I 
108TH CONGRESS 
1ST SESSION H. R. 3016
To combat terrorism financing, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 5, 2003
Ms. HART introduced the following bill; which was referred to the Committee 
on the Judiciary, and in addition to the Committees on International Re-
lations and 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 combat terrorism financing, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Combating Terrorism 
Financing Act of 2003’’. 
SEC. 2. INCREASED PENALTIES FOR TERRORISM FINANC-
ING. 
Section 206 of the International Emergency Eco-
nomic Powers Act (50 U.S.C. 1705) is amended—
(1) in subsection (a), by deleting ‘‘$10,000’’ 
and inserting ‘‘$50,000’’. 
(2) in subsection (b), by deleting ‘‘ten years’’ 
and inserting ‘‘twenty years’’. 
SEC. 3. TERRORISM-RELATED SPECIFIED ACTIVITIES FOR 
MONEY LAUNDERING. 
(a) AMENDMENTS TO RICO.—Section 1961(1) of 
title 18, United States Code, is amended—
(1) in subparagraph (B), by inserting ‘‘section 
1960 (relating to illegal money transmitters),’’ be-
fore ‘‘sections 2251’’; and 
(2) in subparagraph (F), by inserting ‘‘section 
274A (relating to unlawful employment of aliens),’’ 
before ‘‘section 277’’. 
(b) AMENDMENTS TO SECTION 1956(c)(7).—Section 
1956(c)(7)(D) of title 18, United States Code, is amended 
by—
(1) inserting ‘‘, or section 2339C (relating to fi-
nancing of terrorism)’’ before ‘‘of this title’’; and 
(2) striking ‘‘or any felony violation of the For-
eign Corrupt Practices Act’’ and inserting ‘‘any fel-
ony violation of the Foreign Corrupt Practices Act, 
or any violation of section 208 of the Social Security 
Act (relating to obtaining funds through misuse of 
a social security number)’’.
(c) CONFORMING
AMENDMENTS
TO
SECTIONS 
1956(e) AND 1957(e).—
(1) Section 1956(e) of title 18, United States 
Code, is amended to read as follows: 
‘‘(e) Violations of this section may be investigated by 
such components of the Department of Justice as the At-
torney General may direct, and by such components of the 
Department of the Treasury as the Secretary of the Treas-
ury may direct, as appropriate, and, with respect to of-
fenses over which the Department of Homeland Security 
has jurisdiction, by such components of the Department 
of Homeland Security as the Secretary of Homeland Secu-
rity may direct, and, with respect to offenses over which 
the United States Postal Service has jurisdiction, by the 
Postal Service. Such authority of the Secretary of the 
Treasury, the Secretary of Homeland Security, and the 
Postal Service shall be exercised in accordance with an 
agreement which shall be entered into by the Secretary 
of the Treasury, the Secretary of Homeland Security, the 
Postal Service, and the Attorney General. Violations of 
this section involving offenses described in paragraph 
(c)(7)(E) may be investigated by such components of the 
Department of Justice as the Attorney General may di-
rect, and the National Enforcement Investigations Center 
of the Environmental Protection Agency.’’.
(2) Section 1957(e) of title 18, United States 
Code, is amended to read as follows: 
‘‘(e) Violations of this section may be investigated by 
such components of the Department of Justice as the At-
torney General may direct, and by such components of the 
Department of the Treasury as the Secretary of the Treas-
ury may direct, as appropriate, and, with respect to of-
fenses over which the Department of Homeland Security 
has jurisdiction, by such components of the Department 
of Homeland Security as the Secretary of Homeland Secu-
rity may direct, and, with respect to offenses over which 
the United States Postal Service has jurisdiction, by the 
Postal Service. Such authority of the Secretary of the 
Treasury, the Secretary of Homeland Security, and the 
Postal Service shall be exercised in accordance with an 
agreement which shall be entered into by the Secretary 
of the Treasury, the Secretary of Homeland Security, the 
Postal Service, and the Attorney General.’’. 
SEC. 4. ASSETS OF PERSONS COMMITTING TERRORIST 
ACTS 
AGAINST 
FOREIGN 
COUNTRIES 
OR 
INTERNATIONAL ORGANIZATIONS. 
Section 981(a)(1)(G) of title 18, United States Code, 
is amended—
(1) by striking ‘‘or’’ at the end of clause (ii);
(2) by striking the period at the end of clause 
(iii) and inserting ‘‘; or’’; and 
(3) by inserting the following after clause (iii): 
‘‘(iv) of any individual, entity, or or-
ganization engaged in planning or perpe-
trating any act of international terrorism 
(as defined in section 2331) against any 
international organization (as defined in 
section 209 of the State Department Basic 
Authorities Act of 1956 (22 U.S.C. 
4309(b))) or against any foreign Govern-
ment. Where the property sought for for-
feiture is located beyond the territorial 
boundaries of the United States, an act in 
furtherance of such planning or perpetra-
tion must have occurred within the juris-
diction of the United States.’’. 
SEC. 5. MONEY LAUNDERING THROUGH HAWALAS. 
Section 1956 of title 18, United States Code, is 
amended by adding at the end the following: 
‘‘(j)(1) For the purposes of subsections (a)(1) and 
(a)(2), a transaction, transportation, transmission, or 
transfer of funds shall be considered to be one involving 
the proceeds of specified unlawful activity, if the trans-
action, transportation, transmission, or transfer is part of
a set of parallel or dependent transactions, any one of 
which involves the proceeds of specified unlawful activity. 
‘‘(2) As used in this section, a ‘dependent trans-
action’ is one that completes or complements another 
transaction or one that would not have occurred but for 
another transaction.’’. 
SEC. 6. CLASSIFIED INFORMATION IN MONEY LAUNDERING 
PROCEEDINGS. 
Section 5318A of title 31, United States Code (as 
added by section 311 of the USA PATRIOT Act of 2001) 
is amended by adding at the end the following new sub-
section: 
‘‘(f) CLASSIFIED INFORMATION.—In any judicial re-
view of a finding of the existence of a primary money laun-
dering concern, or the requirement for one or more special 
measures with respect to a primary money laundering con-
cern, made under this section, if the designation or imposi-
tion or both were based on classified information (as de-
fined in section 1(a) of the Classified Information Proce-
dures Act), such information may be submitted by the 
Secretary to the reviewing court ex parte and in camera. 
This subsection does not confer or imply any right to judi-
cial review of any finding made or requirement imposed 
under this section.’’.
SEC. 7. TECHNICAL AND CONFORMING AMENDMENTS RE-
LATING TO THE USA PATRIOT ACT. 
(a) TECHNICAL CORRECTIONS.—
(1) Sections 5312(a)(3)(C) and 5324(b) of title 
31 are amended by striking ‘‘5333’’ each time it ap-
pears and inserting ‘‘5331’’. 
(2) Section 322 of Public Law 107–56 is 
amended by striking ‘‘title 18’’ and inserting ‘‘title 
28’’. 
(3) Section 5318(k)(1)(B) of title 31, United 
States 
Code, 
is 
amended 
by 
striking 
‘‘5318A(f)(1)(B)’’ and inserting ‘‘5318A(e)(1)(B)’’. 
(4) Section 5332(a)(1) of title 31, United 
States Code, is amended by striking ‘‘article of lug-
gage’’ and inserting ‘‘article of luggage or mail’’. 
(5) Section 1956(b)(3) and (4) of title 18, 
United States Code, are amended by striking ‘‘de-
scribed in paragraph (2)’’ each time it appears; and 
(6) Section 981(k) of title 18, United States 
Code, is amended by striking ‘‘foreign bank’’ each 
time it appears and inserting ‘‘foreign bank or fi-
nancial institution’’. 
(b) CODIFICATION OF SECTION 316 OF THE USA 
PATRIOT ACT.—
(1) Chapter 46 of title 18, United States Code, 
is amended—
(A) by inserting at the end the following: 
‘‘§ 987. Anti-terrorist forfeiture protection 
‘‘(a) RIGHT TO CONTEST.—An owner of property 
that is confiscated under this chapter or any other provi-
sion of law relating to the confiscation of assets of sus-
pected international terrorists, may contest that confisca-
tion by filing a claim in the manner set forth in the Fed-
eral Rules of Civil Procedure (Supplemental Rules for Cer-
tain Admiralty and Maritime Claims), and asserting as an 
affirmative defense that—
‘‘(1) the property is not subject to confiscation 
under such provision of law; or 
‘‘(2) the innocent owner provisions of section 
983(d) apply to the case. 
‘‘(b) EVIDENCE.—In considering a claim filed under 
this section, a court may admit evidence that is otherwise 
inadmissible under the Federal Rules of Evidence, if the 
court determines that the evidence is reliable, and that 
compliance with the Federal Rules of Evidence may jeop-
ardize the national security interests of the United States. 
‘‘(c) CLARIFICATIONS.—
‘‘(1) PROTECTION OF RIGHTS.—The exclusion 
of certain provisions of Federal law from the defini-
tion of the term ‘civil forfeiture statute’ in section 
983(i) shall not be construed to deny an owner of
property the right to contest the confiscation of as-
sets of suspected international terrorists under—
‘‘(A) subsection (a) of this section; 
‘‘(B) the Constitution; or 
‘‘(C) subchapter II of chapter 5 of title 5, 
United States Code (commonly known as the 
‘Administrative Procedure Act’). 
‘‘(2) SAVINGS CLAUSE.—Nothing in this section 
shall limit or otherwise affect any other remedies 
that may be available to an owner of property under 
section 983 or any other provision of law.’’; and 
(B) in the chapter analysis, by inserting at 
the end the following:
‘‘987. Anti-terrorist forfeiture protection.’’.
(2) Subsections (a), (b), and (c) of section 316 
of Public Law 107–56 are repealed. 
(c) CONFORMING AMENDMENTS CONCERNING CON-
SPIRACIES.—
(1) Section 33(a) of title 18, United States 
Code is amended by inserting ‘‘or conspires’’ before 
‘‘to do any of the foregoing’’. 
(2) Section 1366(a) of title 18, United States 
Code, is amended—
(A) by striking ‘‘attempts’’ each time it ap-
pears and inserting ‘‘attempts or conspires’’; 
and
(B) by inserting ‘‘, or if the object of the 
conspiracy had been achieved,’’ after ‘‘the at-
tempted offense had been completed’’. 
SEC. 8. TECHNICAL CORRECTIONS TO FINANCING OF TER-
RORISM STATUTE. 
(a) Section 2339C(c)(2) of title 18, United States 
Code, is amended—
(1) by striking ‘‘resources, or funds’’ and in-
serting ‘‘resources, or any funds or proceeds of such 
funds’’; 
(2) in subparagraph (A), striking ‘‘were pro-
vided’’ and inserting ‘‘are to be provided, or knowing 
that the support or resources were provided,’’; and 
(3) in subparagraph (B)—
(A) by striking ‘‘or any proceeds of such 
funds’’; and 
(B) by striking ‘‘were provided or col-
lected’’ and inserting ‘‘are to be provided or col-
lected, or knowing that the funds were provided 
or collected,’’. 
(b) Section 2339C(e) is amended—
(1) by striking ‘‘and’’ at the end of paragraph 
(12); 
(2) by redesignating paragraph (13) as para-
graph (14); and
(3) by inserting after paragraph (12) the fol-
lowing new paragraph: 
‘‘(13) the term ‘material support or resources’ 
has the same meaning as in section 2339A(b) of this 
title; and’’. 
(c) Section 2332b(g)(5)(B) of title 18, United States 
Code, is amended by inserting ‘‘)’’ after ‘‘2339C (relating 
to financing of terrorism’’.
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