[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5931 Referred in Senate (RFS)]

<DOC>
114th CONGRESS
  2d Session
                                H. R. 5931


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 26, 2016

Received; read twice and referred to the Committee on Foreign Relations

_______________________________________________________________________

                                 AN ACT


 
 To provide for the prohibition on cash payments to the Government of 
                     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 ``Prohibiting Future Ransom Payments 
to Iran Act''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Since 1979, when it held more than 50 United States 
        citizens for 444 days, Iran has repeatedly held United States 
        citizens hostage.
            (2) Presidential Policy Directive 30 issued by President 
        Barack Obama on June 24, 2015, states that ``It is United 
        States policy to deny hostage-takers the benefits of ransom, 
        prisoner releases, policy changes, or other acts of 
        concession.''.
            (3) On January 17, 2016, the President announced that Iran 
        would release several United States citizens while the United 
        States would grant clemency to and release seven Iranian 
        nationals serving sentences or awaiting trial in the United 
        States for serious crimes.
            (4) Senior officials of the Department of State have 
        acknowledged that these United States citizens were released as 
        part of a ``prisoner swap'' and Iranian negotiators reportedly 
        asked for a cash payment.
            (5) On January 17, 2016, the President also announced that 
        ``The United States and Iran are now settling a longstanding 
        Iranian government claim against the United States 
        Government.''.
            (6) The overall amount of the settlement is approximately 
        $1,700,000,000.
            (7) Subsequent reports revealed that $400,000,000 of this 
        $1,700,000,000 settlement was secretly flown to Iran, in cash, 
        simultaneously with the release of these United States 
        citizens.
            (8) One of the United States citizens released that night, 
        Pastor Saeed Abedini, has stated that Iranian officials 
        explained a delay in their departure was due to the status of 
        another plane.
            (9) Senior officials at the National Security Division of 
        the Department of Justice reportedly objected to the 
        $400,000,000 cash payment, warning that Iran would see it as a 
        ransom.
            (10) On August 18, 2016, a Department of State spokesman 
        admitted that the $400,000,000 cash payment was ``leverage'' to 
        gain the release of Americans held hostage by Iran.
            (11) Iranian State Television quoted General Mohammad Reza 
        Naghdi, commander of the Basij militia, as claiming ``Taking 
        this much money back was in return for the release of the 
        American spies.''.
            (12) According to Presidential Policy Directive 30, the 
        United States policy against paying ransom and releasing 
        prisoners ``protects United States nationals and strengthens 
        national security by removing a key incentive for hostage-
        takers to target United States nationals, thereby interrupting 
        the vicious cycle of hostage-takings, and by helping to deny 
        terrorists and other malicious actors the money, personnel, and 
        other resources they need to conduct attacks against the United 
        States, its nationals, and its interests.''.
            (13) Since the United States released Iranians serving 
        sentences or awaiting trial in the United States for serious 
        crimes and provided Iran with $400,000,000 in cash, Iran has 
        taken several more United States citizens hostage.
            (14) On August 22, 2016, the Department of State issued an 
        ``Iran Travel Warning'' noting that ``Iranian authorities 
        continue to unjustly detain and imprison U.S. citizens, 
        particularly Iranian-Americans, including students, 
        journalists, business travelers, and academics, on charges 
        including espionage and posing a threat to national 
        security.''.
            (15) The Government of the United States has designated 
        Iran as a state sponsor of terrorism since 1984 and a 
        jurisdiction of primary money laundering concern since 2011.
            (16) The Department of State's most recent Country Reports 
        on Terrorism makes clear that ``Iran continued its terrorist-
        related activity in 2015, including support for Hizballah, 
        Palestinian terrorist groups in Gaza, and various groups in 
        Iraq and throughout the Middle East.''.
            (17) In announcing Iran's designation as a jurisdiction of 
        primary money laundering concern, the Department of the 
        Treasury made clear that ``any and every financial transaction 
        with Iran poses grave risk of supporting'' Iran's ongoing 
        illicit activities, including terrorism.
            (18) On March 17, 2016, the Department of State 
        acknowledged in a letter to Congress that there remain some 
        ``large claims'' pending before the Iran-United States Claims 
        Tribunal, ``many of which are against the United States''.

SEC. 3. STATEMENT OF POLICY.

    It shall be the policy of the United States Government not to pay 
ransom or release prisoners for the purpose of securing the release of 
United States citizens taken hostage abroad.

SEC. 4. PROHIBITION ON CASH PAYMENTS TO THE GOVERNMENT OF IRAN.

    (a) Prohibition.--
            (1) In general.--Notwithstanding any other provision of 
        law, beginning on the date of the enactment of this Act, the 
        United States Government may not provide, directly or 
        indirectly, to the Government of Iran--
                    (A) monetary instruments; or
                    (B) precious metals.
            (2) Definitions.--In this subsection--
                    (A) the term ``monetary instruments'' has the 
                meaning given the term in paragraph (dd) of section 
                1010.100 of title 31, Code of Federal Regulations; and
                    (B) the term ``precious metal'' has the meaning 
                given the term in section 1027.100(d) of title 31, Code 
                of Federal Regulations.
    (b) Licensing Requirement.--
            (1) In general.--Beginning on the date of the enactment of 
        this Act, the conduct of a transaction or payment in connection 
        with an agreement to settle a claim or claims brought before 
        the Iran-United States Claims Tribunal may be made only--
                    (A) on a case-by-case basis and pursuant to a 
                specific license by the Office of Foreign Assets 
                Control of the Department of the Treasury; and
                    (B) in a manner that is not in contravention of the 
                prohibition in subsection (a).
            (2) Publication in federal register.--The President shall 
        publish in the Federal Register a list of transactions and 
        payments, including the amount and method of each such 
        transaction and payment, by the United States Government to the 
        Government of Iran in connection with the agreement described 
        in paragraph (1).
    (c) Rule of Construction.--The term ``agreement to settle a claim 
or claims brought before the Iran-United States Claims Tribunal'', as 
used in subsection (b), shall not be construed to mean a ``promissory 
note'', as used in the definition of ``monetary instrument'' for 
purposes of subsection (a).
    (d) Termination.--The prohibition in subsection (a) and the 
licensing requirement in subsection (b) shall remain in effect until 
the date on which the President certifies to the appropriate 
congressional committees that--
            (1) the President has rescinded a preliminary draft rule or 
        final rule (as in effect on the day before the date of the 
        enactment of this Act) that provides for the designation of 
        Iran as a jurisdiction of primary money laundering concern 
        pursuant to section 5318A of title 31, United States Code; and
            (2) the Secretary of State has removed Iran from the list 
        of countries determined to have repeatedly provided support for 
        acts of international terrorism under section 6(j) of the 
        Export Administration Act of 1979 (as continued in effect 
        pursuant to the International Emergency Economic Powers Act), 
        section 40 of the Arms Export Control Act, section 620A of the 
        Foreign Assistance Act of 1961, or any other provision of law.
    (e) Appropriate Congressional Committees Defined.--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 Foreign Relations and the Committee on 
        Banking, Housing, and Urban Affairs of the Senate.

SEC. 5. REPORT ON OUTSTANDING CLAIMS BEFORE THE IRAN-UNITED STATES 
              CLAIMS TRIBUNAL.

    (a) Report.--The President shall submit to the appropriate 
congressional committees a report that lists and evaluates each 
outstanding claim before the Iran-United States Claims Tribunal.
    (b) Matters To Be Included.--The report required under subsection 
(a) shall include the following:
            (1) The total value of each outstanding claim.
            (2) The current status of each outstanding claim.
            (3) The likelihood that each claim will be resolved in the 
        next 6 months.
    (c) Submission to Congress.--The report required under subsection 
(a) shall be submitted to the appropriate congressional committees not 
later than 30 days after the date of the enactment of this Act and 
every 180 days thereafter for a period not to exceed 3 years.
    (d) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means--
            (1) the Committee on Foreign Affairs of the House of 
        Representatives; and
            (2) the Committee on Foreign Relations of the Senate.

SEC. 6. NOTIFICATION AND CERTIFICATION RELATING TO SETTLEMENTS OF 
              OUTSTANDING CLAIMS BEFORE THE IRAN-UNITED STATES CLAIMS 
              TRIBUNAL.

    (a) Notification.--The President shall notify the appropriate 
congressional committees not later than 30 days prior to conducting a 
transaction or payment from the Government of the United States to the 
Government of Iran in connection with an agreement to settle a claim or 
claims brought before the Iran-United States Claims Tribunal.
    (b) Matters To Be Included.--The notification required under 
subsection (a) shall include the following:
            (1) The total amount of the settlement, including the total 
        principal and interest, and an explanation of the calculation 
        of the interest.
            (2) A legal analysis of why the settlement was made, 
        including a detailed description of all claims and counter-
        claims covered by the settlement.
            (3) A certification by the President that the settlement is 
        not a ransom for the release of individuals held hostage by 
        Iran.
            (4) An identification of each entity of the Government of 
        Iran that will receive amounts from the settlement.
            (5) A certification that the funds provided to Iran under 
        the settlement will not be used to provide support to foreign 
        terrorist organizations, the regime of Bashar al-Assad, or 
        other destabilizing activities.
            (6) Whether an equal amount of Iranian funds are available 
        and accessible in the United States to satisfy judgments 
        against Iran by victims of Iranian-sponsored terrorism.
            (7) A copy of the settlement agreement.
            (8) A description of the disposition of any related claims 
        that have been subrogated to the United States Government.
            (9) A certification that the settlement is in the best 
        interest of the United States.
    (c) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means--
            (1) the Committee on Foreign Affairs of the House of 
        Representatives; and
            (2) the Committee on Foreign Relations of the Senate.

SEC. 7. EXCLUSION OF CERTAIN ACTIVITIES.

    Nothing in this Act shall apply to any activities subject to the 
reporting requirements of title V of the National Security Act of 1947.

SEC. 8. RULE OF CONSTRUCTION.

    Nothing in this Act shall be construed to authorize any payment by 
the Government of the United States to the Government of Iran.

SEC. 9. DEFINITIONS.

    In this Act:
            (1) Government of iran.--The term ``Government of Iran'' 
        means--
                    (A) the state and the Government of Iran, as well 
                as any political subdivision, agency, or 
                instrumentality thereof;
                    (B) any entity owned or controlled directly or 
                indirectly by the foregoing;
                    (C) any person to the extent that such person is, 
                or has been, or to the extent that there is reasonable 
                cause to believe that such person is, or has been, 
                acting or purporting to act directly or indirectly on 
                behalf of any of the foregoing; and
                    (D) any person or entity identified by the 
                Secretary of the Treasury to be the Government of Iran 
                under part 560 of title 31, Code of Federal 
                Regulations.
            (2) Iran-united states claims tribunal.--The term ``Iran-
        United States Claims Tribunal'' means the tribunal established 
        pursuant to the Algiers Accords on January 19, 1981, to resolve 
        certain claims by nationals of one party against the other 
        party and certain claims between the parties.

SEC. 10. PROHIBITION ON UNITED STATES GOVERNMENT PAYMENT OF RANSOM.

    (a) In General.--Except as provided by subsection (b), the 
President and all officers of the United States Government shall not 
make a payment to a government or person for the purpose of securing 
the release of unjustly detained individuals who are nationals of the 
United States or aliens who are lawfully admitted for permanent 
residence in the United States.
    (b) Exception.--The prohibition under subsection (a) does not 
prohibit the United States Government from providing assistance to 
individuals who are nationals of the United States or aliens who are 
lawfully admitted for permanent residence in the United States that 
have been arrested.
    (c) Enforcement.--The Secretary of the Treasury, in consultation 
with the Secretary of State and the Attorney General, may take such 
actions, including the promulgation of such rules and regulations, as 
may be necessary to carry out the purposes of this section.
    (d) Definitions.--In this section:
            (1) Entity.--The term ``entity'' means a corporation, 
        business association, partnership, trust, society, or any other 
        entity.
            (2) Person.--The term ``person'' means an individual or 
        entity.

SEC. 11. SANCTIONS WITH RESPECT TO IRANIAN PERSONS THAT HOLD OR DETAIN 
              UNITED STATES NATIONALS OR ALIENS LAWFULLY ADMITTED FOR 
              PERMANENT RESIDENCE.

    (a) Imposition of Sanctions.--Not later than 60 days after the date 
of the enactment of this Act, the President shall impose the sanctions 
described in subsection (b) with respect to--
            (1) any Iranian person involved in the kidnapping or unjust 
        detention of any individual who is a national of the United 
        States or an alien who is lawfully admitted for permanent 
        residence in the United States;
            (2) any Iranian person that engages, or attempts to engage, 
        in an activity or transaction that materially contributes to, 
        or poses a risk of materially contributing to, kidnapping or 
        unjust detention described in paragraph (1); and
            (3) any Iranian person that--
                    (A) is owned or controlled by a person described in 
                paragraph (1) or (2);
                    (B) is acting for or on behalf of such a person; or
                    (C) provides, or attempts to provide--
                            (i) financial, material, technological, or 
                        other support to a person described in 
                        paragraph (1) or (2); or
                            (ii) goods or services in support of an 
                        activity or transaction described in paragraph 
                        (1) or (2).
    (b) Sanctions Described.--The President shall block, in accordance 
with the International Emergency Economic Powers Act (50 U.S.C. 1701 et 
seq.), all transactions in all property and interests in property of 
any person subject to subsection (a) 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.
    (c) Exception; Penalties.--
            (1) Inapplicability of national emergency requirement.--The 
        requirements of section 202 of the International Emergency 
        Economic Powers Act (50 U.S.C. 1701) shall not apply for 
        purposes of subsection (b).
            (2) Exception relating to importation of goods.--The 
        requirement to block and prohibit all transactions in all 
        property and interests in property under subsection (b) shall 
        not include the authority to impose sanctions on the 
        importation of goods.
            (3) Penalties.--The penalties provided for in subsections 
        (b) and (c) of section 206 of the International Emergency 
        Economic Powers Act (50 U.S.C. 1705) shall apply to a person 
        that violates, attempts to violate, conspires to violate, or 
        causes a violation of regulations prescribed under subsection 
        (b) to the same extent that such penalties apply to a person 
        that commits an unlawful act described in subsection (a) of 
        such section 206.
    (d) Definitions.--In this section:
            (1) Entity.--The term ``entity'' means a corporation, 
        business association, partnership, trust, society, or any other 
        entity.
            (2) Iranian person.--The term ``Iranian person'' means--
                    (A) an individual who is a citizen or national of 
                the Islamic Republic of Iran; or
                    (B) an entity organized under the laws of the 
                Islamic Republic of Iran or otherwise subject to the 
                jurisdiction of the Government of the Islamic Republic 
                of Iran.
            (3) Person.--The term ``person'' means an individual or 
        entity.
            (4) United states person.--The term ``United States 
        person'' means--
                    (A) an individual who is a national of the United 
                States or an alien who is lawfully admitted for 
                permanent residence in 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. 12. PROHIBITION ON CASH PAYMENTS TO STATE SPONSORS OF TERRORISM.

    (a) Prohibition.--
            (1) In general.--Notwithstanding any other provision of 
        law, beginning on the date of the enactment of this Act, the 
        United States Government may not provide, directly or 
        indirectly, to a government of a state sponsor of terrorism, or 
        an agent acting on behalf of such a government--
                    (A) monetary instruments; or
                    (B) precious metals.
            (2) Definitions.--In this subsection--
                    (A) the term ``monetary instruments'' has the 
                meaning given the term in paragraph (dd) of section 
                1010.100 of title 31, Code of Federal Regulations; and
                    (B) the term ``precious metal'' has the meaning 
                given the term in section 1027.100(d) of title 31, Code 
                of Federal Regulations.
    (b) Application to North Korea.--
            (1) In general.--Subsection (a) shall apply with respect to 
        a payment, or an agreement to make a payment, to an agency or 
        instrumentality of the Government of the Democratic Peoples' 
        Republic of Korea, or an agent acting on behalf of such 
        Government, in the same manner and to the same extent as such 
        subsection applies with respect to a payment, or an agreement 
        to make a payment, to an agency or instrumentality of a state 
        sponsor of terrorism, subject to the termination provisions 
        described in paragraph (2).
            (2) Termination.--Subsection (a) shall cease to apply with 
        respect to a payment, or an agreement to make a payment, to an 
        agency or instrumentality of the Government of the Democratic 
        Peoples' Republic of Korea, or an agent acting on behalf of 
        such Government, beginning on the date on which the President 
        makes the certification to Congress under section 402 of the 
        North Korea Sanctions and Policy Enhancement Act of 2016 
        (Public Law 114-122; 22 U.S.C. 92512).
    (c) State Sponsor of Terrorism Defined.--In this section, the term 
``state sponsor of terrorism'' means a country the government of which 
the Secretary of State has determined, for purposes of section 
6(j)(1)(A) of the Export Administration Act of 1979 (50 U.S.C. App. 
2405(j)(1)(A)) (as continued in effect pursuant to the International 
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.)), section 
620A(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2371(a)), 
section 40(d) of the Arms Export Control Act (22 U.S.C. 2780(d)), or 
any other provision of law, to be a government that has repeatedly 
provided support for acts of international terrorism.

            Passed the House of Representatives September 22, 2016.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.