HR 4179 IHCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

2d SessionCommentsClose CommentsPermalink

H. R. 4179CommentsClose CommentsPermalink

To strengthen the multilateral sanctions regime with respect to Iran, to expand sanctions relating to the energy sector of Iran, the proliferation of weapons of mass destruction by Iran, and human rights abuses in Iran, and for other purposes.CommentsClose CommentsPermalink

IN THE HOUSE OF REPRESENTATIVESCommentsClose CommentsPermalink

March 8, 2012CommentsClose CommentsPermalink

Mr. SHERMAN (for himself and Ms. ROS-LEHTINEN) introduced the following bill; which was referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, the Judiciary, and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To strengthen the multilateral sanctions regime with respect to Iran, to expand sanctions relating to the energy sector of Iran, the proliferation of weapons of mass destruction by Iran, and human rights abuses in Iran, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Iran Financial Sanctions Improvement Act of 2012’.CommentsClose CommentsPermalink

SEC. 2. REPORTS ON, AND AUTHORIZATION OF IMPOSITION OF SANCTIONS WITH RESPECT TO, THE PROVISION OF SERVICES TO THE CENTRAL BANK OF IRAN AND IRANIAN FINANCIAL INSTITUTIONS.

(a) Report on the Provision of Services to Iranian Financial Institutions- Not later than 60 days after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the appropriate congressional committees a list of all known entities that provide services to, or enable or facilitate access to services for, the Central Bank of Iran or any Iranian financial institution.CommentsClose CommentsPermalink





(b) Report on Efforts To Terminate the Provision by Certain Entities of Services to Iranian Financial Institutions- Not later than 90 days after the date of the enactment of this Act, the Secretary of the Treasury shall submit to the appropriate congressional committees a report on the status of efforts to ensure that the Society for Worldwide Interbank Financial Telecommunication (commonly known as ‘SWIFT’), Clearstream, and other entities that provide similar services, have terminated the provision of services to, and the enabling and facilitation of access to services for, the Central Bank of Iran and other Iranian financial institutions.CommentsClose CommentsPermalink





(c) Authorization for the Imposition of Sanctions- If, on or after the date that is 90 days after the date of the enactment of this Act, an entity has not terminated the provision of services to, or the enabling and facilitation of access to services for, the Central Bank of Iran or any other Iranian financial institution, the President may--CommentsClose CommentsPermalink





(1) impose sanctions pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) with respect to the entity or its directors; andCommentsClose CommentsPermalink





(2) in the case of an entity that is a foreign financial institution, prohibit, or impose strict conditions on, the opening or maintaining in the United States of a correspondent account or payable-through account by the entity.CommentsClose CommentsPermalink





(d) Additional Sanctions- Section 104(c)(2) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8513(c)(2)) is amended--CommentsClose CommentsPermalink





(1) in subparagraph (D), by striking ‘or’ at the end;CommentsClose CommentsPermalink





(2) in subparagraph (E)(ii)(II), by striking the period at the end and inserting ‘; or’; andCommentsClose CommentsPermalink





(3) by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(F) employs a member of the board of directors of an entity that has not, by the time period specified in section 2(c) of the Iran Financial Sanctions Improvement Act of 2012, terminated the provision of services to, or the enabling and facilitation of access to services for, the Central Bank of Iran or any other Iranian financial institution (as defined in subsection (j)(1)(E)) and--CommentsClose CommentsPermalink





‘(i) provides services relating to secure communications, electronic funds transfers, or cable transfers; andCommentsClose CommentsPermalink





‘(ii) provides such services to, or enables or facilitates access to such services for, the Central Bank of Iran or any Iranian financial institution; or’.CommentsClose CommentsPermalink





(e) Regulations- Not later than 90 days after the date of the enactment of this Act, the Secretary of the Treasury shall revise the regulations prescribed under section 104(c) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8513(c)) to carry out the amendments made by subsection (d) of this section.CommentsClose CommentsPermalink





(f) Definitions- In this section:CommentsClose CommentsPermalink





(1) APPROPRIATE CONGRESSIONAL COMMITTEES- The term ‘appropriate congressional committees’ means--CommentsClose CommentsPermalink





(A) in the House of Representatives--CommentsClose CommentsPermalink





(i) the Committee on Foreign Affairs; andCommentsClose CommentsPermalink





(ii) the Committee on Financial Services; andCommentsClose CommentsPermalink





(B) in the Senate--CommentsClose CommentsPermalink





(i) the Committee on Foreign Relations; andCommentsClose CommentsPermalink





(ii) the Committee on Banking, Housing, and Urban Affairs.CommentsClose CommentsPermalink





(2) FOREIGN FINANCIAL INSTITUTION- The term ‘foreign financial institution’ has the meaning given that term in section 104 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8513).CommentsClose CommentsPermalink





(3) IRANIAN FINANCIAL INSTITUTION- The term ‘Iranian financial institution’ has the meaning given that term in section 104 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8513), as amended by section 3.CommentsClose CommentsPermalink





(4) SERVICES- The term ‘services’ includes communications, or financial (including trade and post-trade), hardware, software, or professional consulting services.CommentsClose CommentsPermalink

SEC. 3. EXPANSION OF CERTAIN SANCTIONS UNDER THE COMPREHENSIVE IRAN SANCTIONS, ACCOUNTABILITY, AND DIVESTMENT ACT OF 2010 TO APPLY WITH RESPECT TO ALL IRANIAN FINANCIAL INSTITUTIONS.

(a) In General- Section 104(c)(2) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8513(c)(2)) (as amended by section 2(d) of this Act) is further amended--CommentsClose CommentsPermalink





(1) in subparagraph (E)--CommentsClose CommentsPermalink





(A) in clause (i), by striking ‘or’ at the end; andCommentsClose CommentsPermalink





(B) by adding at the end the following new clause:CommentsClose CommentsPermalink





‘(iii) any other Iranian financial institution (as defined in subsection (j)(1)(E)); or’; andCommentsClose CommentsPermalink





(2) by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(G) fails to submit a report required by subsection (i).’.CommentsClose CommentsPermalink





(b) Public Disclosure of Financial Dealings With Iranian Financial Institutions- Section 104 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8513) is amended--CommentsClose CommentsPermalink





(1) by redesignating subsection (i) as subsection (j); andCommentsClose CommentsPermalink





(2) by inserting after subsection (h) the following new subsection:CommentsClose CommentsPermalink





‘(i) Requirements for Foreign Financial Institutions Maintaining Correspondent Accounts or Payable-Through Accounts in the United States-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Not later than 180 days after the date of the enactment of the Iran Financial Sanctions Improvement Act of 2012 and every 180 days thereafter, each head of a foreign financial institution that maintains a correspondent account or a payable-through account in the United States shall submit to the Secretary of the Treasury a report that describes any financial dealings of the foreign financial institution with an Iranian financial institution during the 180-day period preceding the submission of each such report, including--CommentsClose CommentsPermalink





‘(A) correspondent accounts and payable-through accounts maintained with an Iranian financial institution;CommentsClose CommentsPermalink





‘(B) transactions conducted with or facilitated for an Iranian financial institution;CommentsClose CommentsPermalink





‘(C) services provided to an Iranian financial institution; andCommentsClose CommentsPermalink





‘(D) funds held for or on behalf of an Iranian financial institution.CommentsClose CommentsPermalink





‘(2) PUBLIC DISCLOSURE- The Secretary of the Treasury shall post a copy of each such report submitted under paragraph (1) on the website of the Department of the Treasury not later than 72 hours after the report is submitted.’.CommentsClose CommentsPermalink





(c) Iranian Financial Institution Defined- Paragraph (1) of section 104(j) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8513(j)) (as redesignated by subsection (b) of this section) is amended--CommentsClose CommentsPermalink





(1) by redesignating subparagraph (E) as subparagraph (F); andCommentsClose CommentsPermalink





(2) by inserting after subparagraph (D) the following new subparagraph:CommentsClose CommentsPermalink





‘(E) IRANIAN FINANCIAL INSTITUTION- The term ‘Iranian financial institution’ means--CommentsClose CommentsPermalink





‘(i) a financial institution organized under the laws of Iran or any jurisdiction within Iran, including a foreign branch of such an institution;CommentsClose CommentsPermalink





‘(ii) a financial institution located in Iran;CommentsClose CommentsPermalink





‘(iii) a financial institution, wherever located, owned or controlled by the Government of Iran; andCommentsClose CommentsPermalink





‘(iv) a financial institution, wherever located, owned or controlled by a financial institution described in clause (i), (ii), or (iii).’.CommentsClose CommentsPermalink





(d) Regulations- Not later than 90 days after the date of the enactment of this Act, the Secretary of the Treasury shall make such revisions to the regulations prescribed under section 104 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8513) as are necessary to carry out the amendments made by this section.CommentsClose CommentsPermalink

SEC. 4. EXPANSION OF SANCTIONS UNDER THE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2012 TO APPLY WITH RESPECT TO TRANSACTIONS WITH AND THE MAINTENANCE OF FUNDS OR ACCOUNTS FOR ALL IRANIAN FINANCIAL INSTITUTIONS.

(a) In General- Section 1245(d) of the National Defense Authorization Act for Fiscal Year 2012 (Public Law 112-81) is amended--CommentsClose CommentsPermalink





(1) in paragraph (1)(A), by striking ‘the Central Bank of Iran’ and all that follows through ‘et seq.)’ and inserting ‘, or maintained funds or accounts for or on behalf of, the Central Bank of Iran or another Iranian financial institution’; andCommentsClose CommentsPermalink





(2) by striking paragraph (3) and inserting the following:CommentsClose CommentsPermalink





‘(3) APPLICABILITY OF SANCTIONS WITH RESPECT TO FOREIGN CENTRAL BANKS- Sanctions imposed under paragraph (1)(A) shall apply with respect to a foreign financial institution owned or controlled by the government of a foreign country, including a central bank of a foreign country, to the same extent and in the same manner as such sanctions apply to other foreign financial institutions.’.CommentsClose CommentsPermalink





(b) Iranian Financial Institution Defined- Section 1245(h) of the National Defense Authorization Act for Fiscal Year 2012 (Public Law 112-81) is amended--CommentsClose CommentsPermalink





(1) in paragraph (2), by striking ‘(i)’ each place it appears and inserting ‘(j)’;CommentsClose CommentsPermalink





(2) by redesignating paragraph (3) as paragraph (4); andCommentsClose CommentsPermalink





(3) by inserting after paragraph (2) the following new paragraph:CommentsClose CommentsPermalink





‘(3) IRANIAN FINANCIAL INSTITUTION- The term ‘Iranian financial institution’ has the meaning given that term in section 104 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8513).’.CommentsClose CommentsPermalink

SEC. 5. IMPOSITION OF SANCTIONS WITH RESPECT TO THE PROVISION OF UNDERWRITING SERVICES OR INSURANCE OR REINSURANCE FOR ACTIVITIES OR PERSONS WITH RESPECT TO WHICH SANCTIONS HAVE BEEN IMPOSED.

(a) In General- Except as provided in subsection (c), not later than 60 days after the date of the enactment of this Act, the President, in addition to any other penalty provided for by applicable law, shall impose a majority of the sanctions described subsection (b) with respect to a person if the President determines that the person knowingly, on or after such date of enactment, provides underwriting services or insurance or reinsurance--CommentsClose CommentsPermalink





(1) for any activity with respect to Iran for which sanctions have been imposed under this Act, the Iran Sanctions Act of 1996, the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8501 et seq.), the Iran, North Korea, and Syria Nonproliferation Act (Public Law 106-178; 50 U.S.C. 1701 note), the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), or any other provision of law relating to the imposition of sanctions with respect to Iran; orCommentsClose CommentsPermalink





(2) to or for any person--CommentsClose CommentsPermalink





(A) on which sanctions have been imposed under any such Act or provision of law for engaging in an activity with respect to Iran; orCommentsClose CommentsPermalink





(B) designated for the imposition of sanctions pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) in connection with--CommentsClose CommentsPermalink





(i) Iran’s proliferation of weapons of mass destruction or delivery systems for weapons of mass destruction; orCommentsClose CommentsPermalink





(ii) Iran’s support for international terrorism.CommentsClose CommentsPermalink





(b) Sanctions Described- The sanctions to be imposed on a person under subsection (a) are as follows:CommentsClose CommentsPermalink





(1) EXPORT-IMPORT BANK ASSISTANCE FOR EXPORTS TO SANCTIONED PERSONS- The President may direct the Export-Import Bank of the United States to not give approval for the issuance of any guarantee, insurance, extension of credit, or participation in the extension of credit in connection with the export of any goods or services to any sanctioned person.CommentsClose CommentsPermalink





(2) EXPORT SANCTION- The President may order the United States Government not to issue any specific license and not to grant any other specific permission or authority to export any goods or technology to a sanctioned person under--CommentsClose CommentsPermalink





(A) the Export Administration Act of 1979 (as continued in effect pursuant to the International Emergency Economic Powers Act);CommentsClose CommentsPermalink





(B) the Arms Export Control Act;CommentsClose CommentsPermalink





(C) the Atomic Energy Act of 1954; orCommentsClose CommentsPermalink





(D) any other law that requires the prior review and approval of the United States Government as a condition for the export or reexport of goods or services.CommentsClose CommentsPermalink





(3) LOANS FROM UNITED STATES FINANCIAL INSTITUTIONS- The United States Government may prohibit any United States financial institution from making loans or providing credits to any sanctioned person totaling more than $10,000,000 in any 12-month period unless such person is engaged in activities to relieve human suffering and the loans or credits are provided for such activities.CommentsClose CommentsPermalink





(4) PROHIBITIONS ON FINANCIAL INSTITUTIONS- The following prohibitions may be imposed against a sanctioned person that is a financial institution:CommentsClose CommentsPermalink





(A) PROHIBITION ON DESIGNATION AS PRIMARY DEALER- Neither the Board of Governors of the Federal Reserve System nor the Federal Reserve Bank of New York may designate, or permit the continuation of any prior designation of, such financial institution as a primary dealer in United States Government debt instruments.CommentsClose CommentsPermalink





(B) PROHIBITION ON SERVICE AS A REPOSITORY OF GOVERNMENT FUNDS- Such financial institution may not serve as agent of the United States Government or serve as repository for United States Government funds.CommentsClose CommentsPermalink





The imposition of either sanction under subparagraph (A) or (B) shall be treated as one sanction for purposes of subsection (a), and the imposition of both such sanctions shall be treated as two sanctions for purposes of such subsection.CommentsClose CommentsPermalink





(5) PROCUREMENT SANCTION- The United States Government may not procure, or enter into any contract for the procurement of, any goods or services from a sanctioned person.CommentsClose CommentsPermalink





(6) FOREIGN EXCHANGE- The President may prohibit any transactions in foreign exchange that are subject to the jurisdiction of the United States and in which the sanctioned person has any interest.CommentsClose CommentsPermalink





(7) BANKING TRANSACTIONS- The President may prohibit any transfers of credit or payments between financial institutions or by, through, or to any financial institution, to the extent that such transfers or payments are subject to the jurisdiction of the United States and involve any interest of the sanctioned person.CommentsClose CommentsPermalink





(8) PROPERTY TRANSACTIONS- The President may prohibit any person from--CommentsClose CommentsPermalink





(A) acquiring, holding, withholding, using, transferring, withdrawing, transporting, or exporting any property that is subject to the jurisdiction of the United States and with respect to which a sanctioned person has any interest;CommentsClose CommentsPermalink





(B) dealing in or exercising any right, power, or privilege with respect to such property; orCommentsClose CommentsPermalink





(C) conducting any transaction involving such property.CommentsClose CommentsPermalink





(9) GROUNDS FOR EXCLUSION- The Secretary of State may deny a visa to, and the Secretary of Homeland Security may deny admission into the United States to, any alien whom the Secretary of State determines is an alien who, on or after the date of the enactment of this Act, is a--CommentsClose CommentsPermalink





(A) corporate officer, principal, or shareholder with a controlling interest of a person against whom sanctions have been imposed under subsection (a);CommentsClose CommentsPermalink





(B) corporate officer, principal, or shareholder with a controlling interest of a successor entity to or a parent or subsidiary of such a sanctioned person;CommentsClose CommentsPermalink





(C) corporate officer, principal, or shareholder with a controlling interest of an affiliate of such a sanctioned person, if such affiliate engaged in a sanctionable activity described in subsection (a) and if such affiliate is controlled in fact by such sanctioned person; orCommentsClose CommentsPermalink





(D) spouse, minor child, or agent of a person inadmissible under subparagraph (A), (B), or (C).CommentsClose CommentsPermalink





(10) SANCTIONS ON PRINCIPAL EXECUTIVE OFFICERS- The President may impose on the principal executive officer or officers of any sanctioned person, or on persons performing similar functions and with similar authorities as such officer or officers, any of the sanctions under this subsection.CommentsClose CommentsPermalink





(11) ADDITIONAL SANCTIONS- The President may impose additional sanctions, as appropriate, in accordance with the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).CommentsClose CommentsPermalink





(c) Exception for Underwriters and Insurance Providers Exercising Due Diligence- The President may not impose sanctions under subsection (a) with respect to a person that provides underwriting services or insurance or reinsurance if the President determines that the person has exercised due diligence in establishing and enforcing official policies, procedures, and controls to ensure that the person does not provide underwriting services or insurance or reinsurance for an activity described in paragraph (1) of such subsection or to or for a person described in paragraph (2) of such subsection.CommentsClose CommentsPermalink





(d) Financial Institution Defined- The term ‘financial institution’ includes--CommentsClose CommentsPermalink





(1) a depository institution (as defined in section 3(c)(1) of the Federal Deposit Insurance Act), including a branch or agency of a foreign bank (as defined in section 1(b)(7) of the International Banking Act of 1978);CommentsClose CommentsPermalink





(2) a credit union;CommentsClose CommentsPermalink





(3) a securities firm, including a broker or dealer;CommentsClose CommentsPermalink





(4) an insurance company, including an agency or underwriter; andCommentsClose CommentsPermalink





(5) any other company that provides financial services, including joint ventures with Iranian entities both inside and outside of Iran and partnerships or investments with Iranian government-controlled entities or affiliated entities.CommentsClose CommentsPermalink