Hizballah International Financing Prevention Act of 2015

Bill: 114-s-1617
Sponsor: full_name: Sen. Rubio, Marco [R-FL]
Introduced: 2015-06-18
Policy area: International Affairs
Subjects: Arab-Israeli relations

Bank accounts, deposits, capital

Banking and financial institutions regulation

Congressional oversight

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

Intelligence activities, surveillance, classified information

International exchange and broadcasting

International monetary system and foreign exchange

Internet and video services

Internet, web applications, social media

Judicial review and appeals

Middle East

Organized crime

Sanctions

Television and film

Terrorism

Trade restrictions
Latest action: action_date: 2015-06-18
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2015-06-18
action_desc: Introduced in Senate
text: <p><strong>Hizballah International Financing Prevention Act of 2015 </strong></p> <p>Directs the President to report to Congress annually identifying: (1) satellite, broadcast, Internet, or other providers that have knowingly entered into a contractual relationship with 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>Directs the President 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 Hizballah, or for a person acting on behalf of, or owned or controlled by Hizballah; </li> <li>engages in money laundering to carry out such an activity; or</li> <li>facilitates a significant transaction or provides significant financial services to carry out 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 President 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> Requires the Department of the Treasury 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> Directs the President to report to Congress on whether Hizballah meets the criteria for designation as a significant foreign narcotics trafficker, and if the President determines that Hizballah does not meet such criteria, a detailed justification as to which criteria have not been met. </p> <p>Expresses the sense of Congress that: (1) Hizballah appears to meet the criteria for designation as a significant transnational criminal organization, and (2) the President should designate Hizballah as a significant transnational criminal organization.</p> <p> Directs the President to report to Congress on whether Hizballah meets the criteria for designation as a significant transnational criminal organization, and if the President determines that Hizballah does not meet such criteria, a detailed justification as to which criteria have not been met. </p> <p>Directs the Department of State to report to Congress regarding actions taken through the Department's rewards program to obtain information on Hizballah's fund raising, financing, and money laundering activities.</p> <p>Directs the President to report to Congress regarding: </p> <ul> <li>countries that support Hizballah, in which Hizballah maintains important portions of its global logistics networks, or in which Hizballah conducts significant fund raising, financing, or money laundering activities; </li> <li>an assessment of whether a country is taking adequate measures to disrupt Hizballah's networks and activities within that country; and </li> <li> methods that Hizballah, 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. </li> </ul> <p> Directs the Department of State, Treasury, and the heads of other applicable federal departments and agencies to brief Congress on the disposition of Hizballah's assets and fund raising, financing, and money laundering activities.</p> <p>Declares that nothing in this Act shall apply to authorized U.S. intelligence activities.</p>

tv_txt: II 114th CONGRESS 1st Session S. 1617 IN THE SENATE OF THE UNITED STATES June 18, 2015 Mr. Rubio (for himself and Mrs. Shaheen ) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To prevent Hizballah and associated entities from gaining access to international financial and other institutions, and for other purposes.

1. Short title; table of contents (a) Short title This Act may be cited as the Hizballah International Financing Prevention Act of 2015 . (b) Table of contents The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Statement of policy. TITLE I—Prevention of access by Hizballah 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 Hizballah as a significant foreign narcotics trafficker and a significant transnational criminal organization Sec. 201. Report on designation of Hizballah as a significant foreign narcotics trafficker. Sec. 202. Report on designation of Hizballah as a significant transnational criminal organization. Sec. 203. Rewards for Justice and Hizballah’s fundraising, financing, and money laundering activities. Sec. 204. Report on activities of foreign governments to disrupt global logistics networks and fundraising, financing, and money laundering activities of Hizballah. 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 Hizballah’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 Hizballah as a means to block that organization’s ability to fund its global terrorist activities. I Prevention of access by Hizballah to international financial and other institutions 101. Briefing on imposition of sanctions on certain satellite providers that carry al-Manar TV (a) In general Not later than 90 days after the date of the enactment of this Act, and annually thereafter, the President shall provide to the appropriate congressional committees a briefing on the following: (1) The activities of all satellite, broadcast, Internet, or other providers that have knowingly entered into a contractual relationship with 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 13224 ( 50 U.S.C. 1701 note; relating to blocking property and prohibiting transactions with persons who commit, threaten to commit, or support terrorism); 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) 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. 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 President 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 President determines, on or after such date of enactment, 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 Hizballah; (B) knowingly facilitates a significant transaction or transactions of a person 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 and the property and interests in property of which are blocked pursuant to the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq. ) for acting on behalf of or at the direction of, or owned or controlled by, Hizballah; (C) knowingly engages in money laundering to carry out an activity described in subparagraph (A) or (B); or (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). (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 this subsection to the same extent that such penalties apply to a person that commits an unlawful act described in subsection (a) of such section 206. (4) Procedures for judicial review of classified information (A) In general If a finding under this subsection, or a prohibition, condition, or penalty imposed as a result of any such finding, is based on classified information (as defined in section 1(a) of the Classified Information Procedures Act (18 U.S.C. App.)) and a court reviews the finding or the imposition of the prohibition, condition, or penalty, the President may submit such information to the court ex parte and in camera. (B) Rule of construction Nothing in this paragraph shall be construed to confer or imply any right to judicial review of any finding under this subsection or any prohibition, condition, or penalty imposed as a result of any such finding. (5) Regulations The President shall prescribe and implement regulations to carry out this subsection. (b) Waiver (1) In general The President 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 the waiver for additional periods of not more than 180 days, on and after the date on which the President— (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 such determination. (2) Form The report required by paragraph (1)(B) shall be submitted in unclassified form, but may contain a classified annex. (c) Special rule To allow for termination of sanctionable activity The President shall not be required to apply sanctions to a foreign financial institution described in subsection (a) if the President certifies in writing to the appropriate congressional committees that— (1) the foreign financial institution— (A) is no longer engaging in the activity described in subsection (a)(2); or (B) has taken and is continuing to take significant verifiable steps toward terminating the activity described in that subsection; and (2) the President 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) Report on foreign central banks (1) In general Not later than 90 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) Form of report Each report required by paragraph (1) shall be submitted in unclassified form, but may include a classified annex. (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) 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) 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. (D) Foreign financial institution; domestic financial institution (i) Foreign financial institution The term foreign financial institution has the meaning given that term in section 1010.605 of title 31, Code of Federal Regulations, and excludes the Central Bank of Lebanon. (ii) Domestic financial institution The term domestic financial institution has the meaning of that term as determined by the Secretary of the Treasury. (E) Hizballah The term Hizballah means— (i) the entity known as Hizballah and 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 ); or (ii) any person— (I) the property 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 Hizballah. (F) Money laundering The term money laundering means the movement of illicit cash or cash equivalent proceeds into, out of, or through a country, or into, out of, or through a financial institution. (2) Other definitions The President may further define the terms used in this section in the regulations prescribed under this section. II Reports on designation of Hizballah as a significant foreign narcotics trafficker and a significant trans- national criminal organization 201. Report on designation of Hizballah as a significant foreign narcotics trafficker (a) Report required Not later than 120 days after the date of the enactment of this Act, the President shall transmit to the appropriate congressional committees a detailed report on whether Hizballah 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 if the President determines that Hizballah does not meet such criteria, a detailed justification as to which criteria have not been met. (b) Form The report required by subsection (a) shall be transmitted in unclassified form, but may include 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 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. 202. Report on designation of Hizballah as a significant transnational criminal organization (a) Sense of Congress It is the sense of Congress that— (1) Hizballah appears to meet the criteria for designation as a significant transnational criminal organization under Executive Order 13581 (76 Fed. Reg. 44,757; relating to blocking property of transnational criminal organizations); and (2) the President should designate Hizballah as a significant transnational criminal organization. (b) Report (1) In general Not later than 120 days after the date of the enactment of this Act, the President shall submit to the appropriate congressional committees a detailed report on whether Hizballah meets the criteria for designation as a significant transnational criminal organization under Executive Order 13581, and if the President determines that Hizballah does not meet such criteria, a detailed justification as to which criteria have not been met. (2) Form The report required by paragraph (1) shall be transmitted in unclassified form, but may include 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 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. 203. Rewards for Justice and Hizballah’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 under section 36 of the State Department Basic Authorities Act ( 22 U.S.C. 2708 ) to obtain information on fundraising, financing, and money laundering activities of Hizballah 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. 204. Report on activities of foreign governments to disrupt global logistics networks and fundraising, financing, and money laundering activities of Hizballah (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 Hizballah or in which Hizballah 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 Hizballah 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 such networks— (I) an assessment of the reasons that government is not taking such adequate measures; and (II) a description of measures being taken by the United States to encourage that government to improve measures to disrupt such networks; (C) a list of countries in which Hizballah, 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 Hizballah 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 such activities— (I) an assessment of the reasons that government is not taking such adequate measures; and (II) a description of measures being taken by the United States to encourage that government to improve measures to disrupt such activities; and (E) a list of methods that Hizballah, 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 Hizballah In this subsection, the term global logistics networks of Hizballah , global logistics networks , or networks means financial, material, or technological support for, or financial or other services in support of, Hizballah. (b) Briefing on Hizballah’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 shall provide to the appropriate congressional committees a briefing on the disposition of Hizballah’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. 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 before the promulgation of regulations under subsection (a), the President shall notify the appropriate congressional committees of the proposed regulations and the provisions of this Act and the amendments made by this Act that the regulations are implementing. (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. 303. Termination This Act shall terminate on the date that is 30 days after the date on which the President certifies to Congress that Hizballah— (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 ); and (2) is no longer listed in the Annex to Executive Order 13224 ( 50 U.S.C. 1701 note; relating to blocking property and prohibiting transactions with persons who commit, threaten to commit, or support terrorism).