,i #aacth ,,congress #b;d ,session ,h4 ,r4 #ddaa ,,in ,,the ,,house ,,of ,,representatives ,april #g1 #bjad ,mr4 ,meadows 7for himself1 ,mr4 ,schneider1 ,mr4 ,royce1 and ,mr4 ,engel7 introduced the following bill2 which was referred to the ,committee on ,foreign ,affairs1 and in addition to the ,committee on ,financial ,services1 for a period to be subsequently determined by the ,speaker1 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 institutions1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,hezbollah ,international ,financing ,prevention ,act of #bjad4 ,i ,prevention of access by ,hezbollah to international financial and other institutions #aja4 ,findings2 ,statement of policy 7a7 ,findings ,congress finds the following3 7#a7 ,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 #aa1 #bjja1 including a number of attacks on and hostage takings targeting ,americans in ,lebanon during the #aihjs1 including the bombing of the ,united ,states ,embassy in ,beirut in ,april #aihc1 and the bombing of the ,united ,states ,marine barracks in ,october #aihc4 7#b7 ,hezbollah's operations outside of ,lebanon1 including its participation in bombings of ,israeli and ,jewish institutions in ,argentina during the #aiijs1 recent support to ,shiite insurgents in ,iraq1 recent attacks and attempted attacks in ,europe1 ,southeast ,asia1 and elsewhere1 and extensive international operational1 logistical1 and financial networks have rendered it a capable and deadly adversary with global reach4 7#c7 ,hezbollah has been designated as a terrorist organization by the ,united ,states since #aiie1 and remains on foreign terrorist organization and ,specially ,designated ,terrorist lists4 7#d7 ,in ,march #bjac1 a ,cypriot court convicted a ,hezbollah member for participation in a criminal organization1 planning to commit a crime and money laundering4 ,in ,july #bjac1 the ,bulgarian government concluded that ,hezbollah was responsible for the #bjab ,burgas bombing1 which killed six people4 7#e7 ,in ,july #bjac1 the ,european ,union designated the military wing of ,hezbollah as a terrorist organization4 ,the designation helps to facilitate ,european law enforcement agencies' actions against ,hezbollah's fundraising1 logistical activity1 and terrorist plotting on ,european soil4 7#f7 ,in ,july #bjac1 the ,gulf ,cooperation ,council1 consisting of ,saudi ,arabia1 ,qatar1 ,bahrain1 ,kuwait1 ,oman and the ,united ,arab ,emirates1 declared ,hezbollah a terrorist organization4 7#g7 ,hezbollah continues to provide material assistance1 including assuming a combat role1 in ,syria1 and aids the ,government of ,iran and the ,government of ,syria in their human rights and other abuses perpetrated against the ,syrian people4 7#h7 ,an estimated #e1jjj ,hezbollah fighters are supporting the ,assad regime in ,syria by fighting on his behalf and by providing military training1 advice and logistical support to regime forces4 7#i7 ,hezbollah continues to serve as a proxy of ,iran1 in its effort to target the ,united ,states and its allies and interests4 7#aj7 ,hezbollah's global logistics and financial network serves as a lifeline to the organization1 and enables it to consolidate power within ,lebanon and provides it with the capabilities to perpetrate complex attacks internationally4 7#aa7 ,hezbollah has evolved into a significant drug smuggling organization1 and also engages in other serious criminal activity1 including money laundering1 counterfeiting pharmaceuticals1 and trade in conflict diamonds4 7#ab7 ,in ,april #bjac1 the ,department of the ,treasury blacklisted two ,lebanese exchange houses1 ,kassem ,rmeiti ,co4 and ,halawi ,exchange ,co41 for laundering drug profits for ,hezbollah1 and stated that ,hezbollah was operating like an international drug cartel4 7#ac7 ,in #bjji1 the ,department of the ,treasury blacklisted the ,lebanese ,canadian ,bank as a primary money laundering concern1 alleging that it is part of a drug trafficking network that profited ,hezbollah by moving approximately #bjj1jjj1jjj per month4 7#ad7 ,the ,department of ,justice reports that #bi of the #fc organizations on its ,,fy #bjaj ,consolidated ,priority ,organization ,targets list1 which includes the most significant international drug trafficking organizations 7,d,t,os7 threatening the ,united ,states1 were associated with terrorist groups4 ,there is concern about ,hezbollah's drug and criminal activities1 as well as indications of links between al-,qaida in the ,lands of the ,islamic ,maghreb and the drug trade4 7#ae7 ,al-,manar1 the ,lebanese satellite television station affiliated with ,hezbollah broadcasting from ,beirut1 ,lebanon1 was designated as a ,specially ,designated ,global ,terrorist entity in #bjjd1 but continues to be carried by international broadcasting agents4 7#af7 ,hezbollah continues to present a threat to the ,united ,states and its allies and interests4 7b7 ,statement of policy ,it shall be the policy of the ,united ,states to-- 7#a7 prevent ,hezbollah's global logistics and financial network from operating in order to curtail funding of its domestic and international activities2 and 7#b7 utilize all available diplomatic1 legislative1 and executive avenues to combat the criminal activities of ,hezbollah as a means to block that organization's ability to fund its global terrorist activities4 #ajb4 ,report on imposition of sanctions on certain satellite providers that carry al-,manar ,,tv 7a7 ,in general ,not later than #cj days after the date of the enactment of this ,act1 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-- 7#a7 a list of all satellite1 broadcast1 or other providers that knowingly transmits or otherwise broadcasts the content of al-,manar ,,tv1 and any affiliates or successors thereof2 and 7#b7 with respect to all providers included on the list pursuant to paragraph 7#a7-- 7,a7 an identification of those providers that have been sanctioned pursuant to ,executive ,order #acbbd 7,september #bc1 #bjja72 and 7,b7 an identification of those providers that have not been sanctioned pursuant to ,executive ,order #acbbd and1 with respect to each such provider1 the reason why sanctions have not been imposed4 7b7 ,form ,the report required by subsection 7a7 shall be submitted in unclassified form to the greatest extent possible1 and may contain a classified annex4 #ajc4 ,sanctions with respect to financial institutions that engage in certain transactions 7a7 ,prohibitions and conditions with respect to certain accounts held by foreign financial institutions 7#a7 ,in general ,not later than #ij days after the date of the enactment of this ,act1 the ,secretary of the ,treasury1 with the concurrence of the ,secretary of ,state and in consultation with the heads of other applicable departments and agencies1 shall prohibit1 or impose strict conditions on1 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 7#b74 7#b7 ,activities described ,a foreign financial institution engages in an activity described in this paragraph if the foreign financial institution-- 7,a7 knowingly facilitates the activities of ,hezbollah1 including its agents1 instrumentalities1 affiliates1 or successors2 7,b7 knowingly facilitates the activities of a person acting on behalf of or at the direction of1 or owned or controlled by1 a person described in subparagraph 7,a72 7,c7 knowingly engages in money laundering to carry out an activity described in subparagraph 7,a7 or 7,b72 7,d7 knowingly facilitates a significant transaction or transactions or provides significant financial services to carry out an activity described in subparagraph 7,a71 7,b71 or 7,c71 including facilitating a significant transaction or transactions or providing significant financial services that involve a transaction of gold1 silver1 platinum1 or other precious metals2 or 7,e7 7i7 knowingly facilitates1 or participates or assists in1 an activity described in subparagraph 7,a71 7,b71 7,c71 or 7,d71 including by acting on behalf of1 at the direction of1 or as an intermediary for1 or otherwise assisting1 another person with respect to the activity described in any such subparagraph2 7ii7 knowingly attempts or conspires to facilitate or participate in an activity described in subparagraph 7,a71 7,b71 7,c71 or 7,d72 or 7iii7 is owned or controlled by a foreign financial institution that the ,secretary finds knowingly engages in an activity described in subparagraph 7,a71 7,b71 7,c71 or 7,d74 7#c7 ,penalties ,the penalties provided for in subsections 7b7 and 7c7 of section #bjf of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agje7 shall apply to a person that violates1 attempts to violate1 conspires to violate1 or causes a violation of regulations prescribed under paragraph 7#a7 of this subsection to the same extent that such penalties apply to a person that commits an unlawful act described in section #bjf7;a7 of that ,act4 7#d7 ,regulations ,the ,secretary of the ,treasury shall prescribe and implement regulations to carry out this subsection4 7b7 ,requirements for financial institutions maintaining accounts for foreign financial institutions 7#a7 ,in general ,not later than #ij days after the date of the enactment of this ,act1 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 following3 7,a7 ,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 7a74 7,b7 ,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 7a74 7,c7 ,establish due diligence policies1 procedures1 and controls1 such as the due diligence policies1 procedures1 and controls described in section #ecah7;i7 of title #ca1 ,united ,states ,code1 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 7a74 7#b7 ,penalties ,the penalties provided for in sections #ecba7;a7 and #ecbb of title #ca1 ,united ,states ,code1 shall apply to a person that violates a regulation prescribed under paragraph 7#a7 of this subsection1 in the same manner and to the same extent as such penalties would apply to any person that is otherwise subject to such section #ecba7;a7 or #ecbb4 7c7 ,waiver ,the ,secretary of the ,treasury1 with the concurrence of the ,secretary of ,state and in consultation with the heads of other applicable departments and agencies1 may waive the application of a prohibition or condition imposed with respect to a foreign financial institution pursuant to subsection 7a7 on and after the date that is #cj days after the ,secretary of the ,treasury1 with the concurrence of the ,secretary of ,state-- 7#a7 determines that such a waiver is vital to the national security interests of the ,united ,states2 and 7#b7 submits to the appropriate congressional committees a report describing the reasons for the determination4 7d7 ,provisions relating to foreign central banks 7#a7 ,report ,not later than #de days after the date of the enactment of this ,act1 and every #ahj days thereafter1 the ,secretary of the ,treasury shall submit to the appropriate congressional committees a report that-- 7,a7 identifies each foreign central bank that the ,secretary finds engages in one or more activities described in subsection 7a77#b77;,d72 and 7,b7 provides a detailed description of each such activity4 7#b7 ,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 7#a7 if the ,secretary of the ,treasury1 with the concurrence of the ,secretary of ,state and in consultation with the heads of other applicable departments and agencies1 certifies in writing to the appropriate congressional committees that-- 7,a7 the foreign central bank-- 7i7 is no longer engaging in the activity described in subsection 7a77#b77;,d72 or 7ii7 has taken significant verifiable steps toward terminating the activity described in subsection 7a77#b77;,d7 not later than #ij days after the date on which the ,secretary makes such certification2 and 7,b7 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 7a77#b77;,d7 in the future4 7e7 ,definitions 7#a7 ,in general ,in this section3 7,a7 ,account2 correspondent account2 payable-through account ,the terms account1 correspondent account1 and payable-through account have the meanings given those terms in section #ecah;,a of title #ca1 ,united ,states ,code4 7,b7 ,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 person4 7,c7 ,appropriate congressional committees ,the term appropriate congressional committees means-- 7i7 the ,committee on ,foreign ,affairs and the ,committee on ,financial ,services of the ,house of ,representatives2 and 7ii7 the ,committee on ,foreign ,relations and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate4 7,d7 ,financial institution ,the term financial institution means a financial institution specified in subparagraph 7,a71 7,b71 7,c71 7,d71 7,e71 7,f71 7,g71 7,h71 7,i71 7,j71 7,k71 7,m71 7,n71 7,r71 or 7,y7 of section #ecab7;a77#b7 of title #ca1 ,united ,states ,code4 7,e7 ,foreign financial institution2 domestic financial institution 7i7 ,foreign financial institution ,the term foreign financial institution-- 7,i7 has the meaning of such term as determined by the ,secretary of the ,treasury2 and 7,,ii7 includes a foreign central bank4 7ii7 ,domestic financial institution ,the term domestic financial institution has the meaning of such term as determined by the ,secretary of the ,treasury4 7,f7 ,money laundering ,the term money laundering means any of the activities described in paragraph 7#a71 7#b71 or 7#c7 of section #aief7;a7 of title #ah1 ,united ,states ,code1 with respect to which penalties may be imposed pursuant to such section4 7#b7 ,other definitions ,the ,secretary of the ,treasury may further define the terms used in this section in the regulations prescribed under this section4 ,,ii ,designation of ,hezbollah as a major drug smuggling enterprise and a transnational criminal organization #bja4 ,designation of ,hezbollah as significant foreign narcotics traffickers 7a7 ,in general ,not later than #cj days after the date of the enactment of this ,act1 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 7#ba ,u4,s4,c4 #aija et seq474 7b7 ,affirmative determination ,if the ,president determines under subsection 7a7 that ,hezbollah meets the criteria set forth under the ,foreign ,narcotics ,kingpin ,designation ,act 7#ba ,u4,s4,c4 #aija et seq471 the ,president shall designate ,hezbollah as a significant foreign narcotics trafficker under such ,act4 7c7 ,negative ,determination 7#a7 ,in general ,if the ,president determines under subsection 7a7 that ,hezbollah does not meet the criteria set forth under the ,foreign ,narcotics ,kingpin ,designation ,act 7#ba ,u4,s4,c4 #aija et seq471 the ,president shall submit to the appropriate congressional committees a report that contains a detailed justification as to which criteria have not been met4 7#b7 ,form ,the report required under paragraph 7#a7 shall be submitted in unclassified form1 but may contain classified annex1 if necessary4 #bjb4 ,designation of ,hezbollah as a significant transnational criminal organization 7a7 ,in general ,not later than #cj days after the date of the enactment of this ,act1 the ,president shall determine if ,hezbollah meets the criteria specified for designation as a significant transnational criminal organization under ,executive ,order #aceha 7#gf ,fed4 ,reg4 #ddgeg71 and the authorities granted to the ,president under the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq471 the ,national ,emergencies ,act 7#ej ,u4,s4,c4 #afja et seq471 and section #cja of title #c1 ,united ,states ,code4 7b7 ,affirmative determination ,if the ,president determines under subsection 7a7 that ,hezbollah meets the criteria set forth under the orders and statutes specified in subsection 7a71 the ,president shall designate ,hezbollah a significant transnational criminal organization under such orders and statutes4 7c7 ,negative ,determination 7#a7 ,in general ,if the ,president determines under subsection 7a7 that ,hezbollah does not meet the criteria set forth under the orders and statutes specified in subsection 7a71 the ,president shall submit to the appropriate congressional committees a report that contains a detailed justification as to which criteria have not been met4 7#b7 ,form ,the report required under paragraph 7#a7 shall be submitted in unclassified form1 but may contain classified annex1 if necessary4 #bjc4 ,report on ,hezbollah's involvement in the trade of conflict diamonds 7a7 ,in general ,not later than #ahj days after the date of the enactment of this ,act1 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 ,scheme4 7b7 ,form ,the report required by subsection 7a7 shall be submitted in unclassified form1 but may contain a classified annex4 #bjd4 ,appropriate congressional committees defined ,in this title1 the term appropriate congressional committees means-- 7#a7 the ,committee on ,foreign ,affairs1 the ,committee on ,financial ,services1 and the ,committee on the ,judiciary of the ,house of ,representatives2 and 7#b7 the ,committee on ,foreign ,relations1 the ,committee on ,finance1 and the ,committee on the ,judiciary of the ,senate4 ,,iii ,miscellaneous provisions #cja4 ,rule of construction ,nothing in this ,act or any amendment made by this ,act shall apply to the authorized intelligence activities of the ,united ,states4 #cjb4 ,regulatory authority 7a7 ,in general ,the ,president shall1 not later than #ij days after the date of the enactment of this ,act1 promulgate regulations as necessary for the implementation of this ,act and the amendments made by this ,act4 7b7 ,notification to congress ,not less than #aj days prior to the promulgation of regulations under subsection 7a71 the ,president shall notify the appropriate congressional committees 7as defined in section #bjd7 of the proposed regulations and the provisions of this ,act and the amendments made by this ,act that the regulations are implementing4 #cjc4 ,termination ,any provision of this ,act or amendment made by this ,act shall cease to be in effect beginning #cj days after the date on which the ,president certifies to ,congress that ,hezbollah-- 7#a7 is no longer designated as a foreign terrorist organization pursuant to section #bai of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aahi72 7#b7 is no longer listed in the ,annex to ,executive ,order #acbbd 7,september #bc1 #bjja2 relating to blocking property and prohibiting transactions with persons who commit1 threaten to commit1 or support terrorism72 and 7#c7 poses no significant threat to ,united ,states national security1 interests1 or allies4