US Codex
Bill
Notes

H.R. 4411 — what changed

Hezbollah International Financing Prevention Act of 2014

From Reported in House to Engrossed in House. 7 sections amended and 1 added between Reported in House and Engrossed in House.

Sec. 101 Briefing on imposition of sanctions on certain satellite providers that carry al-Manar TV

added 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:

(a)
removed 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)
removed 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)
removed with respect to all providers included on the list pursuant to paragraph (1)—
(A)
removed an identification of those providers that have been sanctioned pursuant to Executive Order 13224 (September 23, 2001); and
(B)
removed 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.
(1)
changed Form— The report required by subsection (a) shall be submitted in unclassified form activities of all satellite, broadcast, Internet, or other providers that knowingly provide material support to the greatest extent possible, al-Manar TV, and may contain a classified annex.any affiliates or successors thereof.
(2)
added With respect to all providers described in paragraph (1)—
(A)
added an identification of those providers that have been sanctioned pursuant to Executive Order No. 13224 (September 23, 2001); and
(B)
added 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.

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 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)
changed determines that such a waiver is vital to 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)
removed 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.
(B)
renumbered was (5)(2)(5) Appropriate congressional committees— The term appropriate congressional committees means—
(i)
renumbered was (5)(2)(5)(3) the Committee on Foreign Affairs and the Committee on Financial Services of the House of Representatives; and
(ii)
renumbered was (5)(2)(5)(4) the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate.
(C)
renumbered was (5)(2)(6) Covered goods— The term “covered goods” has the meaning given the term in section 1027.100 of title 31, Code of Federal Regulations.
(D)
renumbered was (5)(2)(7) 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)
added Foreign financial institution; domestic financial institution—
(F)
removed Foreign financial institution; domestic financial institution—
(i)
renumbered was (5)(2)(8)(2) 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)
renumbered was (5)(2)(8)(3) Domestic financial institution— The term domestic financial institution has the meaning of such term as determined by the Secretary of the Treasury.
(F)
renumbered was (5)(2)(9) Hezbollah— The term “Hezbollah” means—
(i)
renumbered was (5)(2)(9)(3) any person—
(I)
renumbered was (5)(2)(9)(3)(2) 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)
renumbered was (5)(2)(9)(3)(3) 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)
renumbered was (5)(2)(9)(4) 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)
renumbered was (5)(2)(10) 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.

Sec. 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)
changed 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 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.

Sec. 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)
changed 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)
changed 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)
changed 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.

Sec. 203 Report on Hezbollah’s involvement in the trade of conflict diamonds

(a)
changed 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 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)
added Appropriate congressional committees defined— In this section, the term “appropriate congressional committees” means—
(1)
added the Committee on Foreign Affairs, the Committee on Ways and Means, and the Committee on Financial Services of the House of Representatives; and
(2)
added the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate.

Sec. 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)
changed 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.means—
(1)
added the Committee on Foreign Affairs and the Committee on Financial Services of the House of Representatives; and
(2)
added the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate.

Sec. 303 Offset

changed This Act shall cease to be in effect beginning 30 days after the date on which Section 102(a) of the President certifies to Congress that Hezbollah—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”.

(1)
removed 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)
removed 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)
removed poses no significant threat to United States national security, interests, or allies.

Sec. 304 Termination

added

added This Act shall cease to be in effect beginning 30 days after the date on which the President certifies to Congress that Hezbollah—

(1)
added 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)
added 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)
added poses no significant threat to United States national security, interests, or allies.