I 

114TH CONGRESS 

1ST SESSION H. R. 4257 

To protect the American and Iranian peoples as well as the global economy 

from Iran’s systematic abjuration of international legal standards on 

human and civil rights, its support for international terrorism, and the 

corrosive economic malfeasance of Iran’s Revolutionary Guard Corps, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 15, 2015 

Mr. NUNES (for himself, Mr. THORNBERRY, Mr. MCCAUL, Mr. MILLER of 

Florida, Mr. FRELINGHUYSEN, Ms. GRANGER, Mr. KING of New York, 

Mr. LOBIONDO, Mr. ROONEY of Florida, Mr. HECK of Nevada, Mr. 

POMPEO, Mr. STEWART, Mr. TIBERI, Mr. ROSKAM, Ms. JENKINS of Kansas, Mr. MARCHANT, Mrs. BLACK, Mr. MEEHAN, Mr. DOLD, and Mr. 

HOLDING) introduced the following bill; which was referred to the Committee on Foreign Affairs, and in addition to the Committees on Rules, 

Ways and Means, and 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 

A BILL 

To protect the American and Iranian peoples as well as 

the global economy from Iran’s systematic abjuration 

of international legal standards on human and civil 

rights, its support for international terrorism, and the 

corrosive economic malfeasance of Iran’s Revolutionary 

Guard Corps, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘IRGC Sanctions Act’’. 

3 SEC. 2. FINDINGS. 

4 Congress finds the following: 

5 (1) The Iranian people have been seeking polit6 ical and economic freedom since 1979, and at7 tempted to gain it during the 2009 Green Revolu8 tion. 

9 (2) The Iranian Government, through Iran’s 

10 Revolutionary Guard Corps (IRGC) and its Basij 

11 militia auxiliaries, violently crushed the 2009 Green 

12 Revolution, thwarting the legitimate aspirations to 

13 political and economic freedom of the Iranian people 

14 through terrorism, extrajudicial killings, arbitrary 

15 imprisonment, and torture. 

16 (3) The Iranian Government systematically dis17 criminates against religious and ethnic minorities, 

18 including Bahais, Christians, Jews, Sufis, 

19 Zoroastrians, Kurds, Arabs, Baluchis, Turkmen, and 

20 Azeris, among others and denies them freedom to 

21 emigrate. 

22 (4) The United States designated the Govern23 ment of Iran as a state sponsor of terrorism in 1984 

24 and identified the IRGC and the IRGC–Quds Force 

25 as principle agents of Iran’s support for inter26 national terrorism. 


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1 (5) The IRGC has, since its inception in 1979, 

2 steadily used its illegitimate power and threat of ar3 bitrary detention, torture, and extrajudicial killing to 

4 gain dominance over a substantial proportion of 

5 Iran’s economy, the proceeds from which are being 

6 used to finance international terrorism, and to re7 press the legitimate aspirations to political and eco8 nomic freedom of the Iranian people. 

9 (6) The IRGC has a substantial and growing 

10 presence in Iran’s financial and commercial sectors 

11 and extensive economic interests in the defense pro12 duction, construction, and oil industries, among oth13 ers, controlling billions of dollars in corporate busi14 ness, among others. 

15 (7) The IRGC directly owns substantial shares 

16 in 14 companies publicly traded on the Tehran 

17 Stock Exchange with a combined value of $17 bil18 lion. There are an additional 13 publicly traded com19 panies with significant ownership by the IRGC, the 

20 Armed Forces, and the Basij militia. Taken to21 gether, these 27 companies are worth more than 20 

22 percent of the Tehran Stock Exchange. 

23 (8) In addition, the IRGC controls hundreds of 

24 Iranian privately held companies in nearly all sectors 

25 of the Iranian economy. 


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1 (9) Because of the authority wielded by the 

2 IRGC, including the ability to arbitrarily detain, in3 carcerate, torture, and kill Iranian citizens, Western 

4 legal norms for evaluating control of business enti5 ties do not apply. Thus, IRGC influence over Iranian 

6 economic activity may be vastly more pervasive than 

7 may be mathematically calculated using standard 

8 Western methodologies. 

9 (10) The Joint Comprehensive Plan of Action’s 

10 termination of sanctions on Iran will inevitably open 

11 the global economy to these corporations, broadening 

12 the scope of the ability of the IRGC to profit, includ13 ing through international money laundering, and to 

14 use its increasing economic resources to conduct ter15 rorist attacks around the globe. 

16 SEC. 3. STATEMENT OF POLICY. 

17 It shall be the policy of the United States that— 

18 (1) in order to protect United States citizens 

19 and businesses and the international community 

20 from the expanding terrorist, financial, and commer21 cial network of Iran’s Revolutionary Guard Corps 

22 (IRGC), also known as the Army of the Guardians 

23 of the Iranian Revolution and the Iranian Revolu24 tionary Guard Corps, and to assist Iranian entre25 preneurs, businesses, workers, and farmers who 


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1 want to participate lawfully in the global economy, 

2 the United States shall seek to prevent the IRGC 

3 from obtaining financial benefit from Iran’s post4 Joint Comprehensive Plan of Action access to the 

5 global economy; and 

6 (2) any and all financial transactions with sub7 sidiaries or affiliates of the IRGC shall be treated as 

8 a financial transaction with the IRGC as a whole. 

9 SEC. 4. CONGRESSIONAL APPROVAL OF RESCISSION OF DE10 TERMINATION OF STATE SPONSORS OF TER11 RORISM. 

12 (a) ARMS EXPORT CONTROL ACT.—Section 

13 40(f)(2)(A) of the Arms Export Control Act (22 U.S.C. 

14 2780(f)(2)(A)) is amended to read as follows: 

15 ‘‘(A) In addition to meeting the requirements of 

16 subparagraph (A) and (B) of paragraph (1), a deter17 mination made by the Secretary of State under sub18 section (d) may be rescinded only if Congress, within 

19 45 days after receipt of a report under paragraph 

20 (1)(B) with respect to a proposed rescission of such 

21 determination, enacts a joint resolution the matter 

22 after the resolving clause of which is as follows: 

23 ‘That the proposed rescission of the determination 

24 under section 40(d) of the Arms Export Control Act 

25 pursuant to the report submitted to the Congress on 


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1 lll is hereby approved.’, the blank to be com2 pleted with the appropriate date.’’. 

3 (b) FOREIGN ASSISTANCE ACT OF 1961.—Section 

4 620A of the Foreign Assistance Act of 1961 (22 U.S.C. 

5 2371) is amended— 

6 (1) by redesignating subsection (d) as sub7 section (e); and 

8 (2) by inserting after subsection (c) the fol9 lowing: 

10 ‘‘(d) ADDITIONAL REQUIREMENT WITH RESPECT TO

11 RESCISSION.— 

12 ‘‘(1) IN GENERAL.—In addition to meeting the 

13 requirements of paragraphs (1) and (2) of sub14 section (c), a determination made by the Secretary 

15 of State under subsection (a) may be rescinded only 

16 if Congress, within 45 days after receipt of a report 

17 under subsection (c)(2) with respect to a proposed 

18 rescission of such determination, enacts a joint reso19 lution the matter after the resolving clause of which 

20 is as follows: ‘That the proposed rescission of the de21 termination under section 620A(a) of the Foreign 

22 Assistance Act of 1961 pursuant to the report sub23 mitted to the Congress on lll is hereby ap24 proved.’, the blank to be completed with the appro25 priate date. 


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1 ‘‘(2) CONGRESSIONAL PROCEDURES.—A joint 

2 resolution described in paragraph (1) and introduced 

3 within the appropriate 45-day period shall be consid4 ered in the Senate and the House of Representatives 

5 in accordance with paragraphs (3) through (7) of 

6 section 8066(c) of the Department of Defense Ap7 propriations Act (as contained in Public Law 98– 

8 473), except that references in such paragraphs to 

9 the Committees on Appropriations of the House of 

10 Representatives and the Senate shall be deemed to 

11 be references to the Committee on Foreign Affairs 

12 of the House of Representatives and the Committee 

13 on Foreign Relations of the Senate, respectively.’’. 

14 (c) EXPORT ADMINISTRATION ACT OF 1979.—Sec15 tion 6(j) of the Export Administration Act of 1979 (50 

16 U.S.C. App. 2405) (as continued in effect pursuant to the 

17 International Emergency Economic Powers Act) is amend18 ed— 

19 (1) by redesignating paragraphs (5) and (6) as 

20 paragraphs (6) and (7), respectively; and 

21 (2) by inserting after paragraph (4) the fol22 lowing: 

23 ‘‘(5)(A) In addition to meeting the require24 ments of subparagraphs (A) and (B) of paragraph 

25 (4), a determination made by the Secretary of State 


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1 under paragraph (1)(A) may be rescinded only if 

2 Congress, within 45 days after receipt of a report 

3 under paragraph (4)(B) with respect to a proposed 

4 rescission of such determination, enacts a joint reso5 lution the matter after the resolving clause of which 

6 is as follows: ‘That the proposed rescission of the de7 termination under section 6(j)(1)(A) of the Export 

8 Administration Act of 1979 (as continued in effect 

9 pursuant to the International Emergency Economic 

10 Powers Act) pursuant to the report submitted to the 

11 Congress on lll is hereby approved.’, the blank 

12 to be completed with the appropriate date. 

13 ‘‘(B) A joint resolution described in subpara14 graph (A) and introduced within the appropriate 45- 

15 day period shall be considered in the Senate and the 

16 House of Representatives in accordance with para17 graphs (3) through (7) of section 8066(c) of the De18 partment of Defense Appropriations Act (as con19 tained in Public Law 98–473), except that ref20 erences in such paragraphs to the Committees on 

21 Appropriations of the House of Representatives and 

22 the Senate shall be deemed to be references to the 

23 Committee on Foreign Affairs of the House of Rep24 resentatives and the Committee on Foreign Rela25 tions of the Senate, respectively.’’. 


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1 (d) EFFECTIVE DATE.—The amendments made by 

2 subsections (a), (b), and (c) take effect on the date of the 

3 enactment of this Act and apply with respect to a proposed 

4 rescission of a determination of the Secretary of State 

5 under section 40(d) of the Arms Export Control Act, sec6 tion 620A of the Foreign Assistance Act of 1961, or sec7 tion 6(j) of the Export Administration Act of 1979 (as 

8 continued in effect pursuant to the International Emer9 gency Economic Powers Act), respectively, that is con10 tained in any report submitted under any such section on 

11 or after such date of enactment. 

12 SEC. 5. APPLICATION OF TITLE IV OF THE TRADE ACT OF 

13 1974 TO IRAN. 

14 On and after the date of the enactment of this Act, 

15 title IV of the Trade Act of 1974 (19 U.S.C. 2431 et seq.) 

16 shall apply to Iran. 

17 SEC. 6. PROHIBITIONS ON FINANCIAL TRANSACTIONS WITH 

18 IRAN’S REVOLUTIONARY GUARD CORPS AND 

19 ITS AFFILIATES AND ENTITIES OWNED OR 

20 CONTROLLED BY IRAN’S REVOLUTIONARY 

21 GUARD CORPS AND ITS AFFILIATES. 

22 (a) IN GENERAL.—Title III of the Iran Threat Re23 duction and Syria Human Rights Act of 2012 (22 U.S.C. 

24 8741 et seq.) is amended by adding at the end the fol25 lowing: 


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1 ‘‘Subtitle C—Prohibitions on Finan2 cial Transactions With Iran’s 

3 Revolutionary Guard Corps and 

4 Its Affiliates and Entities 

5 Owned or Controlled by Iran’s 

6 Revolutionary Guard Corps and 

7 Its Affiliates 

8 ‘‘SEC. 321. PROHIBITIONS ON FINANCIAL TRANSACTIONS 

9 WITH IRAN’S REVOLUTIONARY GUARD CORPS 

10 AND ITS AFFILIATES AND ENTITIES OWNED 

11 OR CONTROLLED BY IRAN’S REVOLUTIONARY 

12 GUARD CORPS AND ITS AFFILIATES. 

13 ‘‘(a) IN GENERAL.—Except as provided in sub14 sections (b) and (c), beginning on the date that is 30 days 

15 after the date of the enactment of the IRGC Sanctions 

16 Act, and notwithstanding any other provision of law, a 

17 United States person may not knowingly engage in any 

18 financial transaction with, or transfer of funds to, any of 

19 the following: 

20 ‘‘(1) Iran’s Revolutionary Guard Corps or any 

21 subdivision of Iran’s Revolutionary Guard Corps, in22 cluding Iran’s Revolutionary Guard Corps–Quds 

23 Force. 


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1 ‘‘(2) Any person that is an agent, alias, front, 

2 instrumentality, or affiliate of any entity specified in 

3 paragraph (1). 

4 ‘‘(3) Any person that is owned or controlled by 

5 an entity specified in paragraph (1) or a person 

6 specified in paragraph (2). 

7 ‘‘(4) Any natural person who is a representa8 tive, official, or senior member of any entity speci9 fied in paragraph (1). 

10 ‘‘(5) Any person— 

11 ‘‘(A) for the purpose of avoiding a finan12 cial transaction with, or transfer of funds to, an 

13 individual or entity specified in any of para14 graphs (1) through (4); or 

15 ‘‘(B) for the benefit of an individual or en16 tity specified in any of paragraphs (1) through 

17 (4). 

18 ‘‘(b) EXCEPTION UNDER TITLE V OF NATIONAL SE19 CURITY ACT OF 1947.—The prohibitions on financial 

20 transactions and transfers of funds under subsection (a) 

21 shall not apply with respect to any activities subject to 

22 reporting requirements under title V of the National Secu23 rity Act of 1947. 

24 ‘‘(c) IMPLEMENTATION; PENALTIES.— 


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1 ‘‘(1) IMPLEMENTATION.—The President shall 

2 exercise all authorities under sections 203 and 205 

3 of the International Emergency Economic Powers 

4 Act (50 U.S.C. 1702 and 1704) to carry out this 

5 section, except that the President— 

6 ‘‘(A) shall not issue any general license au7 thorizing, or otherwise authorize, any activity 

8 prohibited under subsection (a); and 

9 ‘‘(B) shall require any United States per10 son seeking to engage in a financial transaction 

11 or transfer of funds prohibited under subsection 

12 (a) to submit a written request to the Office of 

13 Foreign Assets Control of the Department of 

14 the Treasury. 

15 ‘‘(2) PENALTIES.—A person that violates, at16 tempts to violate, conspires to violate, or causes a 

17 violation of subsection (a) or any regulation, license, 

18 or order issued to carry out subsection (a) shall be 

19 subject to the penalties set forth in subsections (b) 

20 and (c) of section 206 of the International Emer21 gency Economic Powers Act (50 U.S.C. 1705) to the 

22 same extent as a person that commits an unlawful 

23 act described in subsection (a) of that section. 

24 ‘‘(d) CODIFICATION OF SPECIALLY DESIGNATED NA25 TIONALS AND BLOCKED PERSONS.—On or after the date 


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1 of the enactment of the IRGC Sanctions Act, any person 

2 that meets any of the criteria of paragraphs (2) through 

3 (5) of subsection (a) and is included on the list of specially 

4 designated nationals and blocked persons maintained by 

5 the Office of Foreign Assets Control of the Department 

6 of the Treasury, may not be removed from such list unless 

7 there is enacted a joint resolution stating that there exists 

8 convincing evidence that Iran’s Revolutionary Guard 

9 Corps is completely divested from the person and pro10 viding for the removal of such person from such list. 

11 ‘‘(e) DEFINITIONS.—In this section: 

12 ‘‘(1) CONTROLLED.—The term ‘controlled’ 

13 means, with respect to a person, to possess, directly 

14 or indirectly, the power to direct or cause the direc15 tion of the management and policies of the person, 

16 whether through— 

17 ‘‘(A) ownership of the person; 

18 ‘‘(B) a member or members of the board 

19 of directors of the person; or 

20 ‘‘(C) threat of arbitrary detention, impris21 onment, torture, or killing, or otherwise. 

22 ‘‘(2) KNOWINGLY.—The term ‘knowingly’, with 

23 respect to conduct, a circumstance, or a result, has 

24 the meaning given that term in section 101 of the 


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1 Comprehensive Iran Sanctions, Accountability, and 

2 Divestment Act of 2010 (22 U.S.C. 8511). 

3 ‘‘(3) OWNED OR OWNERSHIP.—The term 

4 ‘owned’ or ‘ownership’ means, with respect to a per5 son— 

6 ‘‘(A) to hold more than 10 percent of the 

7 equity interest by vote or value in the person; 

8 ‘‘(B) to hold a majority of seats on the 

9 board of directors of the person; or 

10 ‘‘(C) to otherwise direct the actions, poli11 cies, or personnel decisions of the person. 

12 ‘‘(4) PERSON.—The term ‘person’ means— 

13 ‘‘(A) a natural person, corporation, com14 pany, business association, partnership, society, 

15 trust, or any other nongovernmental entity, or16 ganization, or group; 

17 ‘‘(B) any governmental entity or instru18 mentality of a government; and 

19 ‘‘(C) any successor, subunit, parent entity, 

20 or subsidiary of, or any entity under common 

21 ownership or control with, any entity described 

22 in subparagraph (A) or (B). 

23 ‘‘(5) UNITED STATES PERSON.—The term 

24 ‘United States person’ has the meaning given such 

25 term in section 101 of the Comprehensive Iran 


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1 Sanctions, Accountability, and Divestment Act of 

2 2010 (22 U.S.C. 8511). 

3 ‘‘SEC. 322. REPORT ON THE ROLE OF IRAN’S REVOLU4 TIONARY GUARD CORPS IN THE ECONOMY 

5 AND FOREIGN RELATIONSHIPS OF IRAN. 

6 ‘‘Not later than 90 days after the date of the enact7 ment of the IRGC Sanctions Act, and on a quarterly basis 

8 thereafter, the President shall submit to Congress a report 

9 that— 

10 ‘‘(1) describes all financial and commercial ac11 tivities of Iran’s Revolutionary Guard Corps or any 

12 subdivision of Iran’s Revolutionary Guard Corps, in13 cluding Iran’s Revolutionary Guard Corps–Quds 

14 Force, and any person that is an agent, alias, front, 

15 instrumentality, or affiliate of any such entity; and 

16 ‘‘(2) contains the watch list established and up17 dated under section 323. 

18 ‘‘SEC. 323. WATCH LIST OF CERTAIN PERSONS 

19 TRANSITIONING ON OR OFF THE LIST OF 

20 SPECIALLY DESIGNATED NATIONALS AND 

21 BLOCKED PERSONS. 

22 ‘‘(a) ESTABLISHMENT.—The President shall estab23 lish and update as appropriate a watch list of— 

24 ‘‘(1) persons that the President determines 

25 meet any of the criteria of paragraphs (2) through 


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1 (5) of section 321(a) and are not included on the list 

2 of specially designated nationals and blocked persons 

3 maintained by the Office of Foreign Assets Control 

4 of the Department of the Treasury; and 

5 ‘‘(2) persons that are Iranian persons that meet 

6 the requirements described in section 321(a)(3) and 

7 have been removed from the list of specially des8 ignated nationals and blocked persons maintained by 

9 the Office of Foreign Assets Control of the Depart10 ment of the Treasury in accordance with the terms 

11 of United Nations Security Council Resolution 2231 

12 (2015) and the Joint Comprehensive Plan of Action. 

13 ‘‘(b) REMOVAL.—Except as provided in subsection 

14 (a)(2), the President may remove a person listed on the 

15 watch list described in subsection (a) if— 

16 ‘‘(1) on or after the date of the enactment of 

17 the IRGC Sanctions Act, the person is included on 

18 the list of specially designated nationals and blocked 

19 persons maintained by the Office of Foreign Assets 

20 Control of the Department of the Treasury; or 

21 ‘‘(2) the person no longer meets any of the cri22 teria of paragraphs (2) through (5) of section 

23 321(a). 

24 ‘‘(c) DEFINITION.—In this section, the term ‘Joint 

25 Comprehensive Plan of Action’ means the Joint ComVerDate Sep 11 2014 21:13 Dec 16, 2015 Jkt 059200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\H4257.IH H4257

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1 prehensive Plan of Action, agreed to at Vienna July 14, 

2 2015, by Iran and by the People’s Republic of China, 

3 France, Germany, the Russian Federation, the United 

4 Kingdom and the United States, with the High Represent5 ative of the European Union for Foreign Affairs and Secu6 rity Policy, and all implementing materials and agree7 ments related to the Joint Comprehensive Plan of Ac8 tion.’’. 

9 (b) CLERICAL AMENDMENT.—The table of contents 

10 for the Iran Threat Reduction and Syria Human Rights 

11 Act of 2012 is amended by inserting at the end of the 

12 items relating to title III the following: 

‘‘Subtitle C—Prohibitions on Financial Transactions With Iran’s Revolutionary Guard Corps and Its Affiliates and Entities Owned or Controlled 

by Iran’s Revolutionary Guard Corps and Its Affiliates 

‘‘Sec. 321. Prohibitions on financial transactions with Iran’s Revolutionary 

Guard Corps and its affiliates and entities owned or controlled 

by Iran’s Revolutionary Guard Corps and its affiliates. 

‘‘Sec. 322. Report on the role of Iran’s Revolutionary Guard Corps in the economy and foreign relationships of Iran. 

‘‘Sec. 323. Watch list of certain persons transitioning on or off the list of specially designated nationals and blocked persons.’’. 

13 SEC. 7. DISCLOSURES TO THE SECURITIES AND EXCHANGE 

14 COMMISSION RELATING TO SANCTIONABLE 

15 ACTIVITIES. 

16 (a) IN GENERAL.—Section 13(r) of the Securities 

17 Exchange Act of 1934 (15 U.S.C. 78m(r)) is amended— 

18 (1) in paragraph (1)— 

19 (A) in subparagraph (C), by striking ‘‘or’’ 

20 at the end; 


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1 (B) in subparagraph (D)(iii), by striking 

2 period at the end and inserting ‘‘; or’’; and 

3 (C) by adding at the end the following: 

4 ‘‘(E) knowingly engaged in any financial 

5 transaction with, or transferred funds to— 

6 ‘‘(i) Iran’s Revolutionary Guard Corps 

7 or any subdivision of Iran’s Revolutionary 

8 Guard Corps, including Iran’s Revolu9 tionary Guard Corps–Quds Force; 

10 ‘‘(ii) any person that is an agent, 

11 alias, front, instrumentality, or affiliate of 

12 any entity specified in clause (i); 

13 ‘‘(iii) any person that is owned or con14 trolled by an entity specified in clause (i) 

15 or a person specified in clause (ii); 

16 ‘‘(iv) any natural person who is a rep17 resentative, official, or senior member of 

18 any entity specified in clause (i); or 

19 ‘‘(v) any person— 

20 ‘‘(I) for the purpose of avoiding a 

21 financial transaction with, or transfer 

22 of funds to, an individual or entity 

23 specified in any of clauses (i) through 

24 (iv); or 


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1 ‘‘(II) for the benefit of an indi2 vidual or entity specified in any of 

3 clauses (i) through (iv).’’; 

4 (2) by redesignating paragraph (6) as para5 graph (8); and 

6 (3) by inserting after paragraph (5) the fol7 lowing: 

8 ‘‘(6) TREATMENT OF PERSONS RELYING ON

9 REGULATION D.—Any person that is not required to 

10 file an annual or quarterly report under subsection 

11 (a) but that offers or sells securities in reliance on 

12 an exemption provided under Regulation D (17 

13 C.F.R. 230.500 et seq.) shall file a quarterly report 

14 with the Commission containing the information re15 quired by paragraph (2) if, during the previous 

16 quarter, the person or any affiliate of the person 

17 took any action described in paragraph (1)(E). 

18 ‘‘(7) DEFINITIONS.—In paragraph (1)(E), the 

19 terms ‘controlled’, ‘knowingly’, and ‘owned’ have the 

20 respective meanings given such terms in section 

21 321(e) of the Iran Threat Reduction and Syria 

22 Human Rights Act of 2012.’’. 

23 (b) EFFECTIVE DATE.—The amendments made by 

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1 mission after the date that is 180 days after the date of 

2 the enactment of this Act. 

Æ 


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