Hezbollah International Financing Prevention Act of 2014 - Declares 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.
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 any of its agents or affiliates whose property or property interests are blocked pursuant to the International Emergency Economic Powers Act; (2) facilitates the activities of a person acting on behalf of or at the direction of, or owned or controlled by such institution; (3) engages in money laundering to carry out such activity; or (4) facilitates a significant transaction or transactions or provides significant financial services to carry out such activity.
Directs the Secretary 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 U.S. national security interests, and with congressional notification.
Directs the Secretary to identify to Congress every 180 days each foreign central bank that carries out an activity prohibited under this Act.
Sets forth penalty requirements for specified violations under this Act.
Directs the President to report to Congress regarding: (1) satellite, broadcast, Internet, or other providers that knowingly carry al-Manar TV or its affiliates; and (2) countries in which Hezbollah maintains important portions of its global logistics networks, and an assessment of whether a country is taking adequate measures to disrupt Hezbollah's networks within that country.
Directs the President to designate Hezbollah as: (1) a significant foreign narcotics trafficker if Hezbollah 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 Executive Order 13581.
Directs the President to report to Congress which of these criteria the President determines that Hezbollah has not met, if it does not.
Declares that nothing in this Act shall apply to authorized U.S. intelligence activities.
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, and (2) is no longer listed in the Annex to Executive Order 13224 (blocking property and prohibiting transactions with persons who commit or support terrorism).
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2329 Introduced in Senate (IS)]
113th CONGRESS
2d Session
S. 2329
To prevent Hezbollah from gaining access to international financial and
other institutions, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 13, 2014
Mrs. Shaheen (for herself, Mr. Rubio, Mr. Casey, Ms. Ayotte, Mr.
Cardin, Mr. Risch, Mr. Markey, Mr. Cornyn, Mrs. Gillibrand, and Mr.
Graham) introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To prevent Hezbollah from gaining access to international financial and
other institutions, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; 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; table of contents.
TITLE I--PREVENTION OF ACCESS BY HEZBOLLAH TO INTERNATIONAL FINANCIAL
AND OTHER INSTITUTIONS
Sec. 101. Findings; statement of policy.
Sec. 102. Sanctions with respect to financial institutions that engage
in certain transactions.
Sec. 103. Report on imposition of sanctions on certain satellite
providers that carry al-Manar TV.
Sec. 104. Report on activities of foreign governments to disrupt global
logistics networks and fundraising,
financing, and money laundering activities
of Hezbollah.
Sec. 105. Appropriate congressional committees defined.
TITLE II--DESIGNATION OF HEZBOLLAH AS A MAJOR DRUG SMUGGLING ENTERPRISE
AND A TRANSNATIONAL CRIMINAL ORGANIZATION
Sec. 201. Designation of Hezbollah as significant foreign narcotics
traffickers.
Sec. 202. Designation of Hezbollah as a significant transnational
criminal organization.
Sec. 203. Appropriate congressional committees defined.
TITLE III--MISCELLANEOUS PROVISIONS
Sec. 301. Rule of construction.
Sec. 302. Regulatory authority.
Sec. 303. Termination.
TITLE I--PREVENTION OF ACCESS BY HEZBOLLAH TO INTERNATIONAL FINANCIAL
AND OTHER INSTITUTIONS
SEC. 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 June 2013, the
Government of Bulgaria concluded that Hezbollah was responsible
for the 2012 Burgas bombing, which killed 6 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 regime of Bashar al-Assad 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.
(13) In February 2011, the Department of the Treasury
blacklisted the Lebanese Canadian Bank as of primary money
laundering concern, alleging that it moved approximately
$200,000,000 as part of a drug trafficking network that
profited Hezbollah.
(14) The Department of Justice reports that 29 of the 63
organizations on its Fiscal Year 2010 Consolidated Priority
Organization Targets list, which includes the most significant
international drug trafficking organizations 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-Qaeda 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 May 2006, 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 the ability of Hezbollah to fund
its global terrorist activities.
SEC. 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 90 days after the date of
the enactment of this Act, the Secretary of the Treasury, in
consultation with the Secretary of State, 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 or any of its agents or affiliates 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.);
(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);
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 this subsection, or an order or
regulation prescribed under 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) 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 Secretary
of the Treasury 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 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 180 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)(2).
(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)(2).
(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).
(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, in consultation with
the Secretary of State, 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 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 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 under subsection (a) to a foreign central
bank described in the report required under paragraph (1) if
the Secretary of the Treasury, in consultation with the
Secretary of State, 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) for which the
bank was identified in the report; or
(ii) has taken significant verifiable steps
toward terminating the activity 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) Implementation.--The President may exercise all authorities
provided under sections 203 and 205 of the International Emergency
Economic Powers Act (50 U.S.C. 1702 and 1704) to carry out this
section.
(f) 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) 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.
(D) Foreign financial institution; domestic
financial institution.--
(i) Foreign financial institution.--The
term ``foreign financial institution''--
(I) has the meaning of that 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 that term as determined by the
Secretary of the Treasury.
(E) 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 that 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.
SEC. 103. REPORT 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, the President shall submit to the appropriate
congressional committees a report that includes--
(1) a list of all satellite, broadcast, Internet, or other
providers that knowingly transmit or otherwise broadcast 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 (66
Fed. Reg. 49079; 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) Form.--The report required by subsection (a) shall be submitted
in unclassified form to the greatest extent possible, and may contain a
classified annex.
SEC. 104. REPORT ON ACTIVITIES OF FOREIGN GOVERNMENTS TO DISRUPT GLOBAL
LOGISTICS NETWORKS AND FUNDRAISING, FINANCING, AND MONEY
LAUNDERING ACTIVITIES OF HEZBOLLAH.
(a) 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--
(1) a list of countries in which Hezbollah maintains
important portions of its global logistics networks;
(2) with respect to each country on the list required by
paragraph (1)--
(A) 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
(B) 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;
(3) a list of countries in which Hezbollah, or any of its
agents or affiliates, conducts significant fundraising,
financing, or money laundering activities; and
(4) with respect to each country on the list required by
paragraph (3)--
(A) 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
(B) 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.
(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.
SEC. 105. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.
In this title, 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.
TITLE II--DESIGNATION OF HEZBOLLAH AS A MAJOR DRUG SMUGGLING ENTERPRISE
AND A TRANSNATIONAL CRIMINAL ORGANIZATION
SEC. 201. DESIGNATION OF HEZBOLLAH AS SIGNIFICANT FOREIGN NARCOTICS
TRAFFICKERS.
(a) In General.--Not later than 90 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 foreign
narcotics trafficker under section 804 of the Foreign Narcotics Kingpin
Designation Act (21 U.S.C. 1903).
(b) Affirmative Determination.--If the President determines under
subsection (a) that Hezbollah meets the criteria specified for
designation as a significant foreign narcotics trafficker under section
804 of the Foreign Narcotics Kingpin Designation Act (21 U.S.C. 1903),
the President shall designate Hezbollah as a significant foreign
narcotics trafficker under that section.
(c) Negative Determination.--
(1) In general.--If the President determines under
subsection (a) that Hezbollah does not meet the criteria
specified for designation as a significant foreign narcotics
trafficker under section 804 of the Foreign Narcotics Kingpin
Designation Act (21 U.S.C. 1903), 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 a classified
annex, if necessary.
SEC. 202. DESIGNATION OF HEZBOLLAH AS A SIGNIFICANT TRANSNATIONAL
CRIMINAL ORGANIZATION.
(a) In General.--Not later than 90 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;
relating to blocking property of transnational criminal organizations).
(b) Affirmative Determination.--If the President determines under
subsection (a) that Hezbollah meets the criteria specified for
designation as a significant transnational criminal organization under
Executive Order 13581, the President shall designate Hezbollah a
significant transnational criminal organization under that order.
(c) Negative Determination.--
(1) In general.--If the President determines under
subsection (a) that Hezbollah does not meet the criteria
specified for designation as a significant transnational
criminal organization under Executive Order 13581, 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 a classified
annex, if necessary.
SEC. 203. 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
Banking, Housing, and Urban Affairs, and the Committee on the
Judiciary of the Senate.
TITLE III--MISCELLANEOUS PROVISIONS
SEC. 301. RULE OF CONSTRUCTION.
Nothing in this Act shall apply to the authorized intelligence
activities of the United States.
SEC. 302. REGULATORY AUTHORITY.
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.
SEC. 303. TERMINATION.
Each provision of 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); and
(2) is no longer listed in the Annex to Executive Order
13224 (66 Fed. Reg. 49079; relating to blocking property and
prohibiting transactions with persons who commit, threaten to
commit, or support terrorism).
<all>
Introduced in Senate
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
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