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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4411 Reported in House (RH)]

                                                 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. Velazquez, Mr. Lowenthal, Mr. 
 Broun of Georgia, Ms. Wasserman Schultz, Mr. Langevin, Mr. Gibbs, Ms. 
 Titus, Mr. Barletta, Mr. Rush, Ms. Jenkins, Mr. Lance, Mr. Williams, 
    Ms. Linda T. Sanchez 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 
    Lujan 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. 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. Cardenas, 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]

_______________________________________________________________________

                                 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 2014''.
    (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. 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.

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. REPORT ON IMPOSITION OF SANCTIONS ON CERTAIN SATELLITE 
              PROVIDERS THAT CARRY AL-MANAR TV.

    (a) In General.--Not later than 30 days after the date of the 
enactment of this Act, the President shall submit to the Committee on 
Foreign Affairs of the House of Representatives and the Committee on 
Foreign Relations of the Senate a report that includes--
            (1) a list of all satellite, broadcast, Internet, or other 
        providers that knowingly provides material support to al-Manar 
        TV, and any affiliates or successors thereof; and
            (2) with respect to all providers included on the list 
        pursuant to paragraph (1)--
                    (A) an identification of those providers that have 
                been sanctioned pursuant to Executive Order 13224 
                (September 23, 2001); 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) Form.--The report required by subsection (a) shall be submitted 
in unclassified form to the greatest extent possible, and may contain a 
classified annex.

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 
        (1) of this subsection to the same extent that such penalties 
        apply to a person that commits an unlawful act described in 
        section 206(a) of that Act.
            (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 that 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 vital to the 
                national security interests of the United States; and
                    (B) submits to the appropriate congressional 
                committees a report describing the reasons for the 
                determination.
            (2) Form.--The report required by subparagraph (1) 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 of the Treasury, 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) the 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 subsection (a)(2); 
                        and
                    (B) the Secretary 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) 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) Agent.--The term ``agent'' includes an entity 
                established by a person for purposes of conducting 
                transactions on behalf of the person in order to 
                conceal the identity of the person.
                    (C) 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.
                    (D) Covered goods.--The term ``covered goods'' has 
                the meaning given the term in section 1027.100 of title 
                31, Code of Federal Regulations.
                    (E) 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.
                    (F) 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.
                    (G) 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).
                    (H) 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) Findings.--Congress makes the following findings:
            (1) In 2008, after the two year Operation Titan run by the 
        U.S. Drug Enforcement Administration and Colombian authorities 
        dismantled an international narcotics ring that smuggled 
        cocaine into the United States, Europe, and the Middle East, 
        and was run by Chekry Harb, also known as ``Taliban''. 
        According to lead prosecutor for the special prosecutor's 
        office in Bogota, Gladys Sanchez, ``The profits from the sales 
        of drugs went to finance Hezbollah.''.
            (2) In 2011, the Department of the Treasury blacklisted the 
        Lebanese Canadian Bank as a primary money laundering concern, 
        alleging that it is part of a drug trafficking network that 
        profited Hezbollah by moving approximately $200,000,000 per 
        month.
            (3) In April 2013, when the Department of the Treasury 
        blacklisted two Lebanese exchange houses, Kassem Rmeiti & Co. 
        and Halawi Exchange Co., for laundering drug profits for 
        Hezbollah, it stated that Hezbollah was operating like ``an 
        international drug cartel,'' adding that the ``Halawi Exchange, 
        through its network of established international exchange 
        houses, initiated wire transfers from its bank accounts to the 
        United States without using the Lebanese banking system in 
        order to avoid scrutiny associated with Treasury's designations 
        of Hassan Ayash Exchange, Elissa Exchange, and its Lebanese 
        Canadian Bank Section 311 Action. . .Money was then wire 
        transferred via Halawi's banking relationships indirectly to 
        the United States through countries that included China, 
        Singapore, and the UAE, which were perceived to receive less 
        scrutiny by the U.S. Government.''.
            (4) The Department of Justice reported that 29 of the 63 
        organizations on its FY 2010 Consolidated Priority Organization 
        Targets list, which includes the most significant international 
        drug trafficking organizations (DTOs) threatening the United 
        States, were associated with terrorist groups, and noted with 
        concern Hezbollah's international drug and criminal activities.
    (b) Sense of Congress.--It is the sense of Congress that--
            (1) Hezbollah meets the criteria for designation as a 
        significant foreign narcotics trafficker as set forth in the 
        Foreign Narcotics Kingpin Designation Act (21 U.S.C. 1901 et 
        seq.); and
            (2) the President should so designate Hezbollah as a 
        significant foreign narcotics trafficker.
    (c) Report.--
            (1) Report required.--Not later than 120 days after the 
        date of the enactment of this Act, the President shall submit 
        to the appropriate congressional committees--
                    (A) a detailed report on whether the 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
                    (B) if the President determines that Hezbollah does 
                not meet the criteria for designation under the Foreign 
                Narcotics Kingpin Designation Act as a significant 
                foreign narcotics trafficker, a detailed justification 
                as to which criteria have not been met.
            (2) Form.--The report required by paragraph (1) shall be 
        submitted in unclassified form, but may include a classified 
        annex.

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

    (a) Findings.--Congress makes the following findings:
            (1) Hezbollah is engaged array of illicit activities, from 
        counterfeiting currencies, passport documents, to stolen 
        automobile rings and other illicit activities.
            (2) In 2002, authorities in Charlotte, North Carolina 
        arrested members of a cell run by Mohammed and Chawki Hamoud 
        and convicted them on various charges, including funding the 
        activities of Hezbollah from proceeds of interstate cigarette 
        smuggling and money laundering.
            (3) In 2006 the Department of the Treasury designated 
        operations of Assad Barakat, treasurer for Hezbollah, as 
        providing material support for a foreign terrorist organization 
        and noted that Barakat had engaged in mafia-style shakedowns 
        and ``threatened TBA (triborder area) shopkeepers who are 
        sympathetic to Hezbollah's cause with having family members in 
        Lebanon placed on a `Hezbollah blacklist' if they did not pay 
        their quota to Hezbollah'' and also was ``involved in a 
        counterfeiting ring that distributes fake U.S. dollars and 
        generates cash to fund Hezbollah operations''.
            (4) In 2009, Paraguayan authorities arrested Moussa Hamdan 
        and three other individuals for selling fraudulent passports 
        and trafficking in counterfeit money and sporting goods, 
        illegally obtained consumer electronics and automobiles and 
        then using the proceeds to buy arms for Hezbollah.
            (5) In October 2011, a group of businessmen pled guilty to 
        attempting to ship electronics to a shopping center in South 
        America that the Department of the Treasury had designated as a 
        Hezbollah front.
            (6) A June 2014 ``threat assessment'' report by Canada's 
        Integrated Terrorism Assessment Centre indicated that Hezbollah 
        members in Canada are involved in organized crime.
    (b) 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 13581 (76 Fed. Reg. 44757); and
            (2) the President should so designate Hezbollah as a 
        significant transnational criminal organization.
    (c) Report.--
            (1) Report required.--Not later than 120 days after the 
        date of the enactment of this Act, the President shall submit 
        to the appropriate committees of Congress--
                    (A) a detailed report on whether the Hezbollah 
                meets the criteria for designation as a significant 
                transnational criminal organization under Executive 
                Order 13581 (76 Fed. Reg. 44757); and
                    (B) if the President determines that Hezbollah does 
                not meet the criteria for designation as a significant 
                transnational criminal organization under Executive 
                Order 13581, a detailed justification as to which 
                criteria have not been met.
            (2) Form.--The report required by paragraph (1) shall be 
        submitted in unclassified form, but may include a classified 
        annex.

SEC. 203. REPORT ON HEZBOLLAH'S INVOLVEMENT IN THE TRADE OF CONFLICT 
              DIAMONDS.

    (a) In General.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary of State shall submit to the 
Committee on Foreign Affairs and the Committee on Ways and Means of the 
House of Representatives and the Committee on Foreign Relations of the 
Senate a report detailing Hezbollah's involvement in the trade in rough 
diamonds outside of the Kimberley Process Certification Scheme.
    (b) Form.--The report required by subsection (a) shall be submitted 
in unclassified form, but may contain a classified annex.

SEC. 204. 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 (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 the Committee 
on Foreign Affairs of the House of Representatives and the Committee on 
Foreign Relations of the Senate.

SEC. 205. 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 submit 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 the country is taking adequate measures to 
                        disrupt the global logistics networks of 
                        Hezbollah 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 those networks--
                                    (I) an assessment of the reasons 
                                that government is not taking adequate 
                                measures to disrupt those networks; and
                                    (II) a description of measures 
                                being taken by the United States 
                                Government to encourage that government 
                                to improve measures to disrupt those 
                                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 the 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 
                        the country; and
                            (ii) in the case of a country the 
                        government of which is not taking adequate 
                        measures to disrupt those activities--
                                    (I) an assessment of the reasons 
                                that government is not taking adequate 
                                measures to disrupt those activities; 
                                and
                                    (II) a description of measures 
                                being taken by the United States 
                                Government to encourage the government 
                                of that country to improve measures to 
                                disrupt those 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 of other applicable Federal departments and agencies (or 
their designees) 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. 206. 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 prior to the 
promulgation of regulations under subsection (a), the President shall 
notify the appropriate congressional committees (as defined in section 
204) 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 cease to be in effect beginning 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 
        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.
                                                 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 gaining access to 
international financial and other institutions, and for other purposes.

_______________________________________________________________________

                             July 22, 2014

    Reported from the Committee on Foreign Affairs with an amendment

                             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
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