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Hamas and Other Palestinian Terrorist Groups International Financing Prevention Act

Floor Speech

By: Michael McCaul

Date: Nov. 1, 2023

Location: Washington, DC

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Mr. McCAUL. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 340) to impose sanctions with respect to foreign support for terrorist organizations, including Hamas and the Palestinian Islamic Jihad, as amended.

The Clerk read the title of the bill.

The text of the bill is as follows: H.R. 340

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE.

This Act may be cited as the ``Hamas and Other Palestinian Terrorist Groups International Financing Prevention Act''. SEC. 2. STATEMENT OF POLICY.

It shall be the policy of the United States--

(1) to prevent Hamas, Palestinian Islamic Jihad, Al-Aqsa Martyrs Brigade, the Lion's Den, or any affiliate or successor thereof from accessing its international support networks; and

(2) to oppose Hamas, the Palestinian Islamic Jihad, Al-Aqsa Martyrs Brigade, the Lion's Den, or any affiliate or successor thereof from using goods, including medicine and dual use items, to smuggle weapons and other materials to further acts of terrorism, including against Israel. SEC. 3. IMPOSITION OF SANCTIONS WITH RESPECT TO FOREIGN PERSONS SUPPORTING ACTS OF TERRORISM OR ENGAGING IN SIGNIFICANT TRANSACTIONS WITH SENIOR MEMBERS OF HAMAS, PALESTINIAN ISLAMIC JIHAD AND OTHER PALESTINIAN TERRORIST ORGANIZATIONS.

(a) In General.--Not later than 180 days after the date of enactment of this Act, the President shall impose the sanctions described in subsection (c) with respect to each foreign person that the President determines, on or after the date of the enactment of this Act, engages in an activity described in subsection (b).

(b) Activities Described.--A foreign person engages in an activity described in this subsection if the foreign person knowingly--

(1) assists in sponsoring or providing significant financial, material, or technological support for, or goods or other services to enable, acts of terrorism; or

(2) engages, directly or indirectly, in a significant transaction with--

(A) a senior member of Hamas, Palestinian Islamic Jihad, Al-Aqsa Martyrs Brigade, the Lion's Den, or any affiliate or successor thereof; or

(B) a senior member of a foreign terrorist organization designated pursuant to section 219 of the Immigration and Nationality Act (8 U.S.C. 1189) that is responsible for providing, directly or indirectly, support to Hamas, Palestinian Islamic Jihad, Al-Aqsa Martyrs Brigade, the Lion's Den, or any affiliate or successor thereof.

(c) Sanctions Described.--The President shall exercise all of the powers granted to the President under the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to the extent necessary to block and prohibit all transactions in property and interests in property of a foreign person described in 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.

(d) Penalties.--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 this section or any regulations promulgated to carry out this section to the same extent that such penalties apply to a person that commits an unlawful act described in section 206(a) of that Act.

(e) Implementation; Regulations.--

(1) In general.--The President may exercise all authorities provided under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) for purposes of carrying out this section.

(2) Regulations.--Not later than 60 days after the date of the enactment of this Act, the President shall issue regulations or other guidance as may be necessary for the implementation of this section.

(f) Waiver.--The President may waive, on a case-by-case basis and for a period of not more than 180 days, the application of sanctions under this section with respect to a foreign person only if, not later than 15 days prior to the date on which the waiver is to take effect, the President submits to the appropriate congressional committees a written determination and justification that the waiver is in the vital national security interests of the United States.

(g) Humanitarian Exemption.--The President may waive the application of any provision of this section if the President certifies in writing to the appropriate congressional committees that such a waiver is vital to facilitate the delivery of humanitarian aid and is consistent with the national security interests of the United States 15 days prior to the waiver taking effect.

(h) Rule of Construction.--The authority to impose sanctions under this section with respect to a foreign person is in addition to the authority to impose sanctions under any other provision of law with respect to a foreign person that directly or indirectly supports acts of international terrorism. SEC. 4. IMPOSITION OF MEASURES WITH RESPECT TO FOREIGN STATES PROVIDING SUPPORT TO HAMAS, PALESTINIAN ISLAMIC JIHAD AND OTHER PALESTINIAN TERRORIST ORGANIZATIONS.

(a) In General.--Not later than 180 days after the date of enactment of this Act, the President shall impose the measures described in subsection (c) with respect to a foreign state if the President determines that the foreign state, on or after the date of the enactment of this Act, engages in an activity described in subsection (b).

(b) Activities Described.--A foreign state engages in an activity described in this subsection if the foreign state knowingly--

(1) provides significant material or financial support for acts of international terrorism, pursuant to--

(A) section 1754(c) of the Export Control Reform Act of 2018 (50 U.S.C. 4813(c)(1)(A));

(B) section 620A of the Foreign Assistance Act of 1961 (22 U.S.C. 2371);

(D) any other provision of law;

(2) provides significant material support to Hamas, the Palestinian Islamic Jihad, Al-Aqsa Martyrs Brigade, the Lion's Den, or any affiliate or successor thereof; or

(3) engages in a significant transaction that materially contributes, directly or indirectly, to the terrorist activities of Hamas, the Palestinian Islamic Jihad, Al-Aqsa Martyrs Brigade, the Lion's Den, or any affiliate or successor thereof.

(1) The President shall suspend, for a period of at least 1 year, United States assistance to the foreign state.

(2) The Secretary of the Treasury shall instruct the United States Executive Director to each appropriate international financial institution to oppose, and vote against, for a period of 1 year, the extension by such institution of any loan or financial or technical assistance to the government of the foreign state.

(3) The President shall prohibit the export of any item on the United States Munitions List (established pursuant to section 38 of the Arms Export Control Act (22 U.S.C. 2778)) or the Commerce Control List set forth in Supplement No. 1 to part 774 of title 15, Code of Federal Regulations, to the foreign state for a period of 1 year.

(e) Waiver.--The President may waive, on a case-by-case basis and for a period of not more than 180 days, the application of measures under this section with respect to a foreign state only if, not later than 15 days prior to the date on which the waiver is to take effect, the President submits to the appropriate congressional committees a written determination and justification that the waiver is in the vital national security interests of the United States.

(f) Implementation; Regulations.--

(g) Additional Exemptions.--

(1) Status of forces agreements.--The President may exempt the application of measures under this section with respect to a foreign state if the application of such measures would prevent the United States from meeting the terms of any status of forces agreement to which the United States is a party.

(2) Authorized intelligence activities.--Measures under this section shall not apply with respect to any activity subject to the reporting requirements under title V of the National Security Act of 1947 (50 U.S.C. 3091 et seq.) or any authorized intelligence activities of the United States.

(3) Humanitarian exemption.--The President may waive the application of any provision of this section if the President certifies in writing to the appropriate congressional committees that such a waiver is vital to facilitate the delivery of humanitarian aid and is consistent with the national security interests of the United States 15 days prior to the waiver taking effect.

(h) Rule of Construction.--The authority to impose measures under this section with respect to a foreign state is in addition to the authority to impose measures under any other provision of law with respect to foreign states that directly or indirectly support acts of international terrorism. SEC. 5. REPORTS ON ACTIVITIES TO DISRUPT GLOBAL FUNDRAISING, FINANCING, AND MONEY LAUNDERING ACTIVITIES OF HAMAS, PALESTINIAN ISLAMIC JIHAD, AL-AQSA MARTYRS BRIGADE, THE LION'S DEN OR ANY AFFILIATE OR SUCCESSOR THEREOF.

(a) In General.--Not later than 90 days after the date of enactment of this Act, and every 180 days thereafter, the President shall submit to the appropriate congressional committees a report that includes--

(1) an assessment of the disposition of the assets and activities of Hamas, the Palestinian Islamic Jihad, Al-Aqsa Martyrs Brigade, the Lion's Den, or any affiliate or successor thereof related to fundraising, financing, and money laundering worldwide;

(2) a list of foreign states that knowingly providing material, financial, or technical support for, or goods or services to Hamas, the Palestinian Islamic Jihad, Al-Aqsa Martyrs Brigade, the Lion's Den, or any affiliate or successor thereof;

(3) a list of foreign states in which Hamas, the Palestinian Islamic Jihad, Al-Aqsa Martyrs Brigade, the Lion's Den, or any affiliate or successor thereof conducts significant fundraising, financing, or money laundering activities;

(4) a list of foreign states from which Hamas, the Palestinian Islamic Jihad, Al-Aqsa Martyrs Brigade, the Lion's Den, or any affiliate or successor thereof knowingly engaged in the transfer of surveillance equipment, electronic monitoring equipment, or other means to inhibit communication or the free flow of information in Gaza; and

(5) with respect to each foreign state listed in paragraph (2), (3), or (4)--

(A) a description of the steps the foreign state identified is taking adequate measures to restrict financial flows to Hamas, the Palestinian Islamic Jihad, Al-Aqsa Martyrs Brigade, the Lion's Den, or any affiliates or successors thereof; and

(B) in the case of a foreign state failing to take adequate measures to restrict financial flows to Hamas, Palestinian Islamic Jihad, Al-Aqsa Martyrs Brigade, the Lion's Den or any other designated entity engaged in significant act of terrorism threatening the peace and security of Israel--

(i) an assessment of the reasons that government is not taking adequate measures to restrict financial flows to those entities; and

(ii) a description of measures being taken by the United States Government to encourage the foreign state to restrict financial flows to those entities; and

(b) Form.--Each report required by subsection (a) shall be submitted in unclassified form to the greatest extent possible, and may contain a classified annex. SEC. 6. EXCEPTION RELATING TO IMPORTATION OF GOODS.

(a) In General.--The authorities and requirements to impose sanctions authorized under this Act shall not include the authority or requirement to impose sanctions on the importation of goods.

(b) Good Defined.--In this section, the term ``good'' means any article, natural or man-made substance, material, supply or manufactured product, including inspection and test equipment, and excluding technical data. SEC. 7. TERMINATION.

This Act shall terminate on the earlier of--

(1) the date that is 7 years after the date of the enactment of this Act; or

(2) the date that is 30 days after the date on which the President certifies to the appropriate congressional committees that--

(A) Hamas or any successor or affiliate thereof is no longer designated as a foreign terrorist organization pursuant to section 219 of the Immigration and Nationality Act (8 U.S.C. 1189);

(B) Hamas, the Palestinian Islamic Jihad, Al-Aqsa Martyrs Brigade, the Lion's Den, and any successor or affiliate thereof are no longer subject to sanctions pursuant to--

(i) Executive Order No. 12947 (January 23, 1995; relating to prohibiting transactions with terrorists who threaten to disrupt the Middle East peace process); and

(ii) Executive Order No. 13224 (September 23, 2001; relating to blocking property and prohibiting transactions with persons who commit, threaten to commit, or support terrorism); and

(C) Hamas, the Palestinian Islamic Jihad, Al-Aqsa Martyrs Brigade, the Lion's Den, and any successor or affiliate thereof meet the criteria described in paragraphs (1) through (4) of section 9 of the Palestinian Anti-Terrorism Act of 2006 (22 U.S.C. 2378b note). SEC. 8. DEFINITIONS.

In this Act:

(1) Act of terrorism.--The term ``act of terrorism'' means an activity that--

(A) involves a violent act or an act dangerous to human life, property, or infrastructure; and

(B) appears to be intended to--

(i) intimidate or coerce a civilian population;

(ii) influence the policy of a government by intimidation or coercion; or

(iii) affect the conduct of a government by mass destruction, assassination, kidnapping, or hostage-taking.

(2) Admitted.--The term ``admitted'' has the meaning given such term in section 101(a)(13)(A) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(13)(A)).

(3) Appropriate congressional committees.--The term ``appropriate congressional committees'' means--

(A) the Committee on Foreign Affairs and the Committee on Financial Services of the House of Representatives; and

(B) the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate.

(4) Foreign state.--The term ``foreign state'' has the meaning given such term in section 1603 of title 28, United States Code.

(5) Humanitarian aid.--The term ``humanitarian aid'' means food, medicine, and medical supplies.

(6) Material support.--The term ``material support'' has the meaning given the term ``material support or resources'' in section 2339A of title 18, United States Code.

(7) United states person.--The term ``United States person'' means--

(A) a United States citizen or an alien lawfully admitted for permanent residence to the United States; or

(B) an entity organized under the laws of the United States or of any jurisdiction within the United States, including a foreign branch of such an entity.

Mr. Speaker, on October 7, over 2,000 Hamas terrorists invaded Israel and brutally murdered over 1,400 people. The images from these gruesome attacks will haunt us all for eternity.

There were beheadings, families were burned alive, and women were raped and slaughtered, one of whom was dragged through the streets of Gaza.

I was in one of the kibbutzim right on the border of Gaza last year meeting with members of the community. I saw their daycare center and the children who were there. That very same kibbutz, Mr. Speaker, was overrun by 70 Hamas terrorists. Many of the residents whom I met were slaughtered, but most viciously, the babies and the children I visited in the daycare center were slaughtered, shot to death, beheaded, and burned alive. Reports are that a pregnant woman was forced to watch as they cut her baby out of her womb, killing her child before they killed her.

On December 7, 1941, in response to the bombing at Pearl Harbor, President Roosevelt said it was ``a date which will live in infamy.'' So, too, will October 7, 2023.

The United States must stand resolute and use every tool at our disposal to support our friend and ally, Israel. Israel has been pulled into a war with the Iran-backed terrorist Hamas and the Palestinian Islamic jihad, who have launched more than 8,000 rockets at Israel since this war started.

We know that Iran has historically provided around $100 million a year in support to Hamas, the Palestinian Islamic jihad, and other Palestinian terrorist groups. Hamas also generates hundreds of millions of dollars every year from its secret international investment portfolio. These accounts help fund Hamas' terrorist infrastructure. They pay for its elaborate 500-mile tunnel network--500 miles of tunnel--and for the rockets being fired into Israel.

This bill takes aim at Iran's support for Hamas and makes it clear that banks cannot facilitate the toxic relationship between the largest state sponsor of terror and its proxies. Unfortunately, the media seems to have forgotten that for years Hamas has profited off innocent people, prioritizing rocket production over supporting the basic needs of their own people, exacerbating suffering.

I thank my colleague, Mr. Mast, who also served in the IDF with distinction, for introducing this important piece of legislation. We need every tool at our disposal to restrict Hamas and other Palestinian terrorists' access to financing and hold the countries enabling them to account.

I urge my colleagues to join me in voting for this bill, and I reserve the balance of my time. House of Representatives, Committee on Foreign Affairs, Washington, DC, February 9, 2023. Hon. Patrick McHenry, Chairman, Committee on Financial Services, Washington, DC.

Dear Chairman McHenry: Thank you for consulting with the Foreign Affairs Committee and agreeing to be discharged from further consideration of H.R. 340, the Hamas International Financing Prevention Act, so that the measure may proceed expeditiously to the House floor.

I agree that your forgoing further action on this measure does not in any way diminish or alter the jurisdiction of your committee, or prejudice its jurisdictional prerogatives on this measure or similar legislation in the future. I would support your effort to seek appointment of an appropriate number of conferees from your committee to any House-Senate conference on this legislation.

I will seek to place our letters on H.R. 340 into the Congressional Record during floor consideration. I appreciate your cooperation regarding this legislation and look forward to continuing to work together as this measure moves through the legislative process. Sincerely, Michael T. McCaul,

Chairman.

Mr. Speaker, I thank Mr. Schneider for his strong, passionate support, as well as Ms. Manning and the author, Mr. Mast.

Mr. Speaker, I think the gentleman makes a great argument. Hamas stands between the expansion of the Abraham Accords and the destruction of the Abraham Accords. They are the ones standing between peace in the Middle East and war, a war that they provoked, a war that was barbaric against our friend and ally, Israel. It is impossible to overstate just how violent and horrific the terrorist attacks in Israel were. I have seen it. Don't tell me it didn't happen because it is real.

We can't underestimate the determination of Hamas itself. Their covenant explicitly states: ``Israel will exist and will continue to exist until Islam will obliterate it, just as it obliterated others before it.''

I don't think it can be any more clear about their intent. Hamas has told us who they are and what they plan to do. We need to act here in Congress, and we need to act now.

Mr. Speaker, I urge my colleagues to support this bill, and I yield back the balance of my time.

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Mr. McCAUL. Mr. Speaker, on that I demand the yeas and nays.

The yeas and nays were ordered.

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Hamas and Other Palestinian Terrorist Groups International Financing Prevention Act

Floor Speech

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