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‘‘(xviii) section 175 of title 18, United 
States Code;’’. 
SEC. 1105. COMPREHENSIVE NATURE OF UNITED STATES 
ARMS EMBARGOES. 
(a) FINDINGS; SENSE OF CONGRESS.—
(1) FINDINGS.—Congress finds that—
(A) governments to which the United 
States Government prohibits by law or policy 
the transfer of implements of war, including 
material, components, parts, and other defense 
articles and defense services (as defined in 
paragraphs (3) and (4) of section 47 of the 
Arms Export Control Act, respectively) continue 
to seek to evade these embargoes through in-
creasingly sophisticated illegal acquisitions via 
the ‘‘international gray arms market’’ and by 
seeking to exploit weaknesses in the export con-
trol system of the United States and its friends 
and allies; and 
(B) the strict and comprehensive applica-
tion of arms embargoes referred to in subpara-
graph (A) including those embargoes estab-
lished by the United Nations Security Council 
is of fundamental importance to the security
163
and foreign policy interests of the United 
States. 
(2) SENSE OF CONGRESS.—It is the sense of 
Congress that the United States Government should 
continue to provide a leadership role internationally 
in ensuring the effectiveness of arms embargoes re-
ferred to in paragraph (1). 
(b) SCOPE OF EMBARGOES.—Section 38 (22 U.S.C. 
2778) is amended by adding at the end the following: 
‘‘(k) Whenever the United States maintains an arms 
embargo pursuant to United States law, or through public 
notice by the President or Secretary of State pursuant to 
the authorities of this Act, no defense article or defense 
service subject to sections 120–130 of title 22, Code of 
Federal Regulations (commonly known as the ‘Inter-
national Traffic in Arms Regulations’) and no dual use 
good or technology subject to sections 730–774 of title 15, 
Code of Federal Regulations (commonly known as the ‘Ex-
port Administration Regulations’) shall be sold or trans-
ferred to the military, police, or intelligence services of the 
embargoed government, including any associated govern-
mental agency, subdivision, entity, or other person acting 
on their behalf, unless, at a minimum and without preju-
dice to any additional requirements established in United 
States law or regulation, the Secretary of State and the
164
Secretary of Defense have concurred in the sale or trans-
fer through issuance of a license.’’. 
(c) ESTABLISHMENT OF CONTROLS.—The Secretary 
shall consult with the Secretary of Commerce to ensure 
the establishment of appropriate foreign policy and na-
tional security controls and license requirements under the 
Export Administration Regulations in order to ensure the 
effective implementation of section 38(k) of the Arms Ex-
port Control Act, as added by subsection (b). 
(d) REPORT.—Not later than 120 days after the date 
of the enactment of this Act, the Secretary shall submit 
to the appropriate congressional committees a report that 
describes the actions taken to implement the requirements 
of subsection (c). 
SEC. 1106. TRANSACTIONS WITH COUNTRIES SUPPORTING 
ACTS OF INTERNATIONAL TERRORISM. 
Section 40(l)(1) (22 U.S.C. 2780(l)(1)) is amended 
by striking ‘‘any item enumerated on the United States 
Munitions List’’ and inserting ‘‘a defense article or de-
fense service (as defined in subparagraph (A) or (B) of 
section 47(7), respectively), an item enumerated on the 
United States Munitions List (as designated by the Presi-
dent pursuant to section 38(a)), or any other activity for 
which a license or other approval is required pursuant to 
the regulations promulgated under subsection (a)(1)’’.
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SEC. 1107. AMENDMENTS TO CONTROL OF ARMS EXPORTS 
AND IMPORTS. 
(a) REVISION
OF
STANDARD
FOR
VIOLATION; 
AMOUNT
OF
PENALTIES.—Section 38(c) (22 U.S.C. 
2778(c)) is amended—
(1) by striking ‘‘willfully’’ each place it appears 
and inserting ‘‘knowingly’’; 
(2) by striking ‘‘this section or section 39’’ and 
inserting ‘‘this section, section 39, or section 40’’; 
and 
(3) by striking ‘‘$1,000,000’’ and inserting 
‘‘$1,000,000 (in the case of a violation of this sec-
tion or section 39), $2,000,000 (in the case of a vio-
lation involving any country covered by section 40), 
and $1,500,000 (in the case of a violation involving 
any country other than a country covered by section 
40 that is subject by United States law or policy to 
an arms embargo)’’. 
(b) CIVIL PENALTIES.—Section 38(e) (22 U.S.C. 
2778(e)) is amended in the third sentence by striking 
‘‘under this section may not exceed $500,000’’ and insert-
ing ‘‘or any other activities subject to control under this 
section, section 39, or section 40, may not exceed 
$500,000 for each violation of section 38 or section 39, 
$1,000,000 for each violation involving any country cov-
ered by section 40, and $750,000 for each violation relat-
166
ing to an arms embargo (other than a violation covered 
by section 40)’’. 
(c) REVISION OF STANDARD FOR VIOLATION; CRIMI-
NAL PENALTY; CIVIL PENALTIES; ENFORCEMENT.—Sec-
tion 40 (22 U.S.C. 2780) is amended—
(1) in subsection (j)—
(A) by striking ‘‘willfully’’ and inserting 
‘‘knowingly’’; and 
(B) by striking ‘‘$1,000,000’’ and insert-
ing ‘‘$2,000,000’’; and 
(2) in subsection (k), by striking ‘‘$500,000’’ 
and inserting ‘‘$1,000,000’’. 
(d) 
DEFINITIONS.—Section 
47(7) 
(22 
U.S.C. 
2794(7)) is amended to read as follows: 
‘‘(7)(A) ‘defense articles’, with respect to ex-
ports subject to sections 38, 39, and 40 of this Act, 
has the meaning given such term in sections 120–
130 of title 22, Code of Federal Regulations (com-
monly known as the ‘International Traffic in Arms 
Regulations’), as such regulations were in effect on 
January 1, 2003, and includes such additional arti-
cles as may be designated by the President under 
section 38(a)(1); and 
‘‘(B) ‘defense services’, with respect to exports 
subject to sections 38, 39, and 40 of this Act, has
167
the meaning given such term in sections 120–130 of 
title 22, Code of Federal Regulations (commonly 
known as the ‘International Traffic in Arms Regula-
tions’), as such regulations were in effect on Janu-
ary 1, 2003, and includes—
‘‘(i) the provision of assistance (including 
aiding, abetting, or training) to foreign persons; 
and 
‘‘(ii) such other activities as may be des-
ignated by the President pursuant to section 
38(a)(1).’’. 
SEC. 
1108. 
HIGH 
RISK 
EXPORTS 
AND 
END 
USE 
VERIFICATION. 
Section 38(g)(7) (22 U.S.C. 2778) is amended by 
adding at the end the following new sentence: ‘‘Such 
standards shall be coordinated biennially with the Sec-
retary of Homeland Security, the Attorney General, the 
Director of the Federal Bureau of Investigation, the Di-
rector of Central Intelligence, and the heads of other Fed-
eral departments or agencies, as appropriate.’’. 
SEC. 1109. CONCURRENT JURISDICTION OF THE FEDERAL 
BUREAU OF INVESTIGATION. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that, in view of the responsibilities of the Federal 
Bureau of Investigation for protecting the United States