Mr. Speaker, I move to suspend the rules and pass the bill (S. 1595) to amend the Hizballah International Financing Prevention Act of 2015 to impose additional sanctions with respect to Hizballah, and for other purposes, as amended. Mr.…
Mr. Speaker, I move to suspend the rules and pass the bill (S. 1595) to amend the Hizballah International Financing Prevention Act of 2015 to impose additional sanctions with respect to Hizballah, and for other purposes, as amended.
Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days to revise and extend their remarks and to include extraneous material on this measure.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, today, we will consider a House-Senate agreement on additional measures targeting Hezbollah, Iran's leading terrorist proxy, with tough new sanctions that we will impose with this bill.
Last Congress, the Hizballah International Financing Prevention Act was signed into law. This legislation threatened to cut off any financial institution that knowingly facilitates significant transactions for Hezbollah from the U.S. financial system. That was a major step in the financial fight against Hezbollah.
In the immediate aftermath of the law's enactment, Hezbollah's leader gave a public speech blasting U.S. sanctions as ``unjust and false accusations.''
Hezbollah also asserted that it ``does not have any funds in any bank in the world . . . or in Lebanese banks and the central bank and the directors of banks must not panic.''
Well, if a terrorist organization must publicly state that they are not panicking, then they are definitely panicking. And Hezbollah was panicking, Mr. Speaker, following the passage of this landmark legislation.
Hezbollah reportedly had to cut salaries, defer payments to suppliers, and slash money stipends to allied parties. Facing increased financial pressure, Hezbollah has also lashed out most recently by bombing a Lebanese bank in an effort to intimidate the board members into noncompliance. But Hezbollah's cowardly stance and its scare tactics have not worked.
Lebanese banks have gone above and beyond the letter of the new U.S. law to proactively offload Hezbollah-linked bank accounts, forcing Hezbollah to look elsewhere for financial services.
Yet, as time has progressed, Hezbollah has found temporary, albeit cumbersome, workarounds. It is time to send Hezbollah into a panic again, and this new legislation that we are considering tonight will do just that.
First, the legislation mandates the application of sanctions against agencies of foreign states that provide weapons to Hezbollah--namely, Iran. Iran is the principal, external financial backer of Hezbollah, a fact that the leader of Hezbollah has openly admitted to for years.
It is estimated that Iranian funding to Hezbollah exceeds $700 million per year. This is in addition to a rapid expansion in both the quantity and the quality of weapons provided to Hezbollah by Iran.
In May, the Treasury Department imposed sanctions on the governor of the Central Bank of Iran and another senior bank official, accusing them of funneling millions of dollars to Hezbollah. But more can be done, and more must be done.
This new legislation takes aim at Hezbollah's enablers, both inside and outside of Lebanon. It mandates sanctions against any person or entity that engages in a transaction with anyone aiding Hezbollah's fundraising or recruitment.
This includes Hezbollah's foreign relations department, its television station, and its companies that maintain Hezbollah's social media accounts.
This legislation also requires the administration to issue a report laying out the assets of senior Hezbollah members and associates. This should clearly be applicable to Hezbollah's senior allies in the Lebanese Government.
Hezbollah is constantly expanding and exploiting its extensive criminal networks from narcotics trafficking to human trafficking in order to escape sanctions and attack Western interests. So to address this new threat, this legislation also imposes transnational organized criminal organization sanctions on Hezbollah's criminal networks, and it requires the administration to report to us in Congress on Hezbollah's racketeering activities, which can serve as a basis for applying RICO penalties to Hezbollah.
In sum, Mr. Speaker, this legislation is an important expansion of our efforts to take aim at Hezbollah, to take aim at its enablers, and to take aim at its state sponsor, Iran.
Mr. Speaker, I urge my colleagues to support this effort to ensure that the United States continues to have the tools to respond to the threats caused by Hezbollah.
Mr. Speaker, I reserve the balance of my time.
House of Representatives,
Committee on Financial Services,
Washington, DC, September 7, 2018.
Hon. Ed Royce,
Chairman, Committee on Foreign Affairs,
Washington, DC.
Dear Chairman Chairman Royce: I am writing concerning S.
1595, the Hizballah International Financing Prevention
Amendments Act of 2017.
As a result of your having consulted with the Committee on
Financial Services concerning provisions in the bill that
fall within our Rule X jurisdiction, I agree to forgo action
on the bill so that it may proceed expeditiously to the House
Floor. The Committee on Financial Services takes this action
with our mutual understanding that, by foregoing
consideration of S. 1595, at this time, we do not waive any
jurisdiction over the subject matter contained in this or
similar legislation, and that our Committee will be
appropriately consulted and involved as this or similar
legislation moves forward so that we may address any
remaining issues that fall within our Rule X jurisdiction.
Our Committee also reserves the right to seek appointment of
an appropriate number of conferees to any House-Senate
conference involving this or similar legislation, and
requests your support for any such request.
Finally, I would appreciate your response to this letter
confirming this understanding with respect to S. 1595 and
would ask that a copy of our exchange of letters on this
matter be included in the Congressional Record during floor
consideration thereof.
Sincerely,
Jeb Hensarling,
Chairman.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I thank the chairman of our very bipartisan committee, the Foreign Affairs Committee, Chairman Ed Royce, as well as Matt Zweig on his staff--he will be embarrassed that I say that--and Ranking Member Eliot Engel. I thank Mr. Engel for those wonderful words. I am going to miss working with him greatly. We have worked on so many important pieces of legislation together. And Mira Resnick and Edmund Rice on his staff, what a delight they have been. I thank them for their collaboration in developing this critical legislation. I am going to miss working with all of them.
I also want to thank Senate Banking Chairman Mike Crapo and Ranking Member Sherrod Brown, and John O'Hara and Colin McGinnis of their staff, for their hard work and commitment to achieving the strong, sound, bipartisan agreement that we have before us today.
Finally, I thank my hometown Senator, Senator Rubio, as well as Senator Shaheen, who have taken the lead on this effort on the other side.
For 30 years, Mr. Speaker, Hezbollah has remained Iran's proxy. Iran remains Hezbollah's primary source of financial support. What a terrible relationship these two have had.
This bill builds on our past efforts. It ramps up pressure on this dangerous terrorist group. It sanctions regimes, including Iran and Syria, because they are providing weapons to Hezbollah. It targets Hezbollah's innovative fund-raising and recruiting efforts, including its attempt to crowdsource small donations to support its fighters. And it recognizes that Hezbollah is more than a terrorist group; it is also a global criminal organization, an enterprise that profits from drug trafficking, money laundering, and counterfeiting.
This bill gives the administration the tools to respond accordingly. We must employ a combination of law enforcement, financial, criminal, civil, and regulatory tools to deter, disrupt, and publicly illuminate the global illicit Hezbollah network. And we have to continue to work together to confront this threat.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I echo Mr. Engel's remarks that, under the leadership of Chairman Royce and Ranking Member Engel, our Foreign Affairs Committee is one of the most bipartisan committees of the House.
Mr. Speaker, I yield back the balance of my time.