Iran Sanctions Loophole Elimination Act of 2013

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Iran Sanctions Loophole Elimination 
Act of 2013''.

SEC. 2. IMPOSITION OF SANCTIONS WITH RESPECT TO CERTAIN TRANSACTIONS IN 
              FOREIGN CURRENCIES.

    (a) Imposition of Sanctions.--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 220 the following:

``SEC. 220A. IMPOSITION OF SANCTIONS WITH RESPECT TO CERTAIN 
              TRANSACTIONS IN FOREIGN CURRENCIES.

    ``(a) In General.--The President--
            ``(1) 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 is a person described in subsection 
        (b); and
            ``(2) may impose sanctions pursuant to the International 
        Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) with 
        respect to any other person described in subsection (b).
    ``(b) Person Described.--A person described in this subsection is a 
person the President determines has, on or after May 9, 2013--
            ``(1) knowingly conducted or facilitated a significant 
        transaction involving the currency of a country other than the 
        country in which the person is operating at the time of the 
        transaction with, for, or on behalf of--
                    ``(A) the Central Bank of Iran or another Iranian 
                financial institution designated by the Secretary of 
                the Treasury for the imposition of sanctions pursuant 
                to the International Emergency Economic Powers Act (50 
                U.S.C. 1701 et seq.); or
                    ``(B) a person described in section 1244(c)(2) of 
                the Iran Freedom and Counter-Proliferation Act (22 
                U.S.C. 8803(c)(2)) (other than a person described in 
                subparagraph (C)(iii) of that section); or
            ``(2) knowingly transferred funds for, or held funds on 
        behalf of, a person described in paragraph (1) in relation to a 
        transaction described in that paragraph, without regard to the 
        currency of those funds.
    ``(c) Waiver.--
            ``(1) In general.--The President may waive the application 
        of subsection (a) with respect to a person for a period of not 
        more than 180 days, and may renew that waiver for additional 
        periods of not more than 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) Form of report.--Each report submitted under 
        paragraph (1)(B) shall be submitted in unclassified form but 
        may include a classified annex.
    ``(d) Rule of Construction.--Nothing in this section shall be 
construed to prohibit any person from, or authorize or require the 
imposition of sanctions with respect to any person for, conducting or 
facilitating any transaction in the currency of the country in which 
the person is operating at the time of the transaction for the sale of 
agricultural commodities, food, medicine, or medical devices.
    ``(e) Definitions.--In this section:
            ``(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) 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).
            ``(3) 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).
            ``(4) Iranian financial institution.--The term `Iranian 
        financial institution' has the meaning given that term in 
        section 104A(d) of the Comprehensive Iran Sanctions, 
        Accountability, and Divestment Act of 2010 (22 U.S.C. 
        8513b(d)).
            ``(5) 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).
            ``(6) 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).
            ``(7) Transaction.--The term `transaction' includes a 
        foreign exchange swap, a foreign exchange forward, and any 
        other type of currency exchange or conversion or derivative 
        instrument.''.
    (b) Conforming Amendments.--
            (1) Implementation.--Section 601(a)(1) of the Iran Threat 
        Reduction and Syria Human Rights Act of 2012 (22 U.S.C. 
        8781(a)(1)) is amended by inserting ``220A,'' after ``220,''.
            (2) Penalties.--Section 601(b)(2)(A) of such Act (22 U.S.C. 
        8781(b)(2)(A)) is amended by striking ``and 220,'' and 
        inserting ``220, and 220A,''.
            (3) Termination.--Section 605(a) of such Act (22 U.S.C. 
        8785(a)) is amended by inserting ``220A,'' after ``220,''.
    (c) 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 220 the following:

``Sec. 220A. Imposition of sanctions with respect to certain 
                            transactions in foreign currencies.''.

Summary: Iran Sanctions Loophole Elimination Act of 2013 - Amends the Iran Threat Reduction and Syria Human Rights Act of 2012 to direct the President to 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 is a person described in this Act. Describes such person as a person that on or after May 9, 2013, knowingly: (1) conducted or facilitated a significant transaction involving the currency of a country other than the country in which the person is operating with, for, or on behalf of the Central Bank of Iran or another Iranian financial institution designated by the Secretary of the Treasury for the imposition of sanctions, or a person that is involved in the energy, shipping, and shipbuilding sectors of Iran. Or (2) transferred funds for, or held funds on behalf of, a person described in the previous paragraph in relation to a transaction without regard to the currency of such funds. Authorizes the President to impose sanctions pursuant to the International Emergency Economic Powers Act with respect to any other person. Authorizes the President to waive the provisions of this Act with respect to a person for up to 180 days for reasons of US national security. Requires congressional notification at least seven days prior to a waiver or waiver renewal.