22 U.S.C. § 8513 — Mandatory sanctions with respect to fi-

Page 2077 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 8513 (E) United States financial institution de- fined In this paragraph, the term ‘‘United States financial institution’’ means a financial in- stitution (as defined in section 14 of the Iran Sanctions Act of 1996 (Public Law 104–172; 50 U.S.C. 1701 note)) that is a United States person. (c) Penalties The penalties provided for in subsections (b) and (c) of section 206 of the International Emer- gency Economic Powers Act (50 U.S.C. 1705) shall apply to a person that violates, attempts to violate, conspires to violate, or causes a vio- lation of this section or regulations prescribed under this section to the same extent that such penalties apply to a person that commits an un- lawful act described in section 206(a) of that Act. (d) Regulatory authority (1) In general The President shall prescribe regulations to carry out this section, which may include reg- ulatory exceptions to the sanctions described in subsection (b). (2) Applicability of certain regulations No exception to the prohibition under sub- section (b)(1) may be made for the commercial importation of an Iranian origin good de- scribed in section 560.534(a) of title 31, Code of Federal Regulations (as in effect on the day before July 1, 2010), unless the President— (A) prescribes a regulation providing for such an exception on or after July 1, 2010; and (B) submits to the appropriate congres- sional committees— (i) a certification in writing that the ex- ception is in the national interest of the United States; and (ii) a report describing the reasons for the exception. (Pub. L. 111–195, title I, § 103, July 1, 2010, 124 Stat. 1328.) TERMINATION OF SECTION For termination of section, see section 8551(a) of this title. Editorial Notes REFERENCES IN TEXT Section 101 of the Iran Freedom Support Act, referred to in subsec. (a), is section 101 of Pub. L. 109–293, which is set out as a note under section 1701 of Title 50, War and National Defense. The International Emergency Economic Powers Act, referred to in subsec. (b)(3)(A), (D), 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 classification of this Act to the Code, see Short Title note set out under section 1701 of Title 50 and Tables. Executive Documents DELEGATION OF FUNCTIONS For delegation of functions of President under this section, see Memorandum of President of the United States, Sept. 23, 2010, 75 F.R. 67025, set out as a note under section 8501 of this title. § 8513. Mandatory sanctions with respect to fi- nancial institutions that engage in certain transactions (a) Findings Congress makes the following findings: (1) The Financial Action Task Force is an intergovernmental body whose purpose is to develop and promote national and inter- national policies to combat money laundering and terrorist financing. (2) Thirty-three countries, plus the European Commission and the Cooperation Council for the Arab States of the Gulf, belong to the Fi- nancial Action Task Force. The member coun- tries of the Financial Action Task Force in- clude the United States, Canada, most coun- tries in western Europe, Russia, the People’s Republic of China, Japan, South Korea, Argen- tina, and Brazil. (3) In 2008 the Financial Action Task Force extended its mandate to include addressing ‘‘new and emerging threats such as prolifera- tion financing’’, meaning the financing of the proliferation of weapons of mass destruction, and published ‘‘guidance papers’’ for members to assist them in implementing various United Nations Security Council resolutions dealing with weapons of mass destruction, including United Nations Security Council Resolutions 1737 (2006) and 1803 (2008), which deal specifi- cally with proliferation by Iran. (4) The Financial Action Task Force has re- peatedly called on members— (A) to advise financial institutions in their jurisdictions to give special attention to business relationships and transactions with Iran, including Iranian companies and finan- cial institutions; (B) to apply effective countermeasures to protect their financial sectors from risks re- lating to money laundering and financing of terrorism that emanate from Iran; (C) to protect against correspondent rela- tionships being used by Iran and Iranian companies and financial institutions to by- pass or evade countermeasures and risk- mitigation practices; and (D) to take into account risks relating to money laundering and financing of terrorism when considering requests by Iranian finan- cial institutions to open branches and sub- sidiaries in their jurisdictions. (5) At a February 2010 meeting of the Finan- cial Action Task Force, the Task Force called on members to apply countermeasures ‘‘to protect the international financial system from the ongoing and substantial money laun- dering and terrorist financing (ML/TF) risks’’ emanating from Iran. (b) Sense of Congress regarding the imposition of sanctions on the Central Bank of Iran Congress— (1) acknowledges the efforts of the United Nations Security Council to impose limita- tions on transactions involving Iranian finan- cial institutions, including the Central Bank of Iran; and (2) urges the President, in the strongest terms, to consider immediately using the au- Page 2078 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 8513 thority of the President to impose sanctions on the Central Bank of Iran and any other Ira- nian financial institution engaged in prolifera- tion activities or support of terrorist groups. (c) Prohibitions and conditions with respect to certain accounts held by foreign financial in- stitutions (1) In general Not later than 90 days after July 1, 2010, the Secretary of the Treasury shall prescribe regu- lations to prohibit, or impose strict conditions on, the opening or maintaining in the United States of a correspondent account or a pay- able-through account by a foreign financial in- stitution that the Secretary finds knowingly engages in an activity described in paragraph (2). (2) Activities described A foreign financial institution engages in an activity described in this paragraph if the for- eign financial institution— (A) facilitates the efforts of the Govern- ment of Iran (including efforts of Iran’s Rev- olutionary Guard Corps or any of its agents or affiliates)— (i) to acquire or develop weapons of mass destruction or delivery systems for weap- ons of mass destruction; or (ii) to provide support for organizations designated as foreign terrorist organiza- tions under section 1189(a) of title 8 or sup- port for acts of international terrorism (as defined in section 14 of the Iran Sanctions Act of 1996 (Public Law 104–172; 50 U.S.C. 1701 note)); (B) facilitates the activities of— (i) a person subject to financial sanc- tions pursuant to United Nations Security Council Resolution 1737 (2006), 1747 (2007), 1803 (2008), or 1929 (2010), or any other reso- lution that is agreed to by the Security Council and imposes sanctions with re- spect to Iran; or (ii) a person acting on behalf of or at the direction of, or owned or controlled by, a person described in clause (i); (C) engages in money laundering to carry out an activity described in subparagraph (A) or (B); (D) facilitates efforts by the Central Bank of Iran or any other Iranian financial insti- tution to carry out an activity described in subparagraph (A) or (B); or (E) facilitates a significant transaction or transactions or provides significant finan- cial services for— (i) Iran’s Revolutionary Guard Corps or any of its agents or affiliates whose prop- erty or interests in property are blocked pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.); or (ii) a person whose property or interests in property are blocked pursuant to that Act 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. (3) Penalties The penalties provided for in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) shall apply to a person that violates, at- tempts to violate, conspires to violate, or causes a violation of regulations prescribed under paragraph (1) of this subsection to the same extent that such penalties apply to a person that commits an unlawful act described in section 206(a) of that Act. (4) Determinations regarding NIOC and NITC (A) Determinations For purposes of paragraph (2)(E), the Sec- retary of the Treasury shall, not later than 45 days after August 10, 2012— (i) determine whether the NIOC or the NITC is an agent or affiliate of Iran’s Rev- olutionary Guard Corps; and (ii) submit to the appropriate congres- sional committees a report on the deter- minations made under clause (i), together with the reasons for those determinations. (B) Form of report A report submitted under subparagraph (A)(ii) shall be submitted in unclassified form but may contain a classified annex. (C) Applicability with respect to petroleum transactions (i) Application of sanctions Except as provided in clause (ii), if the Secretary of the Treasury determines that the NIOC or the NITC is a person described in clause (i) or (ii) of paragraph (2)(E), the regulations prescribed under paragraph (1) shall apply with respect to a significant transaction or transactions or significant financial services knowingly facilitated or provided by a foreign financial institution for the NIOC or the NITC, as applicable, for the purchase of petroleum or petro- leum products from Iran, only if a deter- mination of the President under section 8513a(d)(4)(B) of this title that there is a sufficient supply of petroleum and petro- leum products produced in countries other than Iran to permit purchasers of petro- leum and petroleum products from Iran to reduce significantly their purchases from Iran is in effect at the time of the trans- action or the provision of the service. (ii) Exception for certain countries If the Secretary of the Treasury deter- mines that the NIOC or the NITC is a per- son described in clause (i) or (ii) of para- graph (2)(E), the regulations prescribed under paragraph (1) shall not apply to a significant transaction or transactions or significant financial services knowingly facilitated or provided by a foreign finan- cial institution for the NIOC or the NITC, as applicable, for the purchase of petro- leum or petroleum products from Iran if an exception under paragraph (4)(D) of sec- tion 8513a(d) of this title applies to the Page 2079 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 8513 country with primary jurisdiction over the foreign financial institution at the time of the transaction or the provision of the service. (iii) Rule of construction The exceptions in clauses (i) and (ii) shall not be construed to limit the author- ity of the Secretary of the Treasury to im- pose sanctions pursuant to the regulations prescribed under paragraph (1) for an ac- tivity described in paragraph (2) to the ex- tent the activity would meet the criteria described in that paragraph in the absence of the involvement of the NIOC or the NITC. (D) Definitions In this paragraph: (i) NIOC The term ‘‘NIOC’’ means the National Iranian Oil Company. (ii) NITC The term ‘‘NITC’’ means the National Iranian Tanker Company. (d) Penalties for domestic financial institutions for actions of persons owned or controlled by such financial institutions (1) In general Not later than 90 days after July 1, 2010, the Secretary of the Treasury shall prescribe regu- lations to prohibit any person owned or con- trolled by a domestic financial institution from knowingly engaging in a transaction or transactions with or benefitting Iran’s Revolu- tionary Guard Corps or any of its agents or af- filiates whose property or interests in prop- erty are blocked pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.). (2) Penalties The penalties provided for in section 206(b) of the International Emergency Economic Powers Act (50 U.S.C. 1705(b)) shall apply to a domestic financial institution to the same ex- tent that such penalties apply to a person that commits an unlawful act described in section 206(a) of that Act if— (A) a person owned or controlled by the do- mestic financial institution violates, at- tempts to violate, conspires to violate, or causes a violation of regulations prescribed under paragraph (1) of this subsection; and (B) the domestic financial institution knew or should have known that the person violated, attempted to violate, conspired to violate, or caused a violation of such regula- tions. (e) Requirements for financial institutions main- taining accounts for foreign financial institu- tions (1) In general The Secretary of the Treasury shall pre- scribe regulations to require a domestic finan- cial institution maintaining a correspondent account or payable-through account in the United States for a foreign financial institu- tion to do one or more of the following: (A) Perform an audit of activities de- scribed in subsection (c)(2) that may be car- ried out by the foreign financial institution. (B) Report to the Department of the Treas- ury with respect to transactions or other fi- nancial services provided with respect to any such activity. (C) Certify, to the best of the knowledge of the domestic financial institution, that the foreign financial institution is not know- ingly engaging in any such activity. (D) Establish due diligence policies, proce- dures, and controls, such as the due dili- gence policies, procedures, and controls de- scribed in section 5318(i) of title 31, reason- ably designed to detect whether the Sec- retary of the Treasury has found the foreign financial institution to knowingly engage in any such activity. (2) Penalties The penalties provided for in sections 5321(a) and 5322 of title 31 shall apply to a person that violates a regulation prescribed under para- graph (1) of this subsection, in the same man- ner and to the same extent as such penalties would apply to any person that is otherwise subject to such section 5321(a) or 5322. (f) Waiver The Secretary of the Treasury may waive the application of a prohibition or condition im- posed with respect to a foreign financial institu- tion pursuant to subsection (c) or section 8513b of this title or the imposition of a penalty under subsection (d) with respect to a domestic finan- cial institution on and after the date that is 30 days after the Secretary— (1) determines that such a waiver is nec- essary to the national interest of the United States; and (2) submits to the appropriate congressional committees a report describing the reasons for the determination. (g) Procedures for judicial review of classified information (1) In general If a finding under paragraph (1) or (4) of sub- section (c) or section 8513b of this title, a pro- hibition, condition, or penalty imposed as a result of any such finding, or a penalty im- posed under subsection (d), is based on classi- fied information (as defined in section 1(a) of the Classified Information Procedures Act (18 U.S.C. App.)) and a court reviews the finding or the imposition of the prohibition, condi- tion, or penalty, the Secretary of the Treasury may submit such information to the court ex parte and in camera. (2) Rule of construction Nothing in this subsection shall be con- strued to confer or imply any right to judicial review of any finding under paragraph (1) or (4) of subsection (c) or section 8513b of this title, any prohibition, condition, or penalty imposed as a result of any such finding, or any penalty imposed under subsection (d). (h) Consultations in implementation of regula- tions In implementing this section and the regula- tions prescribed under this section, the Sec- retary of the Treasury— Page 2080 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 8513a (1) shall consult with the Secretary of State; and (2) may, in the sole discretion of the Sec- retary of the Treasury, consult with such other agencies and departments and such other interested parties as the Secretary con- siders appropriate. (i) Definitions (1) In general In this section: (A) Account; correspondent account; payable- through account The terms ‘‘account’’, ‘‘correspondent ac- count’’, and ‘‘payable-through account’’ have the meanings given those terms in sec- tion 5318A of title 31. (B) Agent The term ‘‘agent’’ includes an entity es- tablished by a person for purposes of con- ducting transactions on behalf of the person in order to conceal the identity of the per- son. (C) Financial institution The term ‘‘financial institution’’ means a financial institution specified in subpara- graph (A), (B), (C), (D), (E), (F), (G), (H), (I), (J), (M), or (Z) of section 5312(a)(2) of title 31. (D) Foreign financial institution; domestic fi- nancial institution The terms ‘‘foreign financial institution’’ and ‘‘domestic financial institution’’ shall have the meanings of those terms as deter- mined by the Secretary of the Treasury. (E) Money laundering The term ‘‘money laundering’’ means the movement of illicit cash or cash equivalent proceeds into, out of, or through a country, or into, out of, or through a financial insti- tution. (2) Other definitions The Secretary of the Treasury may further define the terms used in this section in the regulations prescribed under this section. (Pub. L. 111–195, title I, § 104, July 1, 2010, 124 Stat. 1331; Pub. L. 112–158, title II, §§ 214(a), 215(a), title III, § 312(b), (c), Aug. 10, 2012, 126 Stat. 1231, 1249; Pub. L. 116–283, div. F, title LXI, § 6110(e)(1)(A), Jan. 1, 2021, 134 Stat. 4563.) TERMINATION OF SECTION For termination of section, see section 8551(a) of this title. Editorial Notes REFERENCES IN TEXT The International Emergency Economic Powers Act, referred to in subsecs. (c)(2)(E) and (d)(1), is title II of Pub. L. 95–223, Dec. 28, 1977, 91 Stat. 1626, which is clas- sified generally to chapter 35 (§ 1701 et seq.) of Title 50, War and National Defense. For complete classification of this Act to the Code, see Short Title note set out under section 1701 of Title 50 and Tables. The Classified Information Procedures Act, referred to in subsec. (g)(1), is Pub. L. 96–456, Oct. 15, 1980, 94 Stat. 2025, which is set out in the Appendix to Title 18, Crimes and Criminal Procedure. AMENDMENTS 2021—Subsec. (i)(1)(C). Pub. L. 116–283 substituted ‘‘(Z)’’ for ‘‘(Y)’’. 2012—Subsec. (c)(2)(B). Pub. L. 112–158, § 214(a), sub- stituted ‘‘of—’’ for ‘‘of’’, inserted cl. (i) designation be- fore ‘‘a person subject’’, and added cl. (ii). Subsec. (c)(2)(E)(ii). Pub. L. 112–158, § 215(a), sub- stituted ‘‘person’’ for ‘‘financial institution’’ in intro- ductory provisions. Subsec. (c)(4). Pub. L. 112–158, § 312(b), added par. (4). Subsec. (f). Pub. L. 112–158, § 312(c)(1), inserted ‘‘or section 8513b of this title’’ after ‘‘subsection (c)’’ in in- troductory provisions. Subsec. (g). Pub. L. 112–158, § 312(c)(2), substituted ‘‘paragraph (1) or (4) of subsection (c) or section 8513b of this title’’ for ‘‘subsection (c)(1)’’ in pars. (1) and (2). Statutory Notes and Related Subsidiaries REGULATIONS Pub. L. 112–158, title II, § 214(b), Aug. 10, 2012, 126 Stat. 1231, provided that: ‘‘Not later than 90 days after the date of the enactment of this Act [Aug. 10, 2012], the Secretary of the Treasury shall make such revisions to the regulations prescribed under section 104 of the Comprehensive Iran Sanctions, Accountability, and Di- vestment Act of 2010 (22 U.S.C. 8513) as are necessary to carry out the amendments made by subsection (a) [amending this section].’’ Pub. L. 112–158, title II, § 215(b), Aug. 10, 2012, 126 Stat. 1231, provided that: ‘‘Not later than 90 days after the date of the enactment of this Act [Aug. 10, 2012], the Secretary of the Treasury shall make such revisions to the regulations prescribed under section 104 of the Comprehensive Iran Sanctions, Accountability, and Di- vestment Act of 2010 (22 U.S.C. 8513) as are necessary to carry out the amendment made by subsection (a) [amending this section].’’ EXCEPTION TO SANCTIONS REGARDING NATIONAL IRA- NIAN OIL COMPANY AND NATIONAL IRANIAN TANKER COMPANY Pub. L. 112–158, title III, § 312(d), Aug. 10, 2012, 126 Stat. 1250, provided that: ‘‘(1) IN GENERAL.—If an exception to sanctions de- scribed in clause (i) or (ii) of paragraph (4)(C) of section 104(c) of the Comprehensive Iran Sanctions, Account- ability, and Divestment Act of 2010 [22 U.S.C. 8513(c)], as added by subsection (b), applies to a person that en- gages in a transaction described in paragraph (2) at the time of the transaction, the President is authorized not to impose sanctions with respect to the transaction under— ‘‘(A) section 302(b)(1) [22 U.S.C. 8742(b)(1)]; ‘‘(B) section 104A of the Comprehensive Iran Sanc- tions, Accountability, and Divestment Act of 2010 [22 U.S.C. 8513b], as added by section 216; or ‘‘(C) any other applicable provision of law author- izing the imposition of sanctions with respect to Iran. ‘‘(2) TRANSACTION DESCRIBED.—A transaction de- scribed in this paragraph is a transaction— ‘‘(A) solely for the purchase of petroleum or petro- leum products from Iran; and ‘‘(B) for which sanctions may be imposed solely as a result of the involvement of the National Iranian Oil Company or the National Iranian Tanker Com- pany in the transaction under— ‘‘(i) section 302(b)(1); ‘‘(ii) section 104A of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010, as added by section 216; or ‘‘(iii) any other applicable provision of law au- thorizing the imposition of sanctions with respect to Iran.’’ § 8513a. Imposition of sanctions with respect to the financial sector of Iran (a) Findings Congress makes the following findings: