IB 
Union Calendar No. 409 
113TH CONGRESS 
2D SESSION 
H. R. 4411 
[Report No. 113–543, Part I] 
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 
JULY 22, 2014 
Additional sponsors: Mr. DESANTIS, Mr. WEBER of Texas, Mr. COLLINS of 
Georgia, Mr. CONNOLLY, Mr. KINZINGER of Illinois, Mr. SALMON, Ms. 
MENG, 
Mr. 
DEUTCH, 
Mr. 
COOK, 
Mr. 
WESTMORELAND, 
Mr. 
FARENTHOLD, Mr. LANKFORD, Mr. HIGGINS, Mr. MCCAUL, Mr. LONG, 
Mr. KING of New York, Mr. BISHOP of Utah, Mr. PEARCE, Mr. ROKITA, 
Mr. JORDAN, Mr. WILSON of South Carolina, Mr. SESSIONS, Ms. BROWN 
of Florida, Ms. FOXX, Mr. NADLER, Mr. GRIFFIN of Arkansas, Mr. STIV-
ERS, Mr. LAMALFA, Mr. COBLE, Mr. WAXMAN, Mr. GRAVES of Missouri, 
Mr. SMITH of New Jersey, Mr. LAMBORN, Mr. BILIRAKIS, Mr. MULLIN, 
Mr. MCKINLEY, Mr. FINCHER, Mr. LATTA, Mr. SIRES, Mr. HOLDING, 
Mr. ROSKAM, Mr. MURPHY
of Florida, Mr. SCHWEIKERT, Mr. 
PITTENGER, Mr. GINGREY of Georgia, Mr. WALBERG, Mr. PRICE of 
Georgia, Mr. SHERMAN, Mr. BENTIVOLIO, Mr. ROGERS of Alabama, Mr. 
BUTTERFIELD, Mr. MEEKS, Ms. GABBARD, Mr. COTTON, Mr. HUDSON, 
Mr. KENNEDY, Mr. SCHOCK, Mr. VEASEY, Mrs. WAGNER, Mr. DUFFY, 
Mr. VARGAS, Mr. BISHOP of New York, Mr. FLEISCHMANN, Mr. GRAVES 
of Georgia, Mr. GRAYSON, Mr. ISRAEL, Mr. FORTENBERRY, Mr. BUR-
GESS, Mr. DIAZ-BALART, Mr. RODNEY DAVIS of Illinois, Ms. FRANKEL 
of Florida, Ms. VELA´ZQUEZ, Mr. LOWENTHAL, Mr. BROUN of Georgia, 
Ms. WASSERMAN SCHULTZ, Mr. LANGEVIN, Mr. GIBBS, Ms. TITUS, Mr. 
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BARLETTA, Mr. RUSH, Ms. JENKINS, Mr. LANCE, Mr. WILLIAMS, Ms. 
LINDA
T. SA´NCHEZ
of California, Mr. BERA
of California, Mr. 
CICILLINE, Mr. CRAMER, Mr. DUNCAN of South Carolina, Mr. FRANKS 
of Arizona, Mr. GENE GREEN of Texas, Mr. KILMER, Mr. MESSER, Mr. 
MULVANEY, Mr. RIBBLE, Mr. SCHIFF, Mr. VALADAO, Mr. NOLAN, Mr. 
YOUNG of Indiana, Mr. STOCKMAN, Mr. JOYCE, Mr. GARCIA, Mrs. 
BLACK, Mr. COOPER, Mr. COSTA, Mr. COURTNEY, Ms. DEGETTE, Ms. 
HAHN, Mr. SEAN PATRICK MALONEY of New York, Mr. POCAN, Mr. 
AMODEI, Mr. SHIMKUS, Mr. WOMACK, Mr. JOHNSON of Ohio, Mr. 
CRAWFORD, Mr. QUIGLEY, Mr. PASCRELL, Mr. SWALWELL of California, 
Mr. HORSFORD, Mr. RANGEL, Mr. GARDNER, Mr. RUIZ, Mrs. ELLMERS, 
Mr. AUSTIN SCOTT of Georgia, Mr. MICA, Mr. HUELSKAMP, Ms. CASTOR 
of Florida, Mrs. HARTZLER, Ms. WILSON of Florida, Mr. BEN RAY 
LUJA´N of New Mexico, Mr. STEWART, Mr. KILDEE, Ms. DELBENE, Mr. 
FITZPATRICK, Mr. HALL, Mr. FOSTER, Mr. HIMES, Mr. REICHERT, Mr. 
PALLONE, Mr. PITTS, Mr. MEEHAN, Mr. PERRY, Mr. SMITH of Missouri, 
Mr. KLINE, Mr. WALDEN, Mr. SCHRADER, Mr. BARBER, Mr. HARPER, 
Ms. BROWNLEY of California, Mr. TURNER, Mrs. WALORSKI, Mr. 
JEFFRIES, Ms. BONAMICI, Mr. GIBSON, Mr. CONAWAY, Mr. PAULSEN, 
Mr. HARRIS, Mr. DAINES, Mr. SERRANO, Mrs. CAPITO, Mr. CHAFFETZ, 
Mr. SARBANES, Mr. BARR, Mr. POMPEO, Mr. NUNES, Ms. HANABUSA, 
Mr. BACHUS, Mr. YODER, Mr. COLLINS of New York, Mr. HANNA, Ms. 
KELLY of Illinois, Mr. LUETKEMEYER, Mr. BRIDENSTINE, Mr. UPTON, 
Mrs. MCCARTHY of New York, Ms. LOFGREN, Mrs. KIRKPATRICK, Mr. 
O’ROURKE, Mrs. BUSTOS, Mr. PETERS of Michigan, Ms. ROS-LEHTINEN, 
Mr. PALAZZO, Mr. THOMPSON of Pennsylvania, Mr. MARCHANT, Mr. 
PETERS of California, Mr. SHUSTER, Mr. DUNCAN of Tennessee, Mr. 
VISCLOSKY, Mr. RIGELL, Mr. GOSAR, Mr. TIPTON, Mr. SOUTHERLAND, 
Mrs. BLACKBURN, Mr. LATHAM, Mr. BRADY of Texas, Mr. KINGSTON, 
Mr. KING of Iowa, Mr. SCALISE, Mrs. MCMORRIS RODGERS, Mr. GOWDY, 
Mr. GRIMM, Mr. ROTHFUS, Mr. YOHO, Mr. ADERHOLT, Ms. ESTY, Mr. 
LOBIONDO, Mrs. BROOKS of Indiana, Mr. WENSTRUP, Mr. NEUGE-
BAUER, Mr. COFFMAN, Mr. BROOKS of Alabama, Mr. RICHMOND, Mr. 
REED, Ms. SEWELL of Alabama, Mr. RYAN of Ohio, Mr. GARAMENDI, 
Mr. DENHAM, Mr. FRELINGHUYSEN, Mr. RYAN of Wisconsin, Mr. 
WOODALL, Mr. MCHENRY, Mr. BISHOP of Georgia, Mr. FLEMING, Mr. 
HUNTER, Ms. BORDALLO, Mr. LARSON of Connecticut, Mr. GALLEGO, 
Mr. CARSON of Indiana, Mr. TIBERI, Mr. CRENSHAW, Mr. STUTZMAN, 
Ms. CLARK of Massachusetts, Mr. TERRY, Mr. SMITH of Nebraska, Mr. 
LEVIN, Mr. PERLMUTTER, Mr. LOEBSACK, Mr. OWENS, Mr. HUFFMAN, 
Mr. LIPINSKI, Mrs. NOEM, Mr. NUGENT, Mr. PRICE of North Carolina, 
Mr. BUCSHON, Mr. OLSON, Ms. DELAURO, Mr. FATTAH, Mr. DELANEY, 
Mrs. LOWEY, Mr. SENSENBRENNER, Mr. VAN HOLLEN, Mr. MATHESON, 
Mr. GARRETT, Mr. RENACCI, Ms. MATSUI, Mr. ENYART, Mr. MILLER of 
Florida, Mr. HENSARLING, Mr. TAKANO, Mr. BARROW of Georgia, Mrs. 
MILLER of Michigan, Mr. ROONEY, Mr. ROSS, Mr. HUIZENGA of Michi-
gan, Mr. POE of Texas, Mr. SMITH of Washington, Ms. DUCKWORTH, 
Ms. HERRERA BEUTLER, Mr. FLORES, Mr. DOYLE, Mr. BRADY of Penn-
sylvania, Mr. CROWLEY, Mr. GERLACH, Ms. SCHWARTZ, Mr. NUNNELEE, 
Mr. HONDA, Mr. SIMPSON, Mr. KIND, Mr. HASTINGS of Washington, Ms. 
FUDGE, Mr. WEBSTER
of Florida, Mr. POLIS, Mr. HURT, Mr. 
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BUCHANAN, Ms. SHEA-PORTER, Mrs. BEATTY, Ms. MICHELLE LUJAN 
GRISHAM of New Mexico, Mr. TIERNEY, Mr. DESJARLAIS, Mr. DANNY 
K. DAVIS of Illinois, Mr. ROE of Tennessee, Mr. ROHRABACHER, Mr. 
WOLF, Mr. KELLY of Pennsylvania, Mr. GUTHRIE, Mr. MCCLINTOCK, 
Mr. MCALLISTER, Mr. BYRNE, Mr. CARTWRIGHT, Mr. VELA, Mr. WHIT-
FIELD, Mr. FORBES, Ms. BASS, Mr. GOHMERT, Mr. LABRADOR, Ms. 
CHU, Mr. BRALEY of Iowa, Mr. DENT, Mr. KEATING, Mr. CHABOT, Mr. 
SAM JOHNSON of Texas, Mr. HOLT, Mr. POSEY, Mr. GOODLATTE, Mr. 
CA´RDENAS, Mr. CARNEY, Mr. CLAWSON of Florida, Mr. HASTINGS of 
Florida, and Mr. CUMMINGS 
JULY 22, 2014 
Reported from the Committee on Foreign Affairs with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
JULY 22, 2014 
The Committee on Financial Services discharged; committed to the Committee 
of the Whole House on the State of the Union and ordered to be printed 
[For text of introduced bill, see copy of bill as introduced on April 7, 2014] 
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A BILL 
To prevent Hezbollah and associated entities from gaining 
access to international financial and other institutions, 
and for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Hezbollah International Financing Prevention Act of 
2014’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title and table of contents. 
Sec. 2. Statement of policy. 
TITLE I—PREVENTION OF ACCESS BY HEZBOLLAH TO 
INTERNATIONAL FINANCIAL AND OTHER INSTITUTIONS 
Sec. 101. Report on imposition of sanctions on certain satellite providers that 
carry al-Manar TV. 
Sec. 102. Sanctions with respect to financial institutions that engage in certain 
transactions. 
TITLE II—REPORTS ON DESIGNATION OF HEZBOLLAH AS A SIG-
NIFICANT FOREIGN NARCOTICS TRAFFICKER AND A SIGNIFICANT 
TRANSNATIONAL CRIMINAL ORGANIZATION 
Sec. 201. Report on designation of Hezbollah as a significant foreign narcotics 
trafficker. 
Sec. 202. Report on designation of Hezbollah as a significant transnational 
criminal organization. 
Sec. 203. Report on Hezbollah’s involvement in the trade of conflict diamonds. 
Sec. 204. Rewards for justice and Hezbollah’s fundraising, financing, and money 
laundering activities. 
Sec. 205. Report on activities of foreign governments to disrupt global logistics 
networks and fundraising, financing, and money laundering ac-
tivities of Hezbollah. 
Sec. 206. Appropriate congressional committees defined. 
TITLE III—MISCELLANEOUS PROVISIONS 
Sec. 301. Rule of construction. 
Sec. 302. Regulatory authority. 
Sec. 303. Termination. 
SEC. 2. STATEMENT OF POLICY. 
It shall be the policy of the United States to— 
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(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 global criminal 
activities of Hezbollah as a means to block that orga-
nization’s ability to fund its global terrorist activi-
ties. 
TITLE I—PREVENTION OF AC-
CESS 
BY 
HEZBOLLAH 
TO 
INTERNATIONAL 
FINANCIAL 
AND OTHER INSTITUTIONS 
SEC. 101. 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 submit 
to the Committee on Foreign Affairs of the House of Rep-
resentatives and the Committee on Foreign Relations of the 
Senate a report that includes— 
(1) a list of all satellite, broadcast, Internet, or 
other providers that knowingly provides material sup-
port to al-Manar TV, and any affiliates or successors 
thereof; and 
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(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 Executive 
Order 13224 (September 23, 2001); and 
(B) an identification of those providers that 
have not been sanctioned pursuant to Executive 
Order 13224 and, with respect to each such pro-
vider, 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 extent pos-
sible, and may contain a classified annex. 
SEC. 102. 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 IN-
STITUTIONS.— 
(1) IN GENERAL.—Not later than 120 days after 
the date of the enactment of this Act, the Secretary of 
the Treasury, with the concurrence of the Secretary of 
State and in consultation with the heads of other ap-
plicable departments and agencies, shall prohibit, or 
impose strict conditions on, the opening or maintain-
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ing in the United States of a correspondent account 
or a payable-through account by a foreign financial 
institution that the Secretary determines, on or after 
the date of the enactment of this Act, engages in an 
activity described in paragraph (2). 
(2) ACTIVITIES DESCRIBED.—A foreign financial 
institution engages in an activity described in this 
paragraph if the foreign financial institution— 
(A) knowingly facilitates a significant 
transaction or transactions for Hezbollah; 
(B) knowingly facilitates a significant 
transaction or transactions of a person des-
ignated for acting on behalf of or at the direction 
of, or owned or controlled by, Hezbollah; 
(C) knowingly engages in money laundering 
to carry out an activity described in subpara-
graph (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— 
(i) facilitating a significant trans-
action or transactions; or 
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(ii) providing significant financial 
services that involve a transaction of cov-
ered goods; 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-
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 
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apply to a person that commits an unlawful act de-
scribed in section 206(a) of that Act. 
(4) REGULATIONS.—The Secretary of the Treas-
ury shall prescribe and implement regulations to 
carry out this subsection. 
(b) WAIVER.— 
(1) IN GENERAL.—The Secretary of the Treas-
ury, with the concurrence of the Secretary of State 
and in consultation with the heads of other applicable 
departments and agencies, may waive, on a case-by- 
case basis, the application of a prohibition or condi-
tion imposed with respect to a foreign financial insti-
tution pursuant to subsection (a) for a period of not 
more than 180 days, and may renew that waiver for 
additional periods of not more than 180 days, on and 
after the date that the Secretary of the Treasury, with 
the concurrence of the Secretary of State— 
(A) determines that such a waiver is vital 
to the national security interests of the United 
States; and 
(B) submits to the appropriate congres-
sional committees a report describing the reasons 
for the determination. 
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(2) FORM.—The report required by subpara-
graph (1) shall be submitted in unclassified form, but 
may contain a classified annex. 
(c) PROVISIONS RELATING TO FOREIGN FINANCIAL IN-
STITUTIONS.— 
(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 submit 
to the appropriate congressional committees a report 
that— 
(A) identifies each foreign central bank that 
the Secretary determines 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 TERMINATION 
OF SANCTIONABLE ACTIVITY.—The Secretary of the 
Treasury shall not be required to apply sanctions to 
a foreign financial institution described in subsection 
(a) if the Secretary of the Treasury, with the concur-
rence of the Secretary of State and in consultation 
with the heads of other applicable departments and 
agencies, certifies in writing to the appropriate con-
gressional committees that— 
(A) the foreign financial institution— 
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(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) AGENT.—The term ‘‘agent’’ includes an 
entity established by a person for purposes of 
conducting transactions on behalf of the person 
in order to conceal the identity of the person. 
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(C) APPROPRIATE CONGRESSIONAL COMMIT-
TEES.—The term ‘‘appropriate congressional 
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, Hous-
ing, and Urban Affairs of the Senate. 
(D) COVERED GOODS.—The term ‘‘covered 
goods’’ has the meaning given the term in section 
1027.100 of title 31, Code of Federal Regula-
tions. 
(E) 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. 
(F) FOREIGN FINANCIAL INSTITUTION; DO-
MESTIC 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 
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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 de-
termined by the Secretary of the Treasury. 
(G) HEZBOLLAH.—The term ‘‘Hezbollah’’ 
means— 
(i) any person— 
(I) the property of or interests in 
property of which are blocked pursuant 
to the International Emergency Eco-
nomic 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 De-
partment 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 organi-
zation pursuant to section 219 of the Immi-
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gration and Nationality Act (8 U.S.C. 
1189). 
(H) 
MONEY
LAUNDERING.—The 
term 
‘‘money laundering’’ means any of the activities 
described in paragraph (1), (2), or (3) of section 
1956(a) of title 18, United States Code, with re-
spect to which penalties may be imposed pursu-
ant 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 sec-
tion. 
TITLE II—REPORTS ON DESIGNA-
TION OF HEZBOLLAH AS A 
SIGNIFICANT FOREIGN NAR-
COTICS 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 findings: 
(1) In 2008, after the two year Operation Titan 
run by the U.S. Drug Enforcement Administration 
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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’’. Ac-
cording to lead prosecutor for the special 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 accounts 
to the United States without using the Lebanese bank-
ing system in order to avoid scrutiny associated with 
Treasury’s designations of Hassan Ayash Exchange, 
Elissa Exchange, and its Lebanese Canadian Bank 
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Section 311 Action. . .Money was then wire trans-
ferred via Halawi’s banking relationships indirectly 
to the United States through countries that included 
China, Singapore, and the UAE, which were per-
ceived to receive less scrutiny by the U.S. Govern-
ment.’’. 
(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 orga-
nizations (DTOs) threatening the United States, were 
associated with terrorist groups, and noted with con-
cern Hezbollah’s international drug and criminal ac-
tivities. 
(b) SENSE OF CONGRESS.—It is the sense of Congress 
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 
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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 significant 
foreign narcotics trafficker; and 
(B) if the President determines that 
Hezbollah does not meet the criteria for designa-
tion under the Foreign Narcotics Kingpin Des-
ignation Act as a significant foreign narcotics 
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 findings: 
(1) Hezbollah is engaged array of illicit activi-
ties, from counterfeiting currencies, passport docu-
ments, to stolen automobile rings and other illicit ac-
tivities. 
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(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 smug-
gling and money laundering. 
(3) In 2006 the Department of the Treasury des-
ignated operations of Assad Barakat, treasurer for 
Hezbollah, as providing material support for a for-
eign terrorist organization and noted that Barakat 
had engaged in mafia-style shakedowns and ‘‘threat-
ened TBA (triborder area) shopkeepers who are sym-
pathetic 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 counterfeiting ring that distrib-
utes 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 con-
sumer electronics and automobiles and then using the 
proceeds to buy arms for Hezbollah. 
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(5) In October 2011, a group of businessmen pled 
guilty to attempting to ship electronics to a shopping 
center in South America that the Department of the 
Treasury had designated as a Hezbollah front. 
(6) A June 2014 ‘‘threat assessment’’ report by 
Canada’s Integrated Terrorism Assessment Centre in-
dicated that Hezbollah members in Canada are in-
volved in organized crime. 
(b) SENSE OF CONGRESS.—It is the sense of Congress 
that— 
(1) Hezbollah meets the criteria for designation 
as a significant transnational criminal organization 
under Executive Order 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 committees 
of Congress— 
(A) a detailed report on whether the 
Hezbollah meets the criteria for designation as a 
significant transnational criminal organization 
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under Executive Order 13581 (76 Fed. Reg. 
44757); and 
(B) if the President determines that 
Hezbollah does not meet the criteria for designa-
tion as a significant transnational criminal or-
ganization under Executive Order 13581, a de-
tailed 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 the Committee on Foreign Affairs and the 
Committee on Ways and Means of the House of Representa-
tives and the Committee on Foreign Relations of the Senate 
a report 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 classi-
fied annex. 
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