IB Union Calendar No. 296 114TH CONGRESS 2D SESSION H. R. 3662 [Report No. 114­393, Part I] To enhance congressional oversight over the administration of sanctions against certain Iranian terrorism financiers, and for other purposes. IN THE HOUSE OF REPRESENTATIVES OCTOBER 1, 2015 Mr. RUSSELL (for himself, Mr. BRAT, Mr. WESTERMAN, Mrs. BLACK, Mr. HURD of Texas, Mr. ROUZER, Mr. MEEHAN, Mr. YOHO, Mr. GRAVES of Louisiana, Mrs. BROOKS of Indiana, Mr. GRAVES of Missouri, Mr. HARDY, Mr. JODY B. HICE of Georgia, Mr. BURGESS, Mr. FITZPATRICK, Mr. DESJARLAIS, Mr. DESANTIS, Mr. GIBBS, Ms. JENKINS of Kansas, Mr. MESSER, and Mr. LOUDERMILK) introduced the following bill; which was referred to the Committee on Foreign Affairs, and in addition to the Committee on Financial Services, 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 JANUARY 11, 2016 Additional sponsors: Mr. ABRAHAM, Mr. WILSON of South Carolina, Mr. CURBELO of Florida, Mr. GIBSON, Mr. PALMER, Mrs. HARTZLER, Mr. ALLEN, Mr. BISHOP of Michigan, Mr. BOST, Mr. BUCSHON, Mr. NUNES, Mrs. WALORSKI, Mr. PERRY, Mr. MEADOWS, Mr. ZINKE, Mr. GOSAR, Mr. SESSIONS, Mr. WOMACK, Mr. LUCAS, Mr. GOODLATTE, Mr. BARLETTA, Ms. MCSALLY, Mrs. MCMORRIS RODGERS, Ms. STEFANIK, Mr. POSEY, Mr. LANCE, Mr. JOHNSON of Ohio, Mr. LAMALFA, Mr. ROSKAM, Mrs. BLACKBURN, Mr. CRAMER, Mr. DOLD, Mr. CHAFFETZ, Mr. CARTER of Georgia, Mr. COOK, Mr. BYRNE, Mr. FLORES, Mr. PEARCE, Mr. NEWHOUSE, Mr. JENKINS of West Virginia, Mr. THOMPSON of Pennsylvania, and Mr. POMPEO asabaliauskas on DSK5VPTVN1PROD with BILLS JANUARY 11, 2016 Reported from the Committee on Foreign Affairs VerDate Sep 11 2014 21:30 Jan 11, 2016 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H3662.RH H3662 2 JANUARY 11, 2016 The Committee on Financial Services discharged; committed to the Committee of the Whole House on the State of the Union and ordered to be printed A BILL To enhance congressional oversight over the administration of sanctions against certain Iranian terrorism financiers, and for other purposes. asabaliauskas on DSK5VPTVN1PROD with BILLS ·HR 3662 RH VerDate Sep 11 2014 21:30 Jan 11, 2016 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6652 E:\BILLS\H3662.RH H3662 3 1 Be it enacted by the Senate and House of Representa- 2 tives of the United States of America in Congress assembled, 3 4 SECTION 1. SHORT TITLE. This Act may be cited as the ``Iran Terror Finance 5 Transparency Act''. 6 7 8 9 10 11 SEC. 2. CERTIFICATION REQUIREMENT FOR REMOVAL OF FOREIGN FINANCIAL INSTITUTIONS, INCLUDING IRANIAN FINANCIAL INSTITUTIONS, FROM THE LIST OF SPECIALLY DESIGNATED NATIONALS AND BLOCKED PERSONS. (a) IN GENERAL.--On or after July 19, 2015, the 12 President may not remove a foreign financial institution, 13 including an Iranian financial institution, described in 14 subsection (b) from the list of specially designated nation15 als and blocked persons maintained by the Office of For16 eign Asset Control of the Department of the Treasury un17 less and until the President submits to the appropriate 18 congressional committees a certification described in sub19 section (c) with respect to the foreign financial institution. 20 (b) COVERED INSTITUTIONS.--A foreign financial in- 21 stitution, including an Iranian financial institution, de22 scribed in this subsection is a foreign financial institution 23 listed in Attachment 3 or Attachment 4 to Annex II of asabaliauskas on DSK5VPTVN1PROD with BILLS 24 the Joint Comprehensive Plan of Action. ·HR 3662 RH VerDate Sep 11 2014 21:30 Jan 11, 2016 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3662.RH H3662 4 1 (c) CERTIFICATION.--The President may remove a 2 foreign financial institution, including an Iranian financial 3 institution, described in subsection (b) from the list of spe4 cially designated nationals and blocked persons main5 tained by the Office of Foreign Asset Control of the De6 partment of the Treasury if the President submits to the 7 appropriate congressional committees a certification that 8 the foreign financial institution-- 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 asabaliauskas on DSK5VPTVN1PROD with BILLS (1) has not knowingly, directly or indirectly, facilitated a significant transaction or transactions or provided significant financial services for or on behalf of-- (A) Iran's Revolutionary Guard Corps or any of its agents or affiliates whose property or interests in property are blocked pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.); (B) a foreign terrorist organization for or on behalf of a person whose property or interests in property have been blocked pursuant to Executive Order 13224 (66 Fed. Reg. 49079; relating to blocking property and prohibiting transactions with persons who commit, threaten to commit, or support terrorism); and 24 ·HR 3662 RH VerDate Sep 11 2014 21:30 Jan 11, 2016 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3662.RH H3662 5 1 2 3 4 5 6 7 8 9 10 11 12 (C) a person whose property or interests in property are blocked pursuant to the International Emergency Economic Powers Act in connection with Iran's proliferation of weapons of mass destruction or delivery systems for weapons of mass destruction, or to further Iran's development of ballistic missiles and destabilizing types and amounts of conventional weapons; and (2) no longer knowingly engages in illicit or deceptive financial transactions or other activities. (d) FORM.--A certification described in subsection 13 (c) shall be submitted in unclassified form, but may con14 tain a classified annex. 15 16 17 18 19 20 21 22 23 asabaliauskas on DSK5VPTVN1PROD with BILLS (e) DEFINITIONS.--In this section: (1) FOREIGN FINANCIAL INSTITUTION.--The term ``foreign financial institution'' has the meaning given such term in section 1010.605 of title 31, Code of Federal Regulations. (2) FOREIGN TERRORIST ORGANIZATION.--The term ``foreign terrorist organization'' means any organization designated by the Secretary of State as a foreign terrorist organization in accordance with section 219(a) of the Immigration and Nationality Act (8 U.S.C. 1189(a)). 24 25 ·HR 3662 RH VerDate Sep 11 2014 21:30 Jan 11, 2016 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3662.RH H3662 6 1 2 3 4 5 6 7 8 9 10 (3) IRANIAN FINANCIAL INSTITUTION.--The term ``Iranian financial institution'' has the meaning given the term in section 104A(d)(3) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8513b(d)(3)). SEC. 3. CERTIFICATION REQUIREMENT FOR REMOVAL OF CERTAIN FOREIGN PERSONS FROM THE LIST OF SPECIALLY DESIGNATED NATIONALS AND BLOCKED PERSONS. (a) IN GENERAL.--On or after July 19, 2015, the 11 President may not remove a foreign person described in 12 subsection (b) from the list of specially designated nation13 als and blocked persons maintained by the Office of For14 eign Asset Control of the Department of the Treasury 15 until the President submits to the appropriate congres16 sional committees a certification described in subsection 17 (c) with respect to the foreign person. 18 (b) COVERED PERSONS AND ENTITIES.--A foreign 19 person described in this subsection is a foreign person list20 ed in Attachment 3 or Attachment 4 to Annex II of the 21 Joint Comprehensive Plan of Action. 22 asabaliauskas on DSK5VPTVN1PROD with BILLS (c) CERTIFICATION.--The President may remove a 23 foreign person described in subsection (b) from the list 24 of specially designated nationals and blocked persons 25 maintained by the Office of Foreign Asset Control of the ·HR 3662 RH VerDate Sep 11 2014 21:30 Jan 11, 2016 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H3662.RH H3662 7 1 Department of the Treasury if the President submits to 2 the appropriate congressional committees a certification 3 that the foreign person-- 4 5 6 7 8 9 10 11 12 13 14 15 16 (1) has not knowingly assisted in, sponsored, or provided financial, material, or technological support for, or financial or other services to or in support of terrorism or a terrorist organization; and (2) has not knowingly engaged in significant activities or transactions that have materially contributed to the Government of Iran's proliferation of weapons of mass destruction or their means of delivery (including missiles capable of delivering such weapons), including any efforts to manufacture, acquire, possess, develop, transport, transfer, or use such item. (d) FORM.--A certification described in subsection 17 (c) shall be submitted in unclassified form, but may con18 tain a classified annex. 19 20 21 22 23 asabaliauskas on DSK5VPTVN1PROD with BILLS (e) DEFINITIONS.--In this section: (1) FOREIGN son''-- (A) means-- (i) an individual who is not a United States person; PERSON.--The term ``foreign per- 24 ·HR 3662 RH VerDate Sep 11 2014 21:30 Jan 11, 2016 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3662.RH H3662 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 asabaliauskas on DSK5VPTVN1PROD with BILLS (ii) a corporation, partnership, or other nongovernmental entity which is not a United States person; or (iii) any representative, agent or instrumentality of, or an individual working on behalf of a foreign government; but (B) does not include a foreign financial institution, including an Iranian financial institution, described in section 2(b). (2) 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. 4. CERTIFICATION REQUIREMENT FOR REMOVAL OF DESIGNATION OF IRAN AS A JURISDICTION OF PRIMARY MONEY LAUNDERING CONCERN. (a) IN GENERAL.--The President may not remove 23 the designation of Iran as a jurisdiction of primary money 24 laundering concern pursuant to section 5318A of title 31, 25 United States Code, unless the President submits to the ·HR 3662 RH VerDate Sep 11 2014 21:30 Jan 11, 2016 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H3662.RH H3662 9 1 appropriate congressional committees a certification de2 scribed in subsection (b) with respect to Iran. 3 (b) CERTIFICATION.--The President may remove the 4 designation of Iran as a jurisdiction of primary money 5 laundering concern if the President submits to the appro6 priate congressional committees a certification that the 7 Government of Iran is no longer engaged in support for 8 terrorism, pursuit of weapons of mass destruction, and 9 any illicit and deceptive financial activities. 10 (c) FORM.--The certification described in subsection 11 (b) shall be submitted in unclassified form, but may con12 tain a classified annex. 13 (d) DEFINITION.--In this section, the term ``appro- 14 priate congressional committees'' means-- 15 16 17 18 19 20 21 22 23 asabaliauskas on DSK5VPTVN1PROD with BILLS (1) the Committee on Foreign Affairs and the Committee on Financial Services of the House of Representatives; and (2) the Committee on Banking, Housing, and Urban Affairs of the Senate. SEC. 5. APPLICABILITY OF CONGRESSIONAL REVIEW OF CERTAIN AGENCY RULEMAKING RELATING TO IRAN. (a) IN GENERAL.--Notwithstanding any other provi- 24 sion of law, any rule to amend or otherwise alter a covered 25 regulatory provision as defined in subsection (c) that is ·HR 3662 RH VerDate Sep 11 2014 21:30 Jan 11, 2016 Jkt 059200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H3662.RH H3662 10 1 published on or after the date of the enactment of this 2 Act shall be deemed to be a rule or major rule (as the 3 case may be) for purposes of chapter 8 of title 5, United 4 States Code, and shall be subject to all applicable require5 ments of chapter 8 of title 5, United States Code. 6 (b) QUARTERLY REPORTS.--Not later than 60 days 7 after the date of the enactment of this Act, and every 90 8 days thereafter, the head of the applicable department or 9 agency of the Federal Government shall submit to the ap10 propriate congressional committees a report on the oper11 ation of the licensing system under each covered regu12 latory provision as defined in subsection (c) for the pre13 ceding 2-year period, including-- 14 15 16 17 18 19 20 21 22 23 asabaliauskas on DSK5VPTVN1PROD with BILLS (1) the number and types of licenses applied for; (2) the number and types of licenses approved; (3) a summary of each license approved; (4) a summary of transactions conducted pursuant to a general license; (5) the average amount of time elapsed from the date of filing of a license application until the date of its approval; (6) the extent to which the licensing procedures were effectively implemented; and 24 ·HR 3662 RH VerDate Sep 11 2014 21:30 Jan 11, 2016 Jkt 059200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H3662.RH H3662 11 1 2 3 4 5 6 (7) a description of comments received from interested parties about the extent to which the licensing procedures were effective, after the applicable department or agency holds a public 30-day comment period. (c) DEFINITION.--In this section, the term ``covered 7 regulatory provision'' means any provision of part 535, 8 560, 561, or 1060 of title 31, Code of Federal Regula9 tions, as such part was in effect on June 1, 2015. 10 11 12 13 SEC. 6. PROHIBITIONS AND CONDITIONS WITH RESPECT TO CERTAIN ACCOUNTS HELD BY FOREIGN FINANCIAL INSTITUTIONS. Section 104(c)(2)(A)(ii) of the Comprehensive Iran 14 Sanctions, Accountability, and Divestment Act of 2010 15 (22 U.S.C. 8513(c)(2)(A)(ii)) is amended by adding at the 16 end before the semicolon the following: ``, including 17 Hezbollah, Hamas, the Palestinian Islamic Jihad, and any 18 affiliates or successors thereof''. 19 20 21 22 23 asabaliauskas on DSK5VPTVN1PROD with BILLS SEC. 7. DEFINITIONS. In this Act: (1) APPROPRIATE TEES.--The CONGRESSIONAL COMMIT- term ``appropriate congressional com- mittees'' has the meaning given the term in section 14(2) of the Iran Sanctions Act of 1996 (Public Law 104­172; 50 U.S.C. 1701 note). 24 25 ·HR 3662 RH VerDate Sep 11 2014 21:30 Jan 11, 2016 Jkt 059200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H3662.RH H3662 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 (2) JOINT COMPREHENSIVE PLAN OF ACTION.-- The term ``Joint Comprehensive Plan of Action'' means the Joint Comprehensive Plan of Action, signed at Vienna July 14, 2015, by Iran and by the People's Republic of China, France, Germany, the Russian Federation, the United Kingdom and the United States, with the High Representative of the European Union for Foreign Affairs and Security Policy, and all implementing materials and agreements related to the Joint Comprehensive Plan of Action, and transmitted by the President to Congress on July 19, 2015, pursuant to section 135(a) of the Atomic Energy Act of 1954, as amended by the Iran Nuclear Agreement Review Act of 2015 (Public Law 114­17; 129 Stat. 201). asabaliauskas on DSK5VPTVN1PROD with BILLS ·HR 3662 RH VerDate Sep 11 2014 21:30 Jan 11, 2016 Jkt 059200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H3662.RH H3662 asabaliauskas on DSK5VPTVN1PROD with BILLS VerDate Sep 11 2014 21:30 Jan 11, 2016 Jkt 059200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\H3662.RH H3662 Union Calendar No. 296 114TH CONGRESS 2D SESSION H. R. 3662 To enhance congressional oversight over the administration of sanctions against certain Iranian terrorism financiers, and for other purposes. JANUARY 11, 2016 Reported from the Committee on Foreign Affairs JANUARY 11, 2016 The Committee on Financial Services discharged; committed to the Committee of the Whole House on the State of the Union and ordered to be printed asabaliauskas on DSK5VPTVN1PROD with BILLS VerDate Sep 11 2014 21:30 Jan 11, 2016 Jkt 059200 PO 00000 Frm 00014 Fmt 6651 Sfmt 6651 E:\BILLS\H3662.RH A BILL H3662 [Report No. 114­393, Part I]