Sec. 102. Sanctions with respect to financial institutions that engage in certain transactions
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Not later than 120 days after the date of the enactment of this Act, the President 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 President determines, on or after such date of enactment, engages in an activity described in paragraph (2). A foreign financial institution engages in an activity described in this paragraph if the foreign financial institution— knowingly facilitates a significant transaction or transactions for Hizballah; knowingly facilitates a significant transaction or transactions of a person 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 and the property and interests in property of which are blocked pursuant to the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq. ) for acting on behalf of or at the direction of, or owned or controlled by, Hizballah; knowingly engages in money laundering to carry out an activity described in subparagraph
(A)or (B); or knowingly facilitates a significant transaction or transactions or provides significant financial services to carry out an activity described in subparagraph (A), (B), or (C). 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 this subsection to the same extent that such penalties apply to a person that commits an unlawful act described in subsection
(a)of such section 206. If a finding under this subsection, or a prohibition, condition, or penalty imposed as a result of any such finding, is based on classified information (as defined in section 1(a) of the Classified Information Procedures Act (18 U.S.C. App.)) and a court reviews the finding or the imposition of the prohibition, condition, or penalty, the President may submit such information to the court ex parte and in camera. Nothing in this paragraph shall be construed to confer or imply any right to judicial review of any finding under this subsection or any prohibition, condition, or penalty imposed as a result of any such finding. The President shall prescribe and implement regulations to carry out this subsection. The President 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 the waiver for additional periods of not more than 180 days, on and after the date on which the President— determines that such a waiver is in the national security interests of the United States; and submits to the appropriate congressional committees a report describing the reasons for such determination. The report required by paragraph (1)(B) shall be submitted in unclassified form, but may contain a classified annex. The President shall not be required to apply sanctions to a foreign financial institution described in subsection
(a)if the President certifies in writing to the appropriate congressional committees that— the foreign financial institution— is no longer engaging in the activity described in subsection (a)(2); or has taken and is continuing to take significant verifiable steps toward terminating the activity described in that subsection; and the President 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. Not later than 90 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— identifies each foreign central bank that the Secretary determines engages in one or more activities described in subsection (a)(2)(D); and provides a detailed description of each such activity. Each report required by paragraph
(1)shall be submitted in unclassified form, but may include a classified annex. In this section: The terms account , correspondent account , and payable-through account have the meanings given those terms in section 5318A of title 31, United States Code. The term appropriate congressional committees means— the Committee on Foreign Affairs and the Committee on Financial Services of the House of Representatives; and the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate. 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. The term foreign financial institution has the meaning given that term in section 1010.605 of title 31, Code of Federal Regulations, and excludes the Central Bank of Lebanon. The term domestic financial institution has the meaning of that term as determined by the Secretary of the Treasury. The term Hizballah means— the entity known as Hizballah and 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 ); or any person— the property or interests in property of which are blocked pursuant to the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq. ); and 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 Hizballah. The term money laundering means the movement of illicit cash or cash equivalent proceeds into, out of, or through a country, or into, out of, or through a financial institution. The President may further define the terms used in this section in the regulations prescribed under this section.
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Sec. 102
Sanctions with respect to financial institutions that engage in certain transactions
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