[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6245 Reported in House (RH)]

<DOC>





                                                 Union Calendar No. 273
118th CONGRESS
  1st Session
                                H. R. 6245

                          [Report No. 118-334]

    To require the Secretary of the Treasury to report on financial 
institutions' involvement with officials of the Iranian Government, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 6, 2023

 Mr. Hill (for himself and Mr. Vargas) introduced the following bill; 
       which was referred to the Committee on Financial Services

                           December 19, 2023

          Additional sponsors: Ms. De La Cruz and Mr. Sessions

                           December 19, 2023

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
    [For text of introduced bill, see copy of bill as introduced on 
                           November 6, 2023]


_______________________________________________________________________

                                 A BILL


 
    To require the Secretary of the Treasury to report on financial 
institutions' involvement with officials of the Iranian Government, 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 ``Holding Iranian Leaders Accountable 
Act of 2023''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) Iran is characterized by high levels of official and 
        institutional corruption, and substantial involvement by Iran's 
        security forces, particularly the Islamic Revolutionary Guard 
        Corps (IRGC), in the economy.
            (2) The Department of Treasury in 2019 designated the 
        Islamic Republic of Iran's financial sector as a jurisdiction 
        of primary money laundering concern, concluding, ``Iran has 
        developed covert methods for accessing the international 
        financial system and pursuing its malign activities, including 
        misusing banks and exchange houses, operating procurement 
        networks that utilize front or shell companies, exploiting 
        commercial shipping, and masking illicit transactions using 
        senior officials, including those at the Central Bank of Iran 
        (CBI).''.
            (3) In June 2019, the Financial Action Task Force (FATF) 
        urged all jurisdictions to require increased supervisory 
        examination for branches and subsidiaries of financial 
        institutions based in Iran. The FATF later called upon its 
        members to introduce enhanced relevant reporting mechanisms or 
        systematic reporting of financial transactions, and require 
        increased external audit requirements, for financial groups 
        with respect to any of their branches and subsidiaries located 
        in Iran.
            (4) According to the State Department's ``Country Reports 
        on Terrorism'' in 2021, ``Iran continued to be the leading 
        state sponsor of terrorism, facilitating a wide range of 
        terrorist and other illicit activities around the world. 
        Regionally, Iran supported acts of terrorism in Bahrain, Iraq, 
        Lebanon, Syria, and Yemen through proxies and partner groups 
        such as Hizballah and Hamas.''.

SEC. 3. REPORT ON FINANCIAL INSTITUTIONS AND ASSETS CONNECTED TO 
              CERTAIN IRANIAN OFFICIALS.

    (a) Financial Institutions and Assets Report.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, and every 2 years thereafter, the 
        President shall submit a report to the appropriate Members of 
        Congress containing--
                    (A) the estimated total funds or assets that are 
                under direct or indirect control by each of the natural 
                persons described under subsection (b), and a 
                description of such funds or assets, except that the 
                President may limit coverage of the report to not fewer 
                than 5 of such natural persons in order to meet the 
                submission deadline described under this paragraph;
                    (B) a description of how such funds or assets were 
                acquired, and how they have been used or employed;
                    (C) a list of any non-Iranian financial 
                institutions that--
                            (i) maintain an account in connection with 
                        funds or assets described in subparagraph (A); 
                        or
                            (ii) knowingly provide significant 
                        financial services to a natural person covered 
                        by the report; and
                    (D) a description of any illicit or corrupt means 
                employed to acquire or use such funds or assets.
            (2) Exemptions.--The requirements described under paragraph 
        (1) may not be applied with respect to a natural person or a 
        financial institution, as the case may be, if the President 
        determines:
                    (A) The funds or assets described under 
                subparagraph (A) of paragraph (1) were acquired through 
                legal or noncorrupt means.
                    (B) The natural person has agreed to provide 
                significant cooperation to the United States for an 
                important national security or law enforcement purpose 
                with respect to Iran.
                    (C) A financial institution that would otherwise be 
                listed in the report required by paragraph (1) has 
                agreed to--
                            (i) no longer maintain an account described 
                        under subparagraph (C)(i) of paragraph (1);
                            (ii) no longer provide significant 
                        financial services to a natural person covered 
                        by the report; or
                            (iii) provide significant cooperation to 
                        the United States for an important national 
                        security or law enforcement purpose with 
                        respect to Iran.
            (3) Waiver.--The President may waive for up to 1 year at a 
        time any requirement under paragraph (1) with respect to a 
        natural person or a financial institution after reporting in 
        writing to the appropriate Members of Congress that the waiver 
        is in the national interest of the United States, with a 
        detailed explanation of the reasons therefor.
    (b) Persons Described.--The natural persons described in this 
subsection are the following:
            (1) The Supreme Leader of Iran.
            (2) The President of Iran.
            (3) The members of the Council of Guardians.
            (4) The members of the Expediency Council.
            (5) The Minister of Intelligence and Security.
            (6) The Commander and the Deputy Commander of the IRGC.
            (7) The Commander and the Deputy Commander of the IRGC 
        Ground Forces.
            (8) The Commander and the Deputy Commander of the IRGC 
        Aerospace Force.
            (9) The Commander and the Deputy Commander of the IRGC 
        Navy.
            (10) The Commander of the Basij-e-Mostaz'afin.
            (11) The Commander of the Qods Force.
            (12) The Commander in Chief of the Police Force.
            (13) The head of the IRGC Joint Staff.
            (14) The Commander of the IRGC Intelligence.
            (15) The head of the IRGC Imam Hussein University.
            (16) The Supreme Leader's Representative at the IRGC.
            (17) The Chief Executive Officer and the Chairman of the 
        IRGC Cooperative Foundation.
            (18) The Commander of the Khatam-al-Anbia Construction Head 
        Quarter.
            (19) The Chief Executive Officer of the Basij Cooperative 
        Foundation.
            (20) The head of the Political Bureau of the IRGC.
            (21) The senior leadership as determined by the President 
        of the following groups:
                    (A) Hizballah.
                    (B) Hamas.
                    (C) Palestinian Islamic Jihad.
                    (D) Kata'ib Hizballah.
    (c) Form of Report; Public Availability.--
            (1) Form.--The report required under subsection (a) and any 
        waiver under subsection (a)(3) shall be submitted in 
        unclassified form but may contain a classified annex.
            (2) Public availability.--The Secretary shall make the 
        unclassified portion of such report public if the Secretary 
        notifies the appropriate Members of Congress that the 
        publication is in the national interest of the United States 
        and would substantially promote--
                    (A) deterring or sanctioning official corruption in 
                Iran;
                    (B) holding natural persons or financial 
                institutions listed in the report accountable to the 
                people of Iran;
                    (C) combating money laundering or the financing of 
                terrorism; or
                    (D) achieving any other strategic objective with 
                respect to the Government of Iran.
            (3) Format of publicly available reports.--If the Secretary 
        makes the unclassified portion of a report public pursuant to 
        paragraph (2), the Secretary shall make it available to the 
        public on the website of the Department of the Treasury--
                    (A) in English, Farsi, Arabic, and Azeri; and
                    (B) in precompressed, easily downloadable versions 
                that are made available in all appropriate formats.

SEC. 4. RESTRICTIONS ON CERTAIN FINANCIAL INSTITUTIONS.

    (a) In General.--Not later than the date that is 90 days after 
submitting a report described under section 3(a)(1), the Secretary 
shall undertake the following with respect to a financial institution 
that is described under section 3(a)(1)(C) and listed in the report:
            (1) If the financial institution is a United States 
        financial institution, require the closure of any account 
        described in section 3(a)(1)(C)(i), and prohibit the provision 
        of significant financial services, directly or indirectly, to a 
        natural person covered by the report.
            (2) If the financial institution is a foreign financial 
        institution, actively seek the closure of any account described 
        in section 3(a)(1)(C)(i), and the cessation of significant 
        financial services to a natural person covered by the report, 
        using any existing authorities of the Secretary, as 
        appropriate.
    (b) Suspension.--The Secretary may suspend the application of 
subsection (a) with respect to a financial institution upon reporting 
to the appropriate Members of Congress that the suspension is in the 
national interest of the United States, with a detailed explanation of 
the reasons therefor.

SEC. 5. EXCEPTIONS FOR NATIONAL SECURITY; IMPLEMENTATION AUTHORITY.

    The following activities shall be exempt from requirements under 
sections 3 and 4:
            (1) Any activity subject to the reporting requirements 
        under title V of the National Security Act of 1947 (50 U.S.C. 
        3091 et seq.), or to any authorized intelligence activities of 
        the United States.
            (2) The admission of an alien to the United States if such 
        admission is necessary to comply with United States obligations 
        under the Agreement between the United Nations and the United 
        States of America regarding the Headquarters of the United 
        Nations, signed at Lake Success June 26, 1947, and entered into 
        force November 21, 1947, or under the Convention on Consular 
        Relations, done at Vienna April 24, 1963, and entered into 
        force March 19, 1967, or other applicable international 
        obligations of the United States.
            (3) The conduct or facilitation of a transaction for the 
        sale of agricultural commodities, food, medicine, or medical 
        devices to Iran or for the provision of humanitarian assistance 
        to the people of Iran, including engaging in a financial 
        transaction relating to humanitarian assistance or for 
        humanitarian purposes or transporting goods or services that 
        are necessary to carry out operations relating to humanitarian 
        assistance or humanitarian purposes.

SEC. 6. SUNSET.

    The provisions of this Act shall have no force or effect on the 
earlier of--
            (1) the date that is 5 years after the date of enactment of 
        this Act; or
            (2) 30 days after the Secretary reports in writing to the 
        appropriate Members of Congress that--
                    (A) Iran is not a jurisdiction of primary money 
                laundering concern; or
                    (B) the Government of Iran is providing significant 
                cooperation to the United States for the purpose of 
                preventing acts of international terrorism, or for the 
                promotion of any other strategic objective that is 
                important to the national interest of the United 
                States, as specified in the report by the Secretary.

SEC. 7. DEFINITIONS.

    For purposes of this Act:
            (1) Appropriate members of congress.--The term 
        ``appropriate Members of Congress'' means the Speaker and 
        Minority Leader of the House of Representatives, the Majority 
        Leader and Minority Leader of the Senate, the Chairman and 
        Ranking Member of the Committee on Financial Services of the 
        House of Representatives, and the Chairman and Ranking Member 
        of the Committee on Banking, Housing, and Urban Affairs of the 
        Senate.
            (2) Financial institution.--The term ``financial 
        institution'' means a United States financial institution or a 
        foreign financial institution.
            (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.
            (4) Funds.--The term ``funds'' means--
                    (A) cash;
                    (B) equity;
                    (C) any other asset whose value is derived from a 
                contractual claim, including bank deposits, bonds, 
                stocks, a security as defined in section 2(a) of the 
                Securities Act of 1933 (15 U.S.C. 77b(a)), or a 
                security or an equity security as defined in section 
                3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 
                78c(a)); and
                    (D) anything else that the Secretary determines 
                appropriate.
            (5) Knowingly.--The term ``knowingly'' with respect to 
        conduct, a circumstance, or a result, means that a person has 
        actual knowledge, or should have known, of the conduct, the 
        circumstance, or the result.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
            (7) United states financial institution.--The term ``United 
        States financial institution'' has the meaning given the term 
        ``U.S. financial institution'' under section 561.309 of title 
        31, Code of Federal Regulations.
                                                 Union Calendar No. 273

118th CONGRESS

  1st Session

                               H. R. 6245

                          [Report No. 118-334]

_______________________________________________________________________

                                 A BILL

    To require the Secretary of the Treasury to report on financial 
institutions' involvement with officials of the Iranian Government, and 
                          for other purposes.

_______________________________________________________________________

                           December 19, 2023

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed