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[Discussion Draft]
[Discussion Draft]
November 9, 2023
118th CONGRESS
1st Session
Rules Committee Print 118–14
Text of H.R. 5961, No Funds for Iranian Terrorism Act
[Showing the text of H.R. 5961, as ordered reported by the Committee on Foreign Affairs]
1.

Short title
This Act may be cited as the “No Funds for Iranian Terrorism Act”.
2.

Findings
Congress makes the following findings:
(1)
On October 7, 2023, Iran-backed Hamas terrorists launched a massive, unprovoked war on Israel by air, land, and sea, in which they engaged in the brutal murder of over 1,300 people and kidnapped 130 people who are now being held hostage.
(2)
Hamas, Palestinian Islamic Jihad, and Hezbollah have all been designated by the United States as Foreign Terrorist Organizations pursuant to section 219 of the Immigration and Nationality Act (8 U.S.C. 1189).
(3)
According to an unclassified United States government assessment, “Iran has historically provided up to $100 million annually in combined support to Palestinian terrorist groups, including Hamas, Palestinian Islamic Jihad (PIJ), and the Popular Front for the Liberation of Palestine-General Command.”.
(4)
As National Security Advisor Jake Sullivan stated on October 10, 2023, “Iran is complicit in this attack in a broad sense because they have provided the lion’s share of the funding for the military wing of Hamas, they have provided training, they have provided capabilities, they have provided support, and they have provided engagement and contact with Hamas over years and years.”.
(5)
President Biden reached an agreement with the Iranian regime to bring home Siamak Namazi, Morad Tahbaz, Emad Shargi, and two additional American hostages all of whom were wrongfully detained in Iran.
3.

Imposition of sanctions with respect to covered Iranian assets
(a)

In general
On and after the date of the enactment of this Act, the President shall impose the sanction described in subsection (c) with respect to each foreign financial institution and each international financial institution that the President determines engages in an activity described in subsection (b).
(b)

Activities described
A foreign financial institution or international financial institution engages in an activity described in this subsection if the institution processes, participates in, or facilitates a transaction using or involving covered Iranian funds.
(c)

Blocking of property
The sanction described in this subsection is the exercise of all of the powers granted to the President under the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to the extent necessary to block and prohibit all transactions in property and interests in property of a foreign financial institution or international financial institution described in 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.
(d)

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 this section or any regulations promulgated to carry out this section to the same extent that such penalties apply to a person that commits an unlawful act described in section 206(a) of that Act.
(e)

Termination of sanctions
The President shall not be required to impose sanctions under this section with respect to a foreign financial institution or international financial institution described in subsection (a) if the President certifies in writing to the appropriate congressional committees that the Government of Iran—
(1)
no longer repeatedly provides support for international terrorism as determined by the Secretary of State pursuant to—
(A)
section 1754(c)(1)(A) of the Export Control Reform Act of 2018 (50 U.S.C. 4318(c)(1)(A));
(B)
section 620A of the Foreign Assistance Act of 1961 (22 U.S.C. 2371);
(C)
section 40 of the Arms Export Control Act (22 U.S.C. 2780); or
(D)
any other provision of law; and
(2)
has ceased the pursuit, acquisition, and development of, and verifiably dismantled its, nuclear, biological, and chemical weapons and ballistic missiles and ballistic missile launch technology.
4.

Definitions
In this Act:
(1)

Appropriate congressional committees
The term appropriate congressional committees means—
(A)
the Committee on Foreign Affairs and the Committee on Financial Services of the House of Representatives; and
(B)
the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate.
(2)

Covered Iranian funds
The term covered Iranian funds means any funds transferred from accounts in the Republic of Korea to Qatar pursuant to or under the authority or guaranty of a waiver, license, assurance letter, or other guidance issued pursuant to or in furtherance of the waiver determination made pursuant to sections 1244(i) (22 U.S.C. 8803(i)) and 1247(f) of the Iran Freedom and Counter-Proliferation Act of 2012 (22 U.S.C. 8806(f)) and section 1245(d)(5) of the National Defense Authorization Act for Fiscal Year 2012 (22 U.S.C. 8513a(d)(5)) that is the subject of the document entitled “Waiver of Sanctions with Respect to the Transfer of Funds from the Republic of Korea to Qatar” and was transmitted to Congress in September 2023.
(3)

Foreign financial institution
The term foreign financial institution has the meaning given such term under section 561.308 of title 31, Code of Federal Regulations.
(4)

International financial institution
The term international financial institution has the meaning given such term in section 1701(c) of the International Financial Institutions Act (22 U.S.C. 262r(c)).