 

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

8 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. Report 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. Report on Hezbollah’s involvement in the trade of conflict diamonds. 

Sec. 204. Rewards for justice and Hezbollah’s fundraising, financing, and money 

laundering activities. 

Sec. 205. Report on activities of foreign governments to disrupt global logistics 

networks and fundraising, financing, and money laundering activities of Hezbollah. 

Sec. 206. Appropriate congressional committees defined. 

TITLE III—MISCELLANEOUS PROVISIONS 

Sec. 301. Rule of construction. 

Sec. 302. Regulatory authority. 

Sec. 303. Termination. 

9 SEC. 2. STATEMENT OF POLICY. 

10 It shall be the policy of the United States to— 


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1 (1) prevent Hezbollah’s global logistics and fi2 nancial network from operating in order to curtail 

3 funding of its domestic and international activities; 

4 and 

5 (2) utilize all available diplomatic, legislative, 

6 and executive avenues to combat the global criminal 

7 activities of Hezbollah as a means to block that orga8 nization’s ability to fund its global terrorist activi9 ties. 

10 TITLE I—PREVENTION OF AC11 CESS BY HEZBOLLAH TO 

12 INTERNATIONAL FINANCIAL 

13 AND OTHER INSTITUTIONS 

14 SEC. 101. REPORT ON IMPOSITION OF SANCTIONS ON CER15 TAIN SATELLITE PROVIDERS THAT CARRY AL16 MANAR TV. 

17 (a) IN GENERAL.—Not later than 30 days after the 

18 date of the enactment of this Act, the President shall submit 

19 to the Committee on Foreign Affairs of the House of Rep20 resentatives and the Committee on Foreign Relations of the 

21 Senate a report that includes— 

22 (1) a list of all satellite, broadcast, Internet, or 

23 other providers that knowingly provides material sup24 port to al-Manar TV, and any affiliates or successors 

25 thereof; and 


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1 (2) with respect to all providers included on the 

2 list pursuant to paragraph (1)— 

3 (A) an identification of those providers that 

4 have been sanctioned pursuant to Executive 

5 Order 13224 (September 23, 2001); and 

6 (B) an identification of those providers that 

7 have not been sanctioned pursuant to Executive 

8 Order 13224 and, with respect to each such pro9 vider, the reason why sanctions have not been 

10 imposed. 

11 (b) FORM.—The report required by subsection (a) shall 

12 be submitted in unclassified form to the greatest extent pos13 sible, and may contain a classified annex. 

14 SEC. 102. SANCTIONS WITH RESPECT TO FINANCIAL INSTI15 TUTIONS THAT ENGAGE IN CERTAIN TRANS16 ACTIONS. 

17 (a) PROHIBITIONS AND CONDITIONS WITH RESPECT

18 TO CERTAIN ACCOUNTS HELD BY FOREIGN FINANCIAL IN19 STITUTIONS.— 

20 (1) IN GENERAL.—Not later than 120 days after 

21 the date of the enactment of this Act, the Secretary of 

22 the Treasury, with the concurrence of the Secretary of 

23 State and in consultation with the heads of other ap24 plicable departments and agencies, shall prohibit, or 

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1 ing in the United States of a correspondent account 

2 or a payable-through account by a foreign financial 

3 institution that the Secretary determines, on or after 

4 the date of the enactment of this Act, engages in an 

5 activity described in paragraph (2). 

6 (2) ACTIVITIES DESCRIBED.—A foreign financial 

7 institution engages in an activity described in this 

8 paragraph if the foreign financial institution— 

9 (A) knowingly facilitates a significant 

10 transaction or transactions for Hezbollah; 

11 (B) knowingly facilitates a significant 

12 transaction or transactions of a person des13 ignated for acting on behalf of or at the direction 

14 of, or owned or controlled by, Hezbollah; 

15 (C) knowingly engages in money laundering 

16 to carry out an activity described in subpara17 graph (A) or (B); 

18 (D) knowingly facilitates a significant 

19 transaction or transactions or provides signifi20 cant financial services to carry out an activity 

21 described in subparagraph (A), (B), or (C), in22 cluding— 

23 (i) facilitating a significant trans24 action or transactions; or 


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1 (ii) providing significant financial 

2 services that involve a transaction of cov3 ered goods; or 

4 (E)(i) knowingly facilitates, or participates 

5 or assists in, an activity described in subpara6 graph (A), (B), (C), or (D), including by acting 

7 on behalf of, at the direction of, or as an inter8 mediary for, or otherwise assisting, another per9 son with respect to the activity described in any 

10 such subparagraph; 

11 (ii) knowingly attempts or conspires to fa12 cilitate or participate in an activity described in 

13 subparagraph (A), (B), (C), or (D); or 

14 (iii) is owned or controlled by a foreign fi15 nancial institution that the Secretary finds 

16 knowingly engages in an activity described in 

17 subparagraph (A), (B), (C), or (D). 

18 (3) PENALTIES.—The penalties provided for in 

19 subsections (b) and (c) of section 206 of the Inter20 national Emergency Economic Powers Act (50 U.S.C. 

21 1705) shall apply to a person that violates, attempts 

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

23 of regulations prescribed under paragraph (1) of this 

24 subsection to the same extent that such penalties 


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1 apply to a person that commits an unlawful act de2 scribed in section 206(a) of that Act. 

3 (4) REGULATIONS.—The Secretary of the Treas4 ury shall prescribe and implement regulations to 

5 carry out this subsection. 

6 (b) WAIVER.— 

7 (1) IN GENERAL.—The Secretary of the Treas8 ury, with the concurrence of the Secretary of State 

9 and in consultation with the heads of other applicable 

10 departments and agencies, may waive, on a case-by11 case basis, the application of a prohibition or condi12 tion imposed with respect to a foreign financial insti13 tution pursuant to subsection (a) for a period of not 

14 more than 180 days, and may renew that waiver for 

15 additional periods of not more than 180 days, on and 

16 after the date that the Secretary of the Treasury, with 

17 the concurrence of the Secretary of State— 

18 (A) determines that such a waiver is vital 

19 to the national security interests of the United 

20 States; and 

21 (B) submits to the appropriate congres22 sional committees a report describing the reasons 

23 for the determination. 


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1 (2) FORM.—The report required by subpara2 graph (1) shall be submitted in unclassified form, but 

3 may contain a classified annex. 

4 (c) PROVISIONS RELATING TO FOREIGN FINANCIAL IN5 STITUTIONS.— 

6 (1) REPORT.—Not later than 45 days after the 

7 date of the enactment of this Act, and every 180 days 

8 thereafter, the Secretary of the Treasury shall submit 

9 to the appropriate congressional committees a report 

10 that— 

11 (A) identifies each foreign central bank that 

12 the Secretary determines engages in one or more 

13 activities described in subsection (a)(2)(D); and 

14 (B) provides a detailed description of each 

15 such activity. 

16 (2) SPECIAL RULE TO ALLOW FOR TERMINATION

17 OF SANCTIONABLE ACTIVITY.—The Secretary of the 

18 Treasury shall not be required to apply sanctions to 

19 a foreign financial institution described in subsection 

20 (a) if the Secretary of the Treasury, with the concur21 rence of the Secretary of State and in consultation 

22 with the heads of other applicable departments and 

23 agencies, certifies in writing to the appropriate con24 gressional committees that— 

25 (A) the foreign financial institution— 


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1 (i) is no longer engaging in the activ2 ity described in subsection (a)(2); or 

3 (ii) has taken and is continuing to 

4 take significant verifiable steps toward ter5 minating the activity described in sub6 section (a)(2); and 

7 (B) the Secretary has received reliable as8 surances from the government with primary ju9 risdiction over the foreign financial institution 

10 that the foreign financial institution will not en11 gage in any activity described in subsection 

12 (a)(2) in the future. 

13 (d) DEFINITIONS.— 

14 (1) IN GENERAL.—In this section: 

15 (A) ACCOUNT; CORRESPONDENT ACCOUNT; 

16 PAYABLE-THROUGH ACCOUNT.—The terms ‘‘ac17 count’’, ‘‘correspondent account’’, and ‘‘payable18 through account’’ have the meanings given those 

19 terms in section 5318A of title 31, United States 

20 Code. 

21 (B) AGENT.—The term ‘‘agent’’ includes an 

22 entity established by a person for purposes of 

23 conducting transactions on behalf of the person 

24 in order to conceal the identity of the person. 


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1 (C) APPROPRIATE CONGRESSIONAL COMMIT2 TEES.—The term ‘‘appropriate congressional 

3 committees’’ means— 

4 (i) the Committee on Foreign Affairs 

5 and the Committee on Financial Services of 

6 the House of Representatives; and 

7 (ii) the Committee on Foreign Rela8 tions and the Committee on Banking, Hous9 ing, and Urban Affairs of the Senate. 

10 (D) COVERED GOODS.—The term ‘‘covered 

11 goods’’ has the meaning given the term in section 

12 1027.100 of title 31, Code of Federal Regula13 tions. 

14 (E) FINANCIAL INSTITUTION.—The term 

15 ‘‘financial institution’’ means a financial insti16 tution specified in subparagraph (A), (B), (C), 

17 (D), (E), (F), (G), (H), (I), (J), (K), (M), (N), 

18 (P), (R), (T), (Y), or (Z) of section 5312(a)(2) 

19 of title 31, United States Code. 

20 (F) FOREIGN FINANCIAL INSTITUTION; DO21 MESTIC FINANCIAL INSTITUTION.— 

22 (i) FOREIGN FINANCIAL INSTITU23 TION.—The term ‘‘foreign financial institu24 tion’’ has the meaning of such term in sec25 tion 1010.605 of title 31, Code of Federal 


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1 Regulations, and includes a foreign central 

2 bank. 

3 (ii) DOMESTIC FINANCIAL INSTITU4 TION.—The term ‘‘domestic financial insti5 tution’’ has the meaning of such term as de6 termined by the Secretary of the Treasury. 

7 (G) HEZBOLLAH.—The term ‘‘Hezbollah’’ 

8 means— 

9 (i) any person— 

10 (I) the property of or interests in 

11 property of which are blocked pursuant 

12 to the International Emergency Eco13 nomic Powers Act (50 U.S.C. 1701 et 

14 seq.); and 

15 (II) who is identified on the list of 

16 specially designated nationals and 

17 blocked persons maintained by the Of18 fice of Foreign Asset Control of the De19 partment of the Treasury as an agent, 

20 instrumentality, or affiliate of 

21 Hezbollah; and 

22 (ii) the entity designated by the Sec23 retary of State as a foreign terrorist organi24 zation pursuant to section 219 of the ImmiVerDate Mar 15 2010 00:03 Jul 23, 2014 Jkt 039200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6203 E:\BILLS\H4411.RH H4411

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1 gration and Nationality Act (8 U.S.C. 

2 1189). 

3 (H) MONEY LAUNDERING.—The term 

4 ‘‘money laundering’’ means any of the activities 

5 described in paragraph (1), (2), or (3) of section 

6 1956(a) of title 18, United States Code, with re7 spect to which penalties may be imposed pursu8 ant to such section. 

9 (2) OTHER DEFINITIONS.—The Secretary of the 

10 Treasury may further define the terms used in this 

11 section in the regulations prescribed under this sec12 tion. 

13 TITLE II—REPORTS ON DESIGNA14 TION OF HEZBOLLAH AS A 

15 SIGNIFICANT FOREIGN NAR16 COTICS TRAFFICKER AND A 

17 SIGNIFICANT 

18 TRANSNATIONAL CRIMINAL 

19 ORGANIZATION 

20 SEC. 201. REPORT ON DESIGNATION OF HEZBOLLAH AS A 

21 SIGNIFICANT FOREIGN NARCOTICS TRAF22 FICKER. 

23 (a) FINDINGS.—Congress makes the following findings: 

24 (1) In 2008, after the two year Operation Titan 

25 run by the U.S. Drug Enforcement Administration 


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1 and Colombian authorities dismantled an inter2 national narcotics ring that smuggled cocaine into the 

3 United States, Europe, and the Middle East, and was 

4 run by Chekry Harb, also known as ‘‘Taliban’’. Ac5 cording to lead prosecutor for the special prosecutor’s 

6 office in Bogota, Gladys Sanchez, ‘‘The profits from 

7 the sales of drugs went to finance Hezbollah.’’. 

8 (2) In 2011, the Department of the Treasury 

9 blacklisted the Lebanese Canadian Bank as a pri10 mary money laundering concern, alleging that it is 

11 part of a drug trafficking network that profited 

12 Hezbollah by moving approximately $200,000,000 per 

13 month. 

14 (3) In April 2013, when the Department of the 

15 Treasury blacklisted two Lebanese exchange houses, 

16 Kassem Rmeiti & Co. and Halawi Exchange Co., for 

17 laundering drug profits for Hezbollah, it stated that 

18 Hezbollah was operating like ‘‘an international drug 

19 cartel,’’ adding that the ‘‘Halawi Exchange, through 

20 its network of established international exchange 

21 houses, initiated wire transfers from its bank accounts 

22 to the United States without using the Lebanese bank23 ing system in order to avoid scrutiny associated with 

24 Treasury’s designations of Hassan Ayash Exchange, 

25 Elissa Exchange, and its Lebanese Canadian Bank 


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1 Section 311 Action. . .Money was then wire trans2 ferred via Halawi’s banking relationships indirectly 

3 to the United States through countries that included 

4 China, Singapore, and the UAE, which were per5 ceived to receive less scrutiny by the U.S. Govern6 ment.’’. 

7 (4) The Department of Justice reported that 29 

8 of the 63 organizations on its FY 2010 Consolidated 

9 Priority Organization Targets list, which includes the 

10 most significant international drug trafficking orga11 nizations (DTOs) threatening the United States, were 

12 associated with terrorist groups, and noted with con13 cern Hezbollah’s international drug and criminal ac14 tivities. 

15 (b) SENSE OF CONGRESS.—It is the sense of Congress 

16 that— 

17 (1) Hezbollah meets the criteria for designation 

18 as a significant foreign narcotics trafficker as set 

19 forth in the Foreign Narcotics Kingpin Designation 

20 Act (21 U.S.C. 1901 et seq.); and 

21 (2) the President should so designate Hezbollah 

22 as a significant foreign narcotics trafficker. 

23 (c) REPORT.— 

24 (1) REPORT REQUIRED.—Not later than 120 

25 days after the date of the enactment of this Act, the 


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1 President shall submit to the appropriate congres2 sional committees— 

3 (A) a detailed report on whether the 

4 Hezbollah meets the criteria for designation 

5 under the Foreign Narcotics Kingpin Designa6 tion Act (21 U.S.C. 1901 et seq.) as a significant 

7 foreign narcotics trafficker; and 

8 (B) if the President determines that 

9 Hezbollah does not meet the criteria for designa10 tion under the Foreign Narcotics Kingpin Des11 ignation Act as a significant foreign narcotics 

12 trafficker, a detailed justification as to which 

13 criteria have not been met. 

14 (2) FORM.—The report required by paragraph 

15 (1) shall be submitted in unclassified form, but may 

16 include a classified annex. 

17 SEC. 202. REPORT ON DESIGNATION OF HEZBOLLAH AS A 

18 SIGNIFICANT TRANSNATIONAL CRIMINAL OR19 GANIZATION. 

20 (a) FINDINGS.—Congress makes the following findings: 

21 (1) Hezbollah is engaged array of illicit activi22 ties, from counterfeiting currencies, passport docu23 ments, to stolen automobile rings and other illicit ac24 tivities. 


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1 (2) In 2002, authorities in Charlotte, North 

2 Carolina arrested members of a cell run by Moham3 med and Chawki Hamoud and convicted them on 

4 various charges, including funding the activities of 

5 Hezbollah from proceeds of interstate cigarette smug6 gling and money laundering. 

7 (3) In 2006 the Department of the Treasury des8 ignated operations of Assad Barakat, treasurer for 

9 Hezbollah, as providing material support for a for10 eign terrorist organization and noted that Barakat 

11 had engaged in mafia-style shakedowns and ‘‘threat12 ened TBA (triborder area) shopkeepers who are sym13 pathetic to Hezbollah’s cause with having family 

14 members in Lebanon placed on a ‘Hezbollah blacklist’ 

15 if they did not pay their quota to Hezbollah’’ and also 

16 was ‘‘involved in a counterfeiting ring that distrib17 utes fake U.S. dollars and generates cash to fund 

18 Hezbollah operations’’. 

19 (4) In 2009, Paraguayan authorities arrested 

20 Moussa Hamdan and three other individuals for sell21 ing fraudulent passports and trafficking in counter22 feit money and sporting goods, illegally obtained con23 sumer electronics and automobiles and then using the 

24 proceeds to buy arms for Hezbollah. 


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1 (5) In October 2011, a group of businessmen pled 

2 guilty to attempting to ship electronics to a shopping 

3 center in South America that the Department of the 

4 Treasury had designated as a Hezbollah front. 

5 (6) A June 2014 ‘‘threat assessment’’ report by 

6 Canada’s Integrated Terrorism Assessment Centre in7 dicated that Hezbollah members in Canada are in8 volved in organized crime. 

9 (b) SENSE OF CONGRESS.—It is the sense of Congress 

10 that— 

11 (1) Hezbollah meets the criteria for designation 

12 as a significant transnational criminal organization 

13 under Executive Order 13581 (76 Fed. Reg. 44757); 

14 and 

15 (2) the President should so designate Hezbollah 

16 as a significant transnational criminal organization. 

17 (c) REPORT.— 

18 (1) REPORT REQUIRED.—Not later than 120 

19 days after the date of the enactment of this Act, the 

20 President shall submit to the appropriate committees 

21 of Congress— 

22 (A) a detailed report on whether the 

23 Hezbollah meets the criteria for designation as a 

24 significant transnational criminal organization 


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1 under Executive Order 13581 (76 Fed. Reg. 

2 44757); and 

3 (B) if the President determines that 

4 Hezbollah does not meet the criteria for designa5 tion as a significant transnational criminal or6 ganization under Executive Order 13581, a de7 tailed justification as to which criteria have not 

8 been met. 

9 (2) FORM.—The report required by paragraph 

10 (1) shall be submitted in unclassified form, but may 

11 include a classified annex. 

12 SEC. 203. REPORT ON HEZBOLLAH’S INVOLVEMENT IN THE 

13 TRADE OF CONFLICT DIAMONDS. 

14 (a) IN GENERAL.—Not later than 120 days after the 

15 date of the enactment of this Act, the Secretary of State 

16 shall submit to the Committee on Foreign Affairs and the 

17 Committee on Ways and Means of the House of Representa18 tives and the Committee on Foreign Relations of the Senate 

19 a report detailing Hezbollah’s involvement in the trade in 

20 rough diamonds outside of the Kimberley Process Certifi21 cation Scheme. 

22 (b) FORM.—The report required by subsection (a) shall 

23 be submitted in unclassified form, but may contain a classi24 fied annex. 


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1 SEC. 204. REWARDS FOR JUSTICE AND HEZBOLLAH’S FUND2 RAISING, FINANCING, AND MONEY LAUN3 DERING ACTIVITIES. 

4 (a) REPORT.—Not later than 90 days after the date 

5 of the enactment of this Act, the Secretary of State shall 

6 submit to the appropriate congressional committees a report 

7 that details actions taken by the Department of State 

8 through the Department of State rewards program (22 

9 U.S.C. 2708) to obtain information on fundraising, financ10 ing, and money laundering activities of Hezbollah and its 

11 agents and affiliates. 

12 (b) BRIEFING.—Not later than 90 days after the date 

13 of the enactment of this Act, and annually thereafter, the 

14 Secretary of State shall provide a briefing to the appro15 priate congressional committees on the status of the actions 

16 described in subsection (a). 

17 (c) APPROPRIATE CONGRESSIONAL COMMITTEES DE18 FINED.—In this section, the term ‘‘appropriate congres19 sional committees’’ means the Committee on Foreign Affairs 

20 of the House of Representatives and the Committee on For21 eign Relations of the Senate. 


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1 SEC. 205. REPORT ON ACTIVITIES OF FOREIGN GOVERN2 MENTS TO DISRUPT GLOBAL LOGISTICS NET3 WORKS AND FUNDRAISING, FINANCING, AND 

4 MONEY LAUNDERING ACTIVITIES OF 

5 HEZBOLLAH. 

6 (a) REPORT.— 

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

8 the date of the enactment of this Act, the President 

9 shall submit to the appropriate congressional commit10 tees a report that includes— 

11 (A) a list of countries that support 

12 Hezbollah, or in which Hezbollah maintains im13 portant portions of its global logistics networks; 

14 (B) with respect to each country on the list 

15 required by subparagraph (A)— 

16 (i) an assessment of whether the gov17 ernment of the country is taking adequate 

18 measures to disrupt the global logistics net19 works of Hezbollah within the territory of 

20 the country; and 

21 (ii) in the case of a country the govern22 ment of which is not taking adequate meas23 ures to disrupt those networks— 

24 (I) an assessment of the reasons 

25 that government is not taking adequate 


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1 measures to disrupt those networks; 

2 and 

3 (II) a description of measures 

4 being taken by the United States Gov5 ernment to encourage that government 

6 to improve measures to disrupt those 

7 networks; 

8 (C) a list of countries in which Hezbollah, 

9 or any of its agents or affiliates, conducts sig10 nificant fundraising, financing, or money laun11 dering activities; 

12 (D) with respect to each country on the list 

13 required by subparagraph (C)— 

14 (i) an assessment of whether the gov15 ernment of the country is taking adequate 

16 measures to disrupt the fundraising, financ17 ing, or money laundering activities of 

18 Hezbollah and its agents and affiliates 

19 within the territory of the country; and 

20 (ii) in the case of a country the govern21 ment of which is not taking adequate meas22 ures to disrupt those activities— 

23 (I) an assessment of the reasons 

24 that government is not taking adequate 


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1 measures to disrupt those activities; 

2 and 

3 (II) a description of measures 

4 being taken by the United States Gov5 ernment to encourage the government 

6 of that country to improve measures to 

7 disrupt those activities; and 

8 (E) a list of methods that Hezbollah, or any 

9 of its agents or affiliates, utilizes to raise or 

10 transfer funds, including trade-based money 

11 laundering, the use of foreign exchange houses, 

12 and free-trade zones. 

13 (2) FORM.—The report required by paragraph 

14 (1) shall be submitted in unclassified form to the 

15 greatest extent possible, and may contain a classified 

16 annex. 

17 (3) GLOBAL LOGISTICS NETWORKS OF

18 HEZBOLLAH.—In this subsection, the term ‘‘global lo19 gistics networks of Hezbollah’’, ‘‘global logistics net20 works’’, or ‘‘networks’’ means financial, material, or 

21 technological support for, or financial or other serv22 ices in support of, Hezbollah. 

23 (b) BRIEFING ON HEZBOLLAH’S ASSETS AND ACTIVI24 TIES RELATED TO FUNDRAISING, FINANCING, AND MONEY

25 LAUNDERING WORLDWIDE.—Not later than 90 days after 


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1 the date of the enactment of this Act, and every 180 days 

2 thereafter, the Secretary of State, the Secretary of the Treas3 ury, and the heads of other applicable Federal departments 

4 and agencies (or their designees) shall provide to the appro5 priate congressional committees a briefing on the disposi6 tion of Hezbollah’s assets and activities related to fund7 raising, financing, and money laundering worldwide. 

8 (c) APPROPRIATE CONGRESSIONAL COMMITTEES DE9 FINED.—In this section, the term ‘‘appropriate congres10 sional committees’’ means— 

11 (1) the Committee on Foreign Affairs, the Com12 mittee on Financial Services, and the Permanent Se13 lect Committee on Intelligence of the House of Rep14 resentatives; and 

15 (2) the Committee on Foreign Relations, the 

16 Committee on Banking, Housing, and Urban Affairs, 

17 and the Select Committee on Intelligence of the Sen18 ate. 

19 SEC. 206. APPROPRIATE CONGRESSIONAL COMMITTEES DE20 FINED. 

21 Except as otherwise provided, in this title, the term 

22 ‘‘appropriate congressional committees’’ means— 

23 (1) the Committee on Foreign Affairs, the Com24 mittee on Financial Services, and the Committee on 

25 the Judiciary of the House of Representatives; and 


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1 (2) the Committee on Foreign Relations, the 

2 Committee on Finance, and the Committee on the Ju3 diciary of the Senate. 

4 TITLE III—MISCELLANEOUS 

5 PROVISIONS 

6 SEC. 301. RULE OF CONSTRUCTION. 

7 Nothing in this Act or any amendment made by this 

8 Act shall apply to the authorized intelligence activities of 

9 the United States. 

10 SEC. 302. REGULATORY AUTHORITY. 

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

12 90 days after the date of the enactment of this Act, promul13 gate regulations as necessary for the implementation of this 

14 Act and the amendments made by this Act. 

15 (b) NOTIFICATION TO CONGRESS.—Not less than 10 

16 days prior to the promulgation of regulations under sub17 section (a), the President shall notify the appropriate con18 gressional committees (as defined in section 204) of the pro19 posed regulations and the provisions of this Act and the 

20 amendments made by this Act that the regulations are im21 plementing. 

22 SEC. 303. TERMINATION. 

23 This Act shall cease to be in effect beginning 30 days 

24 after the date on which the President certifies to Congress 

25 that Hezbollah— 


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1 (1) is no longer designated as a foreign terrorist 

2 organization pursuant to section 219 of the Immigra3 tion and Nationality Act (8 U.S.C. 1189); 

4 (2) is no longer listed in the Annex to Executive 

5 Order 13224 (September 23, 2001; relating to block6 ing property and prohibiting transactions with per7 sons who commit, threaten to commit, or support ter8 rorism); and 

9 (3) poses no significant threat to United States 

10 national security, interests, or allies. 


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Union Calendar No. 409 

113TH CONGRESS 

2D SESSION H. R. 4411 

[Report No. 113–543, Part I] 

A BILL 

To prevent Hezbollah and associated entities from 

other institutions, and for other purposes. gaining access to international financial and 

JULY 22, 2014 

Reported from the Committee on Foreign Affairs with an 

amendment 

JULY 22, 2014 

The Committee on Financial Services discharged; comState of the Union and ordered to be printed mitted to the Committee of the Whole House on the 


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