II 

109TH CONGRESS 

1ST SESSION S. 299 

To make information regarding certain investments in the energy sector 

in Iran available to the public, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 7, 2005 

Mr. WYDEN introduced the following bill; which was read twice and referred 

to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To make information regarding certain investments in the 

energy sector in Iran available to the public, 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 ‘‘Investor in Iran Ac5 countability Act of 2005’’. 

6 SEC. 2. FINDINGS. 

7 Congress makes the following findings: 

8 (1) The Department of State’s Patterns of 

9 Global Terrorism report for 2003 stated that ‘‘Iran 
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1 remained the most active state sponsor of terrorism 

2 in 2003’’. 

3 (2) That report further stated that— 

4 (A) Iran continues to provide funding, 

5 safehaven, training, and weapons to known ter6 rorist groups, including Hizballah, HAMAS, the 

7 Palestine Islamic Jihad, and the Popular Front 

8 for the Liberation of Palestine; and 

9 (B) the Government of Iran’s poor human 

10 rights record continues to worsen. 

11 (3) In 1979, in response to the Islamic Revolu12 tion in Iran and the holding of United States citi13 zens as hostages in Iran, the United States imposed 

14 economic sanctions against Iran that prohibit vir15 tually all trade and investment activities with Iran 

16 by citizens of the United States or United States 

17 companies. 

18 (4) The United States does not prohibit foreign 

19 subsidiaries of United States companies from invest20 ing in Iran if the foreign subsidiary is independent 

21 of the United States parent company. 

22 (5) A number of subsidiaries of United States 

23 companies appear to be taking advantage of this 

24 condition and are investing in the energy sector in 

25 Iran through such subsidiaries. 
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1 (6) According to the Energy Information Ad2 ministration of the Department of Energy, Iran is 

3 the second largest oil producer in the Organization 

4 of the Petroleum Exporting Countries (OPEC) and 

5 holds 10 percent of the world’s proven oil reserves. 

6 (7) According to the Energy Information Ad7 ministration, the economy of Iran relies heavily on 

8 revenues generated by the export of oil and such rev9 enues account for approximately 80 percent of Iran’s 

10 total annual export earnings, nearly one-half of the 

11 annual budget of the Government of Iran, and as 

12 much as one-fifth of the gross domestic product of 

13 Iran. 

14 (8) According to the Energy Information Ad15 ministration, Iran is actively seeking significant new 

16 foreign investment in the energy sector and experts 

17 believe that with sufficient investment Iran could in18 crease its crude oil production capacity significantly. 

19 (9) The Department of Justice is conducting a 

20 criminal investigation into whether United States 

21 companies have violated any law by trading or in22 vesting with Iran through a subsidiary company that 

23 may not be completely independent of the parent 

24 company. 
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1 (10) The Securities and Exchange Commission 

2 has determined that significant corporate operations 

3 in countries subject to economic sanctions, such as 

4 Iran, can represent a material risk to investors in 

5 the United States and that such investments should 

6 be properly disclosed. 

7 SEC. 3. POLICY OF THE UNITED STATES. 

8 It is the policy of the United States— 

9 (1) to enforce fully existing economic sanctions 

10 imposed by United States law against Iran, includ11 ing sanctions imposed under the Iran and Libya 

12 Sanctions Act of 1996 (50 U.S.C. 1701 note) on 

13 persons that make certain investments that con14 tribute to Iran’s ability to develop and exploit its pe15 troleum and natural gas resources; 

16 (2) to make available to the public information 

17 regarding a United States person or a person that 

18 is controlled in fact by a United States person who 

19 maintains any direct or indirect investment in the 

20 energy sector in Iran; and 

21 (3) to seek international cooperation in fully en22 forcing economic sanctions against Iran and in pro23 hibiting any direct or indirect investment in Iran 

24 until Iran ceases to support international terrorism. 
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1 SEC. 4. DEFINITIONS. 

2 In this Act: 

3 (1) CONTROLLED IN FACT.—The term ‘‘con4 trolled in fact’’ includes— 

5 (A) with respect to a corporation, the hold6 ing of at least 50 percent (by vote or value) of 

7 the capital structure of the corporation; and 

8 (B) with respect to a legal entity other 

9 than a corporation, the holding of interests rep10 resenting at least 50 percent of the capital 

11 structure of the entity. 

12 (2) ENERGY SECTOR.—The term ‘‘energy sec13 tor’’ means any research, exploration, development, 

14 production, sale, distribution, or advertising of nat15 ural gas, oil, or petroleum resources or nuclear 

16 power. 

17 (3) STATE.—The term ‘‘State’’ means each of 

18 the several States of the United States, the District 

19 of Columbia, the Commonwealth of Puerto Rico, 

20 Guam, the Virgin Islands, and other territories or 

21 possessions of the United States. 

22 (4) UNITED STATES PERSON.—The term 

23 ‘‘United States person’’ means any citizen of the 

24 United States, permanent resident alien, or entity 

25 organized under the laws of the United States or of 
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1 any State, wherever located (including foreign 

2 branches). 

3 SEC. 5. PUBLICATION OF INFORMATION ON INVESTMENTS. 

4 (a) REQUIREMENT TO PUBLISH.—Not later than 120 

5 days after the date of enactment of this Act, the Secretary 

6 of the Treasury shall publish in the Federal Register and 

7 make available to the public on the Internet website of 

8 the Department of the Treasury— 

9 (1) a list of each United States person or each 

10 person that is controlled in fact by a United States 

11 person that maintains any direct or indirect invest12 ment in the energy sector in Iran; 

13 (2) a list of each foreign person that owned in14 vestments in the energy sector in Iran with a total 

15 value of more than $1,000,000 during the 12-month 

16 period ending on the date of the publication in the 

17 Federal Register; and 

18 (3) a list of— 

19 (A) any United States person that holds 

20 the securities of a person described in para21 graph (1) or (2) valued at more than $100,000; 

22 (B) any investment company registered 

23 under section 8 of the Investment Company Act 

24 of 1940 that invests, reinvests, or trades in the 
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1 securities of a person described in paragraph 

2 (1) or (2); 

3 (C) any pension plan or other Federal or 

4 State retirement plan that invests in the securi5 ties of persons described in paragraph (1) or 

6 (2); and 

7 (D) such other investors in the securities 

8 of persons described in paragraph (1) or (2) as 

9 the Secretary determines is appropriate to carry 

10 out the policy set out in section 3. 

11 (b) REQUIREMENT OF UPDATE.—The Secretary of 

12 the Treasury shall update the lists described in para13 graphs (1) through (3) of subsection (a) at least once dur14 ing each calendar year. Such updates shall be published 

15 in the Federal Register and made available to the public 

16 on the Internet website of the Department of the Treas17 ury. 

18 SEC. 6. INTERNATIONAL COOPERATION. 

19 The President, acting through the Secretary of the 

20 Treasury, the Secretary of State, or the head of any other 

21 appropriate Federal department or agency, shall under22 take negotiations with the government of a foreign country 

23 to prohibit any direct or indirect investment in the energy 

24 sector in Iran by any person that is controlled in fact by 

25 that foreign country. 
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1 SEC. 7. EXTENSION OF THE IRAN AND LIBYA SANCTIONS 

2 ACT OF 1996. 

3 Section 13(b) of the Iran and Libya Sanctions Act 

4 of 1996 (50 U.S.C. 1701 note) is amended by striking 

5 ‘‘10’’ and inserting ‘‘15’’. 

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