I 

113TH CONGRESS 

2D SESSION H. R. 4411 

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 

A BILL 

To prevent Hezbollah and associated entities from gaining 

access to international financial and other institutions, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Hezbollah Inter5 national Financing Prevention Act of 2014’’. 


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1 TITLE I—PREVENTION OF AC2 CESS BY HEZBOLLAH TO 

3 INTERNATIONAL FINANCIAL 

4 AND OTHER INSTITUTIONS 

5 SEC. 101. FINDINGS; STATEMENT OF POLICY. 

6 (a) FINDINGS.—Congress finds the following: 

7 (1) The United States Government holds 

8 Hezbollah responsible for the largest number of 

9 American deaths overseas by a terrorist organization 

10 prior to the attacks of September 11, 2001, includ11 ing a number of attacks on and hostage takings tar12 geting Americans in Lebanon during the 1980s, in13 cluding the bombing of the United States Embassy 

14 in Beirut in April 1983, and the bombing of the 

15 United States Marine barracks in October 1983. 

16 (2) Hezbollah’s operations outside of Lebanon, 

17 including its participation in bombings of Israeli and 

18 Jewish institutions in Argentina during the 1990s, 

19 recent support to Shiite insurgents in Iraq, recent 

20 attacks and attempted attacks in Europe, Southeast 

21 Asia, and elsewhere, and extensive international 

22 operational, logistical, and financial networks have 

23 rendered it a capable and deadly adversary with 

24 global reach. 


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1 (3) Hezbollah has been designated as a terrorist 

2 organization by the United States since 1995, and 

3 remains on foreign terrorist organization and Spe4 cially Designated Terrorist lists. 

5 (4) In March 2013, a Cypriot court convicted a 

6 Hezbollah member for participation in a criminal or7 ganization, planning to commit a crime and money 

8 laundering. In July 2013, the Bulgarian government 

9 concluded that Hezbollah was responsible for the 

10 2012 Burgas bombing, which killed six people. 

11 (5) In July 2013, the European Union des12 ignated the military wing of Hezbollah as a terrorist 

13 organization. The designation helps to facilitate Eu14 ropean law enforcement agencies’ actions against 

15 Hezbollah’s fundraising, logistical activity, and ter16 rorist plotting on European soil. 

17 (6) In July 2013, the Gulf Cooperation Council, 

18 consisting of Saudi Arabia, Qatar, Bahrain, Kuwait, 

19 Oman and the United Arab Emirates, declared 

20 Hezbollah a terrorist organization. 

21 (7) Hezbollah continues to provide material as22 sistance, including assuming a combat role, in Syria, 

23 and aids the Government of Iran and the Govern24 ment of Syria in their human rights and other 

25 abuses perpetrated against the Syrian people. 


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1 (8) An estimated 5,000 Hezbollah fighters are 

2 supporting the Assad regime in Syria by fighting on 

3 his behalf and by providing military training, advice 

4 and logistical support to regime forces. 

5 (9) Hezbollah continues to serve as a proxy of 

6 Iran, in its effort to target the United States and its 

7 allies and interests. 

8 (10) Hezbollah’s global logistics and financial 

9 network serves as a lifeline to the organization, and 

10 enables it to consolidate power within Lebanon and 

11 provides it with the capabilities to perpetrate com12 plex attacks internationally. 

13 (11) Hezbollah has evolved into a significant 

14 drug smuggling organization, and also engages in 

15 other serious criminal activity, including money 

16 laundering, counterfeiting pharmaceuticals, and 

17 trade in conflict diamonds. 

18 (12) In April 2013, the Department of the 

19 Treasury blacklisted two Lebanese exchange houses, 

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

21 laundering drug profits for Hezbollah, and stated 

22 that Hezbollah was operating like ‘‘an international 

23 drug cartel’’. 

24 (13) In 2009, the Department of the Treasury 

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1 mary money laundering concern, alleging that it is 

2 part of a drug trafficking network that profited 

3 Hezbollah by moving approximately $200,000,000 

4 per month. 

5 (14) The Department of Justice reports that 29 

6 of the 63 organizations on its FY 2010 Consolidated 

7 Priority Organization Targets list, which includes 

8 the most significant international drug trafficking 

9 organizations (DTOs) threatening the United States, 

10 were associated with terrorist groups. There is con11 cern about Hezbollah’s drug and criminal activities, 

12 as well as indications of links between al-Qa‘ida in 

13 the Lands of the Islamic Maghreb and the drug 

14 trade. 

15 (15) Al-Manar, the Lebanese satellite television 

16 station affiliated with Hezbollah broadcasting from 

17 Beirut, Lebanon, was designated as a Specially Des18 ignated Global Terrorist entity in 2004, but con19 tinues to be carried by international broadcasting 

20 agents. 

21 (16) Hezbollah continues to present a threat to 

22 the United States and its allies and interests. 

23 (b) STATEMENT OF POLICY.—It shall be the policy 

24 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 criminal activi7 ties of Hezbollah as a means to block that organiza8 tion’s ability to fund its global terrorist activities. 

9 SEC. 102. REPORT ON IMPOSITION OF SANCTIONS ON CER10 TAIN SATELLITE PROVIDERS THAT CARRY 

11 AL-MANAR TV. 

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

13 date of the enactment of this Act, the President shall sub14 mit to the Committee on Foreign Affairs of the House 

15 of Representatives and the Committee on Foreign Rela16 tions of the Senate a report that includes— 

17 (1) a list of all satellite, broadcast, or other pro18 viders that knowingly transmits or otherwise broad19 casts the content of al-Manar TV, and any affiliates 

20 or successors thereof; and 

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

22 list pursuant to paragraph (1)— 

23 (A) an identification of those providers 

24 that have been sanctioned pursuant to Execu25 tive Order 13224 (September 23, 2001); and 


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1 (B) an identification of those providers 

2 that have not been sanctioned pursuant to Ex3 ecutive Order 13224 and, with respect to each 

4 such provider, the reason why sanctions have 

5 not been imposed. 

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

7 shall be submitted in unclassified form to the greatest ex8 tent possible, and may contain a classified annex. 

9 SEC. 103. SANCTIONS WITH RESPECT TO FINANCIAL INSTI10 TUTIONS THAT ENGAGE IN CERTAIN TRANS11 ACTIONS. 

12 (a) PROHIBITIONS AND CONDITIONS WITH RESPECT

13 TO CERTAIN ACCOUNTS HELD BY FOREIGN FINANCIAL

14 INSTITUTIONS.— 

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

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

17 of the Treasury, with the concurrence of the Sec18 retary of State and in consultation with the heads 

19 of other applicable departments and agencies, shall 

20 prohibit, or impose strict conditions on, the opening 

21 or maintaining in the United States of a cor22 respondent account or a payable-through account by 

23 a foreign financial institution that the Secretary 

24 finds engages in an activity described in paragraph 

25 (2). 


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1 (2) ACTIVITIES DESCRIBED.—A foreign finan2 cial institution engages in an activity described in 

3 this paragraph if the foreign financial institution— 

4 (A) knowingly facilitates the activities of 

5 Hezbollah, including its agents, instrumental6 ities, affiliates, or successors; 

7 (B) knowingly facilitates the activities of a 

8 person acting on behalf of or at the direction of, 

9 or owned or controlled by, a person described in 

10 subparagraph (A); 

11 (C) knowingly engages in money laun12 dering to carry out an activity described in sub13 paragraph (A) or (B); 

14 (D) knowingly facilitates a significant 

15 transaction or transactions or provides signifi16 cant financial services to carry out an activity 

17 described in subparagraph (A), (B), or (C), in18 cluding facilitating a significant transaction or 

19 transactions or providing significant financial 

20 services that involve a transaction of gold, sil21 ver, platinum, or other precious metals; or 

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

23 or assists in, an activity described in subpara24 graph (A), (B), (C), or (D), including by acting 

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1 mediary for, or otherwise assisting, another per2 son with respect to the activity described in any 

3 such subparagraph; 

4 (ii) knowingly attempts or conspires to fa5 cilitate or participate in an activity described in 

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

7 (iii) is owned or controlled by a foreign fi8 nancial institution that the Secretary finds 

9 knowingly engages in an activity described in 

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

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

12 subsections (b) and (c) of section 206 of the Inter13 national Emergency Economic Powers Act (50 

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

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

16 violation of regulations prescribed under paragraph 

17 (1) of this subsection to the same extent that such 

18 penalties apply to a person that commits an unlaw19 ful act described in section 206(a) of that Act. 

20 (4) REGULATIONS.—The Secretary of the 

21 Treasury shall prescribe and implement regulations 

22 to carry out this subsection. 

23 (b) REQUIREMENTS FOR FINANCIAL INSTITUTIONS

24 MAINTAINING ACCOUNTS FOR FOREIGN FINANCIAL IN25 STITUTIONS.— 


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

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

3 of the Treasury shall prescribe regulations to require 

4 a domestic financial institution maintaining a cor5 respondent account or payable-through account in 

6 the United States for a foreign financial institution 

7 to do one or more of the following: 

8 (A) Report to the Department of the 

9 Treasury with respect to financial transactions 

10 or other financial services provided with respect 

11 to any activity described in subsection (a). 

12 (B) Provide timely and accurate informa13 tion to domestic financial institutions maintain14 ing a correspondent account or payable-through 

15 account in the United States for a foreign fi16 nancial institution with respect to any activity 

17 described in subsection (a). 

18 (C) Establish due diligence policies, proce19 dures, and controls, such as the due diligence 

20 policies, procedures, and controls described in 

21 section 5318(i) of title 31, United States Code, 

22 reasonably designed to detect whether the Sec23 retary of the Treasury has found the foreign fi24 nancial institution to knowingly engage in any 

25 activity described in subsection (a). 


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1 (2) PENALTIES.—The penalties provided for in 

2 sections 5321(a) and 5322 of title 31, United States 

3 Code, shall apply to a person that violates a regula4 tion prescribed under paragraph (1) of this sub5 section, in the same manner and to the same extent 

6 as such penalties would apply to any person that is 

7 otherwise subject to such section 5321(a) or 5322. 

8 (c) WAIVER.—The Secretary of the Treasury, with 

9 the concurrence of the Secretary of State and in consulta10 tion with the heads of other applicable departments and 

11 agencies, may waive the application of a prohibition or 

12 condition imposed with respect to a foreign financial insti13 tution pursuant to subsection (a) on and after the date 

14 that is 30 days after the Secretary of the Treasury, with 

15 the concurrence of the Secretary of State— 

16 (1) determines that such a waiver is vital to the 

17 national security interests of the United States; and 

18 (2) submits to the appropriate congressional 

19 committees a report describing the reasons for the 

20 determination. 

21 (d) PROVISIONS RELATING TO FOREIGN CENTRAL

22 BANKS.— 

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

24 date of the enactment of this Act, and every 180 

25 days thereafter, the Secretary of the Treasury shall 


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1 submit to the appropriate congressional committees 

2 a report that— 

3 (A) identifies each foreign central bank 

4 that the Secretary finds engages in one or more 

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

6 (B) provides a detailed description of each 

7 such activity. 

8 (2) SPECIAL RULE TO ALLOW FOR TERMI9 NATION OF SANCTIONABLE ACTIVITY.—The Sec10 retary of the Treasury shall not be required to apply 

11 sanctions to a foreign central bank described in the 

12 report required under paragraph (1) if the Secretary 

13 of the Treasury, with the concurrence of the Sec14 retary of State and in consultation with the heads 

15 of other applicable departments and agencies, cer16 tifies in writing to the appropriate congressional 

17 committees that— 

18 (A) the foreign central bank— 

19 (i) is no longer engaging in the activ20 ity described in subsection (a)(2)(D); or 

21 (ii) has taken significant verifiable 

22 steps toward terminating the activity de23 scribed in subsection (a)(2)(D) not later 

24 than 90 days after the date on which the 

25 Secretary makes such certification; and 


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1 (B) the Secretary has received reliable as2 surances from the government with primary ju3 risdiction over the foreign central bank that the 

4 foreign central bank will not engage in any ac5 tivity described in subsection (a)(2)(D) in the 

6 future. 

7 (e) DEFINITIONS.— 

8 (1) IN GENERAL.—In this section: 

9 (A) ACCOUNT; CORRESPONDENT ACCOUNT; 

10 PAYABLE-THROUGH ACCOUNT.—The terms ‘‘ac11 count’’, ‘‘correspondent account’’, and ‘‘payable12 through account’’ have the meanings given 

13 those terms in section 5318A of title 31, United 

14 States Code. 

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

16 an entity established by a person for purposes 

17 of conducting transactions on behalf of the per18 son in order to conceal the identity of the per19 son. 

20 (C) APPROPRIATE CONGRESSIONAL COM21 MITTEES.—The term ‘‘appropriate congres22 sional committees’’ means— 

23 (i) the Committee on Foreign Affairs 

24 and the Committee on Financial Services 

25 of the House of Representatives; and 


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1 (ii) the Committee on Foreign Rela2 tions and the Committee on Banking, 

3 Housing, and Urban Affairs of the Senate. 

4 (D) FINANCIAL INSTITUTION.—The term 

5 ‘‘financial institution’’ means a financial insti6 tution specified in subparagraph (A), (B), (C), 

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

8 (R), or (Y) of section 5312(a)(2) of title 31, 

9 United States Code. 

10 (E) FOREIGN FINANCIAL INSTITUTION; 

11 DOMESTIC FINANCIAL INSTITUTION.— 

12 (i) FOREIGN FINANCIAL INSTITU13 TION.—The term ‘‘foreign financial institu14 tion’’— 

15 (I) has the meaning of such term 

16 as determined by the Secretary of the 

17 Treasury; and 

18 (II) includes a foreign central 

19 bank. 

20 (ii) DOMESTIC FINANCIAL INSTITU21 TION.—The term ‘‘domestic financial insti22 tution’’ has the meaning of such term as 

23 determined by the Secretary of the Treas24 ury. 


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1 (F) MONEY LAUNDERING.—The term 

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

3 described in paragraph (1), (2), or (3) of sec4 tion 1956(a) of title 18, United States Code, 

5 with respect to which penalties may be imposed 

6 pursuant to such section. 

7 (2) OTHER DEFINITIONS.—The Secretary of 

8 the Treasury may further define the terms used in 

9 this section in the regulations prescribed under this 

10 section. 

11 TITLE II—DESIGNATION OF 

12 HEZBOLLAH AS A MAJOR 

13 DRUG SMUGGLING ENTER14 PRISE AND A TRANSNATION15 AL CRIMINAL ORGANIZATION 

16 SEC. 201. DESIGNATION OF HEZBOLLAH AS SIGNIFICANT 

17 FOREIGN NARCOTICS TRAFFICKERS. 

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

19 date of the enactment of this Act, the President shall de20 termine if Hezbollah meets the criteria specified for des21 ignation of a significant foreign narcotics trafficker under 

22 the Foreign Narcotics Kingpin Designation Act (21 

23 U.S.C. 1901 et seq.). 

24 (b) AFFIRMATIVE DETERMINATION.—If the Presi25 dent determines under subsection (a) that Hezbollah 


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1 meets the criteria set forth under the Foreign Narcotics 

2 Kingpin Designation Act (21 U.S.C. 1901 et seq.), the 

3 President shall designate Hezbollah as a significant for4 eign narcotics trafficker under such Act. 

5 (c) NEGATIVE DETERMINATION.— 

6 (1) IN GENERAL.—If the President determines 

7 under subsection (a) that Hezbollah does not meet 

8 the criteria set forth under the Foreign Narcotics 

9 Kingpin Designation Act (21 U.S.C. 1901 et seq.), 

10 the President shall submit to the appropriate con11 gressional committees a report that contains a de12 tailed justification as to which criteria have not been 

13 met. 

14 (2) FORM.—The report required under para15 graph (1) shall be submitted in unclassified form, 

16 but may contain classified annex, if necessary. 

17 SEC. 202. DESIGNATION OF HEZBOLLAH AS A SIGNIFICANT 

18 TRANSNATIONAL CRIMINAL ORGANIZATION. 

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

20 date of the enactment of this Act, the President shall de21 termine if Hezbollah meets the criteria specified for des22 ignation as a significant transnational criminal organiza23 tion under Executive Order 13581 (76 Fed. Reg. 44757), 

24 and the authorities granted to the President under the 

25 International Emergency Economic Powers Act (50 


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1 U.S.C. 1701 et seq.), the National Emergencies Act (50 

2 U.S.C. 1601 et seq.), and section 301 of title 3, United 

3 States Code. 

4 (b) AFFIRMATIVE DETERMINATION.—If the Presi5 dent determines under subsection (a) that Hezbollah 

6 meets the criteria set forth under the orders and statutes 

7 specified in subsection (a), the President shall designate 

8 Hezbollah a significant transnational criminal organiza9 tion under such orders and statutes. 

10 (c) NEGATIVE DETERMINATION.— 

11 (1) IN GENERAL.—If the President determines 

12 under subsection (a) that Hezbollah does not meet 

13 the criteria set forth under the orders and statutes 

14 specified in subsection (a), the President shall sub15 mit to the appropriate congressional committees a 

16 report that contains a detailed justification as to 

17 which criteria have not been met. 

18 (2) FORM.—The report required under para19 graph (1) shall be submitted in unclassified form, 

20 but may contain classified annex, if necessary. 

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

22 TRADE OF CONFLICT DIAMONDS. 

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

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

25 shall submit to the Committee on Foreign Affairs of the 


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1 House of Representatives and the Committee on Foreign 

2 Relations of the Senate a report detailing Hezbollah’s in3 volvement in the trade in rough diamonds outside of the 

4 Kimberly Process Certification Scheme. 

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

6 shall be submitted in unclassified form, but may contain 

7 a classified annex. 

8 SEC. 204. APPROPRIATE CONGRESSIONAL COMMITTEES 

9 DEFINED. 

10 In this title, the term ‘‘appropriate congressional 

11 committees’’ means— 

12 (1) the Committee on Foreign Affairs, the 

13 Committee on Financial Services, and the Com14 mittee on the Judiciary of the House of Representa15 tives; and 

16 (2) the Committee on Foreign Relations, the 

17 Committee on Finance, and the Committee on the 

18 Judiciary of the Senate. 

19 TITLE III—MISCELLANEOUS 

20 PROVISIONS 

21 SEC. 301. RULE OF CONSTRUCTION. 

22 Nothing in this Act or any amendment made by this 

23 Act shall apply to the authorized intelligence activities of 

24 the United States. 


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1 SEC. 302. REGULATORY AUTHORITY. 

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

3 than 90 days after the date of the enactment of this Act, 

4 promulgate regulations as necessary for the implementa5 tion of this Act and the amendments made by this Act. 

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

7 days prior to the promulgation of regulations under sub8 section (a), the President shall notify the appropriate con9 gressional committees (as defined in section 204) of the 

10 proposed regulations and the provisions of this Act and 

11 the amendments made by this Act that the regulations are 

12 implementing. 

13 SEC. 303. TERMINATION. 

14 Any provision of this Act or amendment made by this 

15 Act shall cease to be in effect beginning 30 days after the 

16 date on which the President certifies to Congress that 

17 Hezbollah— 

18 (1) is no longer designated as a foreign ter19 rorist organization pursuant to section 219 of the 

20 Immigration and Nationality Act (8 U.S.C. 1189); 

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

22 Order 13224 (September 23, 2001; relating to 

23 blocking property and prohibiting transactions with 

24 persons who commit, threaten to commit, or support 

25 terrorism); and 


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1 (3) poses no significant threat to United States 

2 national security, interests, or allies. 

Æ 


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