[Full text in Original]
SECTION 1. Short title; table of contents.
(a) Short title.—This Act may be cited as the "Hizballah International Financing Prevention Amendments Act of 2018".
(b) Table of contents.—The table of contents for this Act is as follows:
TITLE I—Prevention of Access by Hizballah to International Financial and Other Institutions
SEC. 101. Mandatory sanctions with respect to fundraising and recruitment activities for Hizballah.
(a) In general.—Section 101 of the Hizballah International Financing Prevention Act of 2015 (Public Law 114–102; 50 U.S.C. 1701 note) is amended to read as follows:
"SEC. 101. Mandatory sanctions with respect to fundraising and recruitment activities for Hizballah.
"(a) In general.—The President shall, on or after the date of the enactment of the Hizballah International Financing Prevention Amendments Act of 2018, impose the sanctions described in subsection (b) with respect to any foreign person that the President determines knowingly provides significant financial, material, or technological support for or to—
"(1) Bayt al-Mal, Jihad al-Bina, the Islamic Resistance Support Association, the Foreign Relations Department of Hizballah, the External Security Organization of Hizballah, or any successor or affiliate thereof as designated by the President;
"(2) al-Manar TV, al Nour Radio, or the Lebanese Media Group, or any successor or affiliate thereof as designated by the President;
"(3) a foreign person determined by the President to be engaged in fundraising or recruitment activities for Hizballah; or
"(4) a foreign person owned or controlled by a person described in paragraph (1), (2), or (3).
"(b) Sanctions described.—The sanctions described in this subsection are the following:
"(1) ASSET BLOCKING.—The exercise of all powers granted to the President by the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (except that the requirements of section 202 of such Act (50 U.S.C. 1701) shall not apply) to the extent necessary to block and prohibit all transactions in all property and interests in property of a foreign person determined by the President to be subject to subsection (a) if such property and interests in property are in the United States, come within the United States, or are or come within the possession or control of a United States person.
"(2) ALIENS INELIGIBLE FOR VISAS, ADMISSION, OR PAROLE.—
"(A) VISAS, ADMISSION, OR PAROLE.—An alien who the Secretary of State or the Secretary of Homeland Security (or designee of one of such Secretaries) determines is subject to subsection (a) is—
"(i) inadmissible to the United States;
"(ii) ineligible to receive a visa or other documentation to enter the United States; and
"(iii) otherwise ineligible to be admitted or paroled into the United States or to receive any other benefit under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.).
"(B) CURRENT VISAS REVOKED.—
"(i) IN GENERAL.—The Secretary of State or the Secretary of Homeland Security (or designee of one of such Secretaries) shall revoke any visa or other entry documentation issued to an alien who the President determines is subject to subsection (a), regardless of when issued.
"(ii) EFFECT OF REVOCATION.—A revocation under clause (i) shall take effect immediately and shall automatically cancel any other valid visa or entry documentation that is in the possession of the alien.
"(c) Waiver.—
"(1) IN GENERAL.—The President may, for periods not to exceed 180 days, waive the imposition of sanctions under this section if the President certifies to the appropriate congressional committees that such waiver is in the national security interests of the United States.
"(2) BRIEFING.—Not later than 30 days after the issuance of a waiver under paragraph (1) with respect to a foreign person, and every 180 days thereafter while the waiver remains in effect, the President shall brief the appropriate congressional committees on the status of the involvement of the foreign person in activities described in subsection (a).
"(d) Definitions.—In this section:
"(1) ADMITTED; ALIEN.—The terms ‘admitted’ and ‘alien’ have meanings given those terms in section 101 of the Immigration and Nationality Act (8 U.S.C. 1101).
"(2) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term ‘appropriate congressional committees’ means—
"(A) the Committee on Foreign Affairs, the Committee on Ways and Means, the Committee on the Judiciary, the Committee on Financial Services, and the Permanent Select Committee on Intelligence of the House of Representatives; and
"(B) the Committee on Foreign Relations, the Committee on Finance, the Committee on Banking, Housing, and Urban Affairs, the Committee on the Judiciary, and the Select Committee on Intelligence of the Senate.
"(3) ENTITY.—The term ‘entity’ means a partnership, association, corporation, or other organization, group, or subgroup.
"(4) FOREIGN PERSON.—The term ‘foreign person’ means any person that is not a United States person.
"(5) HIZBALLAH.—The term ‘Hizballah’ has the meaning given such term in section 102(e).
"(6) PERSON.—The term ‘person’ means an individual or entity.
"(7) UNITED STATES PERSON.—The term ‘United States person’ means a United States citizen, an alien lawfully admitted for permanent residence, an entity organized under the laws of the United States (including foreign branches), or a person in the United States.".
(b) Clerical amendment.—The table of contents for the Hizballah International Financing Prevention Act of 2015 is amended by striking the item relating to section 101 and inserting the following new item:
"Sec. 101. Mandatory sanctions with respect to fundraising and recruitment activities for Hizballah.".
SEC. 102. Modification of report with respect to financial institutions that engage in certain transactions.
Section 102(d) of the Hizballah International Financing Prevention Act of 2015 (Public Law 114–102; 50 U.S.C. 1701 note) is amended to read as follows:
"(d) Report on financial institutions organized under the laws of state sponsors of terrorism.—
"(1) IN GENERAL.—Not later than 180 days after the date of the enactment of the Hizballah International Financing Prevention Amendments Act of 2018, and every 2 years thereafter for a period not to exceed 4 years, the President shall submit to the appropriate congressional committees a report that—
"(A) identifies each foreign financial institution described in paragraph (2) that the President determines engages in one or more activities described in subsection (a)(2); and
"(B) provides a detailed description of each such activity.
"(2) FOREIGN FINANCIAL INSTITUTION DESCRIBED.—
"(A) IN GENERAL.—A foreign financial institution described in this paragraph is a foreign financial institution—
"(i) that, wherever located, is—
"(I) organized under the laws of a state sponsor of terrorism or any jurisdiction within a state sponsor of terrorism;
"(II) owned or controlled by the government of a state sponsor of terrorism;
"(III) located in the territory of a state sponsor of terrorism; or
"(IV) owned or controlled by a foreign financial institution described in subclause (I), (II), or (III); and
"(ii) the capitalization of which exceeds $10,000,000.
"(B) STATE SPONSOR OF TERRORISM DEFINED.—In this paragraph, the term ‘state sponsor of terrorism’ means a country the government of which the Secretary of State has determined is a government that has repeatedly provided support for acts of international terrorism for purposes of—
"(i) section 1754(c) of the Export Control Reform Act of 2018;
"(ii) section 620A of the Foreign Assistance Act of 1961 (22 U.S.C. 2371);
"(iii) section 40 of the Arms Export Control Act (22 U.S.C. 2780); or
"(iv) any other provision of law.".
SEC. 103. Sanctions against certain agencies and instrumentalities of foreign states.
(a) In general.—Title I of the Hizballah International Financing Prevention Act of 2015 (Public Law 114–102; 50 U.S.C. 1701 note) is amended by adding at the end the following:
"SEC. 103. Sanctions against certain agencies and instrumentalities of foreign states.
"(a) Sanctions.—
"(1) IN GENERAL.—Not later than 180 days after the date of the enactment of the Hizballah International Financing Prevention Amendments Act of 2018, and as appropriate thereafter, the President shall impose the sanctions described in paragraph (3) with respect to an agency or instrumentality of a foreign state described in paragraph (2).
"(2) AGENCY OR INSTRUMENTALITY OF A FOREIGN STATE DESCRIBED.—An agency or instrumentality of a foreign state is described in this paragraph if the President determines that the agency or instrumentality has, on or after the date of the enactment of the Hizballah International Financing Prevention Amendments Act of 2018, knowingly—
"(A) conducted significant joint combat operations with, or significantly supported combat operations of, Hizballah; or
"(B) provided significant financial support for or to, or significant arms or related materiel to, Hizballah.
"(3) SANCTIONS DESCRIBED.—The sanctions described in this paragraph are the exercise of all powers granted to the President by the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (except that the requirements of section 202 of such Act (50 U.S.C. 1701) shall not apply) to the extent necessary to block and prohibit all transactions in all property and interests in property of an agency or instrumentality of a foreign state if such property and interests in property are in the United States, come within the United States, or are or come within the possession or control of a United States person.
"(b) Waiver.—
"(1) IN GENERAL.—The President may, for periods not to exceed 180 days, waive the imposition of sanctions under this section with respect to an agency or instrumentality of a foreign state if the President certifies to the appropriate congressional committees that such waiver is vital to the national security interests of the United States.
"(2) BRIEFING.—Not later than 30 days after the issuance of a waiver under paragraph (1) with respect to an agency or instrumentality of a foreign state, and every 180 days thereafter while the waiver remains in effect, the President shall brief the appropriate congressional committees on the status of the involvement of the agency or instrumentality in activities described in subsection (a)(2).
"(c) Special rule.—The President shall not be required to impose sanctions under this section with respect to an agency or instrumentality of a foreign state if the Secretary certifies in writing to the appropriate congressional committees that—
"(1) the agency or instrumentality—
"(A) is no longer engaging in activities described in subsection (a)(2); or
"(B) has taken and is continuing to take significant verifiable steps toward terminating such activities; and
"(2) the President has received reliable assurances from the government of the foreign state that the agency or instrumentality will not engage in any activity described in subsection (a)(2) in the future.
"(d) Definitions.—In this section:
"(1) AGENCY OR INSTRUMENTALITY OF A FOREIGN STATE.—The term ‘agency or instrumentality of a foreign state’ has the meaning given the term in section 1603(b) of title 28, United States Code.
"(2) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term ‘appropriate congressional committees’ means—
"(A) the Committee on Foreign Affairs, the Committee on Financial Services, the Committee on Ways and Means, the Committee on the Judiciary, the Committee on Appropriations, and the Permanent Select Committee on Intelligence of the House of Representatives; and
"(B) the Committee on Foreign Relations, the Committee on Banking, Housing, and Urban Affairs, the Committee on the Judiciary, Committee on Finance, Committee on Appropriations, and the Select Committee on Intelligence of the Senate.
"(3) ARMS OR RELATED MATERIEL.—The term ‘arms or related materiel’ means—
"(A) nuclear, biological, chemical, or radiological weapons or materials or components of such weapons;
"(B) ballistic or cruise missile weapons or materials or components of such weapons; and
"(C) destabilizing numbers and types of advanced conventional weapons.
"(4) HIZBALLAH.—The term ‘Hizballah’ has the meaning given such term in section 102(e).
"(5) UNITED STATES PERSON.—The term ‘United States person’ has the meaning given such term in section 101(d).".
(b) Clerical amendment.—The table of contents for the Hizballah International Financing Prevention Act of 2015 is amended by inserting after the item relating to section 102 the following new item:
"Sec. 103. Sanctions against certain agencies and instrumentalities of foreign states.".
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TITLE II—Narcotics Trafficking and Transnational Criminal Activities of Hizballah
SEC. 201. Imposition of sanctions with respect to affiliated networks of Hizballah for transnational criminal activities.
(a) Statement of policy.—It is the policy of the United States to determine if individuals and entities that are designated by the United States Government on or after the date of the enactment of this Act as being associated with Hizballah are engaged in transnational organized crime or related activities on or after such date of enactment.
(b) In general.—Section 201 of the Hizballah International Financing Prevention Act of 2015 (Public Law 114–102; 50 U.S.C. 1701 note) is amended to read as follows:
"SEC. 201. Imposition of sanctions with respect to affiliated networks of Hizballah for transnational criminal activities.
"(a) In general.—The President shall, on or after the date of the enactment of the Hizballah International Financing Prevention Amendments Act of 2018, impose the sanctions described in subsection (b) with respect to affiliated networks of Hizballah, including, as appropriate, by reason of significant transnational criminal activities engaged in by such networks.
"(b) Sanctions described.—The sanctions described in this subsection are sanctions applicable with respect to Hizballah pursuant to any provision of law, including Executive Order 13581 (50 U.S.C. 1701 note; relating to blocking property of transnational criminal organizations) (as such Executive Order was in effect on the day before the date of the enactment of the Hizballah International Financing Prevention Amendments Act of 2018).
"(c) Waiver.—The President may, for periods not to exceed 180 days, waive the imposition of sanctions under this section if the President certifies to the appropriate congressional committees that such waiver is in the national security interests of the United States.
"(d) Definitions.—In this section:
"(1) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term ‘appropriate congressional committees’ means—
"(A) the Committee on Foreign Affairs, the Committee on Ways and Means, the Committee on Appropriations, the Committee on Financial Services, and the Permanent Select Committee on Intelligence of the House of Representatives; and
"(B) the Committee on Foreign Relations, the Committee on Banking, Housing, and Urban Affairs, the Committee on Appropriations, and the Select Committee on Intelligence of the Senate.
"(2) HIZBALLAH.—The term ‘Hizballah’ has the meaning given such term in section 102(e).".
(c) Conforming amendment.—The title heading for title II of the Hizballah International Financing Prevention Act of 2015 is amended to read as follows:
""TITLE II—Sanctions and reports relating to narcotics trafficking and significant transnational criminal activities of Hizballah".
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1) Read in conjunction with the Hizballah International Financing Prevention Act of 2015, and comments thereto.
2) The "Hizballah International Financing Prevention Amendments Act of 2018" (HIFPAA) substantially amends the Hizballah International Financing Prevention Act of 2015 (HIFPA). The active secondary sanctions section of the HIFPA was implemented in in the CFR as the Hizballah Financial Sanctions Regulations (Part 566, the HFSR). In June, 2019, the HIFPAA were implemented in both the GTSR (see comments to 594.201) and the TCOSR (590.316, removed in 2022).
As a result of the implementation of HIFPAA in the GTSR and TCOSR, there appears to be no self-executing provision in this statute that should be of concern to the regulated community that is not otherwise implemented in regulations.
The designation criteria set out in the HIFPAA—i.e. sections 101, 103 and 201 of the act—are generally not characterizable as "secondary sanctions" since they principally address dealings with a terrorist organization; something that falls outside the scope of ordinary international commerce. In practice, triggering the Hizballah-related designation criteria laid out on this act is likely to subject a person to secondary sanctions pursuant to the HIFPA and 566.201, but that will not necessarily always be the case. This is discussed further at comments to 594.201 and (590.316, removed in 2022).