I 

112TH CONGRESS 

2D SESSION H. R. 4179 

To strengthen the multilateral sanctions regime with respect to Iran, to 

expand sanctions relating to the energy sector of Iran, the proliferation 

of weapons of mass destruction by Iran, and human rights abuses in 

Iran, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 8, 2012 

Mr. SHERMAN (for himself and Ms. ROS-LEHTINEN) introduced the following 

bill; which was referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, the Judiciary, and Oversight and Government Reform, 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 strengthen the multilateral sanctions regime with respect 

to Iran, to expand sanctions relating to the energy sector 

of Iran, the proliferation of weapons of mass destruction 

by Iran, and human rights abuses in Iran, 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, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Iran Financial Sanc5 tions Improvement Act of 2012’’. 


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1 SEC. 2. REPORTS ON, AND AUTHORIZATION OF IMPOSITION 

2 OF SANCTIONS WITH RESPECT TO, THE PRO3 VISION OF SERVICES TO THE CENTRAL BANK 

4 OF IRAN AND IRANIAN FINANCIAL INSTITU5 TIONS. 

6 (a) REPORT ON THE PROVISION OF SERVICES TO

7 IRANIAN FINANCIAL INSTITUTIONS.—Not later than 60 

8 days after the date of the enactment of this Act, the 

9 Comptroller General of the United States shall submit to 

10 the appropriate congressional committees a list of all 

11 known entities that provide services to, or enable or facili12 tate access to services for, the Central Bank of Iran or 

13 any Iranian financial institution. 

14 (b) REPORT ON EFFORTS TO TERMINATE THE PRO15 VISION BY CERTAIN ENTITIES OF SERVICES TO IRANIAN

16 FINANCIAL INSTITUTIONS.—Not later than 90 days after 

17 the date of the enactment of this Act, the Secretary of 

18 the Treasury shall submit to the appropriate congressional 

19 committees a report on the status of efforts to ensure that 

20 the Society for Worldwide Interbank Financial Tele21 communication (commonly known as ‘‘SWIFT’’), 

22 Clearstream, and other entities that provide similar serv23 ices, have terminated the provision of services to, and the 

24 enabling and facilitation of access to services for, the Cen25 tral Bank of Iran and other Iranian financial institutions. 


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1 (c) AUTHORIZATION FOR THE IMPOSITION OF SANC2 TIONS.—If, on or after the date that is 90 days after the 

3 date of the enactment of this Act, an entity has not termi4 nated the provision of services to, or the enabling and fa5 cilitation of access to services for, the Central Bank of 

6 Iran or any other Iranian financial institution, the Presi7 dent may— 

8 (1) impose sanctions pursuant to the Inter9 national Emergency Economic Powers Act (50 

10 U.S.C. 1701 et seq.) with respect to the entity or its 

11 directors; and 

12 (2) in the case of an entity that is a foreign fi13 nancial institution, prohibit, or impose strict condi14 tions on, the opening or maintaining in the United 

15 States of a correspondent account or payable16 through account by the entity. 

17 (d) ADDITIONAL SANCTIONS.—Section 104(c)(2) of 

18 the Comprehensive Iran Sanctions, Accountability, and 

19 Divestment Act of 2010 (22 U.S.C. 8513(c)(2)) is amend20 ed— 

21 (1) in subparagraph (D), by striking ‘‘or’’ at 

22 the end; 

23 (2) in subparagraph (E)(ii)(II), by striking the 

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


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1 (3) by adding at the end the following new sub2 paragraph: 

3 ‘‘(F) employs a member of the board of di4 rectors of an entity that has not, by the time 

5 period specified in section 2(c) of the Iran Fi6 nancial Sanctions Improvement Act of 2012, 

7 terminated the provision of services to, or the 

8 enabling and facilitation of access to services 

9 for, the Central Bank of Iran or any other Ira10 nian financial institution (as defined in sub11 section (j)(1)(E)) and— 

12 ‘‘(i) provides services relating to se13 cure communications, electronic funds 

14 transfers, or cable transfers; and 

15 ‘‘(ii) provides such services to, or en16 ables or facilitates access to such services 

17 for, the Central Bank of Iran or any Ira18 nian financial institution; or’’. 

19 (e) REGULATIONS.—Not later than 90 days after the 

20 date of the enactment of this Act, the Secretary of the 

21 Treasury shall revise the regulations prescribed under sec22 tion 104(c) of the Comprehensive Iran Sanctions, Ac23 countability, and Divestment Act of 2010 (22 U.S.C. 

24 8513(c)) to carry out the amendments made by subsection 

25 (d) of this section. 


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1 (f) DEFINITIONS.—In this section: 

2 (1) APPROPRIATE CONGRESSIONAL COMMIT3 TEES.—The term ‘‘appropriate congressional com4 mittees’’ means— 

5 (A) in the House of Representatives— 

6 (i) the Committee on Foreign Affairs; 

7 and 

8 (ii) the Committee on Financial Serv9 ices; and 

10 (B) in the Senate— 

11 (i) the Committee on Foreign Rela12 tions; and 

13 (ii) the Committee on Banking, Hous14 ing, and Urban Affairs. 

15 (2) FOREIGN FINANCIAL INSTITUTION.—The 

16 term ‘‘foreign financial institution’’ has the meaning 

17 given that term in section 104 of the Comprehensive 

18 Iran Sanctions, Accountability, and Divestment Act 

19 of 2010 (22 U.S.C. 8513). 

20 (3) IRANIAN FINANCIAL INSTITUTION.—The 

21 term ‘‘Iranian financial institution’’ has the meaning 

22 given that term in section 104 of the Comprehensive 

23 Iran Sanctions, Accountability, and Divestment Act 

24 of 2010 (22 U.S.C. 8513), as amended by section 3. 


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1 (4) SERVICES.—The term ‘‘services’’ includes 

2 communications, or financial (including trade and 

3 post-trade), hardware, software, or professional con4 sulting services. 

5 SEC. 3. EXPANSION OF CERTAIN SANCTIONS UNDER THE 

6 COMPREHENSIVE IRAN SANCTIONS, AC7 COUNTABILITY, AND DIVESTMENT ACT OF 

8 2010 TO APPLY WITH RESPECT TO ALL IRA9 NIAN FINANCIAL INSTITUTIONS. 

10 (a) IN GENERAL.—Section 104(c)(2) of the Com11 prehensive Iran Sanctions, Accountability, and Divestment 

12 Act of 2010 (22 U.S.C. 8513(c)(2)) (as amended by sec13 tion 2(d) of this Act) is further amended— 

14 (1) in subparagraph (E)— 

15 (A) in clause (i), by striking ‘‘or’’ at the 

16 end; and 

17 (B) by adding at the end the following new 

18 clause: 

19 ‘‘(iii) any other Iranian financial insti20 tution (as defined in subsection (j)(1)(E)); 

21 or’’; and 

22 (2) by adding at the end the following new sub23 paragraph: 

24 ‘‘(G) fails to submit a report required by 

25 subsection (i).’’. 


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1 (b) PUBLIC DISCLOSURE OF FINANCIAL DEALINGS

2 WITH IRANIAN FINANCIAL INSTITUTIONS.—Section 104 

3 of the Comprehensive Iran Sanctions, Accountability, and 

4 Divestment Act of 2010 (22 U.S.C. 8513) is amended— 

5 (1) by redesignating subsection (i) as subsection 

6 (j); and 

7 (2) by inserting after subsection (h) the fol8 lowing new subsection: 

9 ‘‘(i) REQUIREMENTS FOR FOREIGN FINANCIAL IN10 STITUTIONS MAINTAINING CORRESPONDENT ACCOUNTS

11 OR PAYABLE-THROUGH ACCOUNTS IN THE UNITED

12 STATES.— 

13 ‘‘(1) IN GENERAL.—Not later than 180 days 

14 after the date of the enactment of the Iran Financial 

15 Sanctions Improvement Act of 2012 and every 180 

16 days thereafter, each head of a foreign financial in17 stitution that maintains a correspondent account or 

18 a payable-through account in the United States shall 

19 submit to the Secretary of the Treasury a report 

20 that describes any financial dealings of the foreign 

21 financial institution with an Iranian financial insti22 tution during the 180-day period preceding the sub23 mission of each such report, including— 


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1 ‘‘(A) correspondent accounts and payable2 through accounts maintained with an Iranian 

3 financial institution; 

4 ‘‘(B) transactions conducted with or facili5 tated for an Iranian financial institution; 

6 ‘‘(C) services provided to an Iranian finan7 cial institution; and 

8 ‘‘(D) funds held for or on behalf of an Ira9 nian financial institution. 

10 ‘‘(2) PUBLIC DISCLOSURE.—The Secretary of 

11 the Treasury shall post a copy of each such report 

12 submitted under paragraph (1) on the website of the 

13 Department of the Treasury not later than 72 hours 

14 after the report is submitted.’’. 

15 (c) IRANIAN FINANCIAL INSTITUTION DEFINED.— 

16 Paragraph (1) of section 104(j) of the Comprehensive Iran 

17 Sanctions, Accountability, and Divestment Act of 2010 

18 (22 U.S.C. 8513(j)) (as redesignated by subsection (b) of 

19 this section) is amended— 

20 (1) by redesignating subparagraph (E) as sub21 paragraph (F); and 

22 (2) by inserting after subparagraph (D) the fol23 lowing new subparagraph: 


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1 ‘‘(E) IRANIAN FINANCIAL INSTITUTION.— 

2 The term ‘Iranian financial institution’ 

3 means— 

4 ‘‘(i) a financial institution organized 

5 under the laws of Iran or any jurisdiction 

6 within Iran, including a foreign branch of 

7 such an institution; 

8 ‘‘(ii) a financial institution located in 

9 Iran; 

10 ‘‘(iii) a financial institution, wherever 

11 located, owned or controlled by the Govern12 ment of Iran; and 

13 ‘‘(iv) a financial institution, wherever 

14 located, owned or controlled by a financial 

15 institution described in clause (i), (ii), or 

16 (iii).’’. 

17 (d) REGULATIONS.—Not later than 90 days after the 

18 date of the enactment of this Act, the Secretary of the 

19 Treasury shall make such revisions to the regulations pre20 scribed under section 104 of the Comprehensive Iran 

21 Sanctions, Accountability, and Divestment Act of 2010 

22 (22 U.S.C. 8513) as are necessary to carry out the amend23 ments made by this section. 


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1 SEC. 4. EXPANSION OF SANCTIONS UNDER THE NATIONAL 

2 DEFENSE AUTHORIZATION ACT FOR FISCAL 

3 YEAR 2012 TO APPLY WITH RESPECT TO 

4 TRANSACTIONS WITH AND THE MAINTE5 NANCE OF FUNDS OR ACCOUNTS FOR ALL 

6 IRANIAN FINANCIAL INSTITUTIONS. 

7 (a) IN GENERAL.—Section 1245(d) of the National 

8 Defense Authorization Act for Fiscal Year 2012 (Public 

9 Law 112–81) is amended— 

10 (1) in paragraph (1)(A), by striking ‘‘the Cen11 tral Bank of Iran’’ and all that follows through ‘‘et 

12 seq.)’’ and inserting ‘‘, or maintained funds or ac13 counts for or on behalf of, the Central Bank of Iran 

14 or another Iranian financial institution’’; and 

15 (2) by striking paragraph (3) and inserting the 

16 following: 

17 ‘‘(3) APPLICABILITY OF SANCTIONS WITH RE18 SPECT TO FOREIGN CENTRAL BANKS.—Sanctions 

19 imposed under paragraph (1)(A) shall apply with re20 spect to a foreign financial institution owned or con21 trolled by the government of a foreign country, in22 cluding a central bank of a foreign country, to the 

23 same extent and in the same manner as such sanc24 tions apply to other foreign financial institutions.’’. 

25 (b) IRANIAN FINANCIAL INSTITUTION DEFINED.— 

26 Section 1245(h) of the National Defense Authorization 


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1 Act for Fiscal Year 2012 (Public Law 112–81) is amend2 ed— 

3 (1) in paragraph (2), by striking ‘‘(i)’’ each 

4 place it appears and inserting ‘‘(j)’’; 

5 (2) by redesignating paragraph (3) as para6 graph (4); and 

7 (3) by inserting after paragraph (2) the fol8 lowing new paragraph: 

9 ‘‘(3) IRANIAN FINANCIAL INSTITUTION.—The 

10 term ‘Iranian financial institution’ has the meaning 

11 given that term in section 104 of the Comprehensive 

12 Iran Sanctions, Accountability, and Divestment Act 

13 of 2010 (22 U.S.C. 8513).’’. 

14 SEC. 5. IMPOSITION OF SANCTIONS WITH RESPECT TO THE 

15 PROVISION OF UNDERWRITING SERVICES OR 

16 INSURANCE OR REINSURANCE FOR ACTIVI17 TIES OR PERSONS WITH RESPECT TO WHICH 

18 SANCTIONS HAVE BEEN IMPOSED. 

19 (a) IN GENERAL.—Except as provided in subsection 

20 (c), not later than 60 days after the date of the enactment 

21 of this Act, the President, in addition to any other penalty 

22 provided for by applicable law, shall impose a majority of 

23 the sanctions described subsection (b) with respect to a 

24 person if the President determines that the person knowVerDate Mar 15 2010 03:09 Mar 09, 2012 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H4179.IH H4179

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1 ingly, on or after such date of enactment, provides under2 writing services or insurance or reinsurance— 

3 (1) for any activity with respect to Iran for 

4 which sanctions have been imposed under this Act, 

5 the Iran Sanctions Act of 1996, the Comprehensive 

6 Iran Sanctions, Accountability, and Divestment Act 

7 of 2010 (22 U.S.C. 8501 et seq.), the Iran, North 

8 Korea, and Syria Nonproliferation Act (Public Law 

9 106–178; 50 U.S.C. 1701 note), the International 

10 Emergency Economic Powers Act (50 U.S.C. 1701 

11 et seq.), or any other provision of law relating to the 

12 imposition of sanctions with respect to Iran; or 

13 (2) to or for any person— 

14 (A) on which sanctions have been imposed 

15 under any such Act or provision of law for en16 gaging in an activity with respect to Iran; or 

17 (B) designated for the imposition of sanc18 tions pursuant to the International Emergency 

19 Economic Powers Act (50 U.S.C. 1701 et seq.) 

20 in connection with— 

21 (i) Iran’s proliferation of weapons of 

22 mass destruction or delivery systems for 

23 weapons of mass destruction; or 

24 (ii) Iran’s support for international 

25 terrorism. 


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1 (b) SANCTIONS DESCRIBED.—The sanctions to be 

2 imposed on a person under subsection (a) are as follows: 

3 (1) EXPORT-IMPORT BANK ASSISTANCE FOR

4 EXPORTS TO SANCTIONED PERSONS.—The President 

5 may direct the Export-Import Bank of the United 

6 States to not give approval for the issuance of any 

7 guarantee, insurance, extension of credit, or partici8 pation in the extension of credit in connection with 

9 the export of any goods or services to any sanctioned 

10 person. 

11 (2) EXPORT SANCTION.—The President may 

12 order the United States Government not to issue 

13 any specific license and not to grant any other spe14 cific permission or authority to export any goods or 

15 technology to a sanctioned person under— 

16 (A) the Export Administration Act of 1979 

17 (as continued in effect pursuant to the Inter18 national Emergency Economic Powers Act); 

19 (B) the Arms Export Control Act; 

20 (C) the Atomic Energy Act of 1954; or 

21 (D) any other law that requires the prior 

22 review and approval of the United States Gov23 ernment as a condition for the export or reex24 port of goods or services. 


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1 (3) LOANS FROM UNITED STATES FINANCIAL

2 INSTITUTIONS.—The United States Government 

3 may prohibit any United States financial institution 

4 from making loans or providing credits to any sanc5 tioned person totaling more than $10,000,000 in 

6 any 12-month period unless such person is engaged 

7 in activities to relieve human suffering and the loans 

8 or credits are provided for such activities. 

9 (4) PROHIBITIONS ON FINANCIAL INSTITU10 TIONS.—The following prohibitions may be imposed 

11 against a sanctioned person that is a financial insti12 tution: 

13 (A) PROHIBITION ON DESIGNATION AS

14 PRIMARY DEALER.—Neither the Board of Gov15 ernors of the Federal Reserve System nor the 

16 Federal Reserve Bank of New York may des17 ignate, or permit the continuation of any prior 

18 designation of, such financial institution as a 

19 primary dealer in United States Government 

20 debt instruments. 

21 (B) PROHIBITION ON SERVICE AS A RE22 POSITORY OF GOVERNMENT FUNDS.—Such fi23 nancial institution may not serve as agent of 

24 the United States Government or serve as re25 pository for United States Government funds. 


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1 The imposition of either sanction under subpara2 graph (A) or (B) shall be treated as one sanction for 

3 purposes of subsection (a), and the imposition of 

4 both such sanctions shall be treated as two sanctions 

5 for purposes of such subsection. 

6 (5) PROCUREMENT SANCTION.—The United 

7 States Government may not procure, or enter into 

8 any contract for the procurement of, any goods or 

9 services from a sanctioned person. 

10 (6) FOREIGN EXCHANGE.—The President may 

11 prohibit any transactions in foreign exchange that 

12 are subject to the jurisdiction of the United States 

13 and in which the sanctioned person has any interest. 

14 (7) BANKING TRANSACTIONS.—The President 

15 may prohibit any transfers of credit or payments be16 tween financial institutions or by, through, or to any 

17 financial institution, to the extent that such trans18 fers or payments are subject to the jurisdiction of 

19 the United States and involve any interest of the 

20 sanctioned person. 

21 (8) PROPERTY TRANSACTIONS.—The President 

22 may prohibit any person from— 

23 (A) acquiring, holding, withholding, using, 

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1 risdiction of the United States and with respect 

2 to which a sanctioned person has any interest; 

3 (B) dealing in or exercising any right, 

4 power, or privilege with respect to such prop5 erty; or 

6 (C) conducting any transaction involving 

7 such property. 

8 (9) GROUNDS FOR EXCLUSION.—The Secretary 

9 of State may deny a visa to, and the Secretary of 

10 Homeland Security may deny admission into the 

11 United States to, any alien whom the Secretary of 

12 State determines is an alien who, on or after the 

13 date of the enactment of this Act, is a— 

14 (A) corporate officer, principal, or share15 holder with a controlling interest of a person 

16 against whom sanctions have been imposed 

17 under subsection (a); 

18 (B) corporate officer, principal, or share19 holder with a controlling interest of a successor 

20 entity to or a parent or subsidiary of such a 

21 sanctioned person; 

22 (C) corporate officer, principal, or share23 holder with a controlling interest of an affiliate 

24 of such a sanctioned person, if such affiliate en25 gaged in a sanctionable activity described in 


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1 subsection (a) and if such affiliate is controlled 

2 in fact by such sanctioned person; or 

3 (D) spouse, minor child, or agent of a per4 son inadmissible under subparagraph (A), (B), 

5 or (C). 

6 (10) SANCTIONS ON PRINCIPAL EXECUTIVE OF7 FICERS.—The President may impose on the prin8 cipal executive officer or officers of any sanctioned 

9 person, or on persons performing similar functions 

10 and with similar authorities as such officer or offi11 cers, any of the sanctions under this subsection. 

12 (11) ADDITIONAL SANCTIONS.—The President 

13 may impose additional sanctions, as appropriate, in 

14 accordance with the International Emergency Eco15 nomic Powers Act (50 U.S.C. 1701 et seq.). 

16 (c) EXCEPTION FOR UNDERWRITERS AND INSUR17 ANCE PROVIDERS EXERCISING DUE DILIGENCE.—The 

18 President may not impose sanctions under subsection (a) 

19 with respect to a person that provides underwriting serv20 ices or insurance or reinsurance if the President deter21 mines that the person has exercised due diligence in estab22 lishing and enforcing official policies, procedures, and con23 trols to ensure that the person does not provide under24 writing services or insurance or reinsurance for an activity 


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1 described in paragraph (1) of such subsection or to or for 

2 a person described in paragraph (2) of such subsection. 

3 (d) FINANCIAL INSTITUTION DEFINED.—The term 

4 ‘‘financial institution’’ includes— 

5 (1) a depository institution (as defined in sec6 tion 3(c)(1) of the Federal Deposit Insurance Act), 

7 including a branch or agency of a foreign bank (as 

8 defined in section 1(b)(7) of the International Bank9 ing Act of 1978); 

10 (2) a credit union; 

11 (3) a securities firm, including a broker or deal12 er; 

13 (4) an insurance company, including an agency 

14 or underwriter; and 

15 (5) any other company that provides financial 

16 services, including joint ventures with Iranian enti17 ties both inside and outside of Iran and partnerships 

18 or investments with Iranian government-controlled 

19 entities or affiliated entities. 

Æ 


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