[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3662 Reported in House (RH)]

<DOC>





                                                 Union Calendar No. 296
114th CONGRESS
  2d Session
                                H. R. 3662

                      [Report No. 114-393, Part I]

To enhance congressional oversight over the administration of sanctions 
 against certain Iranian terrorism financiers, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 1, 2015

Mr. Russell (for himself, Mr. Brat, Mr. Westerman, Mrs. Black, Mr. Hurd 
 of Texas, Mr. Rouzer, Mr. Meehan, Mr. Yoho, Mr. Graves of Louisiana, 
Mrs. Brooks of Indiana, Mr. Graves of Missouri, Mr. Hardy, Mr. Jody B. 
  Hice of Georgia, Mr. Burgess, Mr. Fitzpatrick, Mr. DesJarlais, Mr. 
    DeSantis, Mr. Gibbs, Ms. Jenkins of Kansas, Mr. Messer, and Mr. 
 Loudermilk) 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

                            January 11, 2016

  Additional sponsors: Mr. Abraham, Mr. Wilson of South Carolina, Mr. 
 Curbelo of Florida, Mr. Gibson, Mr. Palmer, Mrs. Hartzler, Mr. Allen, 
    Mr. Bishop of Michigan, Mr. Bost, Mr. Bucshon, Mr. Nunes, Mrs. 
 Walorski, Mr. Perry, Mr. Meadows, Mr. Zinke, Mr. Gosar, Mr. Sessions, 
 Mr. Womack, Mr. Lucas, Mr. Goodlatte, Mr. Barletta, Ms. McSally, Mrs. 
 McMorris Rodgers, Ms. Stefanik, Mr. Posey, Mr. Lance, Mr. Johnson of 
 Ohio, Mr. LaMalfa, Mr. Roskam, Mrs. Blackburn, Mr. Cramer, Mr. Dold, 
 Mr. Chaffetz, Mr. Carter of Georgia, Mr. Cook, Mr. Byrne, Mr. Flores, 
Mr. Pearce, Mr. Newhouse, Mr. Jenkins of West Virginia, Mr. Thompson of 
                      Pennsylvania, and Mr. Pompeo

                            January 11, 2016

             Reported from the Committee on Foreign Affairs

                            January 11, 2016

   The Committee on Financial Services discharged; committed to the 
 Committee of the Whole House on the State of the Union and ordered to 
                               be printed

_______________________________________________________________________

                                 A BILL


 
To enhance congressional oversight over the administration of sanctions 
 against certain Iranian terrorism financiers, 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 Terror Finance Transparency 
Act''.

SEC. 2. CERTIFICATION REQUIREMENT FOR REMOVAL OF FOREIGN FINANCIAL 
              INSTITUTIONS, INCLUDING IRANIAN FINANCIAL INSTITUTIONS, 
              FROM THE LIST OF SPECIALLY DESIGNATED NATIONALS AND 
              BLOCKED PERSONS.

    (a) In General.--On or after July 19, 2015, the President may not 
remove a foreign financial institution, including an Iranian financial 
institution, described in subsection (b) from the list of specially 
designated nationals and blocked persons maintained by the Office of 
Foreign Asset Control of the Department of the Treasury unless and 
until the President submits to the appropriate congressional committees 
a certification described in subsection (c) with respect to the foreign 
financial institution.
    (b) Covered Institutions.--A foreign financial institution, 
including an Iranian financial institution, described in this 
subsection is a foreign financial institution listed in Attachment 3 or 
Attachment 4 to Annex II of the Joint Comprehensive Plan of Action.
    (c) Certification.--The President may remove a foreign financial 
institution, including an Iranian financial institution, described in 
subsection (b) from the list of specially designated nationals and 
blocked persons maintained by the Office of Foreign Asset Control of 
the Department of the Treasury if the President submits to the 
appropriate congressional committees a certification that the foreign 
financial institution--
            (1) has not knowingly, directly or indirectly, facilitated 
        a significant transaction or transactions or provided 
        significant financial services for or on behalf of--
                    (A) Iran's Revolutionary Guard Corps or any of its 
                agents or affiliates whose property or interests in 
                property are blocked pursuant to the International 
                Emergency Economic Powers Act (50 U.S.C. 1701 et seq.);
                    (B) a foreign terrorist organization for or on 
                behalf of a person whose property or interests in 
                property have been blocked pursuant to Executive Order 
                13224 (66 Fed. Reg. 49079; relating to blocking 
                property and prohibiting transactions with persons who 
                commit, threaten to commit, or support terrorism); and
                    (C) a person whose property or interests in 
                property are blocked pursuant to the International 
                Emergency Economic Powers Act in connection with Iran's 
                proliferation of weapons of mass destruction or 
                delivery systems for weapons of mass destruction, or to 
                further Iran's development of ballistic missiles and 
                destabilizing types and amounts of conventional 
                weapons; and
            (2) no longer knowingly engages in illicit or deceptive 
        financial transactions or other activities.
    (d) Form.--A certification described in subsection (c) shall be 
submitted in unclassified form, but may contain a classified annex.
    (e) Definitions.--In this section:
            (1) Foreign financial institution.--The term ``foreign 
        financial institution'' has the meaning given such term in 
        section 1010.605 of title 31, Code of Federal Regulations.
            (2) Foreign terrorist organization.--The term ``foreign 
        terrorist organization'' means any organization designated by 
        the Secretary of State as a foreign terrorist organization in 
        accordance with section 219(a) of the Immigration and 
        Nationality Act (8 U.S.C. 1189(a)).
            (3) Iranian financial institution.--The term ``Iranian 
        financial institution'' has the meaning given the term in 
        section 104A(d)(3) of the Comprehensive Iran Sanctions, 
        Accountability, and Divestment Act of 2010 (22 U.S.C. 
        8513b(d)(3)).

SEC. 3. CERTIFICATION REQUIREMENT FOR REMOVAL OF CERTAIN FOREIGN 
              PERSONS FROM THE LIST OF SPECIALLY DESIGNATED NATIONALS 
              AND BLOCKED PERSONS.

    (a) In General.--On or after July 19, 2015, the President may not 
remove a foreign person described in subsection (b) from the list of 
specially designated nationals and blocked persons maintained by the 
Office of Foreign Asset Control of the Department of the Treasury until 
the President submits to the appropriate congressional committees a 
certification described in subsection (c) with respect to the foreign 
person.
    (b) Covered Persons and Entities.--A foreign person described in 
this subsection is a foreign person listed in Attachment 3 or 
Attachment 4 to Annex II of the Joint Comprehensive Plan of Action.
    (c) Certification.--The President may remove a foreign person 
described in subsection (b) from the list of specially designated 
nationals and blocked persons maintained by the Office of Foreign Asset 
Control of the Department of the Treasury if the President submits to 
the appropriate congressional committees a certification that the 
foreign person--
            (1) has not knowingly assisted in, sponsored, or provided 
        financial, material, or technological support for, or financial 
        or other services to or in support of terrorism or a terrorist 
        organization; and
            (2) has not knowingly engaged in significant activities or 
        transactions that have materially contributed to the Government 
        of Iran's proliferation of weapons of mass destruction or their 
        means of delivery (including missiles capable of delivering 
        such weapons), including any efforts to manufacture, acquire, 
        possess, develop, transport, transfer, or use such item.
    (d) Form.--A certification described in subsection (c) shall be 
submitted in unclassified form, but may contain a classified annex.
    (e) Definitions.--In this section:
            (1) Foreign person.--The term ``foreign person''--
                    (A) means--
                            (i) an individual who is not a United 
                        States person;
                            (ii) a corporation, partnership, or other 
                        nongovernmental entity which is not a United 
                        States person; or
                            (iii) any representative, agent or 
                        instrumentality of, or an individual working on 
                        behalf of a foreign government; but
                    (B) does not include a foreign financial 
                institution, including an Iranian financial 
                institution, described in section 2(b).
            (2) 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.

SEC. 4. CERTIFICATION REQUIREMENT FOR REMOVAL OF DESIGNATION OF IRAN AS 
              A JURISDICTION OF PRIMARY MONEY LAUNDERING CONCERN.

    (a) In General.--The President may not remove the designation of 
Iran as a jurisdiction of primary money laundering concern pursuant to 
section 5318A of title 31, United States Code, unless the President 
submits to the appropriate congressional committees a certification 
described in subsection (b) with respect to Iran.
    (b) Certification.--The President may remove the designation of 
Iran as a jurisdiction of primary money laundering concern if the 
President submits to the appropriate congressional committees a 
certification that the Government of Iran is no longer engaged in 
support for terrorism, pursuit of weapons of mass destruction, and any 
illicit and deceptive financial activities.
    (c) Form.--The certification described in subsection (b) shall be 
submitted in unclassified form, but may contain a classified annex.
    (d) Definition.--In this section, the term ``appropriate 
congressional committees'' means--
            (1) the Committee on Foreign Affairs and the Committee on 
        Financial Services of the House of Representatives; and
            (2) the Committee on Banking, Housing, and Urban Affairs of 
        the Senate.

SEC. 5. APPLICABILITY OF CONGRESSIONAL REVIEW OF CERTAIN AGENCY 
              RULEMAKING RELATING TO IRAN.

    (a) In General.--Notwithstanding any other provision of law, any 
rule to amend or otherwise alter a covered regulatory provision as 
defined in subsection (c) that is published on or after the date of the 
enactment of this Act shall be deemed to be a rule or major rule (as 
the case may be) for purposes of chapter 8 of title 5, United States 
Code, and shall be subject to all applicable requirements of chapter 8 
of title 5, United States Code.
    (b) Quarterly Reports.--Not later than 60 days after the date of 
the enactment of this Act, and every 90 days thereafter, the head of 
the applicable department or agency of the Federal Government shall 
submit to the appropriate congressional committees a report on the 
operation of the licensing system under each covered regulatory 
provision as defined in subsection (c) for the preceding 2-year period, 
including--
            (1) the number and types of licenses applied for;
            (2) the number and types of licenses approved;
            (3) a summary of each license approved;
            (4) a summary of transactions conducted pursuant to a 
        general license;
            (5) the average amount of time elapsed from the date of 
        filing of a license application until the date of its approval;
            (6) the extent to which the licensing procedures were 
        effectively implemented; and
            (7) a description of comments received from interested 
        parties about the extent to which the licensing procedures were 
        effective, after the applicable department or agency holds a 
        public 30-day comment period.
    (c) Definition.--In this section, the term ``covered regulatory 
provision'' means any provision of part 535, 560, 561, or 1060 of title 
31, Code of Federal Regulations, as such part was in effect on June 1, 
2015.

SEC. 6. PROHIBITIONS AND CONDITIONS WITH RESPECT TO CERTAIN ACCOUNTS 
              HELD BY FOREIGN FINANCIAL INSTITUTIONS.

    Section 104(c)(2)(A)(ii) of the Comprehensive Iran Sanctions, 
Accountability, and Divestment Act of 2010 (22 U.S.C. 
8513(c)(2)(A)(ii)) is amended by adding at the end before the semicolon 
the following: ``, including Hezbollah, Hamas, the Palestinian Islamic 
Jihad, and any affiliates or successors thereof''.

SEC. 7. DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' has the meaning given 
        the term in section 14(2) of the Iran Sanctions Act of 1996 
        (Public Law 104-172; 50 U.S.C. 1701 note).
            (2) Joint comprehensive plan of action.--The term ``Joint 
        Comprehensive Plan of Action'' means the Joint Comprehensive 
        Plan of Action, signed at Vienna July 14, 2015, by Iran and by 
        the People's Republic of China, France, Germany, the Russian 
        Federation, the United Kingdom and the United States, with the 
        High Representative of the European Union for Foreign Affairs 
        and Security Policy, and all implementing materials and 
        agreements related to the Joint Comprehensive Plan of Action, 
        and transmitted by the President to Congress on July 19, 2015, 
        pursuant to section 135(a) of the Atomic Energy Act of 1954, as 
        amended by the Iran Nuclear Agreement Review Act of 2015 
        (Public Law 114-17; 129 Stat. 201).
                                                 Union Calendar No. 296

114th CONGRESS

  2d Session

                               H. R. 3662

                      [Report No. 114-393, Part I]

_______________________________________________________________________

                                 A BILL

To enhance congressional oversight over the administration of sanctions 
 against certain Iranian terrorism financiers, and for other purposes.

_______________________________________________________________________

                            January 11, 2016

             Reported from the Committee on Foreign Affairs

                            January 11, 2016

   The Committee on Financial Services discharged; committed to the 
 Committee of the Whole House on the State of the Union and ordered to 
                               be printed