I 

112TH CONGRESS 

1ST SESSION H. R. 3508 

To require the President to impose sanctions on foreign financial institutions 

that conduct transactions with the Central Bank of Iran. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 22, 2011 

Mr. FLAKE (for himself and Mr. MCINTYRE) introduced the following bill; 

which was referred to the Committee on Foreign Affairs, and in addition 

to the Committee on 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 require the President to impose sanctions on foreign 

financial institutions that conduct transactions with the 

Central Bank of Iran. 

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. IMPOSITION OF SANCTIONS ON FOREIGN FI2 NANCIAL INSTITUTIONS THAT CONDUCT 

3 TRANSACTIONS WITH THE CENTRAL BANK OF 

4 IRAN. 

5 Section 104 of the Comprehensive Iran Sanctions, 

6 Accountability, and Divestment Act of 2010 (22 U.S.C. 

7 8513) is amended— 

8 (1) by redesignating subsections (h) and (i) as 

9 subsections (i) and (j), respectively; and 

10 (2) by inserting after subsection (g) the fol11 lowing new subsection: 

12 ‘‘(h) IMPOSITION OF SANCTIONS ON FOREIGN FI13 NANCIAL INSTITUTIONS THAT CONDUCT TRANSACTIONS

14 WITH THE CENTRAL BANK OF IRAN.— 

15 ‘‘(1) IN GENERAL.—Subject to paragraphs (2), 

16 (3), and (4), not later than 30 days after the date 

17 of the enactment of this subsection, the President 

18 shall— 

19 ‘‘(A) prohibit the opening or maintaining 

20 in the United States of a correspondent account 

21 or a payable-through account by a foreign fi22 nancial institution that the President deter23 mines has knowingly conducted any financial 

24 transaction with the Central Bank of Iran; and 

25 ‘‘(B) freeze and prohibit all transactions in 

26 all property and interests in property of each 

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1 such foreign financial institution if such prop2 erty and interests in property are in the United 

3 States, come within the United States, or are or 

4 come within the possession or control of a 

5 United States person. 

6 ‘‘(2) EXCEPTION FOR SALES OF FOOD, MEDI7 CINE, AND MEDICAL DEVICES.—The President may 

8 not impose sanctions under paragraph (1) on a for9 eign financial institution for engaging in a trans10 action with the Central Bank of Iran for the sale of 

11 food, medicine, or medical devices to Iran. 

12 ‘‘(3) APPLICABILITY.— 

13 ‘‘(A) IN GENERAL.—Except as provided in 

14 subparagraph (B), paragraph (1) applies with 

15 respect to financial transactions commenced on 

16 or after the date of the enactment of this sub17 section. 

18 ‘‘(B) PETROLEUM TRANSACTIONS.—Para19 graph (1) applies with respect to financial 

20 transactions for the purchase of petroleum or 

21 petroleum products through the Central Bank 

22 of Iran commenced on or after the date that is 

23 180 days after the date of the enactment of this 

24 subsection. 

25 ‘‘(4) WAIVER.— 

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1 ‘‘(A) IN GENERAL.—The President may 

2 waive the application of paragraph (1) with re3 spect to a foreign financial institution for a pe4 riod of not more than 60 days, and may renew 

5 that waiver for additional periods of not more 

6 than 60 days, if the President determines and 

7 reports to the appropriate congressional com8 mittees every 60 days that the waiver is nec9 essary to the national security interest of the 

10 United States. 

11 ‘‘(B) FORM.—A report submitted pursuant 

12 to subparagraph (A) shall be submitted in un13 classified form, but may contain a classified 

14 annex. 

15 ‘‘(5) FOREIGN FINANCIAL INSTITUTION.—For 

16 purposes of this subsection, the term ‘foreign finan17 cial institution’ includes a financial institution owned 

18 or controlled by a foreign government.’’. 

Æ 

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