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Title II — Reports on designation of Hezbollah as a significant foreign narcotics trafficker and a significant transnational criminal organization

H.R. 4411 · 113th Congress · Jul 23, 2014 · Lineage

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

(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.

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)
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.

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

(a)
In general— Not later than 120 days after the date of the enactment of this Act, the Secretary of State shall submit to 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.

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)
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.

Sec. 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.

Sec. 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.