[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4179 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 4179

 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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 8, 2012

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 concerned

_______________________________________________________________________

                                 A BILL


 
 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.

    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 ``Iran Financial Sanctions Improvement 
Act of 2012''.

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.
    (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.
    (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--
            (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; and
            (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.
    (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--
            (1) in subparagraph (D), by striking ``or'' at the end;
            (2) in subparagraph (E)(ii)(II), by striking the period at 
        the end and inserting ``; or''; and
            (3) by adding at the end the following new subparagraph:
                    ``(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--
                            ``(i) provides services relating to secure 
                        communications, electronic funds transfers, or 
                        cable transfers; and
                            ``(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''.
    (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.
    (f) Definitions.--In this section:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) in the House of Representatives--
                            (i) the Committee on Foreign Affairs; and
                            (ii) the Committee on Financial Services; 
                        and
                    (B) in the Senate--
                            (i) the Committee on Foreign Relations; and
                            (ii) the Committee on Banking, Housing, and 
                        Urban Affairs.
            (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).
            (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.
            (4) Services.--The term ``services'' includes 
        communications, or financial (including trade and post-trade), 
        hardware, software, or professional consulting services.

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--
            (1) in subparagraph (E)--
                    (A) in clause (i), by striking ``or'' at the end; 
                and
                    (B) by adding at the end the following new clause:
                            ``(iii) any other Iranian financial 
                        institution (as defined in subsection 
                        (j)(1)(E)); or''; and
            (2) by adding at the end the following new subparagraph:
                    ``(G) fails to submit a report required by 
                subsection (i).''.
    (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--
            (1) by redesignating subsection (i) as subsection (j); and
            (2) by inserting after subsection (h) the following new 
        subsection:
    ``(i) Requirements for Foreign Financial Institutions Maintaining 
Correspondent Accounts or Payable-Through Accounts in the United 
States.--
            ``(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--
                    ``(A) correspondent accounts and payable-through 
                accounts maintained with an Iranian financial 
                institution;
                    ``(B) transactions conducted with or facilitated 
                for an Iranian financial institution;
                    ``(C) services provided to an Iranian financial 
                institution; and
                    ``(D) funds held for or on behalf of an Iranian 
                financial institution.
            ``(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.''.
    (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--
            (1) by redesignating subparagraph (E) as subparagraph (F); 
        and
            (2) by inserting after subparagraph (D) the following new 
        subparagraph:
                    ``(E) Iranian financial institution.--The term 
                `Iranian financial institution' means--
                            ``(i) a financial institution organized 
                        under the laws of Iran or any jurisdiction 
                        within Iran, including a foreign branch of such 
                        an institution;
                            ``(ii) a financial institution located in 
                        Iran;
                            ``(iii) a financial institution, wherever 
                        located, owned or controlled by the Government 
                        of Iran; and
                            ``(iv) a financial institution, wherever 
                        located, owned or controlled by a financial 
                        institution described in clause (i), (ii), or 
                        (iii).''.
    (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.

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--
            (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''; and
            (2) by striking paragraph (3) and inserting the following:
            ``(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.''.
    (b) Iranian Financial Institution Defined.--Section 1245(h) of the 
National Defense Authorization Act for Fiscal Year 2012 (Public Law 
112-81) is amended--
            (1) in paragraph (2), by striking ``(i)'' each place it 
        appears and inserting ``(j)'';
            (2) by redesignating paragraph (3) as paragraph (4); and
            (3) by inserting after paragraph (2) the following new 
        paragraph:
            ``(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).''.

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--
            (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; or
            (2) to or for any person--
                    (A) on which sanctions have been imposed under any 
                such Act or provision of law for engaging in an 
                activity with respect to Iran; or
                    (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--
                            (i) Iran's proliferation of weapons of mass 
                        destruction or delivery systems for weapons of 
                        mass destruction; or
                            (ii) Iran's support for international 
                        terrorism.
    (b) Sanctions Described.--The sanctions to be imposed on a person 
under subsection (a) are as follows:
            (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.
            (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--
                    (A) the Export Administration Act of 1979 (as 
                continued in effect pursuant to the International 
                Emergency Economic Powers Act);
                    (B) the Arms Export Control Act;
                    (C) the Atomic Energy Act of 1954; or
                    (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.
            (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.
            (4) Prohibitions on financial institutions.--The following 
        prohibitions may be imposed against a sanctioned person that is 
        a financial institution:
                    (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.
                    (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.
        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.
            (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.
            (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.
            (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.
            (8) Property transactions.--The President may prohibit any 
        person from--
                    (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;
                    (B) dealing in or exercising any right, power, or 
                privilege with respect to such property; or
                    (C) conducting any transaction involving such 
                property.
            (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--
                    (A) corporate officer, principal, or shareholder 
                with a controlling interest of a person against whom 
                sanctions have been imposed under subsection (a);
                    (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;
                    (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; or
                    (D) spouse, minor child, or agent of a person 
                inadmissible under subparagraph (A), (B), or (C).
            (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.
            (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.).
    (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.
    (d) Financial Institution Defined.--The term ``financial 
institution'' includes--
            (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);
            (2) a credit union;
            (3) a securities firm, including a broker or dealer;
            (4) an insurance company, including an agency or 
        underwriter; and
            (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.
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