[Congressional Record (Bound Edition), Volume 159 (2013), Part 6]
[Senate]
[Pages 7770-7771]
[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 11

  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, and implements certain statutory requirements of the 
Iran Freedom and Counter-Proliferation Act of 2012 (subtitle D of title 
XII of Public Law 112-239) (22 U.S.C. 8801 et seq.) (IFCA), which 
amends the Comprehensive Iran Sanctions, Accountability, and Divestment 
Act of 2010 (Public Law 111-195) (22 U.S.C. 8501 et seq.) (CISADA).
  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 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 CISADA, I issued 
Executive Order 13553 on September 28, 2010, to impose sanction 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 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 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) (22 U.S.C. 8513a), 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. 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.
  To take additional steps with respect to the national emergency 
declared in Executive Order 12957, I issued Executive Order 13622 of 
July 30, 2012, imposing further sanctions 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.
  Most recently, I issued Executive Order 13628 of October 9, 2012, to 
take additional steps with respect to the national emergency declared 
in Executive Order 12957 and to implement certain statutory 
requirements of the Iran Threat Reduction and Syria Human Rights Act of 
2012 (Public Law 112-158) (22 U.S.C. 8701 et seq.) (TRA), including its 
amendments to the statutory requirements of ISA and CISADA.
  With respect to the order that I have just issued, section 1 of the 
order authorizes the Secretary of the Treasury, in consultation with 
the Secretary of State, to impose financial sanctions on or 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 a foreign financial institution determined to have, 
on or after the effective date of the order:

       knowingly conducted or facilitated any significant 
     transaction related to the purchase or sale of Iranian rials 
     or a derivative, swap, future, forward, or other similar 
     contract whose value is based on the exchange rate of the 
     Iranian rial; or
       maintained significant funds or accounts outside the 
     territory of Iran denominated in the Iranian rial.

  Section 2 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 contro1 
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 to or in support of, any Iranian person 
     included on the list of Specially Designated Nationals and 
     Blocked Persons maintained by the Office of Foreign Assets 
     Control (SDN List) (other than an Iranian depository 
     institution whose property and interests in property are 
     blocked solely pursuant to Executive Order 13599) or any 
     other person included on the SDN List whose property and 
     interests in property are blocked pursuant to this paragraph 
     or Executive Order 13599

[[Page 7771]]

     (other than an Iranian depository institution whose property 
     and interests in property are blocked solely pursuant to 
     Executive Order l3599); or
       pursuant to authority delegated by the President and in 
     accordance with the terms of such delegation, that sanctions 
     shall be imposed on such person pursuant to section 
     1244(c)(1)(A) of IFCA.

  Section 3 of the order authorizes the Secretary of the Treasury, in 
consultation with the Secretary of State, to impose financial sanctions 
on a foreign financial institution determined to have knowingly 
conducted or facilitated any significant financial transaction:

       on behalf of any Iranian person included on the SDN List 
     (other than an Iranian depository institution whose property 
     and interests in property are blocked solely pursuant to 
     Executive Order 13599) or any other person included on the 
     SDN List whose property and interests in property are blocked 
     pursuant to subsection 2(a)(i) of the order or Executive 
     Order 13599 (other than an Iranian depository institution 
     whose property and interests in property are blocked solely 
     pursuant to Executive Order 13599); or
       on or after the effective date of the order, for the sale, 
     supply, or transfer to Iran of significant goods or services 
     used in connection with the automotive sector of Iran.

  Section 5 of the order authorizes the Secretary of State, in 
consultation with the Secretary of the Treasury, the Secretary of 
Commerce, the Secretary of Homeland Security, 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 sanctions on 
a person upon determining that the person:

       on or after the effective date of the order, knowingly 
     engaged in a significant transaction for the sale, supply, or 
     transfer to Iran of significant goods or services used in 
     connection with the automotive sector of Iran;
       is a successor entity to a person determined to meet that 
     criterion;
       owns or controls a person determined to meet that 
     criterion, 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 that criterion, and 
     knowingly participated in the activities therein.

  Sections 6 and 7 of the order provide that, for persons determined to 
meet any of these criteria, the heads of the relevant agencies, in 
consultation with the Secretary of State, shall implement the sanctions 
imposed by the Secretary of State. Those sanctions may 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 State 
     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 State shall deny a visa to, and the 
     Secretary of Homeland Security shall exclude from the United 
     States, any alien that the Secretary of State determines is a 
     corporate officer or principal of, or a shareholder with a 
     controlling interest in, a sanctioned person;
       the heads of the relevant agencies, as appropriate, shall 
     impose on the principal executive officer or officers, or 
     persons performing similar functions and with similar 
     authorities, of a sanctioned person any of the sanctions 
     described above, as selected by the Secretary of State;
       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 the 
     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;
       prohibit any United States person from investing in or 
     purchasing significant amounts of equity or debt instruments 
     of a sanctioned person;
       restrict or prohibit imports of goods, technology, or 
     services, directly or indirectly, into the United States from 
     the sanctioned person; or
       impose on the principal executive officer or officers, or 
     persons performing similar functions and with similar 
     authorities, of a sanctioned person any of the sanctions 
     described above, as appropriate.

  Section 7 of the order also provides that, when the Secretary of 
State or the Secretary of the Treasury pursuant to authority delegated 
by the President and in accordance with the terms of such delegation, 
has determined that sanctions shall be imposed on a person pursuant to 
section 1244(d)(1)(A), 1245(a)(1), or 1246(a)(1) of IFCA (including in 
each case as informed by section 1253(c)(2) of IFCA), such Secretary 
may select one or more of the sanctions described above for which the 
Secretary of the Treasury shall take such action, and the Secretary of 
the Treasury shall take actions where necessary to implement those 
sanctions.
  Sections 8 and 11 of the order implement the statutory requirements 
of CISADA, as amended by sanction 1249 of IFCA. They authorize the 
Secretary of the Treasury 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), and the Secretary 
of State to suspend entry into the United States, of persons determined 
by the Secretary of the Treasury, in consultation with or at the 
recommendation of the Secretary of State:

       to have engaged, on or after January 2, 2013, in corruption 
     or other activities relating to the diversion of goods, 
     including agricultural commodities, food, medicine, and 
     medical devices, intended for the people of Iran;
       to have engaged, on or after January 2, 2013, in corruption 
     or other activities relating to the misappropriation of 
     proceeds from the sale or resale of goods described above;
       to have materially assisted, sponsored, or provided 
     financial, material, or technological support for, or goods 
     or services to or in support of, the activities described 
     above or any person whose property and interests in property 
     are blocked pursuant to these provisions; or
       to be owned or controlled by, or to have acted or purported 
     to act for or on behalf of, directly or indirectly, any 
     person whose property and interests in property are blocked 
     pursuant to these provisions.

  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 the order, other than the purposes described in 
sections 5, 6, and 11 of the order. 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.
  The order, a copy of which is enclosed, becomes effective at 12:01 
a.m. eastern daylight time on July 1, 2013.
                                                        Barack Obama.  
The White House, June 3, 2013.

                          ____________________