22 U.S.C. § 8725 — Liability of parent companies for viola-

Page 2125 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 8726 (i) Iran’s Revolutionary Guard Corps; or (ii) financial institutions the property or interests in property of which are blocked pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) in connection with— (I) Iran’s proliferation of weapons of mass destruction or delivery systems for weapons of mass destruction; or (II) Iran’s support for international terrorism. (2) Submission to Congress (A) In general The President shall submit the certifi- cation described in paragraph (1) to the ap- propriate congressional committees in writ- ing and shall include a justification for the certification. (B) Form of certification The certification described in paragraph (1) shall be submitted in unclassified form but may contain a classified annex. (e) Rule of construction Nothing in this section shall be construed to limit the authority of the President pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) or the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8501 et seq.). (Pub. L. 112–158, title II, § 217, Aug. 10, 2012, 126 Stat. 1233.) Editorial Notes REFERENCES IN TEXT Executive Order No. 13599, referred to in subsec. (a), is Ex. Ord. No. 13599, Feb. 5, 2012, 77 F.R. 6659, which is listed in a table under section 1701 of Title 50, War and National Defense. Executive Order No. 13608, referred to in subsec. (b), is Ex. Ord. No. 13608, May 1, 2012, 77 F.R. 26409, which is listed in tables under section 1701 of Title 50, War and National Defense. The International Emergency Economic Powers Act, referred to in subsecs. (c), (d)(1)(B)(ii), and (e), is title II of Pub. L. 95–223, Dec. 28, 1977, 91 Stat. 1626, which is classified generally to chapter 35 (§ 1701 et seq.) of Title 50, War and National Defense. For complete classifica- tion of this Act to the Code, see Short Title note set out under section 1701 of Title 50 and Tables. The Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010, referred to in subsec. (e), is Pub. L. 111–195, July 1, 2010, 124 Stat. 1312, which is clas- sified principally to chapter 92 (§ 8501 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 8501 of this title and Tables. § 8725. Liability of parent companies for viola- tions of sanctions by foreign subsidiaries (a) Definitions In this section: (1) Entity The term ‘‘entity’’ means a partnership, as- sociation, trust, joint venture, corporation, or other organization. (2) Own or control The term ‘‘own or control’’ means, with re- spect to an entity— (A) to hold more than 50 percent of the eq- uity interest by vote or value in the entity; (B) to hold a majority of seats on the board of directors of the entity; or (C) to otherwise control the actions, poli- cies, or personnel decisions of the entity. (b) Prohibition Not later than 60 days after August 10, 2012, the President shall prohibit an entity owned or controlled by a United States person and estab- lished or maintained outside the United States from knowingly engaging in any transaction di- rectly or indirectly with the Government of Iran or any person subject to the jurisdiction of the Government of Iran that would be prohibited by an order or regulation issued pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) if the transaction were en- gaged in by a United States person or in the United States. (c) Civil penalty The civil penalties provided for in section 206(b) of the International Emergency Economic Powers Act (50 U.S.C. 1705(b)) shall apply to a United States person to the same extent that such penalties apply to a person that commits an unlawful act described in section 206(a) of that Act if an entity owned or controlled by the United States person and established or main- tained outside the United States violates, at- tempts to violate, conspires to violate, or causes a violation of any order or regulation issued to implement subsection (b). (d) Applicability Subsection (c) shall not apply with respect to a transaction described in subsection (b) by an entity owned or controlled by a United States person and established or maintained outside the United States if the United States person di- vests or terminates its business with the entity not later than the date that is 180 days after Au- gust 10, 2012. (Pub. L. 112–158, title II, § 218, Aug. 10, 2012, 126 Stat. 1234.) TERMINATION OF SECTION For termination of section, see section 8785(a) of this title. Editorial Notes REFERENCES IN TEXT The International Emergency Economic Powers Act, referred to in subsec. (b), is title II of Pub. L. 95–223, Dec. 28, 1977, 91 Stat. 1626, which is classified generally to chapter 35 (§ 1701 et seq.) of Title 50, War and Na- tional Defense. For complete classification of this Act to the Code, see Short Title note set out under section 1701 of Title 50 and Tables. § 8726. Reports on, and authorization of imposi- tion of sanctions with respect to, the provi- sion of specialized financial messaging serv- ices to the Central Bank of Iran and other sanctioned Iranian financial institutions (a) Sense of Congress It is the sense of Congress that— (1) providers of specialized financial mes- saging services are a critical link to the inter- national financial system;