(A) the foreign financial institution— 
(i) is no longer engaging in the activ-
ity described in subsection (a)(2); or 
(ii) has taken and is continuing to 
take significant verifiable steps toward ter-
minating the activity described in sub-
section (a)(2); and 
(B) the Secretary has received reliable as-
surances from the government with primary ju-
risdiction over the foreign financial institution 
that the foreign financial institution will not en-
gage 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 ‘‘ac-
count’’, ‘‘correspondent account’’, and ‘‘payable- 
through account’’ have the meanings given 
those terms in section 5318A of title 31, United 
States Code. 
(B) 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 
(ii) the Committee on Foreign Rela-
tions and the Committee on Banking, 
Housing, and Urban Affairs of the Senate. 
(C) COVERED GOODS.—The term ‘‘covered 
goods’’ has the meaning given the term in sec-
tion 1027.100 of title 31, Code of Federal Reg-
ulations. 
(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), 
(P), (R), (T), (Y), or (Z) 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’’ has the meaning of such term in sec-
tion 1010.605 of title 31, Code of Federal 
Regulations, and 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. 
(F) HEZBOLLAH.—The term ‘‘Hezbollah’’ 
means— 
(i) any person— 
(I) the property of or interests in 
property of which are blocked pursu-
ant 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 Of-
fice 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 Sec-
retary of State as a foreign terrorist orga-
nization pursuant to section 219 of the Im-
migration and Nationality Act (8 U.S.C. 
1189).
(G) 
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—REPORTS 
ON 
DES-
IGNATION 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 
TRAF-
FICKER. 
(a) FINDINGS.—Congress makes the following find-
ings: 
(1) In 2008, after the two year Operation Titan 
run by the U.S. Drug Enforcement Administration 
and Colombian authorities dismantled an inter-
national 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 spe-
cial 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 pri-
mary 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 ac-
counts to the United States without using the Leba-
nese banking system in order to avoid scrutiny asso-
ciated with Treasury’s designations of Hassan Ayash 
Exchange, Elissa Exchange, and its Lebanese Cana-
dian Bank Section 311 Action * * * . Money was 
then wire transferred via Halawi’s banking relation-
ships indirectly to the United States through coun-
tries 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 Con-
gress 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 congres-
sional committees— 
(A) a detailed report on whether the 
Hezbollah meets the criteria for designation 
under the Foreign Narcotics Kingpin Designa-
tion Act (21 U.S.C. 1901 et seq.) as a signifi-
cant foreign narcotics trafficker; and 
(B) if the President determines that 
Hezbollah does not meet the criteria for des-
ignation under the Foreign Narcotics Kingpin 
Designation Act as a significant foreign nar-
cotics 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 OR-
GANIZATION. 
(a) FINDINGS.—Congress makes the following find-
ings: 
(1) Hezbollah is engaged array of illicit activi-
ties, from counterfeiting currencies, passport docu-
ments, to stolen automobile rings and other illicit ac-
tivities.
(2) In 2002, authorities in Charlotte, North 
Carolina arrested members of a cell run by Moham-
med 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 counter-
feiting 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 sell-
ing fraudulent passports and trafficking in counter-
feit 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 Depart-
ment 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 in-
volved in organized crime. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) Hezbollah meets the criteria for designation 
as a significant transnational criminal organization 
under Executive Order No. 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 commit-
tees of Congress— 
(A) a detailed report on whether the 
Hezbollah meets the criteria for designation as 
a significant transnational criminal organization
under Executive Order No. 13581 (76 Fed. 
Reg. 44757); and 
(B) if the President determines that 
Hezbollah does not meet the criteria for des-
ignation as a significant transnational criminal 
organization under Executive Order No. 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 appropriate congressional committees a re-
port detailing Hezbollah’s involvement in the trade in 
rough diamonds outside of the Kimberley Process Certifi-
cation Scheme. 
(b) FORM.—The report required by subsection (a) 
shall be submitted in unclassified form, but may contain 
a classified annex. 
(c) APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED.—In this section, the term ‘‘appropriate congres-
sional committees’’ means—
(1) the Committee on Foreign Affairs, the 
Committee on Ways and Means, and the Committee 
on Financial Services of the House of Representa-
tives; and 
(2) the Committee on Foreign Relations and 
the Committee on Banking, Housing, and Urban Af-
fairs of the Senate. 
SEC. 204. REWARDS FOR JUSTICE AND HEZBOLLAH’S FUND-
RAISING, FINANCING, AND MONEY LAUN-
DERING 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 re-
port 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, fi-
nancing, 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 appro-
priate congressional committees on the status of the ac-
tions described in subsection (a).
(c) APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED.—In this section, the term ‘‘appropriate congres-
sional committees’’ means— 
(1) the Committee on Foreign Affairs and the 
Committee on Financial Services of the House of 
Representatives; and 
(2) the Committee on Foreign Relations and 
the Committee on Banking, Housing, and Urban Af-
fairs of the Senate. 
SEC. 205. REPORT ON ACTIVITIES OF FOREIGN GOVERN-
MENTS TO DISRUPT GLOBAL LOGISTICS NET-
WORKS 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 com-
mittees a report that includes— 
(A) a list of countries that support 
Hezbollah, or in which Hezbollah maintains im-
portant portions of its global logistics networks; 
(B) with respect to each country on the list 
required by subparagraph (A)—