,,ii  #aacth ,,congress  #b;d ,session  
,s4 #bcbi  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,may #ac1 #bjad
 ,mrs4 ,shaheen 7for herself1 ,mr4      
,rubio1 ,mr4 ,casey1 ,ms4 ,ayotte1 ,mr4 
,cardin1 ,mr4 ,risch1 ,mr4 ,markey1 ,mr4
 ,cornyn1 ,mrs4 ,gillibrand1 and ,mr4   
,graham7 introduced the following bill2 
which was read twice and referred to the
 ,committee on ,banking1 ,housing1 and  
,urban ,affairs  ,a ,,bill  ,to prevent 
,hezbollah from gaining access to       
international financial and other       
institutions1 and for other purposes4   
#a4  ,short title2 table of contents    
7a7 ,short title  ,this ,act may be     
cited as the ,hezbollah ,international  
,financing ,prevention ,act of #bjad4   
7b7 ,table of contents ,the table of    
contents for this ,act is as follows3   
,sec4 #a4 ,short title2 table of        
contents4 ,,title ,i--,prevention of    
access by ,hezbollah to international   
financial and other institutions ,sec4  
#aja4 ,findings2 statement of policy4   

,sec4 #ajb4 ,sanctions with respect to  
financial institutions that engage in   
certain transactions4 ,sec4 #ajc4       
,report on imposition of sanctions on   
certain satellite providers that carry  
al-,manar ,,tv4 ,sec4 #ajd4 ,report on  
activities of foreign governments to    
disrupt global logistics networks and   
fundraising1 financing1 and money       
laundering activities of ,hezbollah4    
,sec4 #aje4 ,appropriate congressional  
committees defined4 ,,title             
,,ii--,designation of ,hezbollah as a   
major drug smuggling enterprise and a   
transnational criminal organization     
,sec4 #bja4 ,designation of ,hezbollah  
as significant foreign narcotics        
traffickers4 ,sec4 #bjb4 ,designation of
 ,hezbollah as a significant            
transnational criminal organization4    
,sec4 #bjc4 ,appropriate congressional  
committees defined4 ,,title             
,,iii--,miscellaneous provisions ,sec4  
#cja4 ,rule of construction4 ,sec4 #cjb4
 ,regulatory authority4 ,sec4 #cjc4     

,termination4  ,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 #aihc 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 ,june #bjac1 
the ,government of ,bulgaria concluded  
that ,hezbollah was responsible for the 
#bjab ,burgas bombing1 which killed #f  
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 ,oman1 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 regime of ,bashar        
al-,assad in ,syria by fighting on his  
behalf and by providing military        
training1 advice1 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 ,hezbollah4 
7#ac7 ,in ,february #bjaa1 the          
,department of the ,treasury blacklisted
 the ,lebanese ,canadian ,bank as of    
primary money laundering concern1       
alleging that it moved approximately    
#bjj1jjj1jjj as part of a drug          
trafficking network that profited       
,hezbollah4  7#ad7 ,the ,department of  
,justice reports that #bi of the #fc    
organizations on its ,fiscal ,year #bjaj

 ,consolidated ,priority ,organization  
,targets list1 which includes the most  
significant international drug          
trafficking organizations 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-,qaeda 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 ,may #bjjf1 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 the      
ability of ,hezbollah to fund its global
 terrorist activities4  #ajb4           
,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 in         
consultation with the ,secretary of     
,state1 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 ,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 7#ej  
,u4,s4,c4 #agja et seq472  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 
or  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,c74  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 this subsection1 or an     
order or regulation prescribed under    
this subsection1 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    
,procedures for judicial review of      
classified information  7,a7 ,in general
 ,if a finding under this subsection or 
a prohibition1 condition1 or penalty    
imposed as a result of any such finding1
 is based on classified information 7as 
defined in section #a7;a7 of the        
,classified ,information ,procedures    
,act 7#ah ,u4,s4,c4 ,app477 and a court 
reviews the finding or the imposition of
 the prohibition1 condition1 or penalty1
 the ,secretary of the ,treasury may    
submit such information to the court ex 

parte and in camera4  7,b7 ,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    
prohibition1 condition1 or penalty      
imposed as a result of any such finding4
  7#e7  ,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 #ahj 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 7a77#b74  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 7a77#b74  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 7a77#b74  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 in consultation with the
 ,secretary of ,state1 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   
#ij 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 under      
subsection 7a7 to a foreign central bank
 described in the report required under 
paragraph 7#a7 if the ,secretary of the 
,treasury1 in consultation with the     
,secretary of ,state1 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;,d7 for which the   
bank was identified in the report2 or   
7ii7 has taken significant verifiable   

steps toward terminating the activity   
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        
,implementation ,the ,president may     
exercise all authorities provided under 
sections #bjc and #bje of the           
,international ,emergency ,economic     
,powers ,act 7#ej ,u4,s4,c4 #agjb and   
#agjd7 to carry out this section4  7f7  
,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  ,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,d7  ,foreign  
financial institution2 domestic         
financial institution  7i7  ,foreign    
financial institution  ,the term foreign
 financial institution--  7,i7 has the  
meaning of that 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 that term as        
determined by the ,secretary of the     
,treasury4  7,e7  ,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 that 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  #ajc4  ,report on imposition  
of sanctions on certain satellite       
providers that carry al-,manar ,,tv  7a7
  ,in general  ,not later than #ij days 
after the date of the enactment of this 
,act1 the ,president shall submit to the
 appropriate congressional committees a 
report that includes--  7#a7 a list of  
all satellite1 broadcast1 ,internet1 or 
other providers that knowingly transmit 
or otherwise broadcast 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#ff ,fed4     
,reg4 #dijgi2 relating to blocking      
property and prohibiting transactions   
with persons who commit1 threaten to    
commit1 or support terrorism72 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  #ajd4 ,report on     
activities of foreign governments to    
disrupt global logistics networks and   
fundraising1 financing1 and money       
laundering activities of ,hezbollah  7a7
 ,in general ,not later than #ij days   
after the date of the enactment of this 
,act1 the ,president shall submit to the
 appropriate congressional committees a 
report that includes-- 7#a7 a list of   

countries in which ,hezbollah maintains 
important portions of its global        
logistics networks2  7#b7 with respect  
to each country on the list required by 
paragraph 7#a7-- 7,a7 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 country2   
and  7,b7 in the case of a country the  
government of which is not taking       
adequate measures to disrupt those      
networks-- 7i7 an assessment of the     
reasons that government is not taking   
adequate measures to disrupt those      
networks2 and  7ii7 a description of    
measures being taken by the ,united     
,states ,government to encourage that   
government to improve measures to       
disrupt those networks2  7#c7 a list of 
countries in which ,hezbollah1 or any of
 its agents or affiliates1 conducts     
significant fundraising1 financing1 or  
money laundering activities2 and  7#d7  
with respect to each country on the list

 required by paragraph 7#c7-- 7,a7 an   
assessment of whether the government of 
the country is taking adequate measures 
to disrupt the fundraising1 financing1  
or money laundering activities of       
,hezbollah and its agents and affiliates
 within the territory of the country2   
and  7,b7 in the case of a country the  
government of which is not taking       
adequate measures to disrupt those      
activities-- 7i7 an assessment of the   
reasons that government is not taking   
adequate measures to disrupt those      
activities2 and  7ii7 a description of  
measures being taken by the ,united     
,states ,government to encourage the    
government of that country to improve   
measures to disrupt those activities4   
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  #aje4 ,appropriate congressional
 committees defined ,in this title1 the 
term appropriate congressional          

committees means--  7#a7 the ,committee 
on ,foreign ,affairs and the ,committee 
on ,financial ,services of the ,house of
 ,representatives2 and  7#b7 the        
,committee on ,foreign ,relations and   
the ,committee on ,banking1 ,housing1   
and ,urban ,affairs of the ,senate4     
,,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 #ij 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 foreign    
narcotics trafficker under section #hjd 
of the ,foreign ,narcotics ,kingpin     
,designation ,act 7#ba ,u4,s4,c4 #aijc74
  7b7  ,affirmative determination  ,if  
the ,president determines under         
subsection 7a7 that ,hezbollah meets the
 criteria specified for designation as a

 significant foreign narcotics          
trafficker under section #hjd of the    
,foreign ,narcotics ,kingpin            
,designation ,act 7#ba ,u4,s4,c4 #aijc71
 the ,president shall designate         
,hezbollah as a significant foreign     
narcotics trafficker under that section4
  7c7  ,negative ,determination  7#a7   
,in general  ,if the ,president         
determines under subsection 7a7 that    
,hezbollah does not meet the criteria   
specified for designation as a          
significant foreign narcotics trafficker
 under section #hjd of the ,foreign     
,narcotics ,kingpin ,designation ,act   
7#ba ,u4,s4,c4 #aijc71 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 a    
classified annex1 if necessary4  #bjb4  
,designation of ,hezbollah as a         

significant transnational criminal      
organization  7a7  ,in general  ,not    
later than #ij 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 #ddgeg2 relating to blocking
 property of transnational criminal     
organizations74  7b7  ,affirmative      
determination  ,if the ,president       
determines under subsection 7a7 that    
,hezbollah meets the criteria specified 
for designation as a significant        
transnational criminal organization     
under ,executive ,order #aceha1 the     
,president shall designate ,hezbollah a 
significant transnational criminal      
organization under that order4  7c7     
,negative ,determination  7#a7  ,in     
general  ,if the ,president determines  
under subsection 7a7 that ,hezbollah    
does not meet the criteria specified for

 designation as a significant           
transnational criminal organization     
under ,executive ,order #aceha1 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 a classified annex1 if          
necessary4  #bjc4  ,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 ,banking1 ,housing1   
and ,urban ,affairs1 and the ,committee 
on the ,judiciary of the ,senate4  ,,iii
  ,miscellaneous provisions  #cja4 ,rule
 of construction ,nothing in this ,act  

shall apply to the authorized           
intelligence activities of the ,united  
,states4  #cjb4  ,regulatory authority  
,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 ,act4  #cjc4  ,termination  ,each  
provision of 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 
and  7#b7 is no longer listed in the    
,annex to ,executive ,order #acbbd 7#ff 
,fed4 ,reg4 #dijgi2 relating to blocking
 property and prohibiting transactions  
with persons who commit1 threaten to    
commit1 or support terrorism74