(1) prevent Hezbollah’s global logistics and fi-
nancial 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 criminal activi-
ties of Hezbollah as a means to block that organiza-
tion’s ability to fund its global terrorist activities. 
SEC. 102. REPORT ON IMPOSITION OF SANCTIONS ON CER-
TAIN 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 sub-
mit to the Committee on Foreign Affairs of the House 
of Representatives and the Committee on Foreign Rela-
tions of the Senate a report that includes— 
(1) a list of all satellite, broadcast, or other pro-
viders that knowingly transmits or otherwise broad-
casts the content of 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 Execu-
tive Order 13224 (September 23, 2001); and 
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(B) an identification of those providers 
that have not been sanctioned pursuant to Ex-
ecutive 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 ex-
tent possible, and may contain a classified annex. 
SEC. 103. SANCTIONS WITH RESPECT TO FINANCIAL INSTI-
TUTIONS THAT ENGAGE IN CERTAIN TRANS-
ACTIONS. 
(a) PROHIBITIONS AND CONDITIONS WITH RESPECT 
TO CERTAIN ACCOUNTS HELD BY FOREIGN FINANCIAL 
INSTITUTIONS.— 
(1) IN GENERAL.—Not later than 90 days after 
the date of the enactment of this Act, the Secretary 
of the Treasury, with the concurrence of the Sec-
retary 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 cor-
respondent account or a payable-through account by 
a foreign financial institution that the Secretary 
finds engages in an activity described in paragraph 
(2). 
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(2) ACTIVITIES DESCRIBED.—A foreign finan-
cial institution engages in an activity described in 
this paragraph if the foreign financial institution— 
(A) knowingly facilitates the activities of 
Hezbollah, including its agents, instrumental-
ities, affiliates, or successors; 
(B) knowingly facilitates the activities of a 
person acting on behalf of or at the direction of, 
or owned or controlled by, a person described in 
subparagraph (A); 
(C) knowingly engages in money laun-
dering to carry out an activity described in sub-
paragraph (A) or (B); 
(D) knowingly facilitates a significant 
transaction or transactions or provides signifi-
cant financial services to carry out an activity 
described in subparagraph (A), (B), or (C), in-
cluding facilitating a significant transaction or 
transactions or providing significant financial 
services that involve a transaction of gold, sil-
ver, platinum, or other precious metals; or 
(E)(i) knowingly facilitates, or participates 
or assists in, an activity described in subpara-
graph (A), (B), (C), or (D), including by acting 
on behalf of, at the direction of, or as an inter-
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mediary for, or otherwise assisting, another per-
son with respect to the activity described in any 
such subparagraph; 
(ii) knowingly attempts or conspires to fa-
cilitate or participate in an activity described in 
subparagraph (A), (B), (C), or (D); or 
(iii) is owned or controlled by a foreign fi-
nancial 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 Inter-
national 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 unlaw-
ful 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) REQUIREMENTS FOR FINANCIAL INSTITUTIONS 
MAINTAINING ACCOUNTS FOR FOREIGN FINANCIAL IN-
STITUTIONS.— 
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(1) IN GENERAL.—Not later than 90 days after 
the date of the enactment of this Act, the Secretary 
of the Treasury shall prescribe regulations to require 
a domestic financial institution maintaining a cor-
respondent account or payable-through account in 
the United States for a foreign financial institution 
to do one or more of the following: 
(A) Report to the Department of the 
Treasury with respect to financial transactions 
or other financial services provided with respect 
to any activity described in subsection (a). 
(B) Provide timely and accurate informa-
tion to domestic financial institutions maintain-
ing a correspondent account or payable-through 
account in the United States for a foreign fi-
nancial institution with respect to any activity 
described in subsection (a). 
(C) Establish due diligence policies, proce-
dures, and controls, such as the due diligence 
policies, procedures, and controls described in 
section 5318(i) of title 31, United States Code, 
reasonably designed to detect whether the Sec-
retary of the Treasury has found the foreign fi-
nancial institution to knowingly engage in any 
activity described in subsection (a). 
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(2) PENALTIES.—The penalties provided for in 
sections 5321(a) and 5322 of title 31, United States 
Code, shall apply to a person that violates a regula-
tion prescribed under paragraph (1) of this sub-
section, in the same manner and to the same extent 
as such penalties would apply to any person that is 
otherwise subject to such section 5321(a) or 5322. 
(c) WAIVER.—The Secretary of the Treasury, with 
the concurrence of the Secretary of State and in consulta-
tion with the heads of other applicable departments and 
agencies, may waive the application of a prohibition or 
condition imposed with respect to a foreign financial insti-
tution pursuant to subsection (a) on and after the date 
that is 30 days after the Secretary of the Treasury, with 
the concurrence of the Secretary of State— 
(1) determines that such a waiver is vital to the 
national security interests of the United States; and 
(2) submits to the appropriate congressional 
committees a report describing the reasons for the 
determination. 
(d) PROVISIONS RELATING TO FOREIGN CENTRAL 
BANKS.— 
(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 
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submit to the appropriate congressional committees 
a report that— 
(A) identifies each foreign central bank 
that the Secretary finds 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
TERMI-
NATION
OF
SANCTIONABLE
ACTIVITY.—The Sec-
retary of the Treasury shall not be required to apply 
sanctions to a foreign central bank described in the 
report required under paragraph (1) if the Secretary 
of the Treasury, with the concurrence of the Sec-
retary of State and in consultation with the heads 
of other applicable departments and agencies, cer-
tifies in writing to the appropriate congressional 
committees that— 
(A) the foreign central bank— 
(i) is no longer engaging in the activ-
ity described in subsection (a)(2)(D); or 
(ii) has taken significant verifiable 
steps toward terminating the activity de-
scribed in subsection (a)(2)(D) not later 
than 90 days after the date on which the 
Secretary makes such certification; and 
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(B) the Secretary has received reliable as-
surances from the government with primary ju-
risdiction over the foreign central bank that the 
foreign central bank will not engage in any ac-
tivity described in subsection (a)(2)(D) in the 
future. 
(e) DEFINITIONS.— 
(1) IN GENERAL.—In this section: 
(A) ACCOUNT; CORRESPONDENT ACCOUNT; 
PAYABLE-THROUGH ACCOUNT.—The terms ‘‘ac-
count’’, ‘‘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 per-
son in order to conceal the identity of the per-
son. 
(C) APPROPRIATE
CONGRESSIONAL
COM-
MITTEES.—The term ‘‘appropriate congres-
sional committees’’ means— 
(i) the Committee on Foreign Affairs 
and the Committee on Financial Services 
of the House of Representatives; and 
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(ii) the Committee on Foreign Rela-
tions and the Committee on Banking, 
Housing, and Urban Affairs of the Senate. 
(D) FINANCIAL INSTITUTION.—The term 
‘‘financial institution’’ means a financial insti-
tution specified in subparagraph (A), (B), (C), 
(D), (E), (F), (G), (H), (I), (J), (K), (M), (N), 
(R), or (Y) of section 5312(a)(2) of title 31, 
United States Code. 
(E) FOREIGN
FINANCIAL
INSTITUTION; 
DOMESTIC FINANCIAL INSTITUTION.— 
(i) FOREIGN
FINANCIAL
INSTITU-
TION.—The term ‘‘foreign financial institu-
tion’’— 
(I) has the meaning of such term 
as determined by the Secretary of the 
Treasury; and 
(II) includes a foreign central 
bank. 
(ii) DOMESTIC
FINANCIAL
INSTITU-
TION.—The term ‘‘domestic financial insti-
tution’’ has the meaning of such term as 
determined by the Secretary of the Treas-
ury. 
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(F) 
MONEY
LAUNDERING.—The 
term 
‘‘money laundering’’ means any of the activities 
described in paragraph (1), (2), or (3) of sec-
tion 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—DESIGNATION 
OF 
HEZBOLLAH 
AS 
A 
MAJOR 
DRUG 
SMUGGLING 
ENTER-
PRISE AND A TRANSNATION-
AL CRIMINAL ORGANIZATION 
SEC. 201. DESIGNATION OF HEZBOLLAH AS SIGNIFICANT 
FOREIGN NARCOTICS TRAFFICKERS. 
(a) IN GENERAL.—Not later than 30 days after the 
date of the enactment of this Act, the President shall de-
termine if Hezbollah meets the criteria specified for des-
ignation of a significant foreign narcotics trafficker under 
the Foreign Narcotics Kingpin Designation Act (21 
U.S.C. 1901 et seq.). 
(b) AFFIRMATIVE DETERMINATION.—If the Presi-
dent determines under subsection (a) that Hezbollah 
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meets the criteria set forth under the Foreign Narcotics 
Kingpin Designation Act (21 U.S.C. 1901 et seq.), the 
President shall designate Hezbollah as a significant for-
eign narcotics trafficker under such Act. 
(c) NEGATIVE DETERMINATION.— 
(1) IN GENERAL.—If the President determines 
under subsection (a) that Hezbollah does not meet 
the criteria set forth under the Foreign Narcotics 
Kingpin Designation Act (21 U.S.C. 1901 et seq.), 
the President shall submit to the appropriate con-
gressional committees a report that contains a de-
tailed justification as to which criteria have not been 
met. 
(2) FORM.—The report required under para-
graph (1) shall be submitted in unclassified form, 
but may contain classified annex, if necessary. 
SEC. 202. DESIGNATION OF HEZBOLLAH AS A SIGNIFICANT 
TRANSNATIONAL CRIMINAL ORGANIZATION. 
(a) IN GENERAL.—Not later than 30 days after the 
date of the enactment of this Act, the President shall de-
termine if Hezbollah meets the criteria specified for des-
ignation as a significant transnational criminal organiza-
tion under Executive Order 13581 (76 Fed. Reg. 44757), 
and the authorities granted to the President under the 
International Emergency Economic Powers Act (50 
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U.S.C. 1701 et seq.), the National Emergencies Act (50 
U.S.C. 1601 et seq.), and section 301 of title 3, United 
States Code. 
(b) AFFIRMATIVE DETERMINATION.—If the Presi-
dent determines under subsection (a) that Hezbollah 
meets the criteria set forth under the orders and statutes 
specified in subsection (a), the President shall designate 
Hezbollah a significant transnational criminal organiza-
tion under such orders and statutes. 
(c) NEGATIVE DETERMINATION.— 
(1) IN GENERAL.—If the President determines 
under subsection (a) that Hezbollah does not meet 
the criteria set forth under the orders and statutes 
specified in subsection (a), the President shall sub-
mit to the appropriate congressional committees a 
report that contains a detailed justification as to 
which criteria have not been met. 
(2) FORM.—The report required under para-
graph (1) shall be submitted in unclassified form, 
but may contain classified annex, if necessary. 
SEC. 203. REPORT ON HEZBOLLAH’S INVOLVEMENT IN THE 
TRADE OF CONFLICT DIAMONDS. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of State 
shall submit to the Committee on Foreign Affairs of the 
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House of Representatives and the Committee on Foreign 
Relations of the Senate a report detailing Hezbollah’s in-
volvement in the trade in rough diamonds outside of the 
Kimberly 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. APPROPRIATE CONGRESSIONAL COMMITTEES 
DEFINED. 
In this title, the term ‘‘appropriate congressional 
committees’’ means— 
(1) the Committee on Foreign Affairs, the 
Committee on Financial Services, and the Com-
mittee on the Judiciary of the House of Representa-
tives; 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. 
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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 implementa-
tion 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 sub-
section (a), the President shall notify the appropriate con-
gressional 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. 
Any provision of this Act or amendment made by 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 ter-
rorist 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 
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(3) poses no significant threat to United States 
national security, interests, or allies. 
Æ 
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