[Congressional Record (Bound Edition), Volume 158 (2012), Part 9]
[Senate]
[Pages 12659-12660]
[From the U.S. Government Publishing Office, www.gpo.gov]




     REPORT RELATIVE TO THE ISSUANCE OF AN EXECUTIVE ORDER TO TAKE 
  ADDITIONAL STEPS WITH RESPECT TO THE NATIONAL EMERGENCY ORIGINALLY 
  DECLARED ON MARCH 15, 1995 IN EXECUTIVE ORDER 12957 WITH RESPECT TO 
                              IRAN--PM 60

  The PRESIDING OFFICER laid before the Senate the following message 
from the President of the United States, together with an accompanying 
report; which was referred to the Committee on Banking, Housing, and 
Urban Affairs:

To the Congress of the United States:
  Pursuant to the International Emergency Economic Powers Act (50 
U.S.C. 1701 et seq.) (IEEPA), I hereby report that I have issued an 
Executive Order (the ``order'') that takes additional steps with 
respect to the national emergency declared in Executive Order 12957 of 
March 15, 1995.
  In Executive Order 12957, the President found that the actions and 
policies of the Government of Iran threaten the national security, 
foreign policy, and economy of the United States. To deal with that 
threat, the President in Executive Order 12957 declared a national 
emergency and imposed prohibitions on certain transactions with respect 
to the development of Iranian petroleum resources. To further respond 
to that threat, Executive Order 12959 of May 6, 1995, imposed 
comprehensive trade and financial sanctions on Iran. Executive Order 
13059 of August 19, 1997, consolidated and clarified the previous 
orders. To take additional steps with respect to the national emergency 
declared in Executive Order 12957 and to implement section 105(a) of 
the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 
2010 (Public Law 111-195) (22 U.S.C. 8501 et seq.) (CISADA), I issued 
Executive Order 553 on September 28, 2010, to impose sanctions on 
officials of the Government of Iran and other persons acting on behalf 
of the Government of Iran determined to be responsible for or complicit 
in certain serious human rights abuses. To take further additional 
steps with respect to the threat posed by Iran and to provide 
implementing authority for a number of the sanctions set forth in the 
Iran Sanctions Act of 1996 (Public Law 104-172) (50 U.S.C. 1701 note) 
(ISA), as amended by CISADA, I issued Executive Order 13574 on May 23, 
2011, to authorize the Secretary of the Treasury to implement certain 
sanctions imposed by the Secretary of State pursuant to ISA, as amended 
by CISADA. I also issued Executive Order 13590 on November 20, 2011, to 
take additional steps with respect to this emergency by authorizing the 
Secretary of State to impose sanctions on persons providing certain 
goods, services, technology, or support that contribute either to 
Iran's development of petroleum resources or to Iran's production of 
petrochemicals, and to authorize the Secretary of the Treasury to 
implement some of those sanctions. On February 5, 2012, in order to 
take further additional steps pursuant to this emergency, and to 
implement section 1245(c) of the National Defense Authorization Act for 
Fiscal Year 2012 (Public Law 112-81), I issued Executive Order 13599 
blocking the property of the Government of Iran, all Iranian financial 
institutions, and persons determined to be owned or controlled by, or 
acting for or on behalf of, such parties. Most recently, on April 22, 
2012, and May 1, 2012, I issued Executive Orders 13606 and 13608, 
respectively. Executive Orders 13606 and 13608 each take additional 
steps with respect to various emergencies, including the emergency 
declared in Executive Order 12957 concerning Iran, to address the use 
of computer and information technology to commit serious human rights 
abuses and efforts by foreign persons to evade sanctions.
  The order takes additional steps with respect to the national 
emergency declared in Executive Order 12957, particularly in light of 
the Government of Iran's use of revenues from petroleum, petroleum 
products, and petrochemicals for illicit purposes; Iran's continued 
attempts to evade international sanctions through deceptive practices; 
and the unacceptable risk posed to the international financial system 
by Iran's activities. Subject to certain exceptions and conditions, the 
order authorizes the Secretary of the Treasury and the Secretary of 
State, as set forth in the order, to impose sanctions on persons as 
described in the order, all as more fully described below.
  Section 1 of the order authorizes the Secretary of the Treasury, in 
consultation with the Secretary of State, to impose financial sanctions 
on foreign financial institutions determined to have knowingly 
conducted or facilitated certain significant financial transactions 
with the National Iranian Oil Company (NIOC) or Naftiran Intertrade 
Company (NICO), or for the purchase or acquisition of petroleum, 
petroleum products, or petrochemical products from Iran.
  Section 2 of the order authorizes the Secretary of State, in 
consultation with the Secretary of the Treasury, the Secretary of 
Commerce, and the United States Trade Representative, and with the 
President of the Export-Import Bank, the Chairman of the Board of 
Governors of the Federal Reserve System, and other agencies and 
officials as appropriate, to impose any of a number of sanctions on a 
person upon determining that the person: knowingly engaged in a 
significant transaction for the purchase or acquisition of petroleum, 
petroleum products, or petrochemical products from Iran; is a successor 
entity to a person determined to meet the criterion above; owns or 
controls a person determined to meet the criterion above, and had 
knowledge that the person engaged in the activities referred to 
therein; or is owned or controlled by, or under common ownership or 
control with, a person determined to meet the criterion above, and 
knowingly participated in the activities referred to therein.
  Sections 3 and 4 of the order provide that, for persons determined to 
meet

[[Page 12660]]

any of the criteria specified in section 2 of the order, the heads of 
the relevant agencies, in consultation with the Secretary of State, 
shall implement the sanctions imposed by the Secretary of State. The 
sanctions provided for in sections 3 and 4 of the order include the 
following actions: the Board of Directors of the Export-Import Bank 
shall deny approval of the issuance of any guarantee, insurance, 
extension of credit, or participation in an extension of credit in 
connection with the export of any goods or services to the sanctioned 
person; agencies shall not issue any specific license or grant any 
other specific permission or authority under any statute that requires 
the prior review and approval of the United States Government as a 
condition for the export or reexport of goods or technology to the 
sanctioned person; for a sanctioned person that is a financial 
institution: the Chairman of the Board of Governors of the Federal 
Reserve System and the President of the Federal Reserve Bank of New 
York shall take such actions as they deem appropriate, including 
denying designation, or terminating the continuation of any prior 
designation of, the sanctioned person as a primary dealer in United 
States Government debt instruments; or agencies shall prevent the 
sanctioned person from serving as an agent of the United States 
Government or serving as a repository for United States Government 
funds; agencies shall not procure, or enter into a contract for the 
procurement of, any goods or services from the sanctioned person; the 
Secretary of the Treasury shall take actions where necessary to: 
prohibit any United States financial institution from making loans or 
providing credits to the 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; 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; 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; block all property and 
interests in property that are in the United States, that come within 
the United States, or that are or come within the possession or control 
of any United States person, including any foreign branch, of the 
sanctioned person, and provide that such property and interests in 
property may not be transferred, paid, exported, withdrawn, or 
otherwise dealt in; or restrict or prohibit imports of goods, 
technology, or services, directly or indirectly, into the United States 
from the sanctioned person.
  Section 5 of the order authorizes the Secretary of the Treasury, in 
consultation with the Secretary of State, to block all property and 
interests in property that are in the United States, that come within 
the United States, or that are or come within the possession or control 
of any United States person, including any foreign branch, of any 
person upon determining that the person has materially assisted, 
sponsored, or provided financial, material, or technological support 
for, or goods or services in support of, NIOC, NICO, or the Central 
Bank of Iran, or the purchase or acquisition of U.S. bank notes or 
precious metals by the Government of Iran.
  I have delegated to the Secretary of the Treasury the authority, in 
consultation with the Secretary of State, to take such actions, 
including the promulgation of rules and regulations, and to employ all 
powers granted to the President by IEEPA, as may be necessary to carry 
out the purposes of sections 1, 4, and 5 of the order.
  The order was effective at 12:01 a.m. eastern daylight time on July 
31, 2012. All agencies of the United States Government are directed to 
take all appropriate measures within their authority to carry out the 
provisions of the order.
  I am enclosing a copy of the Executive Order I have issued.
                                                        Barack Obama.  
The White House, July 30, 2012.

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