Hezbollah International Financing Prevention Act of 2014

Bill: 113-hr-4411
Sponsor: full_name: Rep. Meadows, Mark [R-NC-11]
Introduced: 2014-04-07
Policy area: International Affairs
Subjects: Arab-Israeli relations

Bank accounts, deposits, capital

Banking and financial institutions regulation

Broadcasting, cable, digital technologies

Congressional oversight

Department of the Treasury

Diplomacy, foreign officials, Americans abroad

Drug trafficking and controlled substances

Financial services and investments

Foreign and international banking

Foreign property

Fraud offenses and financial crimes

International exchange and broadcasting

Iran

Lebanon

Metals

Middle East

Mining

Organized crime

Sanctions

Syria

Television and film

Terrorism

Trade restrictions
Latest action: action_date: 2014-07-23
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2014-04-07
action_desc: Introduced in House
text: <p>Hezbollah International Financing Prevention Act of 2014 - States that it shall be U.S. policy to: (1) prevent Hezbollah's global logistics and financial network from operating in order to curtail funding of its domestic and international activities; and (2) utilize diplomatic, legislative, and executive avenues to combat Hezbollah's criminal activities in order to block that organization's ability to fund its global terrorist activities.</p> <p>Directs the President to report to Congress: (1) a list of satellite, broadcast, or other providers that knowingly transmit the content of al-Manar TV; and (2) the identity of those providers that have or have not been sanctioned pursuant to Executive Order 13224. </p> <p>Directs the Secretary of the Treasury to prohibit or impose strict conditions on the opening or maintaining in the United States of a correspondent account or a payable-through account by a foreign financial institution that knowingly: (1) facilitates the activities of Hezbollah or its agents, instrumentalities, affiliates, or successors; (2) facilitates the activities of a person acting on behalf of or owned or controlled by an agent, instrumentality, affiliate, or successor; (3) engages in money laundering to carry out such an activity; (4) facilitates a significant transaction or provides significant financial services to carry out such an activity, including services that involve a transaction of gold, silver, platinum, or other precious metals; or (5) facilitates any of these activities, conspires to facilitate or participate in such an activity, or is owned or controlled by a foreign financial institution that knowingly engages in such an activity.</p> <p>Directs the Secretary of the Treasury to prescribe reporting, information sharing, and due diligence requirements for domestic financial institutions that maintain a correspondent account or payable-through account in the United States for a foreign financial institution. Authorizes the Secretary to waive such requirements if in the U.S. national security interests, and with congressional notification.</p> <p>Directs the Secretary of the Treasury to identify to Congress every 180 days each foreign central bank that carries out an activity prohibited under this Act. </p> <p>Sets forth penalty requirements for specified violations under this Act.</p> <p>Directs the President to designate Hezbollah as: (1) a significant foreign narcotics trafficker if Hezbollah meets meets the criteria set forth under the Foreign Narcotics Kingpin Designation Act, and (2) a significant transnational criminal organization if Hezbollah meets the criteria set forth under specified executive orders and statutes. Requires the President to report to Congress which of these criteria the President determines that Hezbollah has not met, if it does not.</p> <p>Directs the Secretary of State to report to Congress regarding Hezbollah's involvement in the trade in rough diamonds outside of the Kimberly Process Certification Scheme.</p> <p>Declares that nothing in this Act shall apply to authorized U.S. intelligence activities. </p> <p>States that any requirement of this Act shall cease to be in effect 30 days after the President certifies to Congress that Hezbollah: (1) is no longer designated as a foreign terrorist organization; (2) is no longer listed in the Annex to Executive Order 13224 (blocking property and prohibiting transactions with persons who commit or support terrorism); and (3) poses no significant threat to U.S. national security, interests, or allies.</p>

action_date: 2014-07-22
action_desc: Passed House amended
text: <p>Hezbollah International Financing Prevention Act of 2014 - (Sec. 2) States that it shall be U.S. policy to: (1) prevent Hezbollah's global logistics and financial network from operating in order to curtail funding of its domestic and international activities; and (2) utilize diplomatic, legislative, and executive avenues to combat Hezbollah's criminal activities in order to block that organization's ability to fund its global terrorist activities.</p> <p><b>Title I: Prevention of Access by Hezbollah to International Financial and Other Institutions</b> - (Sec. 101) Directs the President to report to Congress identifying: (1) satellite, broadcast, Internet, or other providers that knowingly transmit the content of al-Manar TV and its affiliates; and (2) the identity of those providers that have or have not been sanctioned pursuant to Executive Order 13224. </p> <p>(Sec. 102) Directs the Secretary of the Treasury (Secretary) to prohibit or impose strict conditions on the opening or maintaining in the United States of a correspondent account or a payable-through account by a foreign financial institution that knowingly: </p> <ul> <li>facilitates a transaction or transactions for Hezbollah, or for a person acting on behalf of, or owned or controlled by Hezbollah; </li> <li>engages in money laundering to carry out such an activity; </li> <li>facilitates a significant transaction or provides significant financial services to carry out such an activity; or </li> <li>facilitates any of these activities, conspires to facilitate or participate in such an activity, or is owned or controlled by a foreign financial institution that knowingly engages in such an activity.</li> </ul> <p>Applies specified penalties under the International Emergency Economic Powers Act for violations of this Act.</p> <p>Authorizes the Secretary to waive the application of a prohibition for up to 180 days (with renewable 180-day waivers) if in U.S. national security interests, and with congressional notification.</p> <p>Directs the Secretary to identify to Congress every 180 days each foreign central bank that carries out a prohibited activity.</p> <p>Exempts from sanctions a foreign financial institution that is no longer engaging in a prohibited activity or is taking significant steps toward terminating such activity. </p> <p> <b>Title II: Reports on Designation of Hezbollah as a Significant Foreign Narcotics Trafficker and a Significant Transnational Criminal Organization </b>- (Sec. 201) Expresses the sense of Congress that: (1) Hezbollah meets the criteria for designation as a significant foreign narcotics trafficker under the Foreign Narcotics Kingpin Designation Act, and (2) the President should designate Hezbollah as a significant foreign narcotics trafficker.</p> <p>Directs the President to report to Congress on whether Hezbollah meets or does not meet the criteria for such designation. </p> <p>(Sec. 202) Expresses the sense of Congress that: (1) Hezbollah meets the criteria for designation as a significant transnational criminal organization under Executive Order No. 13581, and (2) the President should designate Hezbollah as a significant transnational criminal organization.</p> <p>Directs the President to report to Congress on whether Hezbollah meets or does not meet the criteria for such designation. </p> <p>(Sec. 203) Directs the Secretary of State to report to Congress detailing Hezbollah's involvement in the trade in rough diamonds outside of the Kimberley Process Certification Scheme.</p> <p>(Sec. 204) Directs the Secretary of State to report to Congress regarding actions taken through the Department's rewards program to obtain information on Hezbollah's fund raising, financing, and money laundering activities.</p> <p>(Sec. 205) Directs the President to report to Congress regarding: (1) countries that support Hezbollah, in which Hezbollah maintains important portions of its global logistics networks, or in which Hezbollah conducts significant fund raising, financing, or money laundering activities; and (2) an assessment of whether a country is taking adequate measures to disrupt Hezbollah's networks and activities within that country.</p> <p><b>Title III: Miscellaneous Provisions -</b> (Sec. 301) Declares that nothing in this Act shall apply to authorized U.S. intelligence activities. </p> <p>(Sec. 302) Directs the President to promulgate implementing regulations. </p> <p>(Sec. 303) Amends the Enhanced Partnership with Pakistan Act of 2009 to reduce specified funding for Pakistan through FY2014. </p> <p>(Sec. 304) States that this Act shall cease to be in effect 30 days after the President certifies to Congress that Hezbollah: </p> <ul> <li>is no longer designated as a foreign terrorist organization; </li> <li>is no longer listed in the Annex to Executive Order 13224 (blocking property and prohibiting transactions with persons who commit or support terrorism); and </li> <li>poses no significant threat to U.S. national security, interests, or allies.</li> </ul>

tv_txt: I 113th CONGRESS 2d Session H. R. 4411 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 A BILL To prevent Hezbollah and associated entities from gaining access to international financial and other institutions, and for other purposes.

1. Short title This Act may be cited as the Hezbollah International Financing Prevention Act of 2014 . I Prevention of access by Hezbollah to international financial and other institutions 101. Findings; Statement of policy (a) Findings Congress finds the following: (1) The United States Government holds Hezbollah responsible for the largest number of American deaths overseas by a terrorist organization prior to the attacks of September 11, 2001, including a number of attacks on and hostage takings targeting Americans in Lebanon during the 1980s, including the bombing of the United States Embassy in Beirut in April 1983, and the bombing of the United States Marine barracks in October 1983. (2) Hezbollah’s operations outside of Lebanon, including its participation in bombings of Israeli and Jewish institutions in Argentina during the 1990s, recent support to Shiite insurgents in Iraq, recent attacks and attempted attacks in Europe, Southeast Asia, and elsewhere, and extensive international operational, logistical, and financial networks have rendered it a capable and deadly adversary with global reach. (3) Hezbollah has been designated as a terrorist organization by the United States since 1995, and remains on foreign terrorist organization and Specially Designated Terrorist lists. (4) In March 2013, a Cypriot court convicted a Hezbollah member for participation in a criminal organization, planning to commit a crime and money laundering. In July 2013, the Bulgarian government concluded that Hezbollah was responsible for the 2012 Burgas bombing, which killed six people. (5) In July 2013, the European Union designated the military wing of Hezbollah as a terrorist organization. The designation helps to facilitate European law enforcement agencies’ actions against Hezbollah’s fundraising, logistical activity, and terrorist plotting on European soil. (6) In July 2013, the Gulf Cooperation Council, consisting of Saudi Arabia, Qatar, Bahrain, Kuwait, Oman and the United Arab Emirates, declared Hezbollah a terrorist organization. (7) Hezbollah continues to provide material assistance, including assuming a combat role, in Syria, and aids the Government of Iran and the Government of Syria in their human rights and other abuses perpetrated against the Syrian people. (8) An estimated 5,000 Hezbollah fighters are supporting the Assad regime in Syria by fighting on his behalf and by providing military training, advice and logistical support to regime forces. (9) Hezbollah continues to serve as a proxy of Iran, in its effort to target the United States and its allies and interests. (10) Hezbollah’s global logistics and financial network serves as a lifeline to the organization, and enables it to consolidate power within Lebanon and provides it with the capabilities to perpetrate complex attacks internationally. (11) Hezbollah has evolved into a significant drug smuggling organization, and also engages in other serious criminal activity, including money laundering, counterfeiting pharmaceuticals, and trade in conflict diamonds. (12) In April 2013, the Department of the Treasury blacklisted two Lebanese exchange houses, Kassem Rmeiti & Co. and Halawi Exchange Co., for laundering drug profits for Hezbollah, and stated that Hezbollah was operating like an international drug cartel . (13) In 2009, the Department of the Treasury blacklisted the Lebanese Canadian Bank as a primary money laundering concern, alleging that it is part of a drug trafficking network that profited Hezbollah by moving approximately $200,000,000 per month. (14) The Department of Justice reports 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. There is concern about Hezbollah’s drug and criminal activities, as well as indications of links between al-Qa`ida in the Lands of the Islamic Maghreb and the drug trade. (15) Al-Manar, the Lebanese satellite television station affiliated with Hezbollah broadcasting from Beirut, Lebanon, was designated as a Specially Designated Global Terrorist entity in 2004, but continues to be carried by international broadcasting agents. (16) Hezbollah continues to present a threat to the United States and its allies and interests. (b) Statement of policy It shall be the policy of the United States to— (1) prevent Hezbollah’s global logistics and financial 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 activities of Hezbollah as a means to block that organization’s ability to fund its global terrorist activities. 102. Report on imposition of sanctions on certain 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 Representatives and the Committee on Foreign Relations of the Senate a report that includes— (1) a list of all satellite, broadcast, or other providers that knowingly transmits or otherwise broadcasts 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 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 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 extent possible, and may contain a classified annex. 103. Sanctions with respect to financial institutions that engage in certain transactions (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 Secretary 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 correspondent account or a payable-through account by a foreign financial institution that the Secretary finds 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 the activities of Hezbollah, including its agents, instrumentalities, 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 laundering to carry out an activity described in subparagraph (A) or (B); (D) knowingly facilitates a significant transaction or transactions or provides significant financial services to carry out an activity described in subparagraph (A), (B), or (C), including facilitating a significant transaction or transactions or providing significant financial services that involve a transaction of gold, silver, platinum, or other precious metals; or (E) (i) knowingly facilitates, or participates or assists in, an activity described in subparagraph (A), (B), (C), or (D), including by acting on behalf of, at the direction of, or as an intermediary for, or otherwise assisting, another person with respect to the activity described in any such subparagraph; (ii) knowingly attempts or conspires to facilitate or participate in an activity described in subparagraph (A), (B), (C), or (D); or (iii) is owned or controlled by a foreign financial 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 International 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 unlawful 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 institutions (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 correspondent 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 information to domestic financial institutions maintaining a correspondent account or payable-through account in the United States for a foreign financial institution with respect to any activity described in subsection (a). (C) Establish due diligence policies, procedures, 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 Secretary of the Treasury has found the foreign financial institution to knowingly engage in any activity described in subsection (a). (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 regulation prescribed under paragraph (1) of this subsection, 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 consultation 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 institution 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 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 termination of sanctionable activity The Secretary 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 Secretary of State and in consultation with the heads of other applicable departments and agencies, certifies in writing to the appropriate congressional committees that— (A) the foreign central bank— (i) is no longer engaging in the activity described in subsection (a)(2)(D); or (ii) has taken significant verifiable steps toward terminating the activity described in subsection (a)(2)(D) not later than 90 days after the date on which the Secretary makes such certification; and (B) the Secretary has received reliable assurances from the government with primary jurisdiction over the foreign central bank that the foreign central bank will not engage in any activity 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 account , 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. (C) Appropriate congressional committees 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 Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate. (D) Financial institution The term financial institution means a financial institution 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 institution The term foreign financial institution — (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 institution The term domestic financial institution has the meaning of such term as determined by the Secretary of the Treasury. (F) 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 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. II Designation of Hezbollah as a major drug smuggling enterprise and a trans­na­tion­al criminal or­ga­ni­za­tion 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 determine if Hezbollah meets the criteria specified for designation 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 President determines under subsection (a) that Hezbollah 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 foreign 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 congressional committees a report that contains a detailed justification as to which criteria have not been met. (2) Form The report required under paragraph (1) shall be submitted in unclassified form, but may contain classified annex, if necessary. 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 determine if Hezbollah meets the criteria specified for designation as a significant transnational criminal organization under Executive Order 13581 (76 Fed. Reg. 44757), and the authorities granted to the President under the International Emergency Economic Powers Act ( 50 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 President 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 organization 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 submit 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 paragraph (1) shall be submitted in unclassified form, but may contain classified annex, if necessary. 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 House of Representatives and the Committee on Foreign Relations of the Senate a report detailing Hezbollah’s involvement 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. 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 Committee on the Judiciary of the House of Representatives; and (2) the Committee on Foreign Relations, the Committee on Finance, and the Committee on the Judiciary of the Senate. III Miscellaneous provisions 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. 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 implementation 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 subsection (a), the President shall notify the appropriate congressional 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. 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 terrorist 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 (3) poses no significant threat to United States national security, interests, or allies.

tv_txt: IIB 113th CONGRESS 2d Session H. R. 4411 IN THE SENATE OF THE UNITED STATES July 23, 2014 Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs AN ACT To prevent Hezbollah and associated entities from gaining access to international financial and other institutions, and for other purposes.

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. Briefing 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 significant 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 activities of Hezbollah. Sec. 206. Appropriate congressional committees defined. Title III—Miscellaneous provisions Sec. 301. Rule of construction. Sec. 302. Regulatory authority. Sec. 303. Offset. Sec. 304. Termination. 2. Statement of policy It shall be the policy of the United States to— (1) prevent Hezbollah’s global logistics and financial 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 organization’s ability to fund its global terrorist activities. I Prevention of access by Hezbollah to international financial and other institutions 101. Briefing on imposition of sanctions on certain satellite providers that carry al-Manar TV Not later than 30 days after the date of the enactment of this Act, and annually thereafter, the Secretary of State shall provide to the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate a briefing on the following: (1) The activities of all satellite, broadcast, Internet, or other providers that knowingly provide material support to al-Manar TV, and any affiliates or successors thereof. (2) With respect to all providers described in paragraph (1)— (A) an identification of those providers that have been sanctioned pursuant to Executive Order No. 13224 (September 23, 2001); and (B) an identification of those providers that have not been sanctioned pursuant to Executive Order No. 13224 and, with respect to each such provider, the reason why sanctions have not been imposed. 102. Sanctions with respect to financial institutions that engage in certain transactions (a) Prohibitions and conditions with respect to certain accounts held by foreign financial institutions (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 applicable departments and agencies, shall prohibit, or impose strict conditions on, the opening or maintaining 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 designated 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 subparagraph (A) or (B); (D) knowingly facilitates a significant transaction or transactions or provides significant financial services to carry out an activity described in subparagraph (A), (B), or (C), including— (i) facilitating a significant transaction or transactions; or (ii) providing significant financial services that involve a transaction of covered goods; or (E) (i) knowingly facilitates, or participates or assists in, an activity described in subparagraph (A), (B), (C), or (D), including by acting on behalf of, at the direction of, or as an intermediary for, or otherwise assisting, another person with respect to the activity described in any such subparagraph; (ii) knowingly attempts or conspires to facilitate or participate in an activity described in subparagraph (A), (B), (C), or (D); or (iii) is owned or controlled by a foreign financial 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 International 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 unlawful 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) Waiver (1) In general The Secretary of the Treasury, 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 condition imposed with respect to a foreign financial institution 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 in the national security interests of the United States; and (B) submits to the appropriate congressional committees a report describing the reasons for the determination. (2) Form The report required by subparagraph (1) shall be submitted in unclassified form, but may contain a classified annex. (c) Provisions relating to foreign financial institutions (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 concurrence of the Secretary of State and in consultation with the heads of other applicable departments and agencies, certifies in writing to the appropriate congressional committees that— (A) the foreign financial institution— (i) is no longer engaging in the activity described in subsection (a)(2); or (ii) has taken and is continuing to take significant verifiable steps toward terminating the activity described in subsection (a)(2); and (B) the Secretary has received reliable assurances from the government with primary jurisdiction over the foreign financial institution that the foreign financial institution will not engage 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 account , correspondent account , and payable-through account have the meanings given those terms in section 5318A of title 31, United States Code. (B) Appropriate congressional committees 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 Relations 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 section 1027.100 of title 31, Code of Federal Regulations. (D) Financial institution The term financial institution means a financial institution 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 institution The term foreign financial institution has the meaning of such term in section 1010.605 of title 31, Code of Federal Regulations, and includes a foreign central bank. (ii) Domestic financial institution The term domestic financial institution has the meaning of such term as determined by the Secretary of the Treasury. (F) 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 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 Office 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 Secretary of State as a foreign terrorist organization pursuant to section 219 of the Immigration 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 section 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. II Reports on designation of Hezbollah as a significant foreign narcotics trafficker and a significant transnational criminal organization 201. Report on designation of Hezbollah as a significant foreign narcotics trafficker (a) Findings Congress makes the following findings: (1) In 2008, after the two year Operation Titan run by the U.S. Drug Enforcement Administration and Colombian authorities dismantled an international 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 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 primary 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 banking system in order to avoid scrutiny associated with Treasury’s designations of Hassan Ayash Exchange, Elissa Exchange, and its Lebanese Canadian Bank Section 311 Action * * * . Money was then wire transferred via Halawi’s banking relationships indirectly to the United States through countries 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 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 President shall submit to the appropriate congressional committees— (A) a detailed report on whether the Hezbollah meets the criteria for designation under the Foreign Narcotics Kingpin Designation 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 designation under the Foreign Narcotics Kingpin Designation 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. 202. Report on designation of Hezbollah as a significant transnational criminal organization (a) Findings Congress makes the following findings: (1) Hezbollah is engaged array of illicit activities, from counterfeiting currencies, passport documents, to stolen automobile rings and other illicit activities. (2) In 2002, authorities in Charlotte, North Carolina arrested members of a cell run by Mohammed 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 counterfeiting 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 selling fraudulent passports and trafficking in counterfeit 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 Department 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 involved 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 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 committees 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 designation 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. 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 report detailing Hezbollah’s involvement in the trade in rough diamonds outside of the Kimberley Process Certification 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 defined In this section, the term appropriate congressional committees means— (1) the Committee on Foreign Affairs, the Committee on Ways and Means, 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 Affairs of the Senate. 204. Rewards for justice and Hezbollah’s fundraising, financing, and money laundering 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 report 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, financing, 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 appropriate congressional committees on the status of the actions described in subsection (a). (c) Appropriate congressional committees defined In this section, the term appropriate congressional 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 Affairs of the Senate. 205. Report on activities of foreign governments to disrupt global logistics networks 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 committees a report that includes— (A) a list of countries that support Hezbollah, or in which Hezbollah maintains important portions of its global logistics networks; (B) with respect to each country on the list required by subparagraph (A)— (i) an assessment of whether the government of the country is taking adequate measures to disrupt the global logistics networks of Hezbollah within the territory of the country; and (ii) in the case of a country the government of which is not taking adequate measures to disrupt those networks— (I) an assessment of the reasons that government is not taking adequate measures to disrupt those networks; and (II) a description of measures being taken by the United States Government to encourage that government to improve measures to disrupt those networks; (C) a list of countries in which Hezbollah, or any of its agents or affiliates, conducts significant fundraising, financing, or money laundering activities; (D) with respect to each country on the list required by subparagraph (C)— (i) an assessment of whether the government of the country is taking adequate measures to disrupt the fundraising, financing, or money laundering activities of Hezbollah and its agents and affiliates within the territory of the country; and (ii) in the case of a country the government of which is not taking adequate measures to disrupt those activities— (I) an assessment of the reasons that government is not taking adequate measures to disrupt those activities; and (II) a description of measures being taken by the United States Government to encourage the government of that country to improve measures to disrupt those activities; and (E) a list of methods that Hezbollah, or any of its agents or affiliates, utilizes to raise or transfer funds, including trade-based money laundering, the use of foreign exchange houses, and free-trade zones. (2) Form The report required by paragraph (1) shall be submitted in unclassified form to the greatest extent possible, and may contain a classified annex. (3) Global logistics networks of Hezbollah In this subsection, the term global logistics networks of Hezbollah , global logistics networks , or networks means financial, material, or technological support for, or financial or other services in support of, Hezbollah. (b) Briefing on Hezbollah’s assets and activities related to fundraising, financing, and money laundering worldwide Not later than 90 days after the date of the enactment of this Act, and every 180 days thereafter, the Secretary of State, the Secretary of the Treasury, and the heads of other applicable Federal departments and agencies (or their designees) shall provide to the appropriate congressional committees a briefing on the disposition of Hezbollah’s assets and activities related to fundraising, financing, and money laundering worldwide. (c) Appropriate Congressional Committees Defined In this section, the term appropriate congressional committees means— (1) the Committee on Foreign Affairs, the Committee on Financial Services, and the Permanent Select Committee on Intelligence of the House of Representatives; and (2) the Committee on Foreign Relations, the Committee on Banking, Housing, and Urban Affairs, and the Select Committee on Intelligence of the Senate. 206. Appropriate congressional committees defined Except as otherwise provided, in this title, the term appropriate congressional committees means— (1) the Committee on Foreign Affairs, the Committee on Financial Services, and the Committee on the Judiciary of the House of Representatives; and (2) the Committee on Foreign Relations, the Committee on Finance, and the Committee on the Judiciary of the Senate. III Miscellaneous provisions 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. 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 implementation 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 subsection (a), the President shall notify the appropriate congressional 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. 303. Offset Section 102(a) of the Enhanced Partnership with Pakistan Act of 2009 ( 22 U.S.C. 8412(a) ; Public Law 111–73; 123 Stat. 2068) is amended by striking $1,500,000,000 and inserting $1,497,000,000 . 304. Termination 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 terrorist 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 No. 13224 (September 23, 2001; relating to blocking property and prohibiting transactions with persons who commit, threaten to commit, or support terrorism); and (3) poses no significant threat to United States national security, interests, or allies.

Passed the House of Representatives July 22, 2014. Karen L. Haas, Clerk

tv_txt: I 113th CONGRESS 2d Session H. R. 4411 IN THE HOUSE OF REPRESENTATIVES AN ACT To prevent Hezbollah and associated entities from gaining access to international financial and other institutions, and for other purposes.

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. Briefing 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 significant 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 activities of Hezbollah. Sec. 206. Appropriate congressional committees defined. Title III—Miscellaneous provisions Sec. 301. Rule of construction. Sec. 302. Regulatory authority. Sec. 303. Offset. Sec. 304. Termination. 2. Statement of policy It shall be the policy of the United States to— (1) prevent Hezbollah’s global logistics and financial 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 organization’s ability to fund its global terrorist activities. I Prevention of access by Hezbollah to international financial and other institutions 101. Briefing on imposition of sanctions on certain satellite providers that carry al-Manar TV Not later than 30 days after the date of the enactment of this Act, and annually thereafter, the Secretary of State shall provide to the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate a briefing on the following: (1) The activities of all satellite, broadcast, Internet, or other providers that knowingly provide material support to al-Manar TV, and any affiliates or successors thereof. (2) With respect to all providers described in paragraph (1)— (A) an identification of those providers that have been sanctioned pursuant to Executive Order No. 13224 (September 23, 2001); and (B) an identification of those providers that have not been sanctioned pursuant to Executive Order No. 13224 and, with respect to each such provider, the reason why sanctions have not been imposed. 102. Sanctions with respect to financial institutions that engage in certain transactions (a) Prohibitions and conditions with respect to certain accounts held by foreign financial institutions (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 applicable departments and agencies, shall prohibit, or impose strict conditions on, the opening or maintaining 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 designated 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 subparagraph (A) or (B); (D) knowingly facilitates a significant transaction or transactions or provides significant financial services to carry out an activity described in subparagraph (A), (B), or (C), including— (i) facilitating a significant transaction or transactions; or (ii) providing significant financial services that involve a transaction of covered goods; or (E) (i) knowingly facilitates, or participates or assists in, an activity described in subparagraph (A), (B), (C), or (D), including by acting on behalf of, at the direction of, or as an intermediary for, or otherwise assisting, another person with respect to the activity described in any such subparagraph; (ii) knowingly attempts or conspires to facilitate or participate in an activity described in subparagraph (A), (B), (C), or (D); or (iii) is owned or controlled by a foreign financial 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 International 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 unlawful 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) Waiver (1) In general The Secretary of the Treasury, 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 condition imposed with respect to a foreign financial institution 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 in the national security interests of the United States; and (B) submits to the appropriate congressional committees a report describing the reasons for the determination. (2) Form The report required by subparagraph (1) shall be submitted in unclassified form, but may contain a classified annex. (c) Provisions relating to foreign financial institutions (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 concurrence of the Secretary of State and in consultation with the heads of other applicable departments and agencies, certifies in writing to the appropriate congressional committees that— (A) the foreign financial institution— (i) is no longer engaging in the activity described in subsection (a)(2); or (ii) has taken and is continuing to take significant verifiable steps toward terminating the activity described in subsection (a)(2); and (B) the Secretary has received reliable assurances from the government with primary jurisdiction over the foreign financial institution that the foreign financial institution will not engage 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 account , correspondent account , and payable-through account have the meanings given those terms in section 5318A of title 31, United States Code. (B) Appropriate congressional committees 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 Relations 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 section 1027.100 of title 31, Code of Federal Regulations. (D) Financial institution The term financial institution means a financial institution 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 institution The term foreign financial institution has the meaning of such term in section 1010.605 of title 31, Code of Federal Regulations, and includes a foreign central bank. (ii) Domestic financial institution The term domestic financial institution has the meaning of such term as determined by the Secretary of the Treasury. (F) 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 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 Office 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 Secretary of State as a foreign terrorist organization pursuant to section 219 of the Immigration 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 section 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. II Reports on designation of Hezbollah as a significant foreign narcotics trafficker and a significant transnational criminal organization 201. Report on designation of Hezbollah as a significant foreign narcotics trafficker (a) Findings Congress makes the following findings: (1) In 2008, after the two year Operation Titan run by the U.S. Drug Enforcement Administration and Colombian authorities dismantled an international 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 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 primary 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 banking system in order to avoid scrutiny associated with Treasury’s designations of Hassan Ayash Exchange, Elissa Exchange, and its Lebanese Canadian Bank Section 311 Action * * * . Money was then wire transferred via Halawi’s banking relationships indirectly to the United States through countries 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 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 President shall submit to the appropriate congressional committees— (A) a detailed report on whether the Hezbollah meets the criteria for designation under the Foreign Narcotics Kingpin Designation 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 designation under the Foreign Narcotics Kingpin Designation 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. 202. Report on designation of Hezbollah as a significant transnational criminal organization (a) Findings Congress makes the following findings: (1) Hezbollah is engaged array of illicit activities, from counterfeiting currencies, passport documents, to stolen automobile rings and other illicit activities. (2) In 2002, authorities in Charlotte, North Carolina arrested members of a cell run by Mohammed 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 counterfeiting 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 selling fraudulent passports and trafficking in counterfeit 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 Department 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 involved 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 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 committees 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 designation 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. 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 report detailing Hezbollah’s involvement in the trade in rough diamonds outside of the Kimberley Process Certification 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 defined In this section, the term appropriate congressional committees means— (1) the Committee on Foreign Affairs, the Committee on Ways and Means, 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 Affairs of the Senate. 204. Rewards for justice and Hezbollah’s fundraising, financing, and money laundering 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 report 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, financing, 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 appropriate congressional committees on the status of the actions described in subsection (a). (c) Appropriate congressional committees defined In this section, the term appropriate congressional 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 Affairs of the Senate. 205. Report on activities of foreign governments to disrupt global logistics networks 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 committees a report that includes— (A) a list of countries that support Hezbollah, or in which Hezbollah maintains important portions of its global logistics networks; (B) with respect to each country on the list required by subparagraph (A)— (i) an assessment of whether the government of the country is taking adequate measures to disrupt the global logistics networks of Hezbollah within the territory of the country; and (ii) in the case of a country the government of which is not taking adequate measures to disrupt those networks— (I) an assessment of the reasons that government is not taking adequate measures to disrupt those networks; and (II) a description of measures being taken by the United States Government to encourage that government to improve measures to disrupt those networks; (C) a list of countries in which Hezbollah, or any of its agents or affiliates, conducts significant fundraising, financing, or money laundering activities; (D) with respect to each country on the list required by subparagraph (C)— (i) an assessment of whether the government of the country is taking adequate measures to disrupt the fundraising, financing, or money laundering activities of Hezbollah and its agents and affiliates within the territory of the country; and (ii) in the case of a country the government of which is not taking adequate measures to disrupt those activities— (I) an assessment of the reasons that government is not taking adequate measures to disrupt those activities; and (II) a description of measures being taken by the United States Government to encourage the government of that country to improve measures to disrupt those activities; and (E) a list of methods that Hezbollah, or any of its agents or affiliates, utilizes to raise or transfer funds, including trade-based money laundering, the use of foreign exchange houses, and free-trade zones. (2) Form The report required by paragraph (1) shall be submitted in unclassified form to the greatest extent possible, and may contain a classified annex. (3) Global logistics networks of Hezbollah In this subsection, the term global logistics networks of Hezbollah , global logistics networks , or networks means financial, material, or technological support for, or financial or other services in support of, Hezbollah. (b) Briefing on Hezbollah’s assets and activities related to fundraising, financing, and money laundering worldwide Not later than 90 days after the date of the enactment of this Act, and every 180 days thereafter, the Secretary of State, the Secretary of the Treasury, and the heads of other applicable Federal departments and agencies (or their designees) shall provide to the appropriate congressional committees a briefing on the disposition of Hezbollah’s assets and activities related to fundraising, financing, and money laundering worldwide. (c) Appropriate Congressional Committees Defined In this section, the term appropriate congressional committees means— (1) the Committee on Foreign Affairs, the Committee on Financial Services, and the Permanent Select Committee on Intelligence of the House of Representatives; and (2) the Committee on Foreign Relations, the Committee on Banking, Housing, and Urban Affairs, and the Select Committee on Intelligence of the Senate. 206. Appropriate congressional committees defined Except as otherwise provided, in this title, the term appropriate congressional committees means— (1) the Committee on Foreign Affairs, the Committee on Financial Services, and the Committee on the Judiciary of the House of Representatives; and (2) the Committee on Foreign Relations, the Committee on Finance, and the Committee on the Judiciary of the Senate. III Miscellaneous provisions 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. 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 implementation 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 subsection (a), the President shall notify the appropriate congressional 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. 303. Offset Section 102(a) of the Enhanced Partnership with Pakistan Act of 2009 ( 22 U.S.C. 8412(a) ; Public Law 111–73 ; 123 Stat. 2068) is amended by striking $1,500,000,000 and inserting $1,497,000,000 . 304. Termination 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 terrorist 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 No. 13224 (September 23, 2001; relating to blocking property and prohibiting transactions with persons who commit, threaten to commit, or support terrorism); and (3) poses no significant threat to United States national security, interests, or allies.

Passed the House of Representatives July 22, 2014. Karen L. Haas, Clerk.

tv_txt: IB Union Calendar No. 409 113th CONGRESS 2d Session H. R. 4411 [Report No. 113–543, Part I] 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. Stivers , 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. Burgess , Mr. Diaz-Balart , Mr. Rodney Davis of Illinois , Ms. Frankel of Florida , Ms. Velázquez , Mr. Lowenthal , Mr. Broun of Georgia , Ms. Wasserman Schultz , Mr. Langevin , Mr. Gibbs , Ms. Titus , Mr. Barletta , Mr. Rush , Ms. Jenkins , Mr. Lance , Mr. Williams , Ms. Linda T. Sánchez 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 Luján 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. Neugebauer , 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 Michigan , Mr. Poe of Texas , Mr. Smith of Washington , Ms. Duckworth , Ms. Herrera Beutler , Mr. Flores , Mr. Doyle , Mr. Brady of Pennsylvania , 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. 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. Whitfield , 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. Cárdenas , 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 A BILL To prevent Hezbollah and associated entities from gaining access to international financial and other institutions, and for other purposes.

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 significant 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 activities of Hezbollah. Sec. 206. Appropriate congressional committees defined. Title III—Miscellaneous provisions Sec. 301. Rule of construction. Sec. 302. Regulatory authority. Sec. 303. Termination. 2. Statement of policy It shall be the policy of the United States to— (1) prevent Hezbollah’s global logistics and financial 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 organization’s ability to fund its global terrorist activities. I Prevention of access by Hezbollah to international financial and other institutions 101. Report on imposition of sanctions on certain 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 Representatives 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 support to 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 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 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 extent possible, and may contain a classified annex. 102. Sanctions with respect to financial institutions that engage in certain transactions (a) Prohibitions and conditions with respect to certain accounts held by foreign financial institutions (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 applicable departments and agencies, shall prohibit, or impose strict conditions on, the opening or maintaining 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 designated 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 subparagraph (A) or (B); (D) knowingly facilitates a significant transaction or transactions or provides significant financial services to carry out an activity described in subparagraph (A), (B), or (C), including— (i) facilitating a significant transaction or transactions; or (ii) providing significant financial services that involve a transaction of covered goods; or (E) (i) knowingly facilitates, or participates or assists in, an activity described in subparagraph (A), (B), (C), or (D), including by acting on behalf of, at the direction of, or as an intermediary for, or otherwise assisting, another person with respect to the activity described in any such subparagraph; (ii) knowingly attempts or conspires to facilitate or participate in an activity described in subparagraph (A), (B), (C), or (D); or (iii) is owned or controlled by a foreign financial 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 International 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 unlawful 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) Waiver (1) In general The Secretary of the Treasury, 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 condition imposed with respect to a foreign financial institution 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 congressional committees a report describing the reasons for the determination. (2) Form The report required by subparagraph (1) shall be submitted in unclassified form, but may contain a classified annex. (c) Provisions relating to foreign financial institutions (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 concurrence of the Secretary of State and in consultation with the heads of other applicable departments and agencies, certifies in writing to the appropriate congressional committees that— (A) the foreign financial institution— (i) is no longer engaging in the activity described in subsection (a)(2); or (ii) has taken and is continuing to take significant verifiable steps toward terminating the activity described in subsection (a)(2); and (B) the Secretary has received reliable assurances from the government with primary jurisdiction over the foreign financial institution that the foreign financial institution will not engage 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 account , 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. (C) Appropriate congressional committees 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 Relations and the Committee on Banking, Housing, 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 Regulations. (E) Financial institution The term financial institution means a financial institution 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; domestic financial institution (i) Foreign financial institution The term foreign financial institution has the meaning of such term in section 1010.605 of title 31, Code of Federal Regulations, and includes a foreign central bank. (ii) Domestic financial institution The term domestic financial institution has the meaning of such term as determined 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 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 Office 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 Secretary of State as a foreign terrorist organization pursuant to section 219 of the Immigration 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 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. II Reports on designation of Hezbollah as a significant foreign narcotics trafficker and a significant transnational criminal organization 201. Report on designation of Hezbollah as a significant foreign narcotics trafficker (a) Findings Congress makes the following findings: (1) In 2008, after the two year Operation Titan run by the U.S. Drug Enforcement Administration and Colombian authorities dismantled an international 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 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 primary 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 banking system in order to avoid scrutiny associated with Treasury’s designations of Hassan Ayash Exchange, Elissa Exchange, and its Lebanese Canadian Bank Section 311 Action…Money was then wire transferred via Halawi’s banking relationships indirectly to the United States through countries 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 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 President shall submit to the appropriate congressional committees— (A) a detailed report on whether the Hezbollah meets the criteria for designation under the Foreign Narcotics Kingpin Designation 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 designation under the Foreign Narcotics Kingpin Designation 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. 202. Report on designation of Hezbollah as a significant transnational criminal organization (a) Findings Congress makes the following findings: (1) Hezbollah is engaged array of illicit activities, from counterfeiting currencies, passport documents, to stolen automobile rings and other illicit activities. (2) In 2002, authorities in Charlotte, North Carolina arrested members of a cell run by Mohammed 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 counterfeiting 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 selling fraudulent passports and trafficking in counterfeit 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 Department 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 involved 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 under Executive Order 13581 (76 Fed. Reg. 44757); and (B) if the President determines that Hezbollah does not meet the criteria for designation as a significant transnational criminal organization under Executive Order 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. 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 Representatives 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 Certification Scheme. (b) Form The report required by subsection (a) shall be submitted in unclassified form, but may contain a classified annex. 204. Rewards for justice and Hezbollah’s fundraising, financing, and money laundering 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 report 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, financing, 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 appropriate congressional committees on the status of the actions described in subsection (a). (c) Appropriate congressional committees defined In this section, the term appropriate congressional committees means the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate. 205. Report on activities of foreign governments to disrupt global logistics networks 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 committees a report that includes— (A) a list of countries that support Hezbollah, or in which Hezbollah maintains important portions of its global logistics networks; (B) with respect to each country on the list required by subparagraph (A)— (i) an assessment of whether the government of the country is taking adequate measures to disrupt the global logistics networks of Hezbollah within the territory of the country; and (ii) in the case of a country the government of which is not taking adequate measures to disrupt those networks— (I) an assessment of the reasons that government is not taking adequate measures to disrupt those networks; and (II) a description of measures being taken by the United States Government to encourage that government to improve measures to disrupt those networks; (C) a list of countries in which Hezbollah, or any of its agents or affiliates, conducts significant fundraising, financing, or money laundering activities; (D) with respect to each country on the list required by subparagraph (C)— (i) an assessment of whether the government of the country is taking adequate measures to disrupt the fundraising, financing, or money laundering activities of Hezbollah and its agents and affiliates within the territory of the country; and (ii) in the case of a country the government of which is not taking adequate measures to disrupt those activities— (I) an assessment of the reasons that government is not taking adequate measures to disrupt those activities; and (II) a description of measures being taken by the United States Government to encourage the government of that country to improve measures to disrupt those activities; and (E) a list of methods that Hezbollah, or any of its agents or affiliates, utilizes to raise or transfer funds, including trade-based money laundering, the use of foreign exchange houses, and free-trade zones. (2) Form The report required by paragraph (1) shall be submitted in unclassified form to the greatest extent possible, and may contain a classified annex. (3) Global logistics networks of Hezbollah In this subsection, the term global logistics networks of Hezbollah , global logistics networks , or networks means financial, material, or technological support for, or financial or other services in support of, Hezbollah. (b) Briefing on Hezbollah’s assets and activities related to fundraising, financing, and money laundering worldwide Not later than 90 days after the date of the enactment of this Act, and every 180 days thereafter, the Secretary of State, the Secretary of the Treasury, and the heads of other applicable Federal departments and agencies (or their designees) shall provide to the appropriate congressional committees a briefing on the disposition of Hezbollah’s assets and activities related to fundraising, financing, and money laundering worldwide. (c) Appropriate Congressional Committees Defined In this section, the term appropriate congressional committees means— (1) the Committee on Foreign Affairs, the Committee on Financial Services, and the Permanent Select Committee on Intelligence of the House of Representatives; and (2) the Committee on Foreign Relations, the Committee on Banking, Housing, and Urban Affairs, and the Select Committee on Intelligence of the Senate. 206. Appropriate congressional committees defined Except as otherwise provided, in this title, the term appropriate congressional committees means— (1) the Committee on Foreign Affairs, the Committee on Financial Services, and the Committee on the Judiciary of the House of Representatives; and (2) the Committee on Foreign Relations, the Committee on Finance, and the Committee on the Judiciary of the Senate. III Miscellaneous provisions 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. 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 implementation 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 subsection (a), the President shall notify the appropriate congressional 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. 303. Termination 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 terrorist 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 (3) poses no significant threat to United States national security, interests, or allies.

July 22, 2014 Reported from the Committee on Foreign Affairs with an amendment 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