Imposition of sanctions with respect to certain transactions in foreign currencies

(a)

Imposition of sanctions

Subtitle B of title II of the Iran Threat Reduction and Syria Human Rights Act of 2012 (22 U.S.C. 8721 et seq.) is amended by inserting after section 220 the following:

220A.

Imposition of sanctions with respect to certain transactions in foreign currencies

(a)

In general

The President— (1)shall prohibit the opening, and prohibit or impose strict conditions on the maintaining, in the United States of a correspondent account or a payable-through account by a foreign financial institution that is a person described in subsection (b); and (2)may impose sanctions pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) with respect to any other person described in subsection (b). (b)

Person described

A person described in this subsection is a person the President determines has, on or after May 9, 2013— (1)knowingly conducted or facilitated a significant transaction involving the currency of a country other than the country in which the person is operating at the time of the transaction with, for, or on behalf of— (A)the Central Bank of Iran or another Iranian financial institution designated by the Secretary of the Treasury for the imposition of sanctions pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.); or (B)a person described in section 1244(c)(2) of the Iran Freedom and Counter-Proliferation Act (22 U.S.C. 8803(c)(2)) (other than a person described in subparagraph (C)(iii) of that section); or (2)knowingly transferred funds for, or held funds on behalf of, a person described in paragraph (1) in relation to a transaction described in that paragraph, without regard to the currency of those funds. (c)

Waiver

(1)

In general

The President may waive the application of subsection (a) with respect to a person for a period of not more than 180 days, and may renew that waiver for additional periods of not more than 180 days, if the President— (A)determines that the waiver is vital to the national security of the United States; and (B)not less than 7 days before the waiver or the renewal of the waiver, as the case may be, takes effect, submits a report to the appropriate congressional committees on the waiver and the reason for the waiver. (2)

Form of report

Each report submitted under paragraph (1)(B) shall be submitted in unclassified form but may include a classified annex. (d)

Rule of construction

Nothing in this section shall be construed to prohibit any person from, or authorize or require the imposition of sanctions with respect to any person for, conducting or facilitating any transaction in the currency of the country in which the person is operating at the time of the transaction for the sale of agricultural commodities, food, medicine, or medical devices. (e)

Definitions

In this section: (1)

Account; correspondent account; payable-through account

The terms account, correspondent account, and payable-through account have the meanings given those terms in section 5318A of title 31, United States Code. (2)

Agricultural commodity

The term agricultural commodity has the meaning given that term in section 102 of the Agricultural Trade Act of 1978 (7 U.S.C. 5602). (3)

Foreign financial institution

The term foreign financial institution has the meaning given that term in section 561.308 of title 31, Code of Federal Regulations (or any corresponding similar regulation or ruling). (4)

Iranian financial institution

The term Iranian financial institution has the meaning given that term in section 104A(d) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8513b(d)). (5)

Medical device

The term medical device has the meaning given the term device in section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321). (6)

Medicine

The term medicine has the meaning given the term drug in section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321). (7)

Transaction

The term transaction includes a foreign exchange swap, a foreign exchange forward, and any other type of currency exchange or conversion or derivative instrument.

(b)

Conforming amendments

(1)

Implementation

Section 601(a)(1) of the Iran Threat Reduction and Syria Human Rights Act of 2012 (22 U.S.C. 8781(a)(1)) is amended by inserting 220A, after 220,. (2)

Penalties

Section 601(b)(2)(A) of such Act (22 U.S.C. 8781(b)(2)(A)) is amended by striking and 220, and inserting 220, and 220A,. (3)

Termination

Section 605(a) of such Act (22 U.S.C. 8785(a)) is amended by inserting 220A, after 220,. (c)

Clerical amendment

The table of contents for the Iran Threat Reduction and Syria Human Rights Act of 2012 is amended by inserting after the item relating to section 220 the following:

Sec. 220A. Imposition of sanctions with respect to certain transactions in foreign currencies.