Preventing Iran's Access to United States Dollars Act of 2016

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Preventing Iran's Access to United 
States Dollars Act of 2016''.

SEC. 2. 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) Definitions.--In this section:
            (1) Entity.--The term ``entity'' means a corporation, 
        business association, partnership, trust, society, or any other 
        entity.
            (2) 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)).
            (3) Person.--The term ``person'' means an individual or 
        entity.

SEC. 3. 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. 4. 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) 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.''.

Summary: Preventing Iran's Access to United States Dollars Act of 2016 This bill prohibits the President from issuing a license that permits a person to: conduct an offshore US dollar clearing system for transactions involving the government of Iran or an Iranian person, or provide US dollars for any offshore US dollar clearing system conducted by a foreign government or a foreign financial institution for transactions involving the government of Iran or an Iranian person. The Department of the Treasury shall report to Congress: a list of financial institutions operating or participating in an offshore US dollar clearing system that conducts transactions involving the government of Iran or an Iranian person, and an assessment of Treasury efforts to prevent such transactions. The President shall block and prohibit all transactions in property and property interests of any listed institution if the property and interests: (1) are in the United States, (2) come within the United States, or (3) are or come within the possession or control of a US person. The President may impose additional sanctions pursuant to the International Emergency Economic Powers Act. The National Defense Authorization Act for Fiscal Year 2012 is amended to subject to sanctions: (1) u-turn transactions , and (2) book transfers .