I 112th CONGRESS 1st Session H. R. 3508 IN THE HOUSE OF REPRESENTATIVES November 22, 2011 Mr. Flake (for himself and Mr. McIntyre) introduced the following bill; which was referred to the Committee on Foreign Affairs, and in addition to the Committee on Financial Services, 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 concerned A BILL To require the President to impose sanctions on foreign financial institutions that conduct transactions with the Central Bank of Iran.

1.

Imposition of sanctions on foreign financial institutions that conduct transactions with the Central Bank of Iran

Section 104 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8513) is amended— (1)by redesignating subsections (h) and (i) as subsections (i) and (j), respectively; and (2)by inserting after subsection (g) the following new subsection: (h)

Imposition of sanctions on foreign financial institutions that conduct transactions with the Central Bank of Iran

(1)

In general

Subject to paragraphs (2), (3), and (4), not later than 30 days after the date of the enactment of this subsection, the President shall— (A)prohibit 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 has knowingly conducted any financial transaction with the Central Bank of Iran; and (B)freeze and prohibit all transactions in all property and interests in property of each such foreign financial institution 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. (2)

Exception for sales of food, medicine, and medical devices

The President may not impose sanctions under paragraph (1) on a foreign financial institution for engaging in a transaction with the Central Bank of Iran for the sale of food, medicine, or medical devices to Iran. (3)

Applicability

(A)

In general

Except as provided in subparagraph (B), paragraph (1) applies with respect to financial transactions commenced on or after the date of the enactment of this subsection. (B)

Petroleum transactions

Paragraph (1) applies with respect to financial transactions for the purchase of petroleum or petroleum products through the Central Bank of Iran commenced on or after the date that is 180 days after the date of the enactment of this subsection. (4)

Waiver

(A)

In general

The President may waive the application of paragraph (1) with respect to a foreign financial institution for a period of not more than 60 days, and may renew that waiver for additional periods of not more than 60 days, if the President determines and reports to the appropriate congressional committees every 60 days that the waiver is necessary to the national security interest of the United States. (B)

Form

A report submitted pursuant to subparagraph (A) shall be submitted in unclassified form, but may contain a classified annex. (5)

Foreign financial institution

For purposes of this subsection, the term foreign financial institution includes a financial institution owned or controlled by a foreign government. .