Nonnuclear Iran Sanctions Act of 2017
This bill prescribes requirements for sanctions with respect to: (1) Iran's Revolutionary Guard Corps (IRGC) and related entities; (2) Mahan Air; (3) Iran's support of terrorism; (4) Iran's human rights abuses; (5) certain Iranian individuals; (6) persons who conduct transactions with or on behalf of certain Iranian individuals; (7) financial institutions that engage in certain transactions on behalf of persons involved in human rights abuses or that export sensitive technology to Iran; (8) Iran's ballistic missile program and persons and Iranian sectors that support such program; and (9) certain entities owned by the Aerospace Industries Organization, the Shahid Hemmat Industrial Group, or the Shahid Bakeri Industrial Group.
The Department of the Treasury shall publish in the Federal Register an IRGC watch list.
The President shall designate within the State Department a Special Coordinator on Human Rights and Democracy in Iran.
The Iran-Iraq Arms Non-Proliferation Act of 1992 is amended to cover ballistic missiles and related technology.
The bill requires Radio Free Europe/Radio Liberty and the Voice of America to increase programing services to Iran.
The bill prescribes prohibitions and limitations with respect to Iran's access to the U.S. financial system.
The bill modifies the requirements that the President must follow to rescind the designation of a country as a state sponsor of terrorism.
The bill expresses the sense of Congress with respect to: (1) human rights in Iran, (2) state and local divestment from IRGC-related business activities, and (3) Iran's ballistic missile program.
[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 808 Introduced in House (IH)]
<DOC>
115th CONGRESS
1st Session
H. R. 808
To impose nonnuclear sanctions with respect to Iran, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 1, 2017
Mr. Roskam (for himself, Mr. Lance, Mr. Zeldin, and Mr. Lamborn)
introduced the following bill; which was referred to the Committee on
Foreign Affairs, and in addition to the Committees on Financial
Services, Ways and Means, the Judiciary, Intelligence (Permanent
Select), and Oversight and Government Reform, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To impose nonnuclear sanctions with respect to 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Iran Nonnuclear
Sanctions Act of 2017''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Findings.
Sec. 4. Statement of policy.
TITLE I--SANCTIONS WITH RESPECT TO ENTITIES OWNED BY IRAN'S
REVOLUTIONARY GUARD CORPS
Subtitle A--Iran's Revolutionary Guard Corps Sanctions, Watch List, and
Report
Sec. 101. Findings.
Sec. 102. Imposition of sanctions with respect to the IRGC.
Sec. 103. Imposition of sanctions against entities owned in whole or in
part by the IRGC.
Sec. 104. IRGC watch list and report.
Sec. 105. Imposition of sanctions against Mahan Air.
Sec. 106. Additional measures on Mahan Air.
Sec. 107. Modification and extension of reporting requirements on the
use of certain Iranian seaports by foreign
vessels and use of foreign airports by
sanctioned Iranian air carriers.
Subtitle B--Other Provisions
Sec. 111. Authority of States and local governments to divest from
persons that engage in investment or
business activities with Iran's
Revolutionary Guard Corps.
Sec. 112. Safe harbor for changes in investment policies by asset
managers.
Subtitle C--Termination
Sec. 121. Termination.
TITLE II--SANCTIONS RELATING TO HUMAN RIGHTS ABUSES IN IRAN
Sec. 201. Findings.
Sec. 202. Expansion of list of persons involved in human rights abuses
in Iran.
Sec. 203. Identification of, and imposition of sanctions with respect
to, certain Iranian individuals.
Sec. 204. Imposition of sanctions with respect to persons who conduct
transactions with or on behalf of certain
Iranian individuals.
Sec. 205. Mandatory sanctions with respect to financial institutions
that engage in certain transactions on
behalf of persons involved in human rights
abuses or that export sensitive technology
to Iran.
Sec. 206. United States support for the people of Iran.
Sec. 207. United States Special Coordinator on Human Rights and
Democracy in Iran.
Sec. 208. Broadcasting to Iran.
Sec. 209. Report on United States citizens detained by Iran.
Sec. 210. Sense of Congress on establishment of multilateral mechanism
to promote human rights in Iran.
Sec. 211. Sense of Congress on role of the United Nations in promoting
human rights in Iran.
TITLE III--SANCTIONS WITH RESPECT TO THE BALLISTIC MISSILE PROGRAM OF
IRAN
Sec. 301. Findings.
Sec. 302. Sense of Congress.
Sec. 303. Expansion of sanctions with respect to efforts by Iran to
acquire ballistic missile and related
technology.
Sec. 304. Imposition of sanctions with respect to ballistic missile
program of Iran.
Sec. 305. Expansion of mandatory sanctions with respect to financial
institutions that engage in certain
transactions relating to ballistic missile
capabilities of Iran.
Sec. 306. Disclosure to the Securities and Exchange Commission of
activities with certain sectors of Iran
that support the ballistic missile program
of Iran.
Sec. 307. Regulations.
TITLE IV--SANCTIONS WITH RESPECT TO CERTAIN IRANIAN TRANSACTIONS
Subtitle A--Sanctions Relating to Iran's Support of Terrorism
Sec. 401. Findings.
Sec. 402. Special measures with respect to Iran relating to its
designation as a jurisdiction of primary
money laundering concern.
Subtitle B--Prohibition on and Other Sanctions Relating to Transactions
With Iran
Sec. 411. Prohibition on facilitation of certain transactions involving
the Government of Iran or Iranian persons.
Sec. 412. Reports on, and authorization of imposition of sanctions with
respect to, offshore United States dollar
clearing for transactions involving the
Government of Iran or Iranian persons.
Sec. 413. Clarification that freezing of assets of Iranian financial
institutions includes assets in possession
or control of a United States person
pursuant to a U-turn transaction.
TITLE V--MISCELLANEOUS
Sec. 501. Modification of requirements relating to state sponsors of
terrorism.
SEC. 2. DEFINITIONS.
In this Act:
(1) Entity.--The term ``entity'' means a corporation,
business association, partnership, trust, society, or any other
entity.
(2) Foreign person.--The term ``foreign person'' means a
person that is not a United States person.
(3) IRGC.--The term ``IRGC'' means Iran's Revolutionary
Guard Corps.
(4) Person.--The term ``person'' means an individual or
entity.
(5) United states person.--The term ``United States
person'' means--
(A) a United States citizen or an alien lawfully
admitted for permanent residence to 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. 3. FINDINGS.
Congress makes the following findings:
(1) Secretary of State John Kerry stated on July 23, 2015,
``We will not violate the [Joint Comprehensive Plan of Action
(JCPOA)] if we use our authorities to impose sanctions on Iran
for terrorism, human rights, missiles, or other nonnuclear
reasons. And the JCPOA does not provide Iran any relief from
United States sanctions under any of those authorities or other
authorities.''.
(2) President Barack Obama stated on April 2, 2015, ``Other
American sanctions on Iran for its support for terrorism, its
human rights abuses, its ballistic missile program, will
continue to be fully enforced.''.
(3) Director of National Intelligence James Clapper wrote
on February 9, 2016, ``[T]he Islamic Republic of Iran presents
an enduring threat to U.S. national interests because of its
support to regional terrorist and militant groups and the Assad
regime, as well as its development of advanced military
capabilities. Tehran views itself as leading the `axis of
resistance' which includes the Assad regime and subnational
groups aligned with Iran, especially Lebanese Hezbollah and
Iraqi Shia militants . . . Tehran might even use American
citizens detained when entering Iranian territories as
bargaining pieces to achieve financial or political concessions
in line with their strategic intentions.''.
(4) Director of National Intelligence James Clapper wrote
on June 3, 2015, ``The United States Intelligence Community
continues to assess that Iran and Hezbollah directly threaten
the interests of the United States and our allies and that
Hezbollah remains a global terrorist threat. Iran remains the
foremost state sponsor of terrorism and is increasing its
ability to influence regional crises and conduct terrorism.
Iran is doing this largely through the Islamic Revolutionary
Guard Corps-Qods Force (IRGC-QF) and Lebanese Hezbollah, as
well as the support and use of sectarian political and militant
proxies closely aligned with the IRGC-QF and its anti-Western
ideology.''.
(5) Secretary of the Treasury Jacob Lew stated on July 14,
2015, ``We harbor no illusions about the Iranian government's
nefarious activities beyond its nuclear program. Make no
mistake: We will continue to impose and aggressively enforce
sanctions to combat Iran's support for terrorist groups, its
fomenting of violence in the region, and its perpetration of
human rights abuses.''.
(6) Jake Sullivan, at the time Deputy Assistant to
President Obama and National Security Advisor to Vice President
Biden, stated on May 1, 2014, ``The wording of the Joint Plan
of Action . . . speaks to the issue of nuclear-related
sanctions. And that word was chosen very carefully, nuclear-
related, because we have made clear that sanctions relating to
terrorism and sanctions relating to human rights violations are
not covered by the discussions that we are having on the
nuclear file and that we are prepared to continue to follow
through on that . . . I can tell you, as a matter of policy,
this administration is committed to continuing to enforce and
follow through on that set of sanctions.''.
(7) Jake Sullivan further stated on May 1, 2014, ``We must
continue to speak out against the gross violations of human
rights and fundamental freedoms in Iran and the hateful anti-
Semitic rhetoric from some of its leaders, and we must keep
providing support and assistance to those brave Iranians
seeking to have their voices heard . . . we've got to stand up
for our values, and we need to stand against the human rights
abuses and violations of fundamental freedom, including
religious freedom, happening in Iran. And we have to provide
real support to those voices on the ground who want to be
heard, who want to push for a better future . . . this is an
important line of effort that has to continue regardless of
what is happening on the nuclear file or on any other issue.''.
(8) Iranian Foreign Minister Mohammad Javad Zarif stated on
February 4, 2016, ``Rebuilding the confidence of the banks that
the United States will not re-intervene in their relations with
Iran may require some further assurance from the United
States.''.
SEC. 4. STATEMENT OF POLICY.
It is the policy of the United States--
(1) to continue to impose pressure on the Government of
Iran for its role as the foremost state sponsor of terrorism,
its continued development of ballistic missiles, its ongoing
human rights abuses against the citizens of Iran and other
peoples, and its unjust detention of United States citizens;
(2) to continue to use sanctions as an element of that
pressure and to discourage financial institutions and entities
from engaging in business and commerce with Iranian entities
tied to Iran's Revolutionary Guard Corps and to Iranian
officials involved in human rights abuses;
(3) not to encourage any foreign financial institution or
other foreign entity to do business in Iran; and
(4) not to provide any assurances regarding protections
from United States law or penalties to those foreign entities
that decide to engage or reengage in business and commerce with
Iran.
TITLE I--SANCTIONS WITH RESPECT TO ENTITIES OWNED BY IRAN'S
REVOLUTIONARY GUARD CORPS
Subtitle A--Iran's Revolutionary Guard Corps Sanctions, Watch List, and
Report
SEC. 101. FINDINGS.
Congress finds the following:
(1) The IRGC threatens the national security of the United
States and United States allies.
(2) The IRGC is the key entity carrying out the efforts of
the Government of Iran to sow chaos and instability throughout
the Middle East, including threatening activities against the
United States, Israel, and other allies and partners of the
United States in the region.
(3) The IRGC provides direct sponsorship and support to
numerous foreign terrorist organizations, including Hamas,
Hezbollah, and Palestinian Islamic Jihad.
(4) According to General Joseph Dunford, Chairman of the
Joint Chiefs of Staff, the IRGC is responsible for the deaths
of more than 500 members of the United States Armed Forces in
Afghanistan and Iraq, including through the provision of
explosive materials to Shia militias in Iraq.
(5) The IRGC is complicit in the ongoing slaughter of the
people of Syria as it maintains support for, and seeks to
preserve, the regime of Bashar al-Assad, which is responsible
for hundreds of thousands of deaths and millions of displaced
citizens of Syria.
(6) The Government of Iran and the IRGC have been
responsible for the repeated testing of illegal ballistic
missiles capable of carrying a nuclear device, including
observed tests in October and November 2015 and March 2016 that
violated United Nations Security Council resolutions.
(7) The United States holds the IRGC responsible for severe
and continuing human rights violations against the people of
Iran, including unlawful arrests, torture, and harassment.
(8) The United States upholds sanctions against the IRGC
for its proliferation-related activities and human rights
abuses, and also against Iran's Revolutionary Guard Corps-Qods
Force for its support of terrorism.
(9) The Office of Foreign Assets Control of the Department
of the Treasury includes the IRGC on the list of specially
designated nationals and blocked persons (in this section
referred to as the ``SDN list'').
(10) Pursuant to section 561.405 of title 31, Code of
Federal Regulations, entities owned by the IRGC, directly or
indirectly, with 50 percent or greater interest are subject to
sanctions and may be listed by the Office of Foreign Assets
Control on the SDN list. Such entities' property and interest
in property are blocked regardless of whether such entities are
included on the SDN List. That regulation, commonly termed the
``50 percent rule'', is the standard used by the Office of
Foreign Assets Control when determining ownership of entities
by blocked or sanctioned persons.
(11) Under section 218 of the Iran Threat Reduction and
Syria Human Rights Act of 2012 (22 U.S.C. 8725), the term ``own
or control'', with respect to an entity, means--
(A) holding more than 50 percent of the equity
interest by vote or value in the entity;
(B) holding a majority of seats on the board of
directors of the entity; or
(C) otherwise controlling the actions, policies, or
personnel decisions of the entity.
(12) The IRGC maintains a powerful and expansive presence
throughout Iran's financial, commercial, and oil and energy
sectors, owning, controlling, operating, and influencing
Iranian entities while producing revenues estimated in the
billions of dollars. According to the Department of the
Treasury, ``The IRGC has a growing presence in Iran's financial
and commercial sectors and extensive economic interests in the
defense production, construction, and oil industries,
controlling billions of dollars in corporate business.''.
(13) The IRGC has continuously engaged in sanctions evasion
and deceptive business practices to conceal its ownership or
control of Iranian entities, owning numerous Iranian entities
that are not subject to sanctions because the IRGC has less
than a 50-percent ownership interest, leaving such entities
unsanctioned and open to business.
(14) As sanctions are lifted pursuant to the Joint
Comprehensive Plan of Action and Iran becomes more open to
international commerce, the international community must be
aware of any and all entities that are owned, controlled,
operated, or influenced by the IRGC or its agents or
affiliates, including those entities that do not make the
threshold to be covered by the ``50 percent rule''.
(15) There is no prohibition in section 219 of the
Immigration and Nationality Act (8 U.S.C. 1189) that prevents
the Secretary of State from designating entities affiliated
with the government of a foreign country as a foreign terrorist
organization.
(16) The Financial Crimes Enforcement Network of the
Department of the Treasury issued a notice of proposed
rulemaking on August 4, 2014 (79 Fed. Reg. 45151; relating to
customer due diligence requirements for financial
institutions), proposing to amend chapter X of title 31, Code
of Federal Regulations, to provide greater transparency to
allow the identification of persons that own, control, and
profit from entities to which banks and other financial
institutions provide services. The proposed rule, known also as
the ``beneficial ownership requirement'', would require
financial institutions to identify and verify any individual
who owns 25 percent or more of an entity that is a customer and
an individual who controls such an entity.
(17) David Cohen, at the time Under Secretary of the
Treasury for Terrorism and Financial Intelligence, stated on
July 30, 2014, ``The beneficial ownership requirement is
intended to provide us with an important new tool to track down
the real people behind companies that abuse our financial
system to secretly move and launder their illicit gains. Along
with meeting our international commitments, this rule would
make our financial system more transparent by exposing the
activities of illicit actors who will no longer be able to hide
behind their anonymity.''.
(18) On October 12, 2011, the Department of the Treasury
imposed sanctions on Mahan Air for providing financial,
material, and technological support to Iran's Revolutionary
Guards Corps-Qods Force. The Department of the Treasury noted
that Mahan Air also provides transportation, funds transfers,
and personal travel services to Iran's Revolutionary Guards
Corps-Qods Force. The Department of the Treasury further noted
that Mahan Air provides transportation services to Hezbollah,
which was designated as a Specially Designated Global Terrorist
under Executive Order 13224 (50 U.S.C. 1701 note; relating to
blocking property and prohibiting transactions with persons who
commit, threaten to commit, or support terrorism) in October
2001, and Mahan Air has transported personnel, weapons, and
goods on behalf of Hezbollah.
(19) David Cohen, at the time Under Secretary of the
Treasury for Terrorism and Financial Intelligence, stated on
October 12, 2011, ``Mahan Air's close coordination with [Iran's
Revolutionary Guards Corps-Qods Force (IRGC-QF)]--secretly
ferrying operatives, weapons and funds on its flights--reveals
yet another facet of the IRGC's extensive infiltration of
Iran's commercial sector to facilitate its support for
terrorism. Following the revelation about the IRGC-QF's use of
the international financial system to fund its murder-for-hire
plot, today's action highlights further the undeniable risks of
doing business with Iran.''.
SEC. 102. IMPOSITION OF SANCTIONS WITH RESPECT TO THE IRGC.
(a) In General.--Beginning on the date that is 90 days after the
date of the enactment of this Act, the President shall impose the
sanctions described in subsection (b) with respect to the IRGC and
foreign persons that are officials, agents, or affiliates of the IRGC.
(b) Sanctions Described.--The sanctions described in this
subsection are the following:
(1) Sanctions applicable with respect to a foreign person
pursuant to Executive Order 13224 (50 U.S.C. 1701 note;
relating to blocking property and prohibiting transactions with
persons who commit, threaten to commit, or support terrorism).
(2) Sanctions applicable with respect to an entity that is
designated as a foreign terrorist organization under section
219 of the Immigration and Nationality Act (8 U.S.C. 1189).
SEC. 103. IMPOSITION OF SANCTIONS AGAINST ENTITIES OWNED IN WHOLE OR IN
PART BY THE IRGC.
(a) In General.--The President shall impose the sanctions described
in subsection (b) with respect to--
(1) an entity, regardless of whether the entity is included
on the list of specially designated nationals and blocked
persons maintained by the Office of Foreign Assets Control of
the Department of the Treasury, that is owned, directly or
indirectly, by a 25 percent or greater interest--
(A) by the IRGC or an agent or affiliate of the
IRGC; or
(B) collectively by a group of individuals that are
members of the IRGC or an agent or affiliate of the
IRGC, even if none of such individuals hold a 25
percent or greater interest in the entity;
(2) a person that controls, manages, or directs an entity
described in paragraph (1); or
(3) an individual who is on the board of directors of an
entity described in paragraph (1).
(b) Sanctions Described.--
(1) Blocking of property.--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.
(2) Exclusion from united states.--The Secretary of State
shall deny a visa to, and the Secretary of Homeland Security
shall exclude from the United States, any person subject to
subsection (a) that is an alien.
(c) Exceptions and Special Rules.--
(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)(1).
(2) Compliance with united nations headquarters
agreement.--Subsection (b)(2) shall not apply to the head of
state of Iran, or necessary staff of that head of state, if
admission to the United States is necessary to permit the
United States to comply with the Agreement regarding the
Headquarters of the United Nations, signed at Lake Success June
26, 1947, and entered into force November 21, 1947, between the
United Nations and the United States.
(d) Applicability of Additional Sanctions.--A person with respect
to which the President imposes sanctions under subsection (a) shall be
considered an agent or affiliate of the IRGC for purposes of sections
104 and 104A of the Comprehensive Iran Sanctions, Accountability, and
Divestment Act of 2010 (22 U.S.C. 8513 and 8513b).
SEC. 104. IRGC WATCH LIST AND REPORT.
(a) In General.--The Secretary of the Treasury shall establish,
maintain, and publish in the Federal Register a list (to be known as
the ``IRGC Watch List'') of--
(1) each entity in which the IRGC or an agent or affiliate
of the IRGC has an ownership interest of less than 25 percent;
(2) each entity in which the IRGC does not have an
ownership interest if the IRGC or an agent or affiliate of the
IRGC maintains a presence on the board of directors of the
entity or otherwise influences the actions, policies, or
personnel decisions of the entity; and
(3) each person that controls, manages, or directs an
entity described in paragraph (1) or (2).
(b) Reports Required.--
(1) Treasury report.--
(A) In general.--Not later than 90 days after the
date of the enactment of this Act, and annually
thereafter, the Secretary of the Treasury shall submit
to Congress a report that includes--
(i) the list required by subsection (a)
and, in the case of any report submitted under
this subparagraph after the first such report,
any changes to the list since the submission of
the preceding such report; and
(ii) an assessment of the role of the IRGC
and its agents and affiliates in, and its
penetration into, the economy of Iran.
(B) Form of report.--Each report required by
subparagraph (A) shall be submitted in unclassified
form, but may include a classified annex if necessary.
(2) Government accountability office report.--
(A) In general.--The Comptroller General of the
United States shall--
(i) conduct a review of the list required
by subsection (a); and
(ii) not later than 60 days after each
report required by paragraph (1) is submitted
to Congress, submit to Congress a report--
(I) on the review conducted under
clause (i); and
(II) that includes a list of
persons not included in the list
required by subsection (a) that qualify
for inclusion in that list.
(B) Consultations.--In preparing the report
required by subparagraph (A)(ii), the Comptroller
General shall consult with nongovernmental
organizations.
SEC. 105. IMPOSITION OF SANCTIONS AGAINST MAHAN AIR.
(a) In General.--The President shall impose the sanctions described
in subsection (b) with respect to--
(1) a person that provides, directly or indirectly, goods,
services, technology, or financial services, including the sale
or provision of aircraft or aircraft parts, fuel, ramp
assistance, baggage and cargo handling, catering, refueling,
ticketing, check-in services, crew handling, or other services
related to flight operations, to Mahan Air or its agents or
affiliates, or for aircraft of Mahan Air or its agents or
affiliates;
(2) a person that controls, manages, or directs Mahan Air
or any of its agents or affiliates;
(3) an individual who is on the board of directors of Mahan
Air or any of its agents or affiliates; or
(4) an entity in which Mahan Air or an agent or affiliate
of Mahan Air that owns, directly or indirectly, a 25 percent or
greater interest, regardless of whether the entity is included
on the list of specially designated nationals and blocked
persons maintained by the Office of Foreign Assets Control of
the Department of the Treasury.
(b) Sanctions Described.--
(1) Blocking of property.--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.
(2) Exclusion from united states.--The Secretary of State
shall deny a visa to, and the Secretary of Homeland Security
shall exclude from the United States, any person subject to
subsection (a) that is an alien.
(c) Exceptions and Special Rules.--
(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)(1).
(2) Compliance with united nations headquarters
agreement.--Subsection (b)(2) shall not apply to the head of
state of Iran, or necessary staff of that head of state, if
admission to the United States is necessary to permit the
United States to comply with the Agreement regarding the
Headquarters of the United Nations, signed at Lake Success June
26, 1947, and entered into force November 21, 1947, between the
United Nations and the United States.
(d) Applicability of Additional Sanctions.--A person with respect
to which the President imposes sanctions under subsection (a) shall be
considered an agent or affiliate of the IRGC for purposes of sections
104 and 104A of the Comprehensive Iran Sanctions, Accountability, and
Divestment Act of 2010 (22 U.S.C. 8513 and 8513b).
SEC. 106. ADDITIONAL MEASURES ON MAHAN AIR.
(a) In General.--The President shall require each covered person to
provide a certification to the President that the person does not
conduct transactions with any entity that provides, directly or
indirectly, goods, services, technology, or financial services,
including the sale or provision of aircraft or aircraft parts, fuel,
ramp assistance, baggage or cargo handling, catering, refueling,
ticketing, check-in services, crew handling, or other services related
to flight operations--
(1) to Mahan Air or its agents or affiliates;
(2) for aircraft owned or operated by Mahan Air or its
agents or affiliates; or
(3) to a person described in section 105(a).
(b) Reports Required.--
(1) DNI list.--
(A) In general.--Not later than 90 days after the
date of the enactment of the Act, and annually
thereafter, the Director of National Intelligence, in
consultation with the Secretary of the Treasury, shall
submit to Congress a list of each entity described in
subsection (a).
(B) Form of list.--Each list required by
subparagraph (A) shall be submitted in unclassified
form, but may include a classified annex if necessary.
(2) Report.--
(A) In general.--Not later than 90 days after the
date of the enactment of the Act, and annually
thereafter, the President shall submit to Congress a
report that includes--
(i) a list of countries where aircraft of
Mahan Air or its agents or affiliates land;
(ii) a description of the efforts of the
President to encourage countries to prohibit
aircraft of Mahan Air or its agents or
affiliates from landing in the territory of
those countries; and
(iii) if the President has not imposed
sanctions under section 105(a) with respect to
any entity described in subsection (a), an
explanation for why the President has not
imposed such sanctions.
(B) Form of report.--Each report required by
subparagraph (A) shall be submitted in unclassified
form, but may include a classified annex if necessary.
(3) Government accountability office report.--
(A) In general.--The Comptroller General of the
United States shall--
(i) conduct a review of the certifications
required by subsection (a), the lists required
by paragraph (1), and the reports required by
paragraph (2); and
(ii) not later than 60 days after the
submission of each list required by paragraph
(1) and each report required by paragraph (2),
submit to Congress a report--
(I) on the review conducted under
clause (i); and
(II) assessing the implementation
of section 105.
(B) Consultations.--In preparing the report
required by subparagraph (A)(ii), the Comptroller
General shall consult with nongovernmental
organizations.
(c) Covered Person Defined.--In this section, the term ``covered
person'' means--
(1) an air carrier or foreign air carrier, as those terms
are defined in section 40102 of title 49, United States Code;
or
(2) a United States person that exports aircraft or
components for aircraft.
SEC. 107. MODIFICATION AND EXTENSION OF REPORTING REQUIREMENTS ON THE
USE OF CERTAIN IRANIAN SEAPORTS BY FOREIGN VESSELS AND
USE OF FOREIGN AIRPORTS BY SANCTIONED IRANIAN AIR
CARRIERS.
(a) In General.--Section 1252(a) of the Iran Freedom and Counter-
Proliferation Act of 2012 (22 U.S.C. 8808(a)) is amended--
(1) in the matter preceding paragraph (1), by striking
``2016'' and inserting ``2019'';
(2) in paragraph (1), by striking ``and'' at the end;
(3) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(4) by adding at the end the following:
``(3) a description of all efforts the Department of State
has made to encourage other countries to prohibit the use of
air space and airports by Iranian air carriers described in
paragraph (2) during the period specified in subsection (b).''.
(b) Effective Date.--The amendments made by subsection (a) take
effect on the date of the enactment of this Act and apply with respect
to reports required to be submitted under section 1252(a) of the Iran
Freedom and Counter-Proliferation Act of 2012 on or after such date of
enactment.
Subtitle B--Other Provisions
SEC. 111. AUTHORITY OF STATES AND LOCAL GOVERNMENTS TO DIVEST FROM
PERSONS THAT ENGAGE IN INVESTMENT OR BUSINESS ACTIVITIES
WITH IRAN'S REVOLUTIONARY GUARD CORPS.
(a) In General.--Subtitle B of title III of the Iran Threat
Reduction and Syria Human Rights Act of 2012 (Public Law 112-158; 126
Stat. 1247) is amended by adding at the end the following:
``SEC. 313. AUTHORITY OF STATES AND LOCAL GOVERNMENTS TO DIVEST FROM
PERSONS THAT ENGAGE IN INVESTMENT OR BUSINESS ACTIVITIES
WITH IRAN'S REVOLUTIONARY GUARD CORPS.
``(a) Sense of Congress.--It is the sense of Congress that the
United States should support the decision of any State or local
government that for moral, prudential, or reputational reasons divests
from, or prohibits the investment of assets of the State or local
government in, a person that engages in investment or business
activities with Iran's Revolutionary Guard Corps or a person described
in subsection (c), as long as Iran's Revolutionary Guard Corps is
subject to economic sanctions imposed by the United States.
``(b) Authority To Divest.--Notwithstanding any other provision of
law, a State or local government may adopt and enforce measures that
meet the requirements of subsection (e) to divest the assets of the
State or local government from, or prohibit investment of the assets of
the State or local government in, any person that the State or local
government determines, using credible information available to the
public, engages in investment or business activities described in
subsection (d) with Iran's Revolutionary Guard Corps or a person
described in subsection (c).
``(c) Persons Described.--A person described in this subsection
is--
``(1) an entity, regardless of whether the entity is
included on the list of specially designated nationals and
blocked persons maintained by the Office of Foreign Assets
Control of the Department of the Treasury, that is owned,
directly or indirectly, by a 25 percent or greater interest--
``(A) by Iran's Revolutionary Guard Corps or an
agent or affiliate of Iran's Revolutionary Guard Corps;
or
``(B) collectively by a group of individuals that
are members of Iran's Revolutionary Guard Corps or an
agent or affiliate of Iran's Revolutionary Guard Corps,
even if none of such individuals hold a 25 percent or
greater interest in the entity;
``(2) a person that controls, manages, or directs an entity
described in paragraph (1);
``(3) an individual who is on the board of directors of an
entity described in paragraph (1); or
``(4) a person on the IRGC Watch List required by section
104 of the Iran Nonnuclear Sanctions Act of 2017.
``(d) Investment or Business Activities Described.--A person
engages in investment or business activities with Iran's Revolutionary
Guard Corps or a person described in subsection (c) if the person--
``(1) has a financial investment in Iran's Revolutionary
Guard Corps or such a person;
``(2) owns, in whole or in part, such a person; or
``(3) is a financial institution that extends credit or
financing to another person, for 45 days or more, if that
person will use the credit or financing for investment in a
person described in subsection (c).
``(e) Requirements.--Any measure taken by a State or local
government under subsection (b) shall meet the following requirements:
``(1) Notice.--The State or local government shall provide
written notice to each person to which a measure is to be
applied.
``(2) Timing.--The measure shall apply to a person not
earlier than the date that is 90 days after the date on which
written notice is provided to the person under paragraph (1).
``(3) Opportunity for hearing.--The State or local
government shall provide an opportunity to comment in writing
to each person to which a measure is to be applied. If the
person demonstrates to the State or local government that the
person does not engage in investment or business activities
described in subsection (d) with Iran's Revolutionary Guard
Corps or a person described in subsection (c), the measure
shall not apply to the person.
``(4) Sense of congress on avoiding erroneous targeting.--
It is the sense of Congress that a State or local government
should not adopt a measure under subsection (b) with respect to
a person unless the State or local government has made every
effort to avoid erroneously targeting the person and has
verified that the person engages in investment or business
activities described in subsection (d) with Iran's
Revolutionary Guard Corps or a person described in subsection
(c).
``(f) Notice to Department of Justice.--Not later than 30 days
after adopting a measure pursuant to subsection (b), a State or local
government shall submit written notice to the Attorney General
describing the measure.
``(g) Nonpreemption.--A measure of a State or local government
authorized under subsection (b) or (i) is not preempted by any Federal
law or regulation.
``(h) Effective Date.--
``(1) In general.--Except as provided in paragraph (2) or
subsection (i), this section applies to measures adopted by a
State or local government before, on, or after the date of the
enactment of the Iran Nonnuclear Sanctions Act of 2017.
``(2) Notice requirements.--Except as provided in
subsection (i), subsections (e) and (f) apply to measures
adopted by a State or local government on or after the date of
the enactment of the Iran Nonnuclear Sanctions Act of 2017.
``(i) Authorization for Prior Enacted Measures.--
``(1) In general.--Notwithstanding any other provision of
this section or any other provision of law, a State or local
government may enforce a measure (without regard to the
requirements of subsection (e), except as provided in paragraph
(2)) adopted by the State or local government before the date
of the enactment of the Iran Nonnuclear Sanctions Act of 2017
that provides for the divestment of assets of the State or
local government from, or prohibits the investment of the
assets of the State or local government in, any person that the
State or local government determines, using credible
information available to the public, engages in investment or
business activities with Iran's Revolutionary Guard Corps or a
person described in subsection (c) (determined without regard
to subsection (d)) or other business or investment activities
that are identified in the measure.
``(2) Application of notice requirements.--A measure
described in paragraph (1) shall be subject to the requirements
of paragraphs (1) and (2) and the first sentence of paragraph
(3) of subsection (e) on and after the date that is 2 years
after the date of the enactment of the Iran Nonnuclear
Sanctions Act of 2017.
``(j) Rule of Construction.--Nothing in this section or any other
provision of law authorizing sanctions with respect to Iran shall be
construed to abridge the authority of a State to issue and enforce
rules governing the safety, soundness, and solvency of a financial
institution subject to its jurisdiction or the business of insurance
pursuant to the Act of March 9, 1945 (15 U.S.C. 1011 et seq.) (commonly
known as the `McCarran-Ferguson Act').
``(k) Definitions.--In this section:
``(1) Assets.--
``(A) In general.--Except as provided in
subparagraph (B), the term `assets' refers to public
monies and includes any pension, retirement, annuity,
or endowment fund, or similar instrument, that is
controlled by a State or local government.
``(B) Exception.--The term `assets' does not
include employee benefit plans covered by title I of
the Employee Retirement Income Security Act of 1974 (29
U.S.C. 1001 et seq.).
``(2) Investment.--The `investment' includes--
``(A) a commitment or contribution of funds or
property;
``(B) a loan or other extension of credit; and
``(C) the entry into or renewal of a contract for
goods or services.''.
(b) Clerical Amendment.--The table of contents for the Iran Threat
Reduction and Syria Human Rights Act of 2012 is amended by adding after
the item relating to section 312 the following:
``Sec. 313. Authority of States and local governments to divest from
persons that engage in investment or
business activities with Iran's
Revolutionary Guard Corps.''.
SEC. 112. SAFE HARBOR FOR CHANGES IN INVESTMENT POLICIES BY ASSET
MANAGERS.
Section 13(c)(1) of the Investment Company Act of 1940 (15 U.S.C.
80a-13(c)(1)) is amended--
(1) in subparagraph (A), by striking ``; or'' and inserting
a semicolon;
(2) in subparagraph (B), by striking the period at the end
and inserting ``; or''; and
(3) by adding at the end the following:
``(C) engage in investment or business activities
described in subsection (d) of section 313 of the Iran
Threat Reduction and Syria Human Rights Act of 2012
with Iran's Revolutionary Guard Corps or a person
described in subsection (c) of that section.''.
Subtitle C--Termination
SEC. 121. TERMINATION.
This title and the amendments made by this title shall terminate on
the date that is 30 days after the date on which the President makes
the certification described in section 401(a) of the Comprehensive Iran
Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C.
8551(a)).
TITLE II--SANCTIONS RELATING TO HUMAN RIGHTS ABUSES IN IRAN
SEC. 201. FINDINGS.
Congress makes the following findings:
(1) According to Freedom House, none of the elections held
in Iran after the Islamic revolution in 1979 have been regarded
as free or fair.
(2) According to the October 2015 report by the United
Nations Special Rapporteur on the situation of human rights in
the Islamic Republic of Iran, Iran continues to execute more
individuals per capita than any other country in the world.
Executions have been rising at an exponential rate since 2005
and peaked in 2015, when human rights groups reported a
shocking 830 executions between January and November 2015, and
as many as 1,084 executions during the entire year.
(3) According to an October 2015 United Nations report on
human rights in Iran, ``Some 150 Sunni Muslims are in prison on
charges related to their beliefs and religion activities. More
than 30 are on death row after having been convicted of `enmity
against God' in unfair judicial proceedings.''.
(4) In 2015, Iran was rated as ``not free'' in a report on
the freedom of the press by Freedom House for a lack of flow of
independent information and the inability of news outlets,
whether through print, broadcast, or the Internet, to operate
freely and without fear of repercussions.
(5) Journalists, social media activists, writers, and human
rights activists are routinely arrested and interrogated by
Iran's Revolutionary Guard Corps, the Ministry of Intelligence,
and cyber-policing units.
(6) According to the Committee to Protect Journalists--
(A) from the 2015 prison census, Iran is one of the
leading jailers of journalists, with 19 behind bars;
(B) Iran ranks as first among countries from which
journalists have fled into exile between 2009 and 2015;
and
(C) in 2015, Iran ranked number 7 among the top 10
most censored countries in the world.
(7) According to the United Nations Special Rapporteur on
the situation of human rights in the Islamic Republic of Iran,
as of January 2014, there were 895 political prisoners and
prisoners of conscience unjustly detained in Iran.
(8) On February 22, 2016, 80-year-old Baquer Namazi, a
United States citizen and the father of imprisoned dual United
States-Iran citizen Siamak Namazi, was arrested while visiting
family in Tehran and taken to Evin Prison without charge.
Baquer Namazi suffers from a serious heart condition that
requires special medical attention.
(9) On January 12, 2016, Iran's Revolutionary Guard Corps
unjustly detained 10 United States sailors whose vessel had
misnavigated into Iranian territorial waters but had a right to
innocent passage under international law. While the United
States sailors were released after 16 hours, Iran's
Revolutionary Guard Corps released humiliating videos of the
capture of the sailors at gunpoint and their detention for
propagandistic purposes.
(10) On October 15, 2015, Siamak Namazi was arrested while
visiting Tehran and detained in Evin Prison, where he remains
held by Iranian officials without charge.
(11) In July 2014, Jason Rezaian, a reporter from the
United States working for the Washington Post, was unjustly
arrested and held in Iran while his health deteriorated until
his release on January 16, 2016.
(12) On January 27, 2013, Saeed Abedini, a pastor from the
United States, was sentenced to an 8-year prison term in Iran
based on charges relating to his Christian faith and had been
unjustly incarcerated since September 26, 2012, despite serious
health issues until his release on January 16, 2016.
(13) In August 2011, Amir Hekmati, a veteran of the Armed
Forces of the United States, was unjustly detained while
visiting his family in Iran and remained in a prison in Iran on
false espionage charges until his release on January 16, 2016.
(14) In March 2007, Robert Levinson, a former agent of the
Federal Bureau of Investigation, disappeared in Iran during a
business trip and Iran has refused to cooperate in the
investigation into his disappearance. Mr. Levinson is the
longest unjustly held United States citizens in history.
(15) The principal leaders of the Green Revolution in Iran,
Mir Hussein Moussavi and Mehdi Karroubi, have been under house
arrest since February 2011.
(16) The United States has designated Iran as a country of
particular concern for religious freedom pursuant to section
402(b)(1) of the International Religious Freedom Act of 1998
(22 U.S.C. 6442(b)(1)) for severe violations of religious
freedom in every year from 1999 through 2015.
(17) In 2015, the United States Commission on International
Religious Freedom found in its annual report that the
Government of Iran ``continues to engage in systematic,
ongoing, and egregious violations of religious freedom,
including prolonged detention, torture, and executions based
primarily or entirely upon the religion of the accused''.
(18) The Government of Iran continues to propagate anti-
Semitism and target members of the Jewish community, and
reinstated, in 2014, a Holocaust denial conference, which had
been cancelled the previous year.
(19) On January 27, 2016, as the world marked International
Holocaust Remembrance Day, Iranian Supreme Leader Ali Khamenei
published a video denying the Holocaust on his official
website.
(20) Members of the Baha'i Faith in Iran, estimated to
number between 300,000 and 350,000, are not recognized as a
religious minority under the Constitution of Iran, enjoy
virtually no rights under the law, and are banned from
practicing their faith. Throughout 2014 and 2015, Iranian
authorities shut down numerous Baha'i-owned businesses across
the country.
(21) More than 100 Baha'is are being held in prison solely
because of their religious beliefs, including the Baha'i
leaders Fariba Kamalabadi, Jamaloddin Khanjani, Afif Naemi,
Saeid Rezaie, Mahvash Sabet, Behrouz Tavakkoli, and Vahid
Tizfahm.
(22) Christians, particularly converts and underground
house church leaders, face sustained persecution, arrests,
legal harassment, and long-term prison sentences. Since 2010,
more than 500 Christians have been arrested or detained.
(23) Officials of the United States have stated that the
human rights record of Iran is ``abysmal'' and the Department
of State has reported that there has been ``little meaningful
improvement in human rights in Iran under the new government,
including torture, political imprisonment, and harassment of
religious and ethnic minorities''.
(24) According to the Country Reports on Human Rights
Practices for 2014 of the Department of State, Iranian law
states that same-sex sexual activity is punishable by death,
flogging, or other punishments. Iranian authorities ``harassed,
arrested, and detained individuals they suspected of being
gay''. While detained, lesbian, gay, bisexual, and transgender
individuals have reported physical abuse and torture by
security officers, including sexual assault and rape.
(25) The Government of Iran continues to commit egregious
human rights abuses against its own citizens in violation of
its international obligations under the Universal Declaration
of Human Rights, the International Covenant on Economic, Social
and Cultural Rights, the International Covenant on Civil and
Political Rights, and the International Convention on the
Elimination of All Forms of Racial Discrimination.
SEC. 202. EXPANSION OF LIST OF PERSONS INVOLVED IN HUMAN RIGHTS ABUSES
IN IRAN.
(a) In General.--Section 105 of the Comprehensive Iran Sanctions,
Accountability, and Divestment Act of 2010 (22 U.S.C. 8514) is
amended--
(1) in the section heading, by striking ``certain persons
who are responsible for or complicit'' and inserting ``persons
involved'';
(2) in subsection (b)--
(A) in the subsection heading, by striking ``Who
Are Responsible for or Complicit'' and inserting
``Involved'';
(B) by striking paragraph (1) and inserting the
following:
``(1) In general.--Not later than 90 days after the date of
the enactment of the Iran Nonnuclear Sanctions Act of 2017, the
President shall submit to the appropriate congressional
committees a list of persons the President determines have
committed or facilitated, directly or indirectly, human rights
abuses or other acts of violence, intimidation, or harassment,
on behalf of the Government of Iran on or after June 12, 2009,
regardless of whether such abuses or acts occurred in Iran.'';
and
(C) in paragraph (2)(A), by striking ``this Act''
and inserting ``the Iran Nonnuclear Sanctions Act of
2017''; and
(3) by adding at the end the following:
``(e) Inclusion of Actions That Violate Universal Declaration of
Human Rights.--For purposes of subsection (b)(1), the term `human
rights abuses' includes actions that violate the rights listed in the
United Nations Universal Declaration of Human Rights, adopted at Paris
December 10, 1948.''.
(b) Clerical Amendment.--The table of contents for the
Comprehensive Iran Sanctions, Accountability, and Divestment Act of
2010 is amended by striking the item relating to section 105 and
inserting the following:
``Sec. 105. Imposition of sanctions on persons involved in human rights
abuses committed against citizens of Iran
or their family members after the June 12,
2009, elections in Iran.''.
SEC. 203. IDENTIFICATION OF, AND IMPOSITION OF SANCTIONS WITH RESPECT
TO, CERTAIN IRANIAN INDIVIDUALS.
(a) In General.--Section 221 of the Iran Threat Reduction and Syria
Human Rights Act of 2012 (22 U.S.C. 8727) is amended to read as
follows:
``SEC. 221. IDENTIFICATION OF, AND IMPOSITION OF SANCTIONS WITH RESPECT
TO, CERTAIN IRANIAN INDIVIDUALS.
``(a) Identification of Individuals.--Not later than 90 days after
the date of the enactment of the Iran Nonnuclear Sanctions Act of 2017,
and every 180 days thereafter, the President shall submit to the
appropriate congressional committees and publish in the Federal
Register a list of all individuals the President determines are
described in subsection (b).
``(b) Individuals Described.--An individual described in this
subsection is--
``(1) the Supreme Leader of Iran;
``(2) the President of Iran;
``(3) a current or former key official, manager, or
director of an entity that is owned or controlled after
November 14, 1979, by--
``(A) the Supreme Leader of Iran;
``(B) the Office of the Supreme Leader of Iran;
``(C) the President of Iran;
``(D) the Office of the President of Iran;
``(E) Iran's Revolutionary Guard Corps;
``(F) the Basij-e Motaz'afin;
``(G) the Guardian Council;
``(H) the Ministry of Intelligence and Security of
Iran;
``(I) the Atomic Energy Organization of Iran;
``(J) the Islamic Consultative Assembly of Iran;
``(K) the Assembly of Experts of Iran;
``(L) the Ministry of Defense and Armed Forces
Logistics of Iran;
``(M) the Ministry of Justice of Iran;
``(N) the Ministry of Interior of Iran;
``(O) the prison system of Iran;
``(P) the judicial system of Iran, including the
Islamic Revolutionary Courts; or
``(Q) any citizen of Iran included on the list of
specially designated nationals and blocked persons
maintained by the Office of Foreign Assets Control of
the Department of the Treasury;
``(4) a citizen of Iran indicted in a foreign country for,
or otherwise suspected of, participation in a terrorist attack;
``(5) an individual involved in the kidnapping or unjust
detention of a United States citizen, including a United States
citizen who is also a citizen of another country; or
``(6) a politically exposed individual associated with an
individual described in any of paragraphs (1) through (5) who
is not a United States person.
``(c) Exclusion From United States.--Except as provided in
subsection (f), the Secretary of State shall deny a visa to, and the
Secretary of Homeland Security shall exclude from the United States,
any alien who is on the list required by subsection (a).
``(d) Blocking of Property.--Except as provided in subsection (f),
the President shall block and prohibit all transactions in all property
and interests in property of any individual who is on the list required
by 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.
``(e) Report.--
``(1) In general.--Not later than 90 days after the date of
the enactment of the Iran Nonnuclear Sanctions Act of 2017, and
every 90 days thereafter, the President shall submit to the
appropriate congressional committees a report that describes
the efforts the President has taken during the 90 days
preceding the submission of the report to locate and block all
property and interests in property of any individual who is on
the list required by subsection (a).
``(2) Form of report.--Each report required by paragraph
(1) shall be submitted in unclassified form, but may include a
classified annex if necessary.
``(f) Exceptions.--
``(1) In general.--The President may not include an
individual on the list required by subsection (a) if the
President determines that, during the 10-year period preceding
the determination, the individual has not in any way engaged
in, facilitated, or otherwise supported--
``(A) human rights abuses;
``(B) acts of international terrorism; or
``(C) the proliferation of weapons of mass
destruction.
``(2) Compliance with united nations headquarters
agreement.--Subsection (c) shall not apply to the head of state
of Iran, or necessary staff of that head of state, if admission
to the United States is necessary to permit the United States
to comply with the Agreement regarding the Headquarters of the
United Nations, signed at Lake Success June 26, 1947, and
entered into force November 21, 1947, between the United
Nations and the United States.
``(g) Waiver.--
``(1) In general.--The President may waive the application
of subsection (c) or (d) with respect to an individual for a
period of 180 days, and may renew that waiver for additional
periods of 180 days, if the President--
``(A) determines that the waiver is vital to the
national security of the United States; and
``(B) not less than 7 days before the waiver or the
renewal of the waiver, as the case may be, takes
effect, submits a report to the appropriate
congressional committees on the waiver and the reason
for the waiver.
``(2) Limitation on waiver authority.--The President may
not exercise the waiver authority provided under paragraph (1)
to implement any international agreement with Iran unless,
before exercising the waiver authority, the agreement is
approved through the enactment of a joint resolution or the
Senate provides its advice and consent with respect to the
agreement pursuant to section 2 of article II of the
Constitution of the United States.
``(3) Form of report.--Each report submitted under
paragraph (1)(B) shall be submitted in unclassified form, but
may include a classified annex if necessary.
``(h) Definitions.--In this section:
``(1) Own or control.--The term `own or control' means,
with respect to an entity--
``(A) to hold more than 25 percent of the equity
interest by vote or value in the entity;
``(B) to hold any seats on the board of directors
of the entity; or
``(C) to otherwise control the actions, policies,
or personnel decisions of the entity.
``(2) Politically exposed individual.--
``(A) In general.--The term `politically exposed
individual' includes a current or former senior
political figure, the immediate family of such a
figure, and close associates of such a figure.
``(B) Additional definitions.--For purposes of
subparagraph (A):
``(i) Close associate.--The term `close
associate', with respect to a senior political
figure--
``(I) means an individual who is
widely and publicly known to maintain
an unusually close relationship with
the senior political figure; and
``(II) includes an individual who
is in a position to conduct substantial
domestic and international financial
transactions on behalf of the senior
political figure.
``(ii) Immediate family.--The term
`immediate family', with respect to a senior
foreign political figure, means the parents,
siblings, spouse, children, and in-laws of the
senior political figure.
``(iii) Senior political figure.--The term
`senior political figure' means a senior
official in the executive, legislative,
administrative, military, or judicial branches
of the Government of Iran (whether elected or
not), a senior official of a major political
party in Iran, or a senior executive of an
entity owned or controlled by the Government of
Iran.''.
(b) Clerical Amendment.--The table of contents for the Iran Threat
Reduction and Syria Human Rights Act of 2012 (22 U.S.C. 8701 et seq.)
is amended by striking the item relating to section 221 and inserting
the following:
``Sec. 221. Identification of, and imposition of sanctions with respect
to, certain Iranian individuals.''.
SEC. 204. IMPOSITION OF SANCTIONS WITH RESPECT TO PERSONS WHO CONDUCT
TRANSACTIONS WITH OR ON BEHALF OF CERTAIN IRANIAN
INDIVIDUALS.
(a) In General.--Subtitle B of title II of the Iran Threat
Reduction and Syria Human Rights Act of 2012 (22 U.S.C. 8721 et seq.)
is amended by inserting after section 221 the following:
``SEC. 221A. IMPOSITION OF SANCTIONS WITH RESPECT TO PERSONS WHO
CONDUCT TRANSACTIONS WITH OR ON BEHALF OF CERTAIN IRANIAN
INDIVIDUALS.
``(a) Sale, Supply, or Transfer of Goods and Services.--The
President shall impose five or more of the sanctions described in
section 6(a) of the Iran Sanctions Act of 1996 (Public Law 104-172; 50
U.S.C. 1701 note) with respect to a person that knowingly, on or after
the date that is 120 days after the date of the enactment of the Iran
Nonnuclear Sanctions Act of 2017, sells, supplies, or transfers goods
or services to an individual who is on the list required by section
221(a).
``(b) Facilitation of Certain Transactions.--The President shall
prohibit the opening, and prohibit or impose strict conditions on the
maintaining, in the United States of a correspondent account or a
payable-through account by any foreign financial institution that has
knowingly conducted or facilitated a significant financial transaction
on behalf of an individual who is on the list required by section
221(a).
``(c) Waiver.--
``(1) In general.--The President may waive the application
of subsection (a) or (b) with respect to a person for a period
of 180 days, and may renew that waiver for additional periods
of 180 days, if the President--
``(A) determines that the waiver is vital to the
national security of the United States; and
``(B) not less than 7 days before the waiver or the
renewal of the waiver, as the case may be, takes
effect, submits a report to the appropriate
congressional committees on the waiver and the reason
for the waiver.
``(2) Limitation on waiver authority.--The President may
not exercise the waiver authority provided under paragraph (1)
to implement any international agreement with Iran unless,
before exercising the waiver authority, the agreement is
approved through the enactment of a joint resolution or the
Senate provides its advice and consent with respect to the
agreement pursuant to section 2 of article II of the
Constitution of the United States.
``(3) Form of report.--Each report submitted under
paragraph (1)(B) shall be submitted in unclassified form, but
may include a classified annex if necessary.
``(d) Application of Certain Provisions of the Iran Sanctions Act
of 1996.--The following provisions of the Iran Sanctions Act of 1996
(Public Law 104-172; 50 U.S.C. 1701 note) shall apply with respect to
the imposition of sanctions under subsection (a) to the same extent
that such provisions apply with respect to the imposition of sanctions
under section 5(a) of the Iran Sanctions Act of 1996:
``(1) Subsections (c), (d), and (f) of section 5.
``(2) Section 8.
``(3) Section 11.
``(4) Section 12.
``(5) Section 13(b).
``(e) Definitions.--In this Act:
``(1) Account; correspondent account; payable-through
account.--The terms `account', `correspondent account', and
`payable-through account' have the meanings given those terms
in section 5318A of title 31, United States Code.
``(2) 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 (or
any corresponding similar regulation or ruling).''.
(b) Clerical Amendment.--The table of contents for the Iran Threat
Reduction and Syria Human Rights Act of 2012 (22 U.S.C. 8701 et seq.)
is amended by inserting after the item relating to section 221 the
following:
``Sec. 221A. Imposition of sanctions with respect to persons who
conduct transactions with or on behalf of
certain Iranian individuals.''.
SEC. 205. MANDATORY SANCTIONS WITH RESPECT TO FINANCIAL INSTITUTIONS
THAT ENGAGE IN CERTAIN TRANSACTIONS ON BEHALF OF PERSONS
INVOLVED IN HUMAN RIGHTS ABUSES OR THAT EXPORT SENSITIVE
TECHNOLOGY TO IRAN.
(a) In General.--Section 104(c)(2) of the Comprehensive Iran
Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C.
8513(c)(2)) is amended--
(1) in subparagraph (D), by striking ``or'' at the end;
(2) in subparagraph (E), by striking the period at the end
and inserting ``; or''; and
(3) by adding at the end the following:
``(F) facilitates a significant transaction or
transactions or provides significant financial services
for--
``(i) a person that is subject to sanctions
under section 105(c), 105A(c), 105B(c), or
105C(a); or
``(ii) a person that exports sensitive
technology to Iran and is subject to the
prohibition on procurement contracts as
described in section 106.''.
(b) Effective Date.--The amendments made by subsection (a) take
effect on the date of the enactment of this Act and apply with respect
to any activity described in subparagraph (F) of section 104(c)(2) of
the Comprehensive Iran Sanctions, Accountability, and Divestment Act of
2010, as added by subsection (a)(3), initiated on or after the date
that is 90 days after such date of enactment.
(c) Regulations.--Not later than 90 days after the date of the
enactment of this Act, the Secretary of the Treasury shall prescribe
regulations to carry out the amendments made by subsection (a).
SEC. 206. UNITED STATES SUPPORT FOR THE PEOPLE OF IRAN.
(a) In General.--Subtitle B of title IV of the Iran Threat
Reduction and Syria Human Rights Act of 2012 (22 U.S.C. 8751 et seq.)
is amended by adding at the end the following:
``SEC. 416. UNITED STATES SUPPORT FOR THE PEOPLE OF IRAN.
``(a) Policy of the United States.--It is the policy of the United
States--
``(1) to support the efforts of the people of Iran to
promote the establishment of basic freedoms in Iran;
``(2) to lay the foundation for the emergence of a freely
elected, open, and democratic political system in Iran that is
not a threat to its neighbors or to the United States and to
work with all citizens of Iran who seek to establish such a
political system;
``(3) to support the emergence of a government in Iran that
does not oppress the people of Iran and does not persecute,
intimidate, arrest, imprison, or execute dissidents or
minorities;
``(4) to advocate on behalf of those in Iran persecuted for
their religion or belief;
``(5) to assist the people of Iran to produce, access, and
share information freely and safely through the Internet and
other media; and
``(6) to defeat all attempts by the Government of Iran to
jam or otherwise obstruct international satellite broadcast
signals.
``(b) Sense of Congress.--It is the sense of Congress that--
``(1) the United States should support citizens of Iran
that actively work to advance political, economic, and social
reforms, including freedom of the press, freedom of assembly,
freedom of religion, and representative government;
``(2) the President should use all available nonviolent
means to support citizens of Iran that advocate for
pluralistic, prosperous, and participatory societies;
``(3) programs of the Department of State to support reform
in Iran have not resulted in a more democratic Iran;
``(4) the Government of Iran continues to play a pernicious
role in the Middle East, undermining democratic consolidation
in Iraq, supporting international terrorism through Hezbollah,
and aiding the autocratic regime of Bashar al-Assad in Syria;
``(5) the Secretary of State should make every effort to
deliver support directly to people working in Iran to implement
programs carried out using assistance provided by the
Department of State when possible and all possible means of
delivering such assistance should be used; and
``(6) oversight, management, and implementation of programs
of the Department of State to support reform in Iran should be
under the direction of the Special Coordinator on Human Rights
and Democracy in Iran established under section 207 of the Iran
Nonnuclear Sanctions Act of 2017, in consultation with the
Assistant Secretary of State for Democracy, Human Rights, and
Labor.
``(c) Assistance To Support Reform in Iran.--
``(1) Assistance authorized.--Notwithstanding any other
provision of law, the Secretary of State may provide assistance
(including through the award of grants) to individuals and
entities working in Iran for the purpose of supporting and
promoting the rule of law, good governance, civil society, and
economic opportunity in Iran.
``(2) Eligibility for assistance.--Assistance authorized
under this subsection should be provided only to an individual
or entity that--
``(A) officially opposes the use of violence and
terrorism and has not been designated as a foreign
terrorist organization under section 219 of the
Immigration and Nationality Act (8 U.S.C. 1189) at any
time during the 4-year period ending on the date of the
enactment of the Iran Nonnuclear Sanctions Act of 2017;
``(B) advocates the adherence by Iran to
nonproliferation regimes for nuclear, chemical, and
biological weapons and materiel, and ballistic
missiles;
``(C) is dedicated to democratic values and
supports the adoption of a democratic form of
government in Iran;
``(D) is dedicated to respect for human rights,
including the fundamental equality of women; and
``(E) supports freedom of the press, freedom of
speech, freedom of association, and freedom of
religion.
``(3) Notification requirement.--Not later than 15 days
before each obligation of assistance under this subsection, the
Secretary of State shall notify the Committee on Foreign
Relations and the Committee on Appropriations of the Senate and
the Committee on Foreign Affairs and the Committee on
Appropriations of the House of Representatives in accordance
with the procedures applicable to reprogramming notifications
under section 634A of the Foreign Assistance Act of 1961 (22
U.S.C. 2394-1).
``(4) Authorization of appropriations.--Of the amounts made
available to carry out chapter 4 of part II of the Foreign
Assistance Act of 1961 (22 U.S.C. 2346 et seq.; relating to the
Economic Support Fund) for fiscal year 2015, not less than
$32,000,000 shall be made available to the Secretary of State
to carry out this subsection.
``(5) Termination.--The authority to provide assistance
under this subsection shall expire on December 31, 2020.
``(d) Reports.--
``(1) In general.--Not later than 60 days after the date of
the enactment of the Iran Nonnuclear Sanctions Act of 2017, and
every 180 days thereafter, the Secretary of State shall submit
to the appropriate congressional committees a report on the
implementation of this section that includes the following:
``(A) An identification of the actions the
President has taken during the 180-day period
immediately preceding the submission of the report to
advance each of the policies described in subsection
(a).
``(B) A clear strategy for advancing political,
economic, and social reform in Iran that includes
benchmarks for success that lead to a set of identified
discrete goals and objectives.
``(C) A plan to monitor and evaluate the
effectiveness of the provision of assistance authorized
under subsection (c), including measures of
effectiveness.
``(D) The status of the programming of assistance
under subsection (c).
``(E) An analysis of any past programming of
assistance under subsection (c) and its effectiveness
with respect to supporting and promoting the rule of
law, good governance, civil society, and economic
opportunity in Iran.
``(2) Form of report.--Each report required by paragraph
(1) shall be submitted in unclassified form, but may include a
classified annex if necessary.''.
(b) Clerical Amendment.--The table of contents for the Iran Threat
Reduction and Syria Human Rights Act of 2012 is amended by inserting
after the item relating to section 415 the following:
``Sec. 416. United States support for the people of Iran.''.
SEC. 207. UNITED STATES SPECIAL COORDINATOR ON HUMAN RIGHTS AND
DEMOCRACY IN IRAN.
(a) Designation.--The President shall designate within the
Department of State a Special Coordinator on Human Rights and Democracy
in Iran (in this section referred to as the ``Special Coordinator'').
(b) Consultation and Qualifications.--Before the President
designates a Special Coordinator under subsection (a), the Secretary of
State shall consult with the chairmen and ranking members of the
appropriate congressional committees. The role of Special Coordinator
should be filled by an official of the Department of State appointed by
and serving at the pleasure of the President in a position not lower
than Under Secretary on the day before the date of the enactment of
this Act.
(c) Duties.--The Special Coordinator shall carry out the following
duties:
(1) Coordinate the activities of the United States
Government that promote human rights, democracy, political
freedom, and religious freedom inside Iran.
(2) Coordinate the activities of the United States
Government that promote human rights, political freedom, and
religious freedom for Iranian refugees and asylees living
outside Iran.
(3) Ensure the comprehensive investigation and designation
of Iranian human rights abusers in accordance with section 105
of the Comprehensive Iran Sanctions, Accountability, and
Divestment Act of 2010 (22 U.S.C. 8514).
(4) Coordinate the documentation and publicizing of
political dissidents and cases of human rights abuse inside
Iran.
(5) Coordinate multilateral efforts to build international
support for the promotion of human rights, democracy, political
freedom, and religious freedom in Iran, including broadcasting,
Internet access, and dissemination of information.
(6) Encourage the United Nations, multilateral
organizations, and human rights nongovernmental organizations
to more robustly investigate and report on human rights abuses
in Iran.
(7) Encourage foreign governments to downgrade or sever
diplomatic relations with the Government of Iran, enact
economic sanctions, and assist Iranian dissidents in response
to the continued violations of human rights by the Government
of Iran.
(8) Encourage foreign governments to expel Iran from
international fora and organizations with a human rights
component, including the United Nations Commission on the
Status of Women, the United Nations Educational, Scientific and
Cultural Organization, the United Nations Children's Fund, and
the International Labour Organization.
(9) Coordinate all programs funded under the Iran Freedom
Support Act (Public Law 109-293; 22 U.S.C. 2151 note).
(d) Authority.--
(1) Coordination of activities.--The Special Coordinator
shall coordinate all activities related to Iran carried out by
the Bureau of Near Eastern Affairs, the Bureau of Democracy,
Human Rights and Labor, and the Bureau of Population, Refugees
and Migration of the Department of State, the Ambassador-at-
Large for International Religious Freedom, the Special Envoy to
Monitor and Combat Anti-Semitism, the United States Commission
on International Religious Freedom, the National Endowment for
Democracy, and the Broadcasting Board of Governors.
(2) Coordination of use of funds.--The Special Coordinator
shall coordinate and oversee the obligation and expenditure of
funds related to human rights, democracy, Internet freedom, and
broadcasting activities in Iran, including funds made available
for such purposes to the Middle East Partnership Initiative,
the United States Commission on International Religious
Freedom, the Broader Middle East and North Africa Initiative,
the Human Rights and Democracy Fund, and the Near Eastern
Regional Democracy Fund.
(e) Diplomatic Representation.--Subject to the direction of the
President and the Secretary of State, the Special Coordinator shall
represent the United States in matters and cases relevant to the
promotion of human rights, democracy, political freedom, and religious
freedom in Iran in--
(1) contacts with foreign governments, intergovernmental
organizations, and specialized agencies of the United Nations,
the Organization for Security and Co-operation in Europe, and
other international organizations of which the United States is
a member; and
(2) multilateral conferences and meetings relevant to the
promotion of human rights, democracy, political freedom, and
religious freedom in Iran.
(f) Consultations.--The Special Coordinator shall consult with
Congress, domestic and international nongovernmental organizations,
labor organizations, and multilateral organizations and institutions as
the Special Coordinator considers appropriate to fulfill the purposes
of this section.
(g) Funding.--From amounts made available for the Department of
State for Near East Affairs in fiscal years before fiscal year 2016,
the Secretary of State shall provide to the Special Coordinator such
sums as may be necessary for fiscal year 2016 for the hiring of staff,
for the conduct of investigations, and for necessary travel to carry
out this section.
(h) Appropriate Congressional Committees Defined.--In this section,
the term ``appropriate congressional committees'' means--
(1) the Committee on Foreign Relations and the Committee on
Appropriations of the Senate; and
(2) the Committee on Foreign Affairs and the Committee on
Appropriations of the House of Representatives.
SEC. 208. BROADCASTING TO IRAN.
(a) In General.--Radio Free Europe/Radio Liberty and the Voice of
America services broadcasting to Iran shall--
(1) provide news and information that is accessible,
credible, comprehensive, and accurate;
(2) emphasize investigative and analytical journalism
provided by Iranian or pro-Iranian media outlets; and
(3) strengthen civil society by promoting democratic
processes, respect for human rights, and freedom of the press
and expression.
(b) Programming Surge.--Radio Free Europe/Radio Liberty and Voice
of America programming to Iran shall--
(1) provide programming content 24 hours a day and 7 days a
week to target populations using all available and effective
distribution outlets, including at least 12 hours a day of
original television and video content, not including live video
streaming of breaking news;
(2) create mobile platforms with an embedded proxy to offer
the people of Iran the opportunity to securely listen to
programming;
(3) increase number of staffers based in the region to
allow for more direct contact with the people of Iran;
(4) expand the use, audience, and audience engagement of
mobile news and multimedia platforms by the Voice of America
and the Radio Farda service of Radio Free Europe/Radio Liberty,
including through Internet-based social networking platforms;
and
(5) establish fellowships for Iranian journalists who have
fled the country to learn about free, competitive media and be
trained in surrogate reporting.
(c) Authorization of Appropriations.--There are authorized to be
appropriated for fiscal year 2017, in addition to funds otherwise made
available for such purposes, $10,000,000 to carry out Iran-focused
programming by Radio Free Europe/Radio Liberty and the Voice of
America, for the purpose of bolstering existing United States
programming to the people of Iran and increasing programming capacity
and jamming circumvention technology to overcome any disruptions to
service.
SEC. 209. REPORT ON UNITED STATES CITIZENS DETAINED BY IRAN.
(a) In General.--Not later than 90 days after the date of the
enactment of this Act, and every 180 days thereafter, the President
shall submit to the appropriate congressional committees a report on
United States citizens, including dual citizens, detained by Iran or
groups supported by Iran that includes--
(1) information regarding any officials of the Government
of Iran involved in any way in the detentions; and
(2) a summary of efforts the United States Government has
taken to secure the swift release of those United States
citizens, including United States citizens who are also
citizens of other countries.
(b) Form of Report.--The report required by subsection (a) shall be
submitted in unclassified form, but may include a classified annex if
necessary.
(c) Appropriate Congressional Committees Defined.--In this section,
the term ``appropriate congressional committees'' has the meaning given
that term in section 14 of the Iran Sanctions Act of 1996 (Public Law
104-172; 50 U.S.C. 1701 note).
SEC. 210. SENSE OF CONGRESS ON ESTABLISHMENT OF MULTILATERAL MECHANISM
TO PROMOTE HUMAN RIGHTS IN IRAN.
It is the sense of Congress that the United States should work with
the European Union and other countries with a common commitment to
fundamental rights and freedoms to explore the possibility of
establishing a formal multilateral mechanism to advocate for the
promotion of human rights, democracy, political freedom, and religious
freedom in Iran.
SEC. 211. SENSE OF CONGRESS ON ROLE OF THE UNITED NATIONS IN PROMOTING
HUMAN RIGHTS IN IRAN.
It is the sense of Congress that--
(1) the United Nations has a significant role to play in
promoting and improving human rights in Iran;
(2) the United States should continue to support the work
of the United Nations Special Rapporteur on the situation of
human rights in the Islamic Republic of Iran; and
(3) the egregious human rights violations in Iran warrant
country-specific attention and continued reporting by the
Special Rapporteur on the situation of human rights in the
Islamic Republic of Iran, the Special Rapporteur on torture and
other cruel, inhuman, or degrading treatment or punishment, the
Working Group on Arbitrary Detention, the Special Rapporteur on
extrajudicial, summary, or arbitrary executions, the Special
Rapporteur on the promotion and protection of the right to
freedom of opinion and expression, the Special Rapporteur on
freedom of religion or belief, and the Special Rapporteur on
violence against women, its causes, and consequences, of the
United Nations.
TITLE III--SANCTIONS WITH RESPECT TO THE BALLISTIC MISSILE PROGRAM OF
IRAN
SEC. 301. FINDINGS.
Congress finds the following:
(1) On April 2, 2015, President Barack Obama said, ``Other
American sanctions on Iran for its support of terrorism, its
human rights abuses, its ballistic missile program, will
continue to be fully enforced.''.
(2) On July 7, 2015, General Martin Dempsey, then-Chairman
of the Joint Chiefs of Staff, said, ``Under no circumstances
should we relieve the pressure on Iran relative to ballistic
missile capabilities.''.
(3) On July 29, 2015, in his role as the top military
officer in the United States and advisor to the President,
General Dempsey confirmed that his military recommendation was
that sanctions relating to the ballistic missile program of
Iran not be lifted.
(4) The Government of Iran and Iran's Revolutionary Guard
Corps have been responsible for the repeated testing of illegal
ballistic missiles capable of carrying a nuclear device,
including observed tests in October and November 2015 and March
2016, violating United Nations Security Council resolutions.
(5) On October 14, 2015, Samantha Power, United States
Ambassador to the United Nations, said, ``One of the really
important features in implementation of the recent Iran deal to
dismantle Iran's nuclear program is going to have to be
enforcement of the resolutions and the standards that remain on
the books.''.
(6) On December 11, 2015, the United Nations Panel of
Experts concluded that the missile launch on October 10, 2015,
``was a violation by Iran of paragraph 9 of Security Council
resolution 1929 (2010)''.
(7) On January 17, 2016, Adam Szubin, Acting Under
Secretary for Terrorism and Financial Intelligence, stated,
``Iran's ballistic missile program poses a significant threat
to regional and global security, and it will continue to be
subject to international sanctions. We have consistently made
clear that the United States will vigorously press sanctions
against Iranian activities outside of the Joint Comprehensive
Plan of Action--including those related to Iran's support for
terrorism, regional destabilization, human rights abuses, and
ballistic missile program.''.
(8) On February 9, 2016, James Clapper, Director of
National Intelligence, testified that, ``We judge that Tehran
would choose ballistic missiles as its preferred method of
delivering nuclear weapons, if it builds them. Iran's ballistic
missiles are inherently capable of delivering WMD, and Tehran
already has the largest inventory of ballistic missiles in the
Middle East. Iran's progress on space launch vehicles--along
with its desire to deter the United States and its allies--
provides Tehran with the means and motivation to develop
longer-range missiles, including ICBMs.''.
(9) On March 9, 2016, Iran reportedly fired two Qadr
ballistic missiles with a range of more than 1,000 miles and
according to public reports, the missiles were marked with a
statement in Hebrew reading, ``Israel must be wiped off the
arena of time.''.
(10) On March 11, 2016, Ambassador Power called the recent
ballistic missile launches by Iran ``provocative and
destabilizing'' and called on the international community to
``degrade Iran's missile program''.
(11) On March 14, 2016, Ambassador Power said that the
recent ballistic missile launches by Iran were ``in defiance of
provisions of UN Security Council Resolution 2231''.
(12) Iran has demonstrated the ability to launch multiple
rockets from fortified underground facilities and mobile launch
sites not previously known.
(13) The ongoing procurement by Iran of technologies needed
to boost the range, accuracy, and payloads of its diverse
ballistic missile arsenal represents a threat to deployed
personnel of the United States and allies of the United States
in Europe and the Middle East, including Israel.
(14) Ashton Carter, Secretary of Defense, testified in a
hearing before the Armed Services Committee of the Senate on
July 7, 2015, that, ``[T]he reason that we want to stop Iran
from having an ICBM program is that the I in ICBM stands for
intercontinental, which means having the capability to fly from
Iran to the United States, and we don't want that. That's why
we oppose ICBMs.''.
(15) Through recent ballistic missile launch tests the
Government of Iran has shown blatant disregard for
international laws and its intention to continue tests of that
nature throughout the implementation of the Joint Comprehensive
Plan of Action.
(16) The banking sector of Iran has facilitated the
financing of the ballistic missile programs in Iran and
evidence has not been provided that entities in that sector
have ceased facilitating the financing of those programs.
(17) Iran has been able to amass a large arsenal of
ballistic missiles through its illicit smuggling networks and
domestic manufacturing capabilities that have been supported
and maintained by Iran's Revolutionary Guard Corps and specific
sectors of the economy of Iran.
(18) Penetration by Iran's Revolutionary Guard Corps into
the economy of Iran is well documented including investments in
the construction, automotive, telecommunications, electronics,
mining, metallurgy, and petrochemical sectors of the economy of
Iran.
(19) Items procured through sectors of Iran specified in
paragraph (18) have dual use applications that are currently
being used to create ballistic missiles in Iran and will
continue to be a source of materials for the creation of future
weapons.
(20) In order to curb future illicit activity by Iran, the
Government of the United States and the international community
must take action against persons that facilitate and profit
from the illegal acquisition of ballistic missile parts and
technology in support of the missile programs of Iran.
SEC. 302. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) the ballistic missile program of Iran represents a
serious threat to allies of the United States in the Middle
East and Europe, members of the Armed Forces deployed in the
those regions, and ultimately the United States;
(2) the testing and production by Iran of ballistic
missiles capable of carrying a nuclear device is a clear
violation of United Nations Security Council Resolution 2231
(2015), which was unanimously adopted by the international
community;
(3) Iran is using its space launch program to develop the
capabilities necessary to deploy an intercontinental ballistic
missile that could threaten the United States, and the Director
of National Intelligence has assessed that Iran would use
ballistic missiles as its ``preferred method of delivering
nuclear weapons''; and
(4) the Government of the United States should impose tough
primary and secondary sanctions against any sector of the
economy of Iran or any Iranian person that directly or
indirectly supports the ballistic missile program of Iran as
well as any foreign person or financial institution that
engages in transactions or trade that support that program.
SEC. 303. EXPANSION OF SANCTIONS WITH RESPECT TO EFFORTS BY IRAN TO
ACQUIRE BALLISTIC MISSILE AND RELATED TECHNOLOGY.
(a) Certain Persons.--Section 1604(a) of the Iran-Iraq Arms Non-
Proliferation Act of 1992 (Public Law 102-484; 50 U.S.C. 1701 note) is
amended by inserting ``, to acquire ballistic missile or related
technology,'' after ``nuclear weapons''.
(b) Foreign Countries.--Section 1605(a) of the Iran-Iraq Arms Non-
Proliferation Act of 1992 (Public Law 102-484; 50 U.S.C. 1701 note) is
amended, in the matter preceding paragraph (1), by inserting ``, to
acquire ballistic missile or related technology,'' after ``nuclear
weapons''.
SEC. 304. IMPOSITION OF SANCTIONS WITH RESPECT TO BALLISTIC MISSILE
PROGRAM OF IRAN.
(a) In General.--Title II of the Iran Threat Reduction and Syria
Human Rights Act of 2012 (22 U.S.C. 8721 et seq.) is amended by adding
at the end the following:
``Subtitle C--Measures Relating to Ballistic Missile Program of Iran
``SEC. 231. DEFINITIONS.
``(a) In General.--In this subtitle:
``(1) Agricultural commodity.--The term `agricultural
commodity' has the meaning given that term in section 102 of
the Agricultural Trade Act of 1978 (7 U.S.C. 5602).
``(2) Appropriate committees of congress.--The term
`appropriate committees of Congress' means--
``(A) the committees specified in section 14(2) of
the Iran Sanctions Act of 1996 (Public Law 104-172; 50
U.S.C. 1701 note); and
``(B) the congressional defense committees, as
defined in section 101 of title 10, United States Code.
``(3) Correspondent account; payable-through account.--The
terms `correspondent account' and `payable-through account'
have the meanings given those terms in section 5318A of title
31, United States Code.
``(4) Foreign financial institution.--The term `foreign
financial institution' has the meaning of that term as
determined by the Secretary of the Treasury pursuant to section
104(i) of the Comprehensive Iran Sanctions, Accountability, and
Divestment Act of 2010 (22 U.S.C. 8513(i)).
``(5) Good.--The term `good' has the meaning given that
term in section 16 of the Export Administration Act of 1979 (50
U.S.C. 4618) (as continued in effect pursuant to the
International Emergency Economic Powers Act (50 U.S.C. 1701 et
seq.)).
``(6) Government.--The term `Government', with respect to a
foreign country, includes any agencies or instrumentalities of
that Government and any entities controlled by that Government.
``(7) Medical device.--The term `medical device' has the
meaning given the term `device' in section 201 of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 321).
``(8) Medicine.--The term `medicine' has the meaning given
the term `drug' in section 201 of the Federal Food, Drug, and
Cosmetic Act (21 U.S.C. 321).
``(b) Determinations of Significance.--For purposes of this
subtitle, in determining if financial transactions or financial
services are significant, the President may consider the totality of
the facts and circumstances, including factors similar to the factors
set forth in section 561.404 of title 31, Code of Federal Regulations
(or any corresponding similar regulation or ruling).
``SEC. 232. IMPOSITION OF SANCTIONS WITH RESPECT TO PERSONS THAT
SUPPORT THE BALLISTIC MISSILE PROGRAM OF IRAN.
``(a) Identification of Persons.--
``(1) In general.--Not later than 120 days after the date
of the enactment of the Iran Nonnuclear Sanctions Act of 2017,
and not less frequently than once every 180 days thereafter,
the President shall, in coordination with the Secretary of
Defense, the Director of National Intelligence, the Secretary
of the Treasury, and the Secretary of State, submit to the
appropriate committees of Congress a report identifying persons
that have knowingly aided the Government of Iran in the
development of the ballistic missile program of Iran.
``(2) Elements.--Each report required by paragraph (1)
shall include the following:
``(A) An identification of persons (disaggregated
by Iranian and non-Iranian persons) that have knowingly
aided the Government of Iran in the development of the
ballistic missile program of Iran, including persons
that have--
``(i) knowingly engaged in the direct or
indirect provision of material support to such
program;
``(ii) knowingly facilitated, supported, or
engaged in activities to further the
development of such program;
``(iii) knowingly transmitted information
relating to ballistic missiles to the
Government of Iran; or
``(iv) otherwise knowingly aided such
program.
``(B) A description of the character and
significance of the cooperation of each person
identified under subparagraph (A) with the Government
of Iran with respect to such program.
``(C) An assessment of the cooperation of the
Government of the Democratic People's Republic of Korea
with the Government of Iran with respect to such
program.
``(3) Classified annex.--Each report required by paragraph
(1) shall be submitted in unclassified form, but may contain a
classified annex.
``(b) Blocking of Property.--
``(1) In general.--Not later than 15 days after submitting
a report required by subsection (a)(1), the President shall, in
accordance with the International Emergency Economic Powers Act
(50 U.S.C. 1701 et seq.), block and prohibit all transactions
in all property and interests in property of any person
specified in such report 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.
``(2) Inapplicability of national emergency requirement.--
The requirements under section 202 of the International
Emergency Economic Powers Act (50 U.S.C. 1701) shall not apply
for purposes of this subsection.
``(c) Exclusion From United States.--
``(1) In general.--Except as provided in paragraph (2), the
Secretary of State shall deny a visa to, and the Secretary of
Homeland Security shall exclude from the United States, any
alien subject to blocking of property and interests in property
under subsection (b).
``(2) Compliance with united nations headquarters
agreement.--Paragraph (1) shall not apply to the head of state
of Iran, or necessary staff of that head of state, if admission
to the United States is necessary to permit the United States
to comply with the Agreement regarding the Headquarters of the
United Nations, signed at Lake Success June 26, 1947, and
entered into force November 21, 1947, between the United
Nations and the United States.
``(d) Facilitation of Certain Transactions.--The President shall
prohibit the opening, and prohibit or impose strict conditions on the
maintaining, in the United States of a correspondent account or a
payable-through account by a foreign financial institution that the
President determines knowingly, on or after the date that is 180 days
after the date of the enactment of the Iran Nonnuclear Sanctions Act of
2017, conducts or facilitates a significant financial transaction for a
person subject to blocking of property and interests in property under
subsection (b).
``SEC. 233. BLOCKING OF PROPERTY OF PERSONS AFFILIATED WITH CERTAIN
IRANIAN ENTITIES.
``(a) Blocking of Property.--
``(1) In general.--The President shall, in accordance with
the International Emergency Economic Powers Act (50 U.S.C. 1701
et seq.), block and prohibit all transactions in all property
and interests in property of any person described in paragraph
(3) 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.
``(2) Inapplicability of national emergency requirement.--
The requirements under section 202 of the International
Emergency Economic Powers Act (50 U.S.C. 1701) shall not apply
for purposes of this subsection.
``(3) Persons described.--A person described in this
paragraph is--
``(A) an entity that is owned, directly or
indirectly, by a 25 percent or greater interest--
``(i) by the Aerospace Industries
Organization, the Shahid Hemmat Industrial
Group, the Shahid Bakeri Industrial Group, or
any agent or affiliate of such organization or
group; or
``(ii) collectively by a group of
individuals that hold an interest in the
Aerospace Industries Organization, the Shahid
Hemmat Industrial Group, the Shahid Bakeri
Industrial Group, or any agent or affiliate of
such organization or group, even if none of
those individuals hold a 25 percent or greater
interest in the entity;
``(B) a person that controls, manages, or directs
an entity described in subparagraph (A); or
``(C) an individual who is on the board of
directors of an entity described in subparagraph (A).
``(b) Facilitation of Certain Transactions.--The President shall
prohibit the opening, and prohibit or impose strict conditions on the
maintaining, in the United States of a correspondent account or a
payable-through account by a foreign financial institution that the
President determines knowingly, on or after the date that is 180 days
after the date of the enactment of the Iran Nonnuclear Sanctions Act of
2017, conducts or facilitates a significant financial transaction for a
person subject to blocking of property and interests in property under
subsection (a).
``(c) Iran Missile Proliferation Watch List.--
``(1) In general.--Not later than 90 days after the date of
the enactment of the Iran Nonnuclear Sanctions Act of 2017, and
not less frequently than annually thereafter, the Secretary of
the Treasury shall submit to the appropriate committees of
Congress and publish in the Federal Register a list of--
``(A) each entity in which the Aerospace Industries
Organization, the Shahid Hemmat Industrial Group, the
Shahid Bakeri Industrial Group, or any agent or
affiliate of such organization or group has an
ownership interest of more than 0 percent and less than
25 percent;
``(B) each entity in which the Aerospace Industries
Organization, the Shahid Hemmat Industrial Group, the
Shahid Bakeri Industrial Group, or any agent or
affiliate of such organization or group does not have
an ownership interest but maintains a presence on the
board of directors of the entity or otherwise
influences the actions, policies, or personnel
decisions of the entity; and
``(C) each person that controls, manages, or
directs an entity described in subparagraph (A) or (B).
``(2) Reference.--The list required by paragraph (1) may be
referred to as the `Iran Missile Proliferation Watch List'.
``(d) Comptroller General Report.--
``(1) In general.--The Comptroller General of the United
States shall--
``(A) conduct a review of each list required by
subsection (c)(1); and
``(B) not later than 60 days after each such list
is submitted to the appropriate committees of Congress
under that subsection, submit to the appropriate
committees of Congress a report on the review conducted
under subparagraph (A) that includes a list of persons
not included in that list that qualify for inclusion in
that list, as determined by the Comptroller General.
``(2) Consultations.--In preparing the report required by
paragraph (1)(B), the Comptroller General shall consult with
nongovernmental organizations.
``SEC. 234. IMPOSITION OF SANCTIONS WITH RESPECT TO CERTAIN PERSONS
INVOLVED IN BALLISTIC MISSILE ACTIVITIES.
``(a) Certification.--Not later than 120 days after the date of the
enactment of the Iran Nonnuclear Sanctions Act of 2017, and not less
frequently than once every 180 days thereafter, the President shall
submit to the appropriate committees of Congress a certification that
each person listed in an annex of United Nations Security Council
Resolution 1737 (2006), 1747 (2007), or 1929 (2010) is not directly or
indirectly facilitating, supporting, or involved with the development
of or transfer to Iran of ballistic missiles or technology, parts,
components, or technology information relating to ballistic missiles.
``(b) Blocking of Property.--
``(1) In general.--If the President is unable to make a
certification under subsection (a) with respect to a person and
the person is not currently subject to sanctions with respect
to Iran under any other provision of law, the President shall,
not later than 15 days after that certification would have been
required under that subsection--
``(A) in accordance with the International
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.),
block and prohibit all transactions in all property and
interests in property of that person 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;
and
``(B) publish in the Federal Register a report
describing the reason why the President was unable to
make a certification with respect to that person.
``(2) Inapplicability of national emergency requirement.--
The requirements under section 202 of the International
Emergency Economic Powers Act (50 U.S.C. 1701) shall not apply
for purposes of this subsection.
``(c) Exclusion From United States.--
``(1) In general.--Except as provided in paragraph (2), the
Secretary of State shall deny a visa to, and the Secretary of
Homeland Security shall exclude from the United States, any
alien subject to blocking of property and interests in property
under subsection (b).
``(2) Compliance with united nations headquarters
agreement.--Paragraph (1) shall not apply to the head of state
of Iran, or necessary staff of that head of state, if admission
to the United States is necessary to permit the United States
to comply with the Agreement regarding the Headquarters of the
United Nations, signed at Lake Success June 26, 1947, and
entered into force November 21, 1947, between the United
Nations and the United States.
``(d) Facilitation of Certain Transactions.--The President shall
prohibit the opening, and prohibit or impose strict conditions on the
maintaining, in the United States of a correspondent account or a
payable-through account by a foreign financial institution that the
President determines knowingly, on or after the date that is 180 days
after the date of the enactment of the Iran Nonnuclear Sanctions Act of
2017, conducts or facilitates a significant financial transaction for a
person subject to blocking of property and interests in property under
subsection (b).
``SEC. 235. IMPOSITION OF SANCTIONS WITH RESPECT TO CERTAIN SECTORS OF
IRAN THAT SUPPORT THE BALLISTIC MISSILE PROGRAM OF IRAN.
``(a) List of Sectors.--
``(1) In general.--Not later than 120 days after the date
of the enactment of the Iran Nonnuclear Sanctions Act of 2017,
and not less frequently than once every 180 days thereafter,
the President shall submit to the appropriate committees of
Congress and publish in the Federal Register a list of the
sectors of the economy of Iran that are directly or indirectly
facilitating, supporting, or involved with the development of
or transfer to Iran of ballistic missiles or technology, parts,
components, or technology information relating to ballistic
missiles.
``(2) Certain sectors.--
``(A) In general.--Not later than 120 days after
the date of enactment of the Iran Nonnuclear Sanctions
Act of 2017, the President shall submit to the
appropriate committees of Congress a determination as
to whether each of the automotive, chemical, computer
science, construction, electronic, energy, metallurgy,
mining, petrochemical, research (including universities
and research institutions), and telecommunications
sectors of Iran meet the criteria specified in
paragraph (1).
``(B) Inclusion in initial list.--If the President
determines under subparagraph (A) that the sectors of
the economy of Iran specified in such subparagraph meet
the criteria specified in paragraph (1), that sector
shall be included in the initial list submitted and
published under that paragraph.
``(b) Sanctions With Respect to Specified Sectors of Iran.--
``(1) Blocking of property.--
``(A) In general.--The President shall, in
accordance with the International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.), block and prohibit
all transactions in all property and interests in
property of any person described in paragraph (4) 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.
``(B) Inapplicability of national emergency
requirement.--The requirements under section 202 of the
International Emergency Economic Powers Act (50 U.S.C.
1701) shall not apply for purposes of this paragraph.
``(2) Exclusion from united states.--
``(A) In general.--Except as provided in
subparagraph (B), the Secretary of State shall deny a
visa to, and the Secretary of Homeland Security shall
exclude from the United States, any alien that is a
person described in paragraph (4).
``(B) Compliance with united nations headquarters
agreement.--Subparagraph (A) shall not apply to the
head of state of Iran, or necessary staff of that head
of state, if admission to the United States is
necessary to permit the United States to comply with
the Agreement regarding the Headquarters of the United
Nations, signed at Lake Success June 26, 1947, and
entered into force November 21, 1947, between the
United Nations and the United States.
``(3) Facilitation of certain transactions.--Except as
provided in this section, the President shall prohibit the
opening, and prohibit or impose strict conditions on the
maintaining, in the United States of a correspondent account or
a payable-through account by a foreign financial institution
that the President determines knowingly, on or after the date
that is 180 days after the date of the enactment of the Iran
Nonnuclear Sanctions Act of 2017, conducts or facilitates a
significant financial transaction for a person described in
paragraph (4).
``(4) Persons described.--A person is described in this
paragraph if the President determines that the person, on or
after the date that is 180 days after the date of the enactment
of the Iran Nonnuclear Sanctions Act of 2017--
``(A) operates in a sector of the economy of Iran
included in the most recent list published by the
President under subsection (a);
``(B) knowingly provides significant financial,
material, technological, or other support to, or goods
or services in support of, any activity or transaction
on behalf of or for the benefit of a person described
in subparagraph (A); or
``(C) is owned or controlled by a person described
in subparagraph (A).
``(c) Humanitarian Exception.--The President may not impose
sanctions under this section with respect to any person for conducting
or facilitating 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.
``SEC. 236. IDENTIFICATION OF FOREIGN PERSONS THAT SUPPORT THE
BALLISTIC MISSILE PROGRAM OF IRAN IN CERTAIN SECTORS OF
IRAN.
``(a) In General.--Not later than 120 days after the date of the
enactment of the Iran Nonnuclear Sanctions Act of 2017, and not less
frequently than annually thereafter, the President shall submit to the
appropriate committees of Congress and publish in the Federal Register
a list of all foreign persons that have, based on credible information,
directly or indirectly facilitated, supported, or been involved with
the development of ballistic missiles or technology, parts, components,
or technology information related to ballistic missiles in the
following sectors of the economy of Iran during the period specified in
subsection (b):
``(1) Automotive.
``(2) Chemical.
``(3) Computer Science.
``(4) Construction.
``(5) Electronic.
``(6) Energy.
``(7) Metallurgy.
``(8) Mining.
``(9) Petrochemical.
``(10) Research (including universities and research
institutions).
``(11) Telecommunications.
``(12) Any other sector of the economy of Iran identified
under section 235(a).
``(b) Period Specified.--The period specified in this subsection
is--
``(1) with respect to the first list submitted under
subsection (a), the period beginning on the date of the
enactment of the Iran Nonnuclear Sanctions Act of 2017 and
ending on the date that is 120 days after such date of
enactment; and
``(2) with respect to each subsequent list submitted under
such subsection, the 1-year period preceding the submission of
the list.
``(c) Comptroller General Report.--
``(1) In general.--With respect to each list submitted
under subsection (a), not later than 120 days after the list is
submitted under that subsection, the Comptroller General of the
United States shall submit to the appropriate committees of
Congress--
``(A) an assessment of the processes followed by
the President in preparing the list;
``(B) an assessment of the foreign persons included
in the list; and
``(C) a list of persons not included in the list
that qualify for inclusion in the list, as determined
by the Comptroller General.
``(2) Consultations.--In preparing the report required by
paragraph (1), the Comptroller General shall consult with
nongovernmental organizations.
``(d) Credible Information Defined.--In this section, the term
`credible information' has the meaning given that term in section 14 of
the Iran Sanctions Act of 1996 (Public Law 104-172; 50 U.S.C. 1701
note).''.
(b) Clerical Amendment.--The table of contents for the Iran Threat
Reduction and Syria Human Rights Act of 2012 is amended by inserting
after the item relating to section 224 the following:
``Subtitle C--Measures Relating to Ballistic Missile Program of Iran
``Sec. 231. Definitions.
``Sec. 232. Imposition of sanctions with respect to persons that
support the ballistic missile program of
Iran.
``Sec. 233. Blocking of property of persons affiliated with certain
Iranian entities.
``Sec. 234. Imposition of sanctions with respect to certain persons
involved in ballistic missile activities.
``Sec. 235. Imposition of sanctions with respect to certain sectors of
Iran that support the ballistic missile
program of Iran.
``Sec. 236. Identification of foreign persons that support the
ballistic missile program of Iran in
certain sectors of Iran.''.
SEC. 305. EXPANSION OF MANDATORY SANCTIONS WITH RESPECT TO FINANCIAL
INSTITUTIONS THAT ENGAGE IN CERTAIN TRANSACTIONS RELATING
TO BALLISTIC MISSILE CAPABILITIES OF IRAN.
Section 104 of the Comprehensive Iran Sanctions, Accountability,
and Divestment Act of 2010 (22 U.S.C. 8513) is amended--
(1) in subsection (c)(2)--
(A) in subparagraph (A)--
(i) in clause (i), by striking ``; or'' and
inserting a semicolon;
(ii) by redesignating clause (ii) as clause
(iii); and
(iii) by inserting after clause (i) the
following:
``(ii) to acquire or develop ballistic
missiles and capabilities and launch technology
relating to ballistic missiles; or''; and
(B) in subparagraph (E)(ii)--
(i) in subclause (I), by striking ``; or''
and inserting a semicolon;
(ii) by redesignating subclause (II) as
subclause (III); and
(iii) by inserting after subclause (I) the
following:
``(II) Iran's development of
ballistic missiles and capabilities and
launch technology relating to ballistic
missiles; or''; and
(2) in subsection (f)--
(A) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and moving
those subparagraphs, as so redesignated, two ems to the
right;
(B) by striking ``Waiver.--The'' and inserting
``Waiver.--
``(1) In general.--Except as provided in paragraph (2),
the''; and
(C) by adding at the end the following:
``(2) Exception.--The Secretary of the Treasury may not
waive under paragraph (1) the application of a prohibition or
condition imposed with respect to an activity described in
subparagraph (A)(ii) or (E)(ii)(II) of subsection (c)(2).''.
SEC. 306. DISCLOSURE TO THE SECURITIES AND EXCHANGE COMMISSION OF
ACTIVITIES WITH CERTAIN SECTORS OF IRAN THAT SUPPORT THE
BALLISTIC MISSILE PROGRAM OF IRAN.
(a) In General.--Section 13(r)(1) of the Securities Exchange Act of
1934 (15 U.S.C. 78m(r)(1)) is amended--
(1) in subparagraph (C), by striking ``; or'' and inserting
a semicolon;
(2) by redesignating subparagraph (D) as subparagraph (E);
and
(3) by inserting after subparagraph (C) the following:
``(D) knowingly engaged in any activity for which
sanctions may be imposed under section 235 of the Iran
Threat Reduction and Syria Human Rights Act of 2012;''.
(b) Investigations.--Section 13(r)(5)(A) of the Securities Exchange
Act of 1934 is amended by striking ``an Executive order specified in
clause (i) or (ii) of paragraph (1)(D)'' and inserting ``section 235 of
the Iran Threat Reduction and Syria Human Rights Act of 2012, an
Executive order specified in clause (i) or (ii) of paragraph (1)(E)''.
(c) Conforming Amendment.--Section 13(r)(5) of the Securities
Exchange Act of 1934 is amended, in the matter preceding subparagraph
(A), by striking ``subparagraph (D)(iii)'' and inserting ``subparagraph
(E)(iii)''.
(d) Effective Date.--The amendments made by this section shall take
effect with respect to reports required to be filed with the Securities
and Exchange Commission after the date that is 180 days after the date
of the enactment of this Act.
SEC. 307. REGULATIONS.
Not later than 90 days after the date of the enactment of this Act,
the President shall prescribe regulations to carry out this title and
the amendments made by this title.
TITLE IV--SANCTIONS WITH RESPECT TO CERTAIN IRANIAN TRANSACTIONS
Subtitle A--Sanctions Relating to Iran's Support of Terrorism
SEC. 401. FINDINGS.
Congress makes the following findings:
(1) The Financial Action Task Force, an intergovernmental
body the purpose of which is to develop and promote national
and international policies to combat money laundering and
terrorist financing--
(A) has noted it is concerned about Iran's failure
to address the risk of terrorist financing and serious
threat that failure poses to the integrity of the
international financial system;
(B) since February 25, 2009, has called on its
members and urged all jurisdictions to apply
countermeasures against Iran to protect financial
sectors from money laundering and financing of
terrorism risks emanating from Iran; and
(C) states that it ``urges jurisdictions to protect
against correspondent relationships being used to
bypass or evade countermeasures and risk mitigation
practices and to take into account [money laundering
and terrorist financing (ML/FT)] risks when considering
requests by Iranian financial institutions to open
branches and subsidiaries in their jurisdiction. Due to
the continuing terrorist financing threat emanating
from Iran, jurisdictions should consider the steps
already taken and possible additional safeguards or
strengthen existing ones.''.
(2) The Financial Action Task Force renewed its call for
countermeasures on February 19, 2016, and called on Iran to
address its deficiencies with respect to measures countering
money laundering and terrorist financing.
(3) The Financial Crimes Enforcement Network of the
Department of the Treasury on November 25, 2011, issued a
notice of finding that Iran is a jurisdiction of primary money
laundering concern pursuant to section 5318A of title 31,
United States Code.
(4) The Financial Crimes Enforcement Network on November
28, 2011, issued a notice of proposed rulemaking that stated
the intent to impose special measures against Iran under that
section.
(5) Section 1245 of the National Defense Authorization Act
for Fiscal Year 2012 (22 U.S.C. 8513a) designated the financial
sector of Iran as a primary money laundering concern, but did
not impose special measures pursuant to that designation.
SEC. 402. SPECIAL MEASURES WITH RESPECT TO IRAN RELATING TO ITS
DESIGNATION AS A JURISDICTION OF PRIMARY MONEY LAUNDERING
CONCERN.
(a) Prohibition on Direct Use of Correspondent Accounts.--A covered
financial institution shall terminate any correspondent account that--
(1) is established, maintained, administered, or managed in
the United States for, or on behalf of, an Iranian banking
institution; and
(2) is not blocked under any Executive order issued
pursuant to the International Emergency Economic Powers Act (50
U.S.C. 1701 et seq.).
(b) Special Due Diligence Measures for Correspondent Accounts.--
(1) In general.--A covered financial institution shall
apply special due diligence measures to correspondent accounts
of the financial institution that are reasonably designed to
guard against the improper indirect use of such accounts by
Iranian banking institutions.
(2) Requirements.--The special due diligence measures a
covered financial institution is required to apply to
correspondent accounts under paragraph (1) shall include, at a
minimum--
(A) notifying the holders of such accounts that the
covered financial institution knows or has reason to
know provide services to Iranian banking institutions,
that such holders generally may not provide Iranian
banking institutions with access to such accounts; and
(B) taking reasonable steps to identify any
indirect use of such accounts by Iranian banking
institutions, to the extent that such indirect use can
be determined from transactional records maintained by
the covered financial institution in the normal course
of business.
(3) Risk-based approach.--A covered financial institution
shall take a risk-based approach when deciding what, if any,
other due diligence measures the financial institution should
adopt to guard against the improper indirect use of its
correspondent accounts by Iranian banking institutions.
(4) Response to indirect access by iranian banking
institutions.--A covered financial institution that obtains
credible information that a correspondent account is being used
by a foreign bank to provide indirect access to an Iranian
banking institution, shall--
(A) take all appropriate steps to prevent such
indirect access, including notifying the holder of the
account under paragraph (2)(A); and
(B) if necessary, terminate the account.
(c) Recordkeeping and Reporting.--
(1) In general.--A covered financial institution shall
document its compliance with the notice requirement set forth
in subsection (b)(2)(A).
(2) Rule of construction.--Nothing in this section shall
require a covered financial institution to report any
information not otherwise required to be reported by law or
regulation.
(d) Termination.--This section shall terminate on the date that is
30 days after the date on which the President submits to Congress--
(1) the certification described in section 401(a) of the
Comprehensive Iran Sanctions, Accountability, and Divestment
Act of 2010 (22 U.S.C. 8551(a)); and
(2) a certification that the Financial Action Task Force
has lifted its call for countermeasures against Iran and Iran
has become a member of a regional body of the Financial Action
Task Force.
(e) Definitions.--In this section:
(1) Correspondent account.--The term ``correspondent
account'' has the meaning given that term in section 1010.605
of title 31, Code of Federal Regulations (as in effect on the
day before the date of the enactment of this Act).
(2) Covered financial institution.--The term ``covered
financial institution'' has the meaning given that term under
paragraphs (1) and (2) of section 1010.605(e) of title 31, Code
of Federal Regulations (as in effect on the day before the date
of the enactment of this Act).
(3) Foreign bank.--The term ``foreign bank'' has the
meaning given that term in section 1010.100(u) of title 31,
Code of Federal Regulations (as in effect on the day before the
date of the enactment of this Act).
(4) Iranian banking institution.--The term ``Iranian
banking institution'' means--
(A) any foreign bank chartered by Iran, including--
(i) any branches, offices, or subsidiaries
of such a bank operating in any jurisdiction;
and
(ii) any branch or office within Iran of
any foreign bank licensed by Iran;
(B) the Central Bank of Iran; and
(C) any foreign bank of which more than 50 percent
of the voting stock or analogous interest is owned by
two or more foreign banks chartered by Iran.
Subtitle B--Prohibition on and Other Sanctions Relating to Transactions
With Iran
SEC. 411. PROHIBITION ON FACILITATION OF CERTAIN TRANSACTIONS INVOLVING
THE GOVERNMENT OF IRAN OR IRANIAN PERSONS.
(a) In General.--The President shall not issue any license under
the International Emergency Economic Powers Act (50 U.S.C. 1701 et
seq.) that permits a person--
(1) to conduct an offshore United States dollar clearing
system for transactions involving the Government of Iran or an
Iranian person; or
(2) to provide United States dollars for any offshore
United States dollar clearing system conducted or overseen by a
foreign government or a foreign financial institution for
transactions involving the Government of Iran or an Iranian
person.
(b) Foreign Financial Institution Defined.--In this section, the
term ``foreign financial institution'' has the meaning of that term as
determined by the Secretary of the Treasury pursuant to section 104(i)
of the Comprehensive Iran Sanctions, Accountability, and Divestment Act
of 2010 (22 U.S.C. 8513(i)).
SEC. 412. REPORTS ON, AND AUTHORIZATION OF IMPOSITION OF SANCTIONS WITH
RESPECT TO, OFFSHORE UNITED STATES DOLLAR CLEARING FOR
TRANSACTIONS INVOLVING THE GOVERNMENT OF IRAN OR IRANIAN
PERSONS.
(a) Reports Required.--
(1) In general.--Not later than 60 days after the date of
the enactment of this Act, and not less frequently than once
every 90 days thereafter, the Secretary of the Treasury shall
submit to the appropriate congressional committees and publish
in the Federal Register a report that contains--
(A) a list of any financial institutions that the
Secretary has identified as--
(i) operating an offshore United States
dollar clearing system that conducts
transactions involving the Government of Iran
or an Iranian person; or
(ii) participating in a transaction
described in clause (i) through a system
described in that clause; and
(B) a detailed assessment of the status of efforts
by the Secretary to prevent the conduct of transactions
described in subparagraph (A)(i) through systems
described in that subparagraph.
(2) Form of report.--Each report submitted under paragraph
(1) shall be submitted in unclassified form but may contain a
classified annex.
(b) Imposition of Sanctions.--
(1) In general.--The President shall, in accordance with
the International Emergency Economic Powers Act (50 U.S.C. 1701
et seq.), block and prohibit all transactions in all property
and interests in property of any financial institution
specified in the most recent list submitted under subsection
(a)(1)(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.
(2) Additional sanctions.--The President may impose
additional sanctions under the International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.) with respect to a financial
institution that is subject to sanctions under paragraph (1).
(c) Appropriate Congressional Committees Defined.--In this section,
the term ``appropriate congressional committees'' has the meaning given
that term in section 14 of the Iran Sanctions Act of 1996 (Public Law
104-172; 50 U.S.C. 1701 note).
SEC. 413. CLARIFICATION THAT FREEZING OF ASSETS OF IRANIAN FINANCIAL
INSTITUTIONS INCLUDES ASSETS IN POSSESSION OR CONTROL OF
A UNITED STATES PERSON PURSUANT TO A U-TURN TRANSACTION.
Section 1245(c) of the National Defense Authorization Act for
Fiscal Year 2012 (22 U.S.C. 8513a(c)) is amended--
(1) by striking ``The President'' and inserting ``(1) In
general.--The President''; and
(2) by adding at the end the following:
``(2) Treatment of certain transactions.--
``(A) U-turn transactions.--Property that comes
within the possession or control of a United States
person pursuant to a transfer of funds that arises
from, and is ordinarily incident and necessary to give
effect to, an underlying transaction shall be
considered to come within the possession or control of
that person for purposes of paragraph (1).
``(B) Book transfers.--A transfer of funds or other
property for the benefit of an Iranian financial
institution that is made between accounts of the same
financial institution shall be considered property or
interests in property of that Iranian financial
institution for purposes of paragraph (1) even if that
Iranian financial institution is not the direct
recipient of the transfer.''.
TITLE V--MISCELLANEOUS
SEC. 501. MODIFICATION OF REQUIREMENTS RELATING TO STATE SPONSORS OF
TERRORISM.
(a) Requirement To Comply With All Provisions of Law Relating to
State Sponsors of Terrorism.--In making a determination to rescind the
designation of a country as a state sponsor of terrorism, the President
shall comply with all requirements under this Act, section 620A of the
Foreign Assistance Act of 1961 (22 U.S.C. 2371), section 40 of the Arms
Export Control Act (22 U.S.C. 2780), section 6(j) of the Export
Administration Act of 1979 (50 U.S.C. 4605(j)) (as in effect pursuant
to the International Emergency Economic Powers Act (50 U.S.C. 1701 et
seq.)), and any other provision of law relating to countries the
governments of which provide support for acts of international
terrorism, with respect to the rescission.
(b) Additional Requirements for Removal.--
(1) In general.--Not later than 15 days before the
President submits to Congress a report under section 620A(c) of
the Foreign Assistance Act of 1961 (22 U.S.C. 2371(c)), section
40(f) of the Arms Export Control Act (22 U.S.C. 2780(f)), or
section 6(j) of the Export Administration Act of 1979 (50
U.S.C. 4605(j)) (as in effect pursuant to the International
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.))
relating to the rescission of the designation of a country as a
state sponsor of terrorism, the President shall submit to the
Speaker of the House of Representatives, the minority leader of
the House, the majority leader of the Senate, the minority
leader of the Senate, and the appropriate congressional
committees a report certifying that--
(A) the government of the country does not provide
safe haven or assistance of any kind to terrorists or
other violent fugitives from other countries;
(B) the Secretary of State and the Director of
National Intelligence agree that the government of the
country has ceased all support, directly or indirectly,
to any terrorist or terrorist organization, including
public statements of support for any such terrorist or
terrorist organization during the 36-month period
immediately preceding the submission of the report;
(C) the government of the country has not provided
direct or indirect support to another country on the
state sponsor of terrorism list during that 36-month
period;
(D) the government of the country has not unjustly
detained during that 36-month period, and is not
unjustly detaining on the date of the report, United
States citizens, including dual citizens; and
(E) there has been a fundamental change in the
leadership and policies of the government of the
country.
(2) Form of report.--Each report described in paragraph (1)
shall be submitted in unclassified form, but may include a
classified annex if necessary.
(c) Extended Period Before Removal From List Takes Effect.--
(1) Foreign assistance act of 1961.--Section 620A(c)(2) of
the Foreign Assistance Act of 1961 (22 U.S.C. 2371(c)(2)) is
amended in the matter preceding subparagraph (A) by striking
``45 days'' and inserting ``180 days''.
(2) Arms export control act.--Section 40(f)(1)(B) of the
Arms Export Control Act (22 U.S.C. 2780(f)(1)(B)) is amended in
the matter preceding clause (i) by striking ``45 days'' and
inserting ``180 days''.
(3) Export administration act of 1979.--Section 6(j)(4)(B)
of the Export Administration Act of 1979 (50 U.S.C.
4605(j)(4)(B)) (as in effect pursuant to the International
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.)) shall
be applied and administered by substituting ``180 days'' for
``45 days''.
(d) Resolution of Disapproval.--
(1) In general.--The rescission of the designation of a
country as a state sponsor of terrorism shall not become
effective if, during the 180-day period following the
submission of a report under section 620A(c) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2371(c)), section 40(f) of
the Arms Export Control Act (22 U.S.C. 2780(f)), or section
6(j) of the Export Administration Act of 1979 (50 U.S.C.
4605(j)) (as in effect pursuant to the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.)) relating to the
rescission, Congress enacts a joint resolution stating in
substance that the Congress disapproves the rescission.
(2) Procedures in the senate.--Any joint resolution
described paragraph (1) shall be considered in the Senate under
the procedures set forth in section 601 of the International
Security Assistance and Arms Export Control Act of 1976 (Public
Law 94-329; 90 Stat. 765) for consideration of joint
resolutions.
(3) Rules of senate.--Paragraph (2) is enacted by
Congress--
(A) as an exercise of the rulemaking power of the
Senate and as such is deemed a part of the rules of the
Senate, but applicable only with the respect to the
procedure to be followed in the Senate in the case of a
joint resolution described in paragraph (1), and
supersedes other rules only to the extent that it is
inconsistent with such rules; and
(B) with full recognition of the constitutional
right of the Senate to change the rules at any time, in
the same manner and to the same extent as in the case
of any other rule of the Senate.
(e) Redesignation of Countries Previously Designated as State
Sponsors of Terrorism.--During the 5-year period beginning on the date
on which the designation of the country as a state sponsor of terrorism
is rescinded, the President shall redesignate the country as a state
sponsor of terrorism upon the assessment of the Director of National
Intelligence that the government of the country has--
(1) directly or indirectly supported acts of international
terrorism;
(2) given direct or indirect support to a terrorist or
terrorist organization, including providing safe haven or
assistance to a terrorist or terrorist organization;
(3) given direct or indirect support to another country
designated as a state sponsor of terrorism; or
(4) provided direct or indirect support, training,
materials, or advice on nuclear, biological, or chemical
weapons or ballistic missile programs to another country
designated as a state sponsor of terrorism.
(f) Report.--
(1) In general.--The Director of National Intelligence
assessment referred to in subsection (e) shall be submitted in
a report to the President and the appropriate congressional
committees.
(2) Form of report.--The report required by paragraph (1)
shall be submitted in unclassified form, but may include a
classified annex if necessary.
(g) Definitions.--In this section:
(1) Appropriate congressional committees defined.--The term
``appropriate congressional committees'' means--
(A) the committees specified in section 14(2) of
the Iran Sanctions Act of 1996 (Public Law 104-172; 50
U.S.C. 1701 note);
(B) the Committee on Armed Services and the Select
Committee on Intelligence of the Senate; and
(C) the Committee on Armed Services and the
Permanent Select Committee on Intelligence of the House
of Representatives.
(2) State sponsor of terrorism.--The term ``state sponsor
of terrorism'' means any foreign country if the Secretary of
State has determined that the government of the country has
repeatedly provided support for acts of international terrorism
pursuant to--
(A) section 6(j)(1)(A) of the Export Administration
Act of 1979 (50 U.S.C. 4605(j)(1)(A)) (as in effect
pursuant to the International Emergency Economic Powers
Act (50 U.S.C. 1701 et seq.));
(B) section 40(d) of the Arms Export Control Act
(22 U.S.C. 2780(d));
(C) section 620A(a) of the Foreign Assistance Act
of 1961 (22 U.S.C. 2371(a)); or
(D) any other provision of law.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, Ways and Means, the Judiciary, Intelligence (Permanent Select), and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, Ways and Means, the Judiciary, Intelligence (Permanent Select), and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, Ways and Means, the Judiciary, Intelligence (Permanent Select), and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, Ways and Means, the Judiciary, Intelligence (Permanent Select), and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, Ways and Means, the Judiciary, Intelligence (Permanent Select), and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, Ways and Means, the Judiciary, Intelligence (Permanent Select), and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, Ways and Means, the Judiciary, Intelligence (Permanent Select), and Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Trade.