H. R. 2194 

One Hundred Eleventh Congress 

of the 

United States of America 

AT THE SECOND SESSION 

Begun and held at the City of Washington on Tuesday, 

the fifth day of January, two thousand and ten 

An Act 

To amend the Iran Sanctions Act of 1996 to enhance United States diplomatic 

efforts with respect to Iran by expanding economic sanctions against Iran. 

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Comprehensive 

Iran Sanctions, Accountability, and Divestment Act of 2010’’. 

(b) TABLE OF CONTENTS.—The table of contents for this Act 

is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

Sec. 3. Sense of Congress regarding the need to impose additional sanctions with 

respect to Iran. 

TITLE I—SANCTIONS 

Sec. 101. Definitions. 

Sec. 102. Expansion of sanctions under the Iran Sanctions Act of 1996. 

Sec. 103. Economic sanctions relating to Iran. 

Sec. 104. Mandatory sanctions with respect to financial institutions that engage in 

certain transactions. 

Sec. 105. Imposition of sanctions on certain persons who are responsible for or 

complicit in human rights abuses committed against citizens of Iran or 

their family members after the June 12, 2009, elections in Iran. Sec. 106. Prohibition on procurement contracts with persons that export sensitive 

technology to Iran. Sec. 107. Harmonization of criminal penalties for violations of sanctions. 

Sec. 108. Authority to implement United Nations Security Council resolutions imposing sanctions with respect to Iran. Sec. 109. Increased capacity for efforts to combat unlawful or terrorist financing. 

Sec. 110. Reports on investments in the energy sector of Iran. 

Sec. 111. Reports on certain activities of foreign export credit agencies and of the 

Export-Import Bank of the United States. Sec. 112. Sense of Congress regarding Iran’s Revolutionary Guard Corps and its affiliates. 

Sec. 113. Sense of Congress regarding Iran and Hezbollah. 

Sec. 114. Sense of Congress regarding the imposition of multilateral sanctions with 

respect to Iran. Sec. 115. Report on providing compensation for victims of international terrorism. 

TITLE II—DIVESTMENT FROM CERTAIN COMPANIES THAT INVEST IN IRAN 

Sec. 201. Definitions. 

Sec. 202. Authority of State and local governments to divest from certain companies that invest in Iran. 

Sec. 203. Safe harbor for changes of investment policies by asset managers. 

Sec. 204. Sense of Congress regarding certain ERISA plan investments. 

Sec. 205. Technical corrections to Sudan Accountability and Divestment Act of 

2007. 

TITLE III—PREVENTION OF DIVERSION OF CERTAIN GOODS, SERVICES, 

AND TECHNOLOGIES TO IRAN 

Sec. 301. Definitions. 
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Sec. 302. Identification of countries of concern with respect to the diversion of certain goods, services, and technologies to or through Iran. 

Sec. 303. Destinations of Diversion Concern. 

Sec. 304. Report on expanding diversion concern system to address the diversion of 

United States origin goods, services, and technologies to certain countries other than Iran. 

Sec. 305. Enforcement authority. 

TITLE IV—GENERAL PROVISIONS 

Sec. 401. General provisions. 

Sec. 402. Determination of budgetary effects. 

SEC. 2. FINDINGS. 

Congress makes the following findings: 

(1) The illicit nuclear activities of the Government of Iran, 

combined with its development of unconventional weapons and 

ballistic missiles and its support for international terrorism, 

represent a threat to the security of the United States, its 

strong ally Israel, and other allies of the United States around 

the world. 

(2) The United States and other responsible countries have 

a vital interest in working together to prevent the Government 

of Iran from acquiring a nuclear weapons capability. 

(3) The International Atomic Energy Agency has repeatedly 

called attention to Iran’s illicit nuclear activities and, as a 

result, the United Nations Security Council has adopted a 

range of sanctions designed to encourage the Government of 

Iran to suspend those activities and comply with its obligations 

under the Treaty on the Non-Proliferation of Nuclear Weapons, 

done at Washington, London, and Moscow July 1, 1968, and 

entered into force March 5, 1970 (commonly known as the 

‘‘Nuclear Non-Proliferation Treaty’’). 

(4) The serious and urgent nature of the threat from Iran 

demands that the United States work together with its allies 

to do everything possible—diplomatically, politically, and 

economically—to prevent Iran from acquiring a nuclear 

weapons capability. 

(5) The United States and its major European allies, 

including the United Kingdom, France, and Germany, have 

advocated that sanctions be strengthened should international 

diplomatic efforts fail to achieve verifiable suspension of Iran’s 

uranium enrichment program and an end to its nuclear 

weapons program and other illicit nuclear activities. 

(6) The Government of Iran continues to engage in serious, 

systematic, and ongoing violations of human rights, including 

suppression of freedom of expression and religious freedom, 

illegitimately prolonged detention, torture, and executions. Such 

violations have increased in the aftermath of the fraudulent 

presidential election in Iran on June 12, 2009. 

(7) The Government of Iran has been unresponsive to President Obama’s unprecedented and serious efforts at engagement, 

revealing that the Government of Iran is not interested in 

a diplomatic resolution, as made clear, for example, by the 

following: 

(A) Iran’s apparent rejection of the Tehran Research 

Reactor plan, generously offered by the United States and 

its partners, of potentially great benefit to the people of 

Iran, and endorsed by Iran’s own negotiators in October 

2009. 
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(B) Iran’s ongoing clandestine nuclear program, as evidenced by its work on the secret uranium enrichment 

facility at Qom, its subsequent refusal to cooperate fully 

with inspectors from the International Atomic Energy 

Agency, and its announcement that it would build 10 new 

uranium enrichment facilities. 

(C) Iran’s official notification to the International 

Atomic Energy Agency that it would enrich uranium to 

the 20 percent level, followed soon thereafter by its providing to that Agency a laboratory result showing that 

Iran had indeed enriched some uranium to 19.8 percent. 

(D) A February 18, 2010, report by the International 

Atomic Energy Agency expressing ‘‘concerns about the possible existence in Iran of past or current undisclosed activities related to the development of a nuclear payload for 

a missile. These alleged activities consist of a number 

of projects and sub-projects, covering nuclear and missile 

related aspects, run by military-related organizations.’’. 

(E) A May 31, 2010, report by the International Atomic 

Energy Agency expressing continuing strong concerns 

about Iran’s lack of cooperation with the Agency’s 

verification efforts and Iran’s ongoing enrichment activities, 

which are contrary to the longstanding demands of the 

Agency and the United Nations Security Council. 

(F) Iran’s announcement in April 2010 that it had 

developed a new, faster generation of centrifuges for 

enriching uranium. 

(G) Iran’s ongoing arms exports to, and support for, 

terrorists in direct contravention of United Nations Security Council resolutions. 

(H) Iran’s July 31, 2009, arrest of 3 young citizens 

of the United States on spying charges. 

(8) There is an increasing interest by State governments, 

local governments, educational institutions, and private institutions, business firms, and other investors to disassociate themselves from companies that conduct business activities in the 

energy sector of Iran, since such business activities may directly 

or indirectly support the efforts of the Government of Iran 

to achieve a nuclear weapons capability. 

(9) Black market proliferation networks continue to flourish 

in the Middle East, allowing countries like Iran to gain access 

to sensitive dual-use technologies. 

(10) Economic sanctions imposed pursuant to the provisions 

of this Act, the Iran Sanctions Act of 1996, as amended by 

this Act, and the International Emergency Economic Powers 

Act (50 U.S.C. 1701 et seq.), and other authorities available 

to the United States to impose economic sanctions to prevent 

Iran from developing nuclear weapons, are necessary to protect 

the essential security interests of the United States. 

SEC. 3. SENSE OF CONGRESS REGARDING THE NEED TO IMPOSE ADDITIONAL SANCTIONS WITH RESPECT TO IRAN. 

It is the sense of Congress that— 

(1) international diplomatic efforts to address Iran’s illicit 

nuclear efforts and support for international terrorism are more 

likely to be effective if strong additional sanctions are imposed 

on the Government of Iran; 
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(2) the concerns of the United States regarding Iran are 

strictly the result of the actions of the Government of Iran; 

(3) the revelation in September 2009 that Iran is developing 

a secret uranium enrichment site on a base of Iran’s Revolutionary Guard Corps near Qom, which appears to have no 

civilian application, highlights the urgency that Iran— 

(A) disclose the full nature of its nuclear program, 

including any other secret locations; and 

(B) provide the International Atomic Energy Agency 

unfettered access to its facilities pursuant to Iran’s legal 

obligations under the Treaty on the Non-Proliferation of 

Nuclear Weapons, done at Washington, London, and 

Moscow July 1, 1968, and entered into force March 5, 

1970 (commonly known as the ‘‘Nuclear Non-Proliferation 

Treaty’’) and Iran’s safeguards agreement with the International Atomic Energy Agency; 

(4) because of the involvement of Iran’s Revolutionary 

Guard Corps in Iran’s nuclear program, international terrorism, 

and domestic human rights abuses, the President should impose 

the full range of applicable sanctions on— 

(A) any individual or entity that is an agent, alias, 

front, instrumentality, representative, official, or affiliate 

of Iran’s Revolutionary Guard Corps; and 

(B) any individual or entity that has conducted any 

commercial transaction or financial transaction with an 

individual or entity described in subparagraph (A); 

(5) additional measures should be adopted by the United 

States to prevent the diversion of sensitive dual-use technologies to Iran; 

(6) the President should— 

(A) continue to urge the Government of Iran to respect 

the internationally recognized human rights and religious 

freedoms of its citizens; 

(B) identify the officials of the Government of Iran 

and other individuals who are responsible for continuing 

and severe violations of human rights and religious freedom 

in Iran; and 

(C) take appropriate measures to respond to such violations, including by— 

(i) prohibiting officials and other individuals the 

President identifies as being responsible for such violations from entry into the United States; and 

(ii) freezing the assets of the officials and other 

individuals described in clause (i); 

(7) additional funding should be provided to the Secretary 

of State to document, collect, and disseminate information about 

human rights abuses in Iran, including serious abuses that 

have taken place since the presidential election in Iran on 

June 12, 2009; 

(8) with respect to nongovernmental organizations based 

in the United States— 

(A) many of such organizations are essential to promoting human rights and humanitarian goals around the 

world; 

(B) it is in the national interest of the United States 

to allow responsible nongovernmental organizations based 

in the United States to establish and carry out operations 
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in Iran to promote civil society and foster humanitarian 

goodwill among the people of Iran; and 

(C) the United States should ensure that the organizations described in subparagraph (B) are not unnecessarily 

hindered from working in Iran to provide humanitarian, 

human rights, and people-to-people assistance, as appropriate, to the people of Iran; 

(9) the United States should not issue a license pursuant 

to an agreement for cooperation (as defined in section 11 b. 

of the Atomic Energy Act of 1954 (42 U.S.C. 2014(b))) for 

the export of nuclear material, facilities, components, or other 

goods, services, or technology that are or would be subject 

to such an agreement to a country that is providing similar 

nuclear material, facilities, components, or other goods, services, or technology to another country that is not in full compliance with its obligations under the Nuclear Non-Proliferation 

Treaty, including its obligations under the safeguards agreement between that country and the International Atomic 

Energy Agency, unless the President determines that the provision of such similar nuclear material, facilities, components, 

or other goods, services, or technology to such other country 

does not undermine the nonproliferation policies and objectives 

of the United States; and 

(10) the people of the United States— 

(A) have feelings of friendship for the people of Iran; 

(B) regret that developments in recent decades have 

created impediments to that friendship; and 

(C) hold the people of Iran, their culture, and their 

ancient and rich history in the highest esteem. 

TITLE I—SANCTIONS 

SEC. 101. DEFINITIONS. 

In this title: 

(1) 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). 

(2) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term 

‘‘appropriate congressional committees’’ has the meaning given 

that term in section 14 of the Iran Sanctions Act of 1996 

(Public Law 104–172; 50 U.S.C. 1701 note), as amended by 

section 102 of this Act. 

(3) EXECUTIVE AGENCY.—The term ‘‘executive agency’’ has 

the meaning given that term in section 4 of the Office of 

Federal Procurement Policy Act (41 U.S.C. 403). 

(4) FAMILY MEMBER.—The term ‘‘family member’’ means, 

with respect to an individual, a spouse, child, parent, sibling, 

grandchild, or grandparent of the individual. 

(5) IRANIAN DIPLOMATS AND REPRESENTATIVES OF OTHER

GOVERNMENT AND MILITARY OR QUASI-GOVERNMENTAL INSTITUTIONS OF IRAN.—The term ‘‘Iranian diplomat or representative 

of another government or military or quasi-governmental 

institution of Iran’’ means any of the Iranian diplomats and 

representatives of other government and military or quasigovernmental institutions of Iran (as that term is defined in 
H. R. 2194—6 

section 14 of the Iran Sanctions Act of 1996 (Public Law 104– 

172; 50 U.S.C. 1701 note)). 

(6) KNOWINGLY.—The term ‘‘knowingly’’, with respect to 

conduct, a circumstance, or a result, means that a person 

has actual knowledge, or should have known, of the conduct, 

the circumstance, or the result. 

(7) 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). 

(8) 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). 

(9) STATE.—The term ‘‘State’’ means each of the several 

States, the District of Columbia, the Commonwealth of Puerto 

Rico, the Commonwealth of the Northern Mariana Islands, 

American Samoa, Guam, the United States Virgin Islands, 

and any other territory or possession of the United States. 

(10) UNITED STATES PERSON.—The term ‘‘United States person’’ means— 

(A) a natural person who is a citizen or resident of 

the United States or a national of the United States (as 

defined in section 101(a) of the Immigration and Nationality Act (8 U.S.C. 1101(a)); and 

(B) an entity that is organized under the laws of the 

United States or any State. 

SEC. 102. EXPANSION OF SANCTIONS UNDER THE IRAN SANCTIONS 

ACT OF 1996. 

(a) IN GENERAL.—Section 5 of the Iran Sanctions Act of 1996 

(Public Law 104–172; 50 U.S.C. 1701 note) is amended— 

(1) by striking subsection (a) and inserting the following: 

‘‘(a) SANCTIONS WITH RESPECT TO THE DEVELOPMENT OF PETRO- LEUM RESOURCES OF IRAN, PRODUCTION OF REFINED PETROLEUM

PRODUCTS IN IRAN, AND EXPORTATION OF REFINED PETROLEUM

PRODUCTS TO IRAN.— ‘‘(1) DEVELOPMENT OF PETROLEUM RESOURCES OF IRAN.— ‘‘(A) IN GENERAL.—Except as provided in subsection 

(f), the President shall impose 3 or more of the sanctions 

described in section 6(a) with respect to a person if the 

President determines that the person knowingly, on or 

after the date of the enactment of the Comprehensive Iran 

Sanctions, Accountability, and Divestment Act of 2010— 

‘‘(i) makes an investment described in subpara- graph (B) of $20,000,000 or more; or 

‘‘(ii) makes a combination of investments described 

in subparagraph (B) in a 12-month period if each such 

investment is of at least $5,000,000 and such investments equal or exceed $20,000,000 in the aggregate. 

‘‘(B) INVESTMENT DESCRIBED.—An investment 

described in this subparagraph is an investment that 

directly and significantly contributes to the enhancement 

of Iran’s ability to develop petroleum resources. 

‘‘(2) PRODUCTION OF REFINED PETROLEUM PRODUCTS.— 

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

(f), the President shall impose 3 or more of the sanctions 

described in section 6(a) with respect to a person if the 

President determines that the person knowingly, on or 
H. R. 2194—7 

after the date of the enactment of the Comprehensive Iran 

Sanctions, Accountability, and Divestment Act of 2010, 

sells, leases, or provides to Iran goods, services, technology, 

information, or support described in subparagraph (B)— 

‘‘(i) any of which has a fair market value of 

$1,000,000 or more; or 

‘‘(ii) that, during a 12-month period, have an aggregate fair market value of $5,000,000 or more. 

‘‘(B) GOODS, SERVICES, TECHNOLOGY, INFORMATION, OR

SUPPORT DESCRIBED.—Goods, services, technology, information, or support described in this subparagraph are goods, 

services, technology, information, or support that could 

directly and significantly facilitate the maintenance or 

expansion of Iran’s domestic production of refined petroleum products, including any direct and significant assistance with respect to the construction, modernization, or 

repair of petroleum refineries. 

‘‘(3) EXPORTATION OF REFINED PETROLEUM PRODUCTS TO

IRAN.— 

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

(f), the President shall impose 3 or more of the sanctions 

described in section 6(a) with respect to a person if the 

President determines that the person knowingly, on or 

after the date of the enactment of the Comprehensive Iran 

Sanctions, Accountability, and Divestment Act of 2010— 

‘‘(i) sells or provides to Iran refined petroleum 

products— ‘‘(I) that have a fair market value of $1,000,000 

or more; or 

‘‘(II) that, during a 12-month period, have an aggregate fair market value of $5,000,000 or more; 

or 

‘‘(ii) sells, leases, or provides to Iran goods, services, technology, information, or support described in 

subparagraph (B)— 

‘‘(I) any of which has a fair market value of $1,000,000 or more; or 

‘‘(II) that, during a 12-month period, have an aggregate fair market value of $5,000,000 or more. 

‘‘(B) GOODS, SERVICES, TECHNOLOGY, INFORMATION, OR

SUPPORT DESCRIBED.—Goods, services, technology, information, or support described in this subparagraph are goods, 

services, technology, information, or support that could 

directly and significantly contribute to the enhancement 

of Iran’s ability to import refined petroleum products, 

including— 

‘‘(i) except as provided in subparagraph (C), underwriting or entering into a contract to provide insurance 

or reinsurance for the sale, lease, or provision of such 

goods, services, technology, information, or support; 

‘‘(ii) financing or brokering such sale, lease, or 

provision; or 

‘‘(iii) providing ships or shipping services to deliver 

refined petroleum products to Iran. 

‘‘(C) EXCEPTION FOR UNDERWRITERS AND INSURANCE

PROVIDERS EXERCISING DUE DILIGENCE.—The President may 

not impose sanctions under this paragraph with respect 
H. R. 2194—8 

to a person that provides underwriting services or insurance or reinsurance if the President determines that the 

person has exercised due diligence in establishing and 

enforcing official policies, procedures, and controls to ensure 

that the person does not underwrite or enter into a contract 

to provide insurance or reinsurance for the sale, lease, 

or provision of goods, services, technology, information, or 

support described in subparagraph (B).’’; 

(2) in subsection (b)— 

(A) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and moving such subparagraphs, as so redesignated, 2 ems to the right; 

(B) by striking ‘‘The President shall impose’’ and 

inserting the following: 

‘‘(1) IN GENERAL.—The President shall impose’’; and 

(C) in paragraph (1), as redesignated by subparagraph 

(B) of this paragraph, by striking ‘‘two or more’’ and all 

that follows through ‘‘of this Act’’ and inserting ‘‘3 or more 

of the sanctions described in section 6(a) if the President 

determines that a person has, on or after the date of 

the enactment of the Comprehensive Iran Sanctions, 

Accountability, and Divestment Act of 2010’’; and 

(D) by adding at the end the following: 

‘‘(2) ADDITIONAL MANDATORY SANCTIONS RELATING TO

TRANSFER OF NUCLEAR TECHNOLOGY.— ‘‘(A) IN GENERAL.—Except as provided in subparagraphs (B) and (C), in any case in which a person is 

subject to sanctions under paragraph (1) because of an 

activity described in that paragraph that relates to the 

acquisition or development of nuclear weapons or related 

technology or of missiles or advanced conventional weapons 

that are designed or modified to deliver a nuclear weapon, 

no license may be issued for the export, and no approval 

may be given for the transfer or retransfer, directly or 

indirectly, to the country the government of which has 

primary jurisdiction over the person, of any nuclear material, facilities, components, or other goods, services, or technology that are or would be subject to an agreement for 

cooperation between the United States and that government. 

‘‘(B) EXCEPTION.—The sanctions described in subparagraph (A) shall not apply with respect to a country the 

government of which has primary jurisdiction over a person 

that engages in an activity described in that subparagraph 

if the President determines and notifies the appropriate 

congressional committees that the government of the 

country— 

‘‘(i) does not know or have reason to know about 

the activity; or 

‘‘(ii) has taken, or is taking, all reasonable steps 

necessary to prevent a recurrence of the activity and 

to penalize the person for the activity. 

‘‘(C) INDIVIDUAL APPROVAL.—Notwithstanding subparagraph (A), the President may, on a case-by-case basis, 

approve the issuance of a license for the export, or approve 

the transfer or retransfer, of any nuclear material, facilities, components, or other goods, services, or technology 
H. R. 2194—9 

that are or would be subject to an agreement for cooperation, to a person in a country to which subparagraph (A) 

applies (other than a person that is subject to the sanctions 

under paragraph (1)) if the President— 

‘‘(i) determines that such approval is vital to the 

national security interests of the United States; and 

‘‘(ii) not later than 15 days before issuing such 

license or approving such transfer or retransfer, submits to the Committee on Foreign Affairs of the House 

of Representatives and the Committee on Foreign Relations of the Senate the justification for approving such 

license, transfer, or retransfer. 

‘‘(D) CONSTRUCTION.—The restrictions in subparagraph 

(A) shall apply in addition to all other applicable procedures, requirements, and restrictions contained in the 

Atomic Energy Act of 1954 and other related laws. 

‘‘(E) DEFINITION.—In this paragraph, the term ‘agreement for cooperation’ has the meaning given that term 

in section 11 b. of the Atomic Energy Act of 1954 (42 

U.S.C. 2014(b)). 

‘‘(F) APPLICABILITY.—The sanctions under subparagraph (A) shall apply only in a case in which a person 

is subject to sanctions under paragraph (1) because of 

an activity described in that paragraph in which the person 

engages on or after the date of the enactment of the Comprehensive Iran Sanctions, Accountability, and Divestment 

Act of 2010.’’; 

(3) in subsection (c)— 

(A) by striking ‘‘(b)’’ each place it appears and inserting 

‘‘(b)(1)’’; and 

(B) by striking paragraph (2) and inserting the following: 

‘‘(2) any person that— 

‘‘(A) is a successor entity to the person referred to 

in paragraph (1); 

‘‘(B) owns or controls the person referred to in paragraph (1), if the person that owns or controls the person 

referred to in paragraph (1) had actual knowledge or should 

have known that the person referred to in paragraph (1) 

engaged in the activities referred to in that paragraph; 

or 

‘‘(C) is owned or controlled by, or under common ownership or control with, the person referred to in paragraph 

(1), if the person owned or controlled by, or under common 

ownership or control with (as the case may be), the person 

referred to in paragraph (1) knowingly engaged in the 

activities referred to in that paragraph.’’; and 

(4) in subsection (f)— 

(A) in the matter preceding paragraph (1), by striking 

‘‘(b)’’ and inserting ‘‘(b)(1)’’; and 

(B) in paragraph (2), by striking ‘‘section 301(b)(1) of 

that Act (19 U.S.C. 2511(b)(1))’’ and inserting ‘‘section 

301(b) of that Act (19 U.S.C. 2511(b))’’. 

(b) DESCRIPTION OF SANCTIONS.—Section 6 of such Act is 

amended— 

(1) by striking ‘‘The sanctions to be imposed’’ and inserting 

the following: 
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‘‘(a) IN GENERAL.—The sanctions to be imposed’’; 

(2) in subsection (a), as redesignated by paragraph (1)— 

(A) by redesignating paragraph (6) as paragraph (9); 

and 

(B) by inserting after paragraph (5) the following: 

‘‘(6) FOREIGN EXCHANGE.—The President may, pursuant 

to such regulations as the President may prescribe, prohibit 

any transactions in foreign exchange that are subject to the 

jurisdiction of the United States and in which the sanctioned 

person has any interest. 

‘‘(7) BANKING TRANSACTIONS.—The President may, pursuant to such regulations as the President may prescribe, prohibit 

any transfers of credit or payments between financial institutions or by, through, or to any financial institution, to the 

extent that such transfers or payments are subject to the jurisdiction of the United States and involve any interest of the 

sanctioned person. 

‘‘(8) PROPERTY TRANSACTIONS.—The President may, pursuant to such regulations as the President may prescribe, prohibit 

any person from— 

‘‘(A) acquiring, holding, withholding, using, transferring, withdrawing, transporting, importing, or exporting 

any property that is subject to the jurisdiction of the United 

States and with respect to which the sanctioned person 

has any interest; 

‘‘(B) dealing in or exercising any right, power, or privilege with respect to such property; or 

‘‘(C) conducting any transaction involving such property.’’; and 

(3) by adding at the end the following: 

‘‘(b) ADDITIONAL MEASURE RELATING TO GOVERNMENT CONTRACTS.— 

‘‘(1) MODIFICATION OF FEDERAL ACQUISITION REGULATION.— 

Not later than 90 days after the date of the enactment of 

the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010, the Federal Acquisition Regulation issued 

pursuant to section 25 of the Office of Federal Procurement 

Policy Act (41 U.S.C. 421) shall be revised to require a certification from each person that is a prospective contractor that 

the person, and any person owned or controlled by the person, 

does not engage in any activity for which sanctions may be 

imposed under section 5. 

‘‘(2) REMEDIES.— 

‘‘(A) IN GENERAL.—If the head of an executive agency 

determines that a person has submitted a false certification 

under paragraph (1) on or after the date on which the 

revision of the Federal Acquisition Regulation required by 

this subsection becomes effective, the head of that executive 

agency shall terminate a contract with such person or 

debar or suspend such person from eligibility for Federal 

contracts for a period of not more than 3 years. Any such 

debarment or suspension shall be subject to the procedures 

that apply to debarment and suspension under the Federal 

Acquisition Regulation under subpart 9.4 of part 9 of title 

48, Code of Federal Regulations. 
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‘‘(B) INCLUSION ON LIST OF PARTIES EXCLUDED FROM

FEDERAL PROCUREMENT AND NONPROCUREMENT PROGRAMS.—The Administrator of General Services shall 

include on the List of Parties Excluded from Federal 

Procurement and Nonprocurement Programs maintained 

by the Administrator under part 9 of the Federal Acquisition Regulation issued pursuant to section 25 of the Office 

of Federal Procurement Policy Act (41 U.S.C. 421) each 

person that is debarred, suspended, or proposed for debarment or suspension by the head of an executive agency 

on the basis of a determination of a false certification 

under subparagraph (A). 

‘‘(3) CLARIFICATION REGARDING CERTAIN PRODUCTS.—The 

remedies set forth in paragraph (2) shall not apply with respect 

to the procurement of eligible products, as defined in section 

308(4) of the Trade Agreements Act of 1974 (19 U.S.C. 2518(4)), 

of any foreign country or instrumentality designated under 

section 301(b) of that Act (19 U.S.C. 2511(b)). 

‘‘(4) RULE OF CONSTRUCTION.—This subsection shall not 

be construed to limit the use of other remedies available to 

the head of an executive agency or any other official of the 

Federal Government on the basis of a determination of a false 

certification under paragraph (1). 

‘‘(5) WAIVERS.—The President may on a case-by-case basis 

waive the requirement that a person make a certification under 

paragraph (1) if the President determines and certifies in 

writing to the appropriate congressional committees, the Committee on Armed Services of the Senate, and the Committee 

on Armed Services of the House of Representatives, that it 

is in the national interest of the United States to do so. 

‘‘(6) EXECUTIVE AGENCY DEFINED.—In this subsection, the 

term ‘executive agency’ has the meaning given that term in 

section 4 of the Office of Federal Procurement Policy Act (41 

U.S.C. 403). 

‘‘(7) APPLICABILITY.—The revisions to the Federal Acquisition Regulation required under paragraph (1) shall apply with 

respect to contracts for which solicitations are issued on or 

after the date that is 90 days after the date of the enactment 

of the Comprehensive Iran Sanctions, Accountability, and 

Divestment Act of 2010.’’. 

(c) PRESIDENTIAL WAIVER.—Section 9 of such Act is amended— 

(1) in subsection (a), by striking ‘‘5(b)’’ each place it appears 

and inserting ‘‘5(b)(1)’’; and 

(2) in subsection (c)— 

(A) by striking ‘‘section 5(a) or (b)’’ each place it appears 

and inserting ‘‘section 5(a) or 5(b)(1)’’; 

(B) in paragraph (1), by striking ‘‘important to the 

national interest’’ and inserting ‘‘necessary to the national 

interest’’; and 

(C) in paragraph (2), by striking subparagraph (C) 

and inserting the following: 

‘‘(C) an estimate of the significance of the conduct 

of the person in contributing to the ability of Iran to, 

as the case may be— 

‘‘(i) develop petroleum resources, produce refined 

petroleum products, or import refined petroleum products; or 
H. R. 2194—12 

‘‘(ii) acquire or develop— 

‘‘(I) chemical, biological, or nuclear weapons 

or related technologies; or 

‘‘(II) destabilizing numbers and types of 

advanced conventional weapons; and’’. 

(d) REPORTS ON GLOBAL TRADE RELATING TO IRAN.—Section 

10 of such Act is amended by adding at the end the following: 

‘‘(d) REPORTS ON GLOBAL TRADE RELATING TO IRAN.—Not later 

than 90 days after the date of the enactment of the Comprehensive 

Iran Sanctions, Accountability, and Divestment Act of 2010, and 

annually thereafter, the President shall submit to the appropriate 

congressional committees a report, with respect to the most recent 

12-month period for which data are available, on the dollar value 

amount of trade, including in the energy sector, between Iran 

and each country maintaining membership in the Group of 20 

Finance Ministers and Central Bank Governors.’’. 

(e) EXTENSION OF IRAN SANCTIONS ACT OF 1996.—Section 13(b) 

of such Act is amended by striking ‘‘December 31, 2011’’ and 

inserting ‘‘December 31, 2016’’. 

(f) CLARIFICATION AND EXPANSION OF DEFINITIONS.—Section 

14 of such Act is amended— 

(1) in paragraph (2), by striking ‘‘the Committee on Banking 

and Financial Services, and the Committee on International 

Relations’’ and inserting ‘‘the Committee on Financial Services, 

and the Committee on Foreign Affairs’’; 

(2) in paragraph (9), in the flush text following subparagraph (C), by striking ‘‘The term ‘investment’ does not include’’ 

and all that follows through ‘‘technology.’’; 

(3) by redesignating paragraphs (12), (13), (14), (15), and 

(16) as paragraphs (13), (14), (15), (17), and (18), respectively; 

(4) by inserting after paragraph (11) the following: 

‘‘(12) KNOWINGLY.—The term ‘knowingly’, with respect to 

conduct, a circumstance, or a result, means that a person 

has actual knowledge, or should have known, of the conduct, 

the circumstance, or the result.’’; 

(5) in paragraph (14), as redesignated by paragraph (3) 

of this subsection— 

(A) by redesignating subparagraphs (A), (B), and (C) 

as clauses (i), (ii), and (iii), respectively, and moving such 

clauses, as so redesignated, 2 ems to the right; 

(B) by striking ‘‘The term ‘person’ means—’’ and 

inserting the following: 

‘‘(A) IN GENERAL.—The term ‘person’ means—’’; 

(C) in subparagraph (A), as redesignated by this paragraph— 

(i) in clause (ii), by inserting ‘‘financial institution, 

insurer, underwriter, guarantor, and any other business organization,’’ after ‘‘trust,’’; and 

(ii) in clause (iii), by striking ‘‘subparagraph (B)’’ 

and inserting ‘‘clause (ii)’’; and 

(D) by adding at the end the following: 

‘‘(B) APPLICATION TO GOVERNMENTAL ENTITIES.—The 

term ‘person’ does not include a government or governmental entity that is not operating as a business enterprise.’’; 

(6) in paragraph (15), as redesignated by paragraph (3) 

of this subsection, by striking ‘‘petroleum and natural gas 
H. R. 2194—13 

resources’’ and inserting ‘‘petroleum, refined petroleum products, oil or liquefied natural gas, natural gas resources, oil 

or liquefied natural gas tankers, and products used to construct 

or maintain pipelines used to transport oil or liquefied natural 

gas’’; and 

(7) by inserting after paragraph (15), as so redesignated, 

the following: 

‘‘(16) REFINED PETROLEUM PRODUCTS.—The term ‘refined 

petroleum products’ means diesel, gasoline, jet fuel (including 

naphtha-type and kerosene-type jet fuel), and aviation gasoline.’’. 

(g) WAIVER FOR CERTAIN PERSONS IN CERTAIN COUNTRIES; 

MANDATORY INVESTIGATIONS AND REPORTING; CONFORMING AMENDMENTS.—Section 4 of such Act is amended— 

(1) in subsection (b)(2), by striking ‘‘(in addition to that 

provided in subsection (d))’’; 

(2) in subsection (c)— 

(A) in paragraph (1)— 

(i) by striking ‘‘The President may’’ and inserting 

the following: 

‘‘(A) GENERAL WAIVER.—The President may’’; and 

(ii) by adding at the end the following: 

‘‘(B) WAIVER WITH RESPECT TO PERSONS IN COUNTRIES

THAT COOPERATE IN MULTILATERAL EFFORTS WITH RESPECT

TO IRAN.—The President may, on a case by case basis, 

waive for a period of not more than 12 months the application of section 5(a) with respect to a person if the President, 

at least 30 days before the waiver is to take effect— 

‘‘(i) certifies to the appropriate congressional 

committees that— 

‘‘(I) the government with primary jurisdiction 

over the person is closely cooperating with the 

United States in multilateral efforts to prevent 

Iran from— 

‘‘(aa) acquiring or developing chemical, 

biological, or nuclear weapons or related technologies; or 

‘‘(bb) acquiring or developing destabilizing 

numbers and types of advanced conventional 

weapons; and 

‘‘(II) such a waiver is vital to the national 

security interests of the United States; and 

‘‘(ii) submits to the appropriate congressional 

committees a report identifying— 

‘‘(I) the person with respect to which the President waives the application of sanctions; and 

‘‘(II) the actions taken by the government 

described in clause (i)(I) to cooperate in multilateral efforts described in that clause.’’; and 

(B) by striking paragraph (2) and inserting the following: 

‘‘(2) SUBSEQUENT RENEWAL OF WAIVER.—At the conclusion 

of the period of a waiver under subparagraph (A) or (B) of 

paragraph (1), the President may renew the waiver— 

‘‘(A) if the President determines, in accordance with 

subparagraph (A) or (B) of that paragraph (as the case 

may be), that the waiver is appropriate; and 
H. R. 2194—14 

‘‘(B)(i) in the case of a waiver under subparagraph 

(A) of paragraph (1), for subsequent periods of not more 

than six months each; and 

‘‘(ii) in the case of a waiver under subparagraph (B) 

of paragraph (1), for subsequent periods of not more than 

12 months each.’’; 

(3) by striking subsection (d); 

(4) by redesignating subsections (e) and (f) as subsections 

(d) and (e), respectively; and 

(5) in subsection (e), as redesignated by paragraph (4) 

of this subsection— 

(A) in paragraph (1)— 

(i) by striking ‘‘should initiate’’ and inserting ‘‘shall 

initiate’’; and 

(ii) by striking ‘‘investment activity in Iran as’’ 

and inserting ‘‘an activity’’; 

(B) in paragraph (2)— 

(i) by striking ‘‘should determine’’ and inserting 

‘‘shall (unless paragraph (3) applies) determine’’; and 

(ii) by striking ‘‘investment activity in Iran as’’ 

and inserting ‘‘an activity’’; and 

(C) by adding at the end the following: 

‘‘(3) SPECIAL RULE.—The President need not initiate an 

investigation, and may terminate an investigation, under this 

subsection if the President certifies in writing to the appropriate 

congressional committees that— 

‘‘(A) the person whose activity was the basis for the 

investigation is no longer engaging in the activity or has 

taken significant verifiable steps toward stopping the 

activity; and 

‘‘(B) the President has received reliable assurances that 

the person will not knowingly engage in an activity 

described in section 5(a) in the future.’’. 

(h) EFFECTIVE DATE.— 

(1) IN GENERAL.—The amendments made by this section 

shall— 

(A) take effect on the date of the enactment of this 

Act; and 

(B) except as provided in this subsection or section 

6(b)(7) of the Iran Sanctions Act of 1996, as amended 

by subsection (b) of this section, apply with respect to 

an investment or activity described in subsection (a) or 

(b) of section 5 of the Iran Sanctions Act of 1996, as 

amended by this section, that is commenced on or after 

such date of enactment. 

(2) APPLICABILITY TO ONGOING INVESTMENTS PROHIBITED

UNDER PRIOR LAW.—A person that makes an investment 

described in section 5(a) of the Iran Sanctions Act of 1996, 

as in effect on the day before the date of the enactment of 

this Act, that is commenced before such date of enactment 

and continues on or after such date of enactment, shall, except 

as provided in paragraph (4), be subject to the provisions of 

the Iran Sanctions Act of 1996, as in effect on the day before 

such date of enactment. 

(3) APPLICABILITY TO ONGOING ACTIVITIES RELATING TO

CHEMICAL, BIOLOGICAL, OR NUCLEAR WEAPONS OR RELATED
H. R. 2194—15 

TECHNOLOGIES.—A person that, before the date of the enactment of this Act, commenced an activity described in section 

5(b) of the Iran Sanctions Act of 1996, as in effect on the 

day before such date of enactment, and continues the activity 

on or after such date of enactment, shall be subject to the 

provisions of the Iran Sanctions Act of 1996, as amended by 

this Act. 

(4) APPLICABILITY OF MANDATORY INVESTIGATIONS TO

INVESTMENTS.—The amendments made by subsection (g)(5) of 

this section shall apply on and after the date of the enactment 

of this Act— 

(A) with respect to an investment described in section 

5(a)(1) of the Iran Sanctions Act of 1996, as amended 

by subsection (a) of this section, that is commenced on 

or after such date of enactment; and 

(B) with respect to an investment described in section 

5(a) of the Iran Sanctions Act of 1996, as in effect on 

the day before the date of the enactment of this Act, that 

is commenced before such date of enactment and continues 

on or after such date of enactment. 

(5) APPLICABILITY OF MANDATORY INVESTIGATIONS TO

ACTIVITIES RELATING TO PETROLEUM.— 

(A) IN GENERAL.—Except as provided in subparagraph 

(B), the amendments made by subsection (g)(5) of this 

section shall apply on and after the date that is 1 year 

after the date of the enactment of this Act with respect 

to an activity described in paragraph (2) or (3) of section 

5(a) of the Iran Sanctions Act of 1996, as amended by 

subsection (a) of this section, that is commenced on or 

after the date that is 1 year after the date of the enactment 

of this Act or the date on which the President fails to 

submit a certification that is required under subparagraph 

(B) (whichever is applicable). 

(B) SPECIAL RULE FOR DELAY OF EFFECTIVE DATE.— (i) REPORTING REQUIREMENT.—Not later than 30 

days before the date that is 1 year after the date 

of the enactment of this Act, the President shall submit 

to the appropriate congressional committees a report 

describing— 

(I) the diplomatic and other efforts of the 

President— 

(aa) to dissuade foreign persons from 

engaging in activities described in paragraph 

(2) or (3) of section 5(a) of the Iran Sanctions 

Act of 1996, as amended by subsection (a) 

of this section; and 

(bb) to encourage other governments to 

dissuade persons over which those governments have jurisdiction from engaging in such 

activities; 

(II) the successes and failures of the efforts 

described in subclause (I); and 

(III) each investigation under section 4(e) of 

the Iran Sanctions Act of 1996, as amended by 

subsection (g)(5) of this section and as in effect 

pursuant to subparagraph (C) of this paragraph, 

or any other review of an activity described in 
H. R. 2194—16 

paragraph (2) or (3) of section 5(a) of the Iran 

Sanctions Act of 1996, as amended by subsection 

(a) of this section, that is initiated or ongoing 

during the period beginning on the date of the 

enactment of this Act and ending on the date 

on which the President is required to submit the 

report. 

(ii) CERTIFICATION.—If the President submits to 

the appropriate congressional committees, with the 

report required by clause (i), a certification that there 

was a substantial reduction in activities described in 

paragraphs (2) and (3) of section 5(a) of the Iran Sanctions Act of 1996, as amended by subsection (a) of 

this section, during the period described in clause 

(i)(III), the effective date provided for in subparagraph 

(A) shall be delayed for a 180-day period beginning 

after the date provided for in that subparagraph. 

(iii) SUBSEQUENT REPORTS AND DELAYS.—The effective date provided for in subparagraph (A) shall be 

delayed for additional 180-day periods occurring after 

the end of the 180-day period provided for under clause 

(ii), if, not later than 30 days before the 180-day period 

preceding such additional 180-day period expires, the 

President submits to the appropriate congressional 

committees— 

(I) a report containing the matters required 

in the report under clause (i) for the period beginning on the date on which the preceding report 

was required to be submitted under clause (i) or 

this clause (as the case may be) and ending on 

the date on which the President is required to 

submit the most recent report under this clause; 

and 

(II) a certification that, during the period 

described in subclause (I), there was (as compared 

to the period for which the preceding report was 

submitted under this subparagraph) a progressive 

reduction in activities described in paragraphs (2) 

and (3) of section 5(a) of the Iran Sanctions Act 

of 1996, as amended by subsection (a) of this section. 

(iv) CONSEQUENCE OF FAILURE TO CERTIFY.—If the 

President does not make a certification at a time 

required by this subparagraph— 

(I) the amendments made by subsection (g)(5) 

of this section shall apply on and after the date 

on which the certification was required to be submitted by this subparagraph, with respect to an 

activity described in paragraph (2) or (3) of section 

5(a) of the Iran Sanctions Act of 1996, as amended 

by subsection (a) of this section, that— 

(aa) is referenced in the most recent report 

required to be submitted under this subparagraph; or 

(bb) is commenced on or after the date 

on which such most recent report is required 

to be submitted; and 
H. R. 2194—17 

(II) not later than 45 days after the date on 

which the certification was required to be submitted by this subparagraph, the President shall 

make a determination under paragraph (2) or (3) 

of section 5(a) of the Iran Sanctions Act of 1996 

(as the case may be), as amended by subsection 

(a) of this section, with respect to relevant activities described in subclause (I)(aa). 

(C) APPLICABILITY OF PERMISSIVE INVESTIGATIONS.— 

During the 1-year period beginning on the date of the 

enactment of this Act and during any 180-day period during 

which the effective date provided for in subparagraph (A) 

is delayed pursuant to subparagraph (B), section 4(e) of 

the Iran Sanctions Act of 1996, as amended by subsection 

(g)(5) of this section, shall be applied, with respect to an 

activity described in paragraph (2) or (3) of section 5(a) 

of the Iran Sanctions Act of 1996, as amended by subsection 

(a) of this section, by substituting ‘‘should’’ for ‘‘shall’’ each 

place it appears. 

(6) WAIVER AUTHORITY.—The amendments made by subsection (c) shall not be construed to affect any exercise of 

the authority under section 9(c) of the Iran Sanctions Act 

of 1996, as in effect on the day before the date of the enactment 

of this Act. 

SEC. 103. ECONOMIC SANCTIONS RELATING TO IRAN. 

(a) IN GENERAL.—Notwithstanding section 101 of the Iran 

Freedom Support Act (Public Law 109–293; 120 Stat. 1344), and 

in addition to any other sanction in effect, beginning on the date 

that is 90 days after the date of the enactment of this Act, the 

economic sanctions described in subsection (b) shall apply with 

respect to Iran. 

(b) SANCTIONS.—The sanctions described in this subsection are 

the following: 

(1) PROHIBITION ON IMPORTS.— (A) IN GENERAL.—Except as provided in subparagraph 

(B), no good or service of Iranian origin may be imported 

directly or indirectly into the United States. 

(B) EXCEPTIONS.—The exceptions provided for in section 203(b) of the International Emergency Economic 

Powers Act (50 U.S.C. 1702(b)), including the exception 

for information and informational materials, shall apply 

to the prohibition in subparagraph (A) of this paragraph 

to the same extent that such exceptions apply to the 

authority provided under section 203(a) of that Act. 

(2) PROHIBITION ON EXPORTS.— (A) IN GENERAL.—Except as provided in subparagraph 

(B), no good, service, or technology of United States origin 

may be exported to Iran from the United States or by 

a United States person, wherever located. 

(B) EXCEPTIONS.— (i) PERSONAL COMMUNICATIONS; ARTICLES TO

RELIEVE HUMAN SUFFERING; INFORMATION AND

INFORMATIONAL MATERIALS; TRANSACTIONS INCIDENT TO

TRAVEL.—The exceptions provided for in section 203(b) 

of the International Emergency Economic Powers Act 

(50 U.S.C. 1702(b)), including the exception for 
H. R. 2194—18 

information and informational materials, shall apply 

to the prohibition in subparagraph (A) of this paragraph to the same extent that such exceptions apply 

to the authority provided under section 203(a) of that 

Act. 

(ii) FOOD; MEDICINE; HUMANITARIAN ASSISTANCE.— 

The prohibition in subparagraph (A) shall not apply 

to the exportation of— 

(I) agricultural commodities, food, medicine, 

or medical devices; or 

(II) articles exported to Iran to provide 

humanitarian assistance to the people of Iran. 

(iii) INTERNET COMMUNICATIONS.—The prohibition 

in subparagraph (A) shall not apply to the exportation 

of— 

(I) services incident to the exchange of personal communications over the Internet or software necessary to enable such services, as provided 

for in section 560.540 of title 31, Code of Federal 

Regulations (or any corresponding similar regulation or ruling); 

(II) hardware necessary to enable such services; or 

(III) hardware, software, or technology necessary for access to the Internet. 

(iv) GOODS, SERVICES, OR TECHNOLOGIES NEC- ESSARY TO ENSURE THE SAFE OPERATION OF COMMER- CIAL AIRCRAFT.—The prohibition in subparagraph (A) 

shall not apply to the exportation of goods, services, 

or technologies necessary to ensure the safe operation 

of commercial aircraft produced in the United States 

or commercial aircraft into which aircraft components 

produced in the United States are incorporated, if the 

exportation of such goods, services, or technologies is 

approved by the Secretary of the Treasury, in consultation with the Secretary of Commerce, pursuant to regulations issued by the Secretary of the Treasury 

regarding the exportation of such goods, services, or 

technologies, if appropriate. 

(v) GOODS, SERVICES, OR TECHNOLOGIES EXPORTED

TO SUPPORT INTERNATIONAL ORGANIZATIONS.—The 

prohibition in subparagraph (A) shall not apply to the 

exportation of goods, services, or technologies that— 

(I) are provided to the International Atomic 

Energy Agency and are necessary to support activities of that Agency in Iran; or 

(II) are necessary to support activities, 

including the activities of nongovernmental 

organizations, relating to promoting democracy in 

Iran. 

(vi) EXPORTS IN THE NATIONAL INTEREST.—The 

prohibition in subparagraph (A) shall not apply to the 

exportation of goods, services, or technologies if the 

President determines the exportation of such goods, 

services, or technologies to be in the national interest 

of the United States. 

(3) FREEZING ASSETS.— 
H. R. 2194—19 

(A) IN GENERAL.—At such time as the President determines that a person in Iran, including an Iranian diplomat 

or representative of another government or military or 

quasi-governmental institution of Iran (including Iran’s 

Revolutionary Guard Corps and its affiliates), satisfies the 

criteria for designation with respect to the imposition of 

sanctions under the authority of the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), the 

President shall take such action as may be necessary to 

freeze, as soon as possible— 

(i) the funds and other assets belonging to that 

person; and 

(ii) any funds or other assets that person transfers, 

on or after the date on which the President determines 

the person satisfies such criteria, to any family member 

or associate acting for or on behalf of the person. 

(B) REPORTS TO THE OFFICE OF FOREIGN ASSETS CONTROL.—The action described in subparagraph (A) includes 

requiring any United States financial institution that holds 

funds or assets of a person described in that subparagraph 

or funds or assets that person transfers to a family member 

or associate described in that subparagraph to report 

promptly to the Office of Foreign Assets Control information regarding such funds and assets. 

(C) REPORTS TO CONGRESS.—Not later than 14 days 

after a decision is made to freeze the funds or assets 

of any person under subparagraph (A), the President shall 

report the name of the person to the appropriate congressional committees. Such a report may contain a classified 

annex. 

(D) TERMINATION.—The President shall release assets 

or funds frozen under subparagraph (A) if the person to 

which the assets or funds belong or the person that transfers the assets or funds as described in subparagraph (A)(ii) 

(as the case may be) no longer satisfies the criteria for 

designation with respect to the imposition of sanctions 

under the authority of the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.). 

(E) UNITED STATES FINANCIAL INSTITUTION DEFINED.— 

In this paragraph, the term ‘‘United States financial 

institution’’ means a financial institution (as defined in 

section 14 of the Iran Sanctions Act of 1996 (Public Law 

104–172; 50 U.S.C. 1701 note)) that is a United States 

person. 

(c) PENALTIES.—The penalties provided for in subsections (b) 

and (c) of section 206 of the International Emergency Economic 

Powers Act (50 U.S.C. 1705) shall apply to a person that violates, 

attempts to violate, conspires to violate, or causes a violation of 

this section or regulations prescribed under this section to the 

same extent that such penalties apply to a person that commits 

an unlawful act described in section 206(a) of that Act. 

(d) REGULATORY AUTHORITY.— (1) IN GENERAL.—The President shall prescribe regulations 

to carry out this section, which may include regulatory exceptions to the sanctions described in subsection (b). 

(2) APPLICABILITY OF CERTAIN REGULATIONS.—No exception 

to the prohibition under subsection (b)(1) may be made for 
H. R. 2194—20 

the commercial importation of an Iranian origin good described 

in section 560.534(a) of title 31, Code of Federal Regulations 

(as in effect on the day before the date of the enactment 

of this Act), unless the President— 

(A) prescribes a regulation providing for such an exception on or after the date of the enactment of this Act; 

and 

(B) submits to the appropriate congressional committees— 

(i) a certification in writing that the exception 

is in the national interest of the United States; and 

(ii) a report describing the reasons for the exception. 

SEC. 104. MANDATORY SANCTIONS WITH RESPECT TO FINANCIAL 

INSTITUTIONS THAT ENGAGE IN CERTAIN TRANSACTIONS. 

(a) FINDINGS.—Congress makes the following findings: 

(1) The Financial Action Task Force is an intergovernmental body whose purpose is to develop and promote national 

and international policies to combat money laundering and 

terrorist financing. 

(2) Thirty-three countries, plus the European Commission 

and the Cooperation Council for the Arab States of the Gulf, 

belong to the Financial Action Task Force. The member countries of the Financial Action Task Force include the United 

States, Canada, most countries in western Europe, Russia, 

the People’s Republic of China, Japan, South Korea, Argentina, 

and Brazil. 

(3) In 2008 the Financial Action Task Force extended its 

mandate to include addressing ‘‘new and emerging threats such 

as proliferation financing’’, meaning the financing of the proliferation of weapons of mass destruction, and published ‘‘guidance papers’’ for members to assist them in implementing various United Nations Security Council resolutions dealing with 

weapons of mass destruction, including United Nations Security 

Council Resolutions 1737 (2006) and 1803 (2008), which deal 

specifically with proliferation by Iran. 

(4) The Financial Action Task Force has repeatedly called 

on members— 

(A) to advise financial institutions in their jurisdictions 

to give special attention to business relationships and 

transactions with Iran, including Iranian companies and 

financial institutions; 

(B) to apply effective countermeasures to protect their 

financial sectors from risks relating to money laundering 

and financing of terrorism that emanate from Iran; 

(C) to protect against correspondent relationships being 

used by Iran and Iranian companies and financial institutions to bypass or evade countermeasures and risk-mitigation practices; and 

(D) to take into account risks relating to money laundering and financing of terrorism when considering 

requests by Iranian financial institutions to open branches 

and subsidiaries in their jurisdictions. 

(5) At a February 2010 meeting of the Financial Action 

Task Force, the Task Force called on members to apply countermeasures ‘‘to protect the international financial system from 
H. R. 2194—21 

the ongoing and substantial money laundering and terrorist 

financing (ML/TF) risks’’ emanating from Iran. 

(b) SENSE OF CONGRESS REGARDING THE IMPOSITION OF SANCTIONS ON THE CENTRAL BANK OF IRAN.—Congress— 

(1) acknowledges the efforts of the United Nations Security 

Council to impose limitations on transactions involving Iranian 

financial institutions, including the Central Bank of Iran; and 

(2) urges the President, in the strongest terms, to consider 

immediately using the authority of the President to impose 

sanctions on the Central Bank of Iran and any other Iranian 

financial institution engaged in proliferation activities or support of terrorist groups. 

(c) PROHIBITIONS AND CONDITIONS WITH RESPECT TO CERTAIN

ACCOUNTS HELD BY FOREIGN FINANCIAL INSTITUTIONS.— 

(1) IN GENERAL.—Not later than 90 days after the date 

of the enactment of this Act, the Secretary of the Treasury 

shall prescribe regulations to prohibit, or impose strict conditions on, the opening or maintaining in the United States 

of a correspondent account or a payable-through account by 

a foreign financial institution that the Secretary finds knowingly engages in an activity described in paragraph (2). 

(2) ACTIVITIES DESCRIBED.—A foreign financial institution 

engages in an activity described in this paragraph if the foreign 

financial institution— 

(A) facilitates the efforts of the Government of Iran 

(including efforts of Iran’s Revolutionary Guard Corps or 

any of its agents or affiliates)— 

(i) to acquire or develop weapons of mass destruction or delivery systems for weapons of mass destruction; or 

(ii) to provide support for organizations designated 

as foreign terrorist organizations under section 219(a) 

of the Immigration and Nationality Act (8 U.S.C. 

1189(a)) or support for acts of international terrorism 

(as defined in section 14 of the Iran Sanctions Act 

of 1996 (Public Law 104–172; 50 U.S.C. 1701 note)); 

(B) facilitates the activities of a person subject to financial sanctions pursuant to United Nations Security Council 

Resolution 1737 (2006), 1747 (2007), 1803 (2008), or 1929 

(2010), or any other resolution that is agreed to by the 

Security Council and imposes sanctions with respect to 

Iran; 

(C) engages in money laundering to carry out an 

activity described in subparagraph (A) or (B); 

(D) facilitates efforts by the Central Bank of Iran or 

any other Iranian financial institution to carry out an 

activity described in subparagraph (A) or (B); or 

(E) facilitates a significant transaction or transactions 

or provides significant financial services for— 

(i) Iran’s Revolutionary Guard Corps or any of 

its agents or affiliates whose property or interests in 

property are blocked pursuant to the International 

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

seq.); or 

(ii) a financial institution whose property or 

interests in property are blocked pursuant to that Act 

in connection with— 
H. R. 2194—22 

(I) Iran’s proliferation of weapons of mass 

destruction or delivery systems for weapons of 

mass destruction; or 

(II) Iran’s support for international terrorism. 

(3) PENALTIES.—The penalties provided for in subsections 

(b) and (c) of section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) shall apply to a person 

that violates, attempts to violate, conspires to violate, or causes 

a violation of regulations prescribed under paragraph (1) of 

this subsection to the same extent that such penalties apply 

to a person that commits an unlawful act described in section 

206(a) of that Act. 

(d) PENALTIES FOR DOMESTIC FINANCIAL INSTITUTIONS FOR

ACTIONS OF PERSONS OWNED OR CONTROLLED BY SUCH FINANCIAL

INSTITUTIONS.— 

(1) IN GENERAL.—Not later than 90 days after the date 

of the enactment of this Act, the Secretary of the Treasury 

shall prescribe regulations to prohibit any person owned or 

controlled by a domestic financial institution from knowingly 

engaging in a transaction or transactions with or benefitting 

Iran’s Revolutionary Guard Corps or any of its agents or affiliates whose property or interests in property are blocked pursuant to the International Emergency Economic Powers Act (50 

U.S.C. 1701 et seq.). 

(2) PENALTIES.—The penalties provided for in section 206(b) 

of the International Emergency Economic Powers Act (50 U.S.C. 

1705(b)) shall apply to a domestic financial institution to the 

same extent that such penalties apply to a person that commits 

an unlawful act described in section 206(a) of that Act if— 

(A) a person owned or controlled by the domestic financial institution violates, attempts to violate, conspires to 

violate, or causes a violation of regulations prescribed under 

paragraph (1) of this subsection; and 

(B) the domestic financial institution knew or should 

have known that the person violated, attempted to violate, 

conspired to violate, or caused a violation of such regulations. 

(e) REQUIREMENTS FOR FINANCIAL INSTITUTIONS MAINTAINING

ACCOUNTS FOR FOREIGN FINANCIAL INSTITUTIONS.— 

(1) IN GENERAL.—The Secretary of the Treasury shall prescribe regulations to require a domestic financial institution 

maintaining a correspondent account or payable-through 

account in the United States for a foreign financial institution 

to do one or more of the following: 

(A) Perform an audit of activities described in subsection (c)(2) that may be carried out by the foreign financial institution. 

(B) Report to the Department of the Treasury with 

respect to transactions or other financial services provided 

with respect to any such activity. 

(C) Certify, to the best of the knowledge of the domestic 

financial institution, that the foreign financial institution 

is not knowingly engaging in any such activity. 

(D) Establish due diligence policies, procedures, and 

controls, such as the due diligence policies, procedures, 

and controls described in section 5318(i) of title 31, United 

States Code, reasonably designed to detect whether the 
H. R. 2194—23 

Secretary of the Treasury has found the foreign financial 

institution to knowingly engage in any such activity. 

(2) PENALTIES.—The penalties provided for in sections 

5321(a) and 5322 of title 31, United States Code, shall apply 

to a person that violates a regulation prescribed under paragraph (1) of this subsection, in the same manner and to the 

same extent as such penalties would apply to any person that 

is otherwise subject to such section 5321(a) or 5322. 

(f) WAIVER.—The Secretary of the Treasury may waive the 

application of a prohibition or condition imposed with respect to 

a foreign financial institution pursuant to subsection (c) or the 

imposition of a penalty under subsection (d) with respect to a 

domestic financial institution on and after the date that is 30 

days after the Secretary— 

(1) determines that such a waiver is necessary to the 

national interest of the United States; and 

(2) submits to the appropriate congressional committees 

a report describing the reasons for the determination. 

(g) PROCEDURES FOR JUDICIAL REVIEW OF CLASSIFIED INFORMATION.— 

(1) IN GENERAL.—If a finding under subsection (c)(1), a 

prohibition, condition, or penalty imposed as a result of any 

such finding, or a penalty imposed under subsection (d), is 

based on classified information (as defined in section 1(a) of 

the Classified Information Procedures Act (18 U.S.C. App.)) 

and a court reviews the finding or the imposition of the prohibition, condition, or penalty, the Secretary of the Treasury may 

submit such information to the court ex parte and in camera. 

(2) RULE OF CONSTRUCTION.—Nothing in this subsection 

shall be construed to confer or imply any right to judicial 

review of any finding under subsection (c)(1), any prohibition, 

condition, or penalty imposed as a result of any such finding, 

or any penalty imposed under subsection (d). 

(h) CONSULTATIONS IN IMPLEMENTATION OF REGULATIONS.—In 

implementing this section and the regulations prescribed under 

this section, the Secretary of the Treasury— 

(1) shall consult with the Secretary of State; and 

(2) may, in the sole discretion of the Secretary of the 

Treasury, consult with such other agencies and departments 

and such other interested parties as the Secretary considers 

appropriate. 

(i) DEFINITIONS.— 

(1) IN GENERAL.—In this section: 

(A) ACCOUNT; CORRESPONDENT ACCOUNT; PAYABLETHROUGH 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. 

(B) AGENT.—The term ‘‘agent’’ includes an entity established by a person for purposes of conducting transactions 

on behalf of the person in order to conceal the identity 

of the person. 

(C) FINANCIAL INSTITUTION.—The term ‘‘financial 

institution’’ means a financial institution specified in 

subparagraph (A), (B), (C), (D), (E), (F), (G), (H), (I), (J), 

(M), or (Y) of section 5312(a)(2) of title 31, United States 

Code. 
H. R. 2194—24 

(D) FOREIGN FINANCIAL INSTITUTION; DOMESTIC FINANCIAL INSTITUTION.—The terms ‘‘foreign financial institution’’ and ‘‘domestic financial institution’’ shall have the 

meanings of those terms as determined by the Secretary 

of the Treasury. 

(E) MONEY LAUNDERING.—The term ‘‘money laundering’’ means the movement of illicit cash or cash equivalent proceeds into, out of, or through a country, or into, 

out of, or through a financial institution. 

(2) OTHER DEFINITIONS.—The Secretary of the Treasury 

may further define the terms used in this section in the regulations prescribed under this section. 

SEC. 105. IMPOSITION OF SANCTIONS ON CERTAIN PERSONS WHO ARE 

RESPONSIBLE FOR OR COMPLICIT IN HUMAN RIGHTS 

ABUSES COMMITTED AGAINST CITIZENS OF IRAN OR 

THEIR FAMILY MEMBERS AFTER THE JUNE 12, 2009, ELECTIONS IN IRAN. 

(a) IN GENERAL.—The President shall impose sanctions 

described in subsection (c) with respect to each person on the 

list required by subsection (b). 

(b) LIST OF PERSONS WHO ARE RESPONSIBLE FOR OR COMPLICIT

IN CERTAIN HUMAN RIGHTS ABUSES.— 

(1) IN GENERAL.—Not later than 90 days after the date 

of the enactment of this Act, the President shall submit to 

the appropriate congressional committees a list of persons who 

are officials of the Government of Iran or persons acting on 

behalf of that Government (including members of paramilitary 

organizations such as Ansar-e-Hezbollah and Basij-e 

Mostaz’afin), that the President determines, based on credible 

evidence, are responsible for or complicit in, or responsible 

for ordering, controlling, or otherwise directing, the commission 

of serious human rights abuses against citizens of Iran or 

their family members on or after June 12, 2009, regardless 

of whether such abuses occurred in Iran. 

(2) UPDATES OF LIST.—The President shall submit to the 

appropriate congressional committees an updated list under 

paragraph (1)— 

(A) not later than 270 days after the date of the enactment of this Act and every 180 days thereafter; and 

(B) as new information becomes available. 

(3) FORM OF REPORT; PUBLIC AVAILABILITY.— 

(A) FORM.—The list required by paragraph (1) shall 

be submitted in unclassified form but may contain a classified annex. 

(B) PUBLIC AVAILABILITY.—The unclassified portion of 

the list required by paragraph (1) shall be made available 

to the public and posted on the websites of the Department 

of the Treasury and the Department of State. 

(4) CONSIDERATION OF DATA FROM OTHER COUNTRIES AND

NONGOVERNMENTAL ORGANIZATIONS.—In preparing the list 

required by paragraph (1), the President shall consider credible 

data already obtained by other countries and nongovernmental 

organizations, including organizations in Iran, that monitor 

the human rights abuses of the Government of Iran. 

(c) SANCTIONS DESCRIBED.—The sanctions described in this subsection are ineligibility for a visa to enter the United States and 
H. R. 2194—25 

sanctions pursuant to the International Emergency Economic 

Powers Act (50 U.S.C. 1701 et seq.), including blocking of property 

and restrictions or prohibitions on financial transactions and the 

exportation and importation of property, subject to such regulations 

as the President may prescribe, including regulatory exceptions 

to permit the United States to comply with the Agreement between 

the United Nations and the United States of America regarding 

the Headquarters of the United Nations, signed June 26, 1947, 

and entered into force November 21, 1947, and other applicable 

international obligations. 

(d) TERMINATION OF SANCTIONS.—The provisions of this section 

shall terminate on the date on which the President determines 

and certifies to the appropriate congressional committees that the 

Government of Iran has— 

(1) unconditionally released all political prisoners, including 

the citizens of Iran detained in the aftermath of the June 

12, 2009, presidential election in Iran; 

(2) ceased its practices of violence, unlawful detention, 

torture, and abuse of citizens of Iran while engaging in peaceful 

political activity; 

(3) conducted a transparent investigation into the killings, 

arrests, and abuse of peaceful political activists that occurred 

in the aftermath of the June 12, 2009, presidential election 

in Iran and prosecuted the individuals responsible for such 

killings, arrests, and abuse; and 

(4) made public commitments to, and is making demonstrable progress toward— 

(A) establishing an independent judiciary; and 

(B) respecting the human rights and basic freedoms 

recognized in the Universal Declaration of Human Rights. 

SEC. 106. PROHIBITION ON PROCUREMENT CONTRACTS WITH PERSONS THAT EXPORT SENSITIVE TECHNOLOGY TO IRAN. 

(a) IN GENERAL.—Except as provided in subsection (b), and 

pursuant to such regulations as the President may prescribe, the 

head of an executive agency may not enter into or renew a contract, 

on or after the date that is 90 days after the date of the enactment 

of this Act, for the procurement of goods or services with a person 

that exports sensitive technology to Iran. 

(b) AUTHORIZATION TO EXEMPT CERTAIN PRODUCTS.—The President is authorized to exempt from the prohibition under subsection 

(a) only eligible products, as defined in section 308(4) of the Trade 

Agreements Act of 1979 (19 U.S.C. 2518(4)), of any foreign country 

or instrumentality designated under section 301(b) of that Act (19 

U.S.C. 2511(b)). 

(c) SENSITIVE TECHNOLOGY DEFINED.— 

(1) IN GENERAL.—The term ‘‘sensitive technology’’ means 

hardware, software, telecommunications equipment, or any 

other technology, that the President determines is to be used 

specifically— 

(A) to restrict the free flow of unbiased information 

in Iran; or 

(B) to disrupt, monitor, or otherwise restrict speech 

of the people of Iran. 

(2) EXCEPTION.—The term ‘‘sensitive technology’’ does not 

include information or informational materials the exportation 

of which the President does not have the authority to regulate 
H. R. 2194—26 

or prohibit pursuant to section 203(b)(3) of the International 

Emergency Economic Powers Act (50 U.S.C. 1702(b)(3)). 

(d) GOVERNMENT ACCOUNTABILITY OFFICE REPORT ON EFFECT

OF PROCUREMENT PROHIBITION.—Not later than 1 year after the 

date of the enactment of this Act, the Comptroller General of 

the United States shall submit to the appropriate congressional 

committees, the Committee on Armed Services of the Senate, and 

the Committee on Armed Services of the House of Representatives, 

a report assessing the extent to which executive agencies would 

have entered into or renewed contracts for the procurement of 

goods or services with persons that export sensitive technology 

to Iran if the prohibition under subsection (a) were not in effect. 

SEC. 107. HARMONIZATION OF CRIMINAL PENALTIES FOR VIOLATIONS 

OF SANCTIONS. 

(a) IN GENERAL.— (1) VIOLATIONS OF UNITED NATIONS SECURITY COUNCIL

RESOLUTIONS IMPOSING SANCTIONS.—Section 5(b) of the United 

Nations Participation Act of 1945 (22 U.S.C. 287c(b)) is 

amended— 

(A) by striking ‘‘find not more than $10,000’’ and inserting ‘‘fined not more than $1,000,000’’; and 

(B) by striking ‘‘ten years’’ and all that follows and 

inserting ‘‘20 years, or both.’’. 

(2) VIOLATIONS OF CONTROLS ON EXPORTS AND IMPORTS

OF DEFENSE ARTICLES AND DEFENSE SERVICES.—Section 38(c) 

of the Arms Export Control Act (22 U.S.C. 2778(c)) is amended 

by striking ‘‘ten years’’ and inserting ‘‘20 years’’. 

(3) VIOLATIONS OF PROHIBITION ON TRANSACTIONS WITH

COUNTRIES THAT SUPPORT ACTS OF INTERNATIONAL TERRORISM.— Section 40(j) of the Arms Export Control Act (22 U.S.C. 2780(j)) 

is amended by striking ‘‘10 years’’ and inserting ‘‘20 years’’. 

(4) VIOLATIONS OF THE TRADING WITH THE ENEMY ACT.— Section 16(a) of the Trading with the enemy Act (50 U.S.C. 

App. 16(a)) is amended by striking ‘‘if a natural person’’ and 

all that follows and inserting ‘‘if a natural person, be imprisoned 

for not more than 20 years, or both.’’. 

(b) STUDY BY UNITED STATES SENTENCING COMMISSION.—Not 

later than 1 year after the date of the enactment of this Act, 

the United States Sentencing Commission, pursuant to the 

authority under sections 994 and 995 of title 28, United States 

Code, and the responsibility of the United States Sentencing 

Commission to advise Congress on sentencing policy under section 

995(a)(20) of title 28, United States Code, shall study and submit 

to Congress a report on the impact and advisability of imposing 

a mandatory minimum sentence for violations of— 

(1) section 5(a) of the United Nations Participation Act 

of 1945 (22 U.S.C. 287c(a)); 

(2) sections 38, 39, and 40 of the Arms Export Control 

Act (22 U.S.C. 2778, 2779, and 2780); and 

(3) the Trading with the enemy Act (50 U.S.C. App. 1 

et seq.). 

SEC. 108. AUTHORITY TO IMPLEMENT UNITED NATIONS SECURITY 

COUNCIL RESOLUTIONS IMPOSING SANCTIONS WITH 

RESPECT TO IRAN. 

In addition to any other authority of the President with respect 

to implementing resolutions of the United Nations Security Council, 
H. R. 2194—27 

the President may prescribe such regulations as may be necessary 

to implement a resolution that is agreed to by the United Nations 

Security Council and imposes sanctions with respect to Iran. 

SEC. 109. INCREASED CAPACITY FOR EFFORTS TO COMBAT UNLAWFUL 

OR TERRORIST FINANCING. 

(a) FINDINGS.—Congress finds the following: 

(1) The work of the Office of Terrorism and Financial 

Intelligence of the Department of the Treasury, which includes 

the Office of Foreign Assets Control and the Financial Crimes 

Enforcement Network, is critical to ensuring that the international financial system is not used for purposes of supporting 

terrorism and developing weapons of mass destruction. 

(2) The Secretary of the Treasury has designated, including 

most recently on June 16, 2010, various Iranian individuals 

and banking, military, energy, and shipping entities as 

proliferators of weapons of mass destruction pursuant to Executive Order 13382 (50 U.S.C. 1701 note), thereby blocking transactions subject to the jurisdiction of the United States by those 

individuals and entities and their supporters. 

(3) The Secretary of the Treasury has also identified an 

array of entities in the insurance, petroleum, and petrochemicals industries that the Secretary has determined to be owned 

or controlled by the Government of Iran and added those entities to the list contained in Appendix A to part 560 of title 

31, Code of Federal Regulations (commonly known as the ‘‘Iranian Transactions Regulations’’), thereby prohibiting transactions between United States persons and those entities. 

(b) AUTHORIZATION OF APPROPRIATIONS FOR OFFICE OF TERRORISM AND FINANCIAL INTELLIGENCE.—There are authorized to 

be appropriated to the Secretary of the Treasury for the Office 

of Terrorism and Financial Intelligence— 

(1) $102,613,000 for fiscal year 2011; and 

(2) such sums as may be necessary for each of the fiscal 

years 2012 and 2013. 

(c) AUTHORIZATION OF APPROPRIATIONS FOR THE FINANCIAL

CRIMES ENFORCEMENT NETWORK.—Section 310(d)(1) of title 31, 

United States Code, is amended by striking ‘‘such sums as may 

be necessary for fiscal years 2002, 2003, 2004, and 2005’’ and 

inserting ‘‘$100,419,000 for fiscal year 2011 and such sums as 

may be necessary for each of the fiscal years 2012 and 2013’’. 

(d) AUTHORIZATION OF APPROPRIATIONS FOR BUREAU OF

INDUSTRY AND SECURITY OF THE DEPARTMENT OF COMMERCE.— 

There are authorized to be appropriated to the Secretary of Commerce for the Bureau of Industry and Security of the Department 

of Commerce— 

(1) $113,000,000 for fiscal year 2011; and 

(2) such sums as may be necessary for each of the fiscal 

years 2012 and 2013. 

SEC. 110. REPORTS ON INVESTMENTS IN THE ENERGY SECTOR OF 

IRAN. 

(a) INITIAL REPORT.— 

(1) IN GENERAL.—Not later than 90 days after the date 

of the enactment of this Act, the President shall submit to 

the appropriate congressional committees a report— 
H. R. 2194—28 

(A) on investments in the energy sector of Iran that 

were made during the period described in paragraph (2); 

and 

(B) that contains— 

(i) an estimate of the volume of energy-related 

resources (other than refined petroleum), including ethanol, that Iran imported during the period described 

in paragraph (2); and 

(ii) a list of all significant known energy-related 

joint ventures, investments, and partnerships located 

outside Iran that involve Iranian entities in partnership with entities from other countries, including an 

identification of the entities from other countries; and 

(iii) an estimate of— 

(I) the total value of each such joint venture, 

investment, and partnership; and 

(II) the percentage of each such joint venture, 

investment, and partnership owned by an Iranian 

entity. 

(2) PERIOD DESCRIBED.—The period described in this paragraph is the period beginning on January 1, 2006, and ending 

on the date that is 60 days after the date of the enactment 

of this Act. 

(b) UPDATED REPORTS.—Not later than 180 days after submitting the report required by subsection (a), and every 180 days 

thereafter, the President shall submit to the appropriate congressional committees a report containing the matters required in the 

report under subsection (a)(1) for the 180-day period beginning 

on the date that is 30 days before the date on which the preceding 

report was required to be submitted by this section. 

SEC. 111. REPORTS ON CERTAIN ACTIVITIES OF FOREIGN EXPORT 

CREDIT AGENCIES AND OF THE EXPORT-IMPORT BANK OF 

THE UNITED STATES. 

(a) REPORT ON CERTAIN ACTIVITIES OF EXPORT CREDIT AGEN- CIES OF FOREIGN COUNTRIES.— (1) IN GENERAL.—Not later than 90 days after the date 

of the enactment of this Act, the President shall submit to 

the appropriate congressional committees a report on any 

activity of an export credit agency of a foreign country that 

is an activity comparable to an activity described in subsection 

(a) or (b) of section 5 of the Iran Sanctions Act of 1996, as 

amended by section 102 of this Act. 

(2) UPDATES.—The President shall update the report 

required by paragraph (1) as new information becomes available 

with respect to the activities of export credit agencies of foreign 

countries. 

(b) REPORT ON CERTAIN FINANCING BY THE EXPORT-IMPORT

BANK OF THE UNITED STATES.—Not later than 30 days (or, in 

extraordinary circumstances, not later than 15 days) before the 

Export-Import Bank of the United States approves cofinancing 

(including loans, guarantees, other credits, insurance, and reinsurance) in which an export credit agency of a foreign country identified 

in the report required by subsection (a) will participate, the President shall submit to the appropriate congressional committees a 

report identifying— 

(1) the export credit agency of the foreign country; and 
H. R. 2194—29 

(2) the beneficiaries of the financing. 

SEC. 112. SENSE OF CONGRESS REGARDING IRAN’S REVOLUTIONARY 

GUARD CORPS AND ITS AFFILIATES. 

It is the sense of Congress that the United States should— 

(1) persistently target Iran’s Revolutionary Guard Corps 

and its affiliates with economic sanctions for its support for 

terrorism, its role in proliferation, and its oppressive activities 

against the people of Iran; 

(2) identify, as soon as possible— 

(A) any foreign individual or entity that is an agent, 

alias, front, instrumentality, official, or affiliate of Iran’s 

Revolutionary Guard Corps; 

(B) any individual or entity that— 

(i) has provided material support to any individual 

or entity described in subparagraph (A); or 

(ii) has conducted any financial or commercial 

transaction with any such individual or entity; and 

(C) any foreign government that— 

(i) provides material support to any such individual 

or entity; or 

(ii) conducts any commercial transaction or financial transaction with any such individual or entity; 

and 

(3) immediately impose sanctions, including travel restrictions, sanctions authorized pursuant to this Act or the Iran 

Sanctions Act of 1996, as amended by section 102 of this 

Act, and the full range of sanctions available to the President 

under the International Emergency Economic Powers Act (50 

U.S.C. 1701 et seq.), on the individuals, entities, and governments described in paragraph (2). 

SEC. 113. SENSE OF CONGRESS REGARDING IRAN AND HEZBOLLAH. 

It is the sense of Congress that the United States should— 

(1) continue to counter support received by Hezbollah from 

the Government of Iran and other foreign governments in 

response to Hezbollah’s terrorist activities and the threat 

Hezbollah poses to Israel, the democratic sovereignty of Lebanon, and the national security interests of the United States; 

(2) impose the full range of sanctions available to the 

President under the International Emergency Economic Powers 

Act (50 U.S.C. 1701 et seq.) on Hezbollah, affiliates and supporters of Hezbollah designated for the imposition of sanctions 

under that Act, and persons providing Hezbollah with commercial, financial, or other services; 

(3) urge the European Union, individual countries in 

Europe, and other countries to classify Hezbollah as a terrorist 

organization to facilitate the disruption of Hezbollah’s operations; and 

(4) renew international efforts to disarm Hezbollah and 

disband its militias in Lebanon, as called for by United Nations 

Security Council Resolutions 1559 (2004) and 1701 (2006). 

SEC. 114. SENSE OF CONGRESS REGARDING THE IMPOSITION OF 

MULTILATERAL SANCTIONS WITH RESPECT TO IRAN. 

It is the sense of Congress that— 
H. R. 2194—30 

(1) in general, effective multilateral sanctions are preferable to unilateral sanctions in order to achieve desired results 

from countries such as Iran; and 

(2) the President should continue to work with allies of 

the United States to impose such sanctions as may be necessary 

to prevent the Government of Iran from acquiring a nuclear 

weapons capability. 

SEC. 115. REPORT ON PROVIDING COMPENSATION FOR VICTIMS OF 

INTERNATIONAL TERRORISM. 

Not later than 180 days after the date of the enactment of 

this Act, the President shall submit to the appropriate congressional 

committees a report on equitable methods for providing compensation on a comprehensive basis to victims of acts of international 

terrorism who are citizens or residents of the United States or 

nationals of the United States (as defined in section 101(a) of 

the Immigration and Nationality Act (8 U.S.C. 1101(a)). 

TITLE II—DIVESTMENT FROM CERTAIN 

COMPANIES THAT INVEST IN IRAN 

SEC. 201. DEFINITIONS. 

In this title: 

(1) ENERGY SECTOR OF IRAN.—The term ‘‘energy sector of 

Iran’’ refers to activities to develop petroleum or natural gas 

resources or nuclear power in Iran. 

(2) FINANCIAL INSTITUTION.—The term ‘‘financial institution’’ has the meaning given that term in section 14 of the 

Iran Sanctions Act of 1996 (Public Law 104–172; 50 U.S.C. 

1701 note). 

(3) IRAN.—The term ‘‘Iran’’ includes the Government of 

Iran and any agency or instrumentality of Iran. 

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

(A) a natural person, corporation, company, business 

association, partnership, society, trust, or any other nongovernmental entity, organization, or group; 

(B) any governmental entity or instrumentality of a 

government, including a multilateral development institution (as defined in section 1701(c)(3) of the International 

Financial Institutions Act (22 U.S.C. 262r(c)(3))); and 

(C) any successor, subunit, parent entity, or subsidiary 

of, or any entity under common ownership or control with, 

any entity described in subparagraph (A) or (B). 

(5) STATE.—The term ‘‘State’’ means each of the several 

States, the District of Columbia, the Commonwealth of Puerto 

Rico, the Commonwealth of the Northern Mariana Islands, 

American Samoa, Guam, the United States Virgin Islands, 

and any other territory or possession of the United States. 

(6) STATE OR LOCAL GOVERNMENT.—The term ‘‘State or 

local government’’ includes— 

(A) any State and any agency or instrumentality 

thereof; 

(B) any local government within a State, and any 

agency or instrumentality thereof; 

(C) any other governmental instrumentality of a State 

or locality; and 
H. R. 2194—31 

(D) any public institution of higher education within 

the meaning of the Higher Education Act of 1965 (20 

U.S.C. 1001 et seq.). 

SEC. 202. AUTHORITY OF STATE AND LOCAL GOVERNMENTS TO DIVEST 

FROM CERTAIN COMPANIES THAT INVEST IN IRAN. 

(a) SENSE OF CONGRESS.—It is the sense of Congress that 

the United States should support the decision of any State or 

local government that for moral, prudential, or reputational reasons 

divests from, or prohibits the investment of assets of the State 

or local government in, a person that engages in investment activities in the energy sector of Iran, as long as Iran is subject to 

economic sanctions imposed by the United States. 

(b) AUTHORITY TO DIVEST.—Notwithstanding any other provision of law, a State or local government may adopt and enforce 

measures that meet the requirements of subsection (d) to divest 

the assets of the State or local government from, or prohibit investment of the assets of the State or local government in, any person 

that the State or local government determines, using credible 

information available to the public, engages in investment activities 

in Iran described in subsection (c). 

(c) INVESTMENT ACTIVITIES DESCRIBED.—A person engages in 

investment activities in Iran described in this subsection if the 

person— 

(1) has an investment of $20,000,000 or more in the energy 

sector of Iran, including in a person that provides oil or liquified 

natural gas tankers, or products used to construct or maintain 

pipelines used to transport oil or liquified natural gas, for 

the energy sector of Iran; or 

(2) is a financial institution that extends $20,000,000 or 

more in credit to another person, for 45 days or more, if that 

person will use the credit for investment in the energy sector 

of Iran. 

(d) REQUIREMENTS.—Any measure taken by a State or local 

government under subsection (b) shall meet the following requirements: 

(1) NOTICE.—The State or local government shall provide 

written notice to each person to which a measure is to be 

applied. 

(2) TIMING.—The measure shall apply to a person not earlier than the date that is 90 days after the date on which 

written notice is provided to the person under paragraph (1). 

(3) OPPORTUNITY FOR HEARING.—The State or local government shall provide an opportunity to comment in writing to 

each person to which a measure is to be applied. If the person 

demonstrates to the State or local government that the person 

does not engage in investment activities in Iran described in 

subsection (c), the measure shall not apply to the person. 

(4) SENSE OF CONGRESS ON AVOIDING ERRONEOUS TARGETING.—It is the sense of Congress that a State or local 

government should not adopt a measure under subsection (b) 

with respect to a person unless the State or local government 

has made every effort to avoid erroneously targeting the person 

and has verified that the person engages in investment activities in Iran described in subsection (c). 

(e) NOTICE TO DEPARTMENT OF JUSTICE.—Not later than 30 

days after adopting a measure pursuant to subsection (b), a State 
H. R. 2194—32 

or local government shall submit written notice to the Attorney 

General describing the measure. 

(f) NONPREEMPTION.—A measure of a State or local government 

authorized under subsection (b) or (i) is not preempted by any 

Federal law or regulation. 

(g) DEFINITIONS.—In this section: 

(1) ASSETS.— 

(A) IN GENERAL.—Except as provided in subparagraph 

(B), the term ‘‘assets’’ refers to public monies and includes 

any pension, retirement, annuity, or endowment fund, or 

similar instrument, that is controlled by a State or local 

government. 

(B) EXCEPTION.—The term ‘‘assets’’ does not include 

employee benefit plans covered by title I of the Employee 

Retirement Income Security Act of 1974 (29 U.S.C. 1001 

et seq.). 

(2) INVESTMENT.—The ‘‘investment’’ includes— 

(A) a commitment or contribution of funds or property; 

(B) a loan or other extension of credit; and 

(C) the entry into or renewal of a contract for goods 

or services. 

(h) EFFECTIVE DATE.— 

(1) IN GENERAL.—Except as provided in paragraph (2) or 

subsection (i), this section applies to measures adopted by a 

State or local government before, on, or after the date of the 

enactment of this Act. 

(2) NOTICE REQUIREMENTS.—Except as provided in subsection (i), subsections (d) and (e) apply to measures adopted 

by a State or local government on or after the date of the 

enactment of this Act. 

(i) AUTHORIZATION FOR PRIOR ENACTED MEASURES.— 

(1) IN GENERAL.—Notwithstanding any other provision of 

this section or any other provision of law, a State or local 

government may enforce a measure (without regard to the 

requirements of subsection (d), except as provided in paragraph 

(2)) adopted by the State or local government before the date 

of the enactment of this Act that provides for the divestment 

of assets of the State or local government from, or prohibits 

the investment of the assets of the State or local government 

in, any person that the State or local government determines, 

using credible information available to the public, engages in 

investment activities in Iran (determined without regard to 

subsection (c)) or other business activities in Iran that are 

identified in the measure. 

(2) APPLICATION OF NOTICE REQUIREMENTS.—A measure 

described in paragraph (1) shall be subject to the requirements 

of paragraphs (1) and (2) and the first sentence of paragraph 

(3) of subsection (d) on and after the date that is 2 years 

after the date of the enactment of this Act. 

SEC. 203. SAFE HARBOR FOR CHANGES OF INVESTMENT POLICIES 

BY ASSET MANAGERS. 

(a) IN GENERAL.—Section 13(c)(1) of the Investment Company 

Act of 1940 (15 U.S.C. 80a–13(c)(1)) is amended to read as follows: 

‘‘(1) IN GENERAL.—Notwithstanding any other provision of 

Federal or State law, no person may bring any civil, criminal, 
H. R. 2194—33 

or administrative action against any registered investment company, or any employee, officer, director, or investment adviser 

thereof, based solely upon the investment company divesting 

from, or avoiding investing in, securities issued by persons 

that the investment company determines, using credible 

information available to the public— 

‘‘(A) conduct or have direct investments in business 

operations in Sudan described in section 3(d) of the Sudan 

Accountability and Divestment Act of 2007 (50 U.S.C. 1701 

note); or 

‘‘(B) engage in investment activities in Iran described 

in section 202(c) of the Comprehensive Iran Sanctions, 

Accountability, and Divestment Act of 2010.’’. 

(b) SEC REGULATIONS.—Not later than 120 days after the date 

of the enactment of this Act, the Securities and Exchange Commission shall issue any revisions the Commission determines to be 

necessary to the regulations requiring disclosure by each registered 

investment company that divests itself of securities in accordance 

with section 13(c) of the Investment Company Act of 1940 to include 

divestments of securities in accordance with paragraph (1)(B) of 

such section, as added by subsection (a) of this section. 

SEC. 204. SENSE OF CONGRESS REGARDING CERTAIN ERISA PLAN 

INVESTMENTS. 

It is the sense of Congress that a fiduciary of an employee 

benefit plan, as defined in section 3(3) of the Employee Retirement 

Income Security Act of 1974 (29 U.S.C. 1002(3)), may divest plan 

assets from, or avoid investing plan assets in, any person the 

fiduciary determines engages in investment activities in Iran 

described in section 202(c) of this Act, without breaching the responsibilities, obligations, or duties imposed upon the fiduciary by 

subparagraph (A) or (B) of section 404(a)(1) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1104(a)(1)), if— 

(1) the fiduciary makes such determination using credible 

information that is available to the public; and 

(2) the fiduciary prudently determines that the result of 

such divestment or avoidance of investment would not be 

expected to provide the employee benefit plan with— 

(A) a lower rate of return than alternative investments 

with commensurate degrees of risk; or 

(B) a higher degree of risk than alternative investments 

with commensurate rates of return. 

SEC. 205. TECHNICAL CORRECTIONS TO SUDAN ACCOUNTABILITY AND 

DIVESTMENT ACT OF 2007. 

(a) ERISA PLAN INVESTMENTS.—Section 5 of the Sudan 

Accountability and Divestment Act of 2007 (Public Law 110–174; 

50 U.S.C. 1701 note) is amended— 

(1) by striking ‘‘section 404 of the Employee Retirement 

Income Security Act of 1974 (29 U.S.C. 1104)’’ and inserting 

‘‘subparagraph (A) or (B) of section 404(a)(1) of the Employee 

Retirement Income Security Act of 1974 (29 U.S.C. 1104(a)(1))’’; 

and 

(2) by striking paragraph (2) and inserting the following: 

‘‘(2) the fiduciary prudently determines that the result of 

such divestment or avoidance of investment would not be 

expected to provide the employee benefit plan with— 
H. R. 2194—34 

‘‘(A) a lower rate of return than alternative investments 

with commensurate degrees of risk; or 

‘‘(B) a higher degree of risk than alternative investments with commensurate rates of return.’’. 

(b) SAFE HARBOR FOR CHANGES OF INVESTMENT POLICIES BY

ASSET MANAGERS.— (1) IN GENERAL.—Section 13(c)(2)(A) of the Investment 

Company Act of 1940 (15 U.S.C. 80a–13(c)(2)(A)) is amended 

to read as follows: 

‘‘(A) RULE OF CONSTRUCTION.—Nothing in paragraph 

(1) shall be construed to create, imply, diminish, change, 

or affect in any way whether or not a private right of 

action exists under subsection (a) or any other provision 

of this Act.’’. 

(2) APPLICABILITY.—The amendment made by paragraph 

(1) shall apply as if included in the Sudan Accountability and 

Divestment Act of 2007 (Public Law 110–174; 50 U.S.C. 1701 

note). 

TITLE III—PREVENTION OF DIVERSION 

OF CERTAIN GOODS, SERVICES, AND 

TECHNOLOGIES TO IRAN 

SEC. 301. DEFINITIONS. 

In this title: 

(1) ALLOW.—The term ‘‘allow’’, with respect to the diversion 

through a country of goods, services, or technologies, means 

the government of the country knows or has reason to know 

that the territory of the country is being used for such diversion. 

(2) APPROPRIATE CONGRESSIONAL COMMITTEES.—The term 

‘‘appropriate congressional committees’’ means— 

(A) the Committee on Banking, Housing, and Urban 

Affairs, the Committee on Foreign Relations, and the Select 

Committee on Intelligence of the Senate; and 

(B) the Committee on Foreign Affairs and the Permanent Select Committee on Intelligence of the House of 

Representatives. 

(3) COMMERCE CONTROL LIST.—The term ‘‘Commerce Control List’’ means the list maintained pursuant to part 774 

of the Export Administration Regulations (or any corresponding 

similar regulation or ruling). 

(4) DIVERT; DIVERSION.—The terms ‘‘divert’’ and ‘‘diversion’’ 

refer to the transfer or release, directly or indirectly, of a 

good, service, or technology to an end-user or an intermediary 

that is not an authorized recipient of the good, service, or 

technology. 

(5) END-USER.—The term ‘‘end-user’’, with respect to a good, 

service, or technology, means the person that receives and 

ultimately uses the good, service, or technology. 

(6) EXPORT ADMINISTRATION REGULATIONS.—The term 

‘‘Export Administration Regulations’’ means subchapter C of 

chapter VII of title 15, Code of Federal Regulations (or any 

corresponding similar regulation or ruling). 

(7) GOVERNMENT.—The term ‘‘government’’ includes any 

agency or instrumentality of a government. 
H. R. 2194—35 

(8) INTERMEDIARY.—The term ‘‘intermediary’’ means a person that receives a good, service, or technology while the good, 

service, or technology is in transit to the end-user of the good, 

service, or technology. 

(9) INTERNATIONAL TRAFFIC IN ARMS REGULATIONS.—The 

term ‘‘International Traffic in Arms Regulations’’ means subchapter M of chapter I of title 22, Code of Federal Regulations 

(or any corresponding similar regulation or ruling). 

(10) IRAN.—The term ‘‘Iran’’ includes the Government of 

Iran and any agency or instrumentality of Iran. 

(11) IRANIAN END-USER.—The term ‘‘Iranian end-user’’ 

means an end-user that is the Government of Iran or a person 

in, or an agency or instrumentality of, Iran. 

(12) IRANIAN INTERMEDIARY.—The term ‘‘Iranian intermediary’’ means an intermediary that is the Government of 

Iran or a person in, or an agency or instrumentality of, Iran. 

(13) STATE SPONSOR OF TERRORISM.—The term ‘‘state 

sponsor of terrorism’’ means any country the government of 

which the Secretary of State has determined has repeatedly 

provided support for acts of international terrorism pursuant 

to— 

(A) section 6(j)(1)(A) of the Export Administration Act 

of 1979 (50 U.S.C. App. 2405(j)(1)(A)) (or any successor 

thereto); 

(B) section 40(d) of the Arms Export Control Act (22 

U.S.C. 2780(d)); or 

(C) section 620A(a) of the Foreign Assistance Act of 

1961 (22 U.S.C. 2371(a)). 

(14) UNITED STATES MUNITIONS LIST.—The term ‘‘United 

States Munitions List’’ means the list maintained pursuant 

to part 121 of the International Traffic in Arms Regulations 

(or any corresponding similar regulation or ruling). 

SEC. 302. IDENTIFICATION OF COUNTRIES OF CONCERN WITH 

RESPECT TO THE DIVERSION OF CERTAIN GOODS, SERVICES, AND TECHNOLOGIES TO OR THROUGH IRAN. 

(a) IN GENERAL.—Not later than 180 days after the date of 

the enactment of this Act, the Director of National Intelligence 

shall submit to the President, the Secretary of Defense, the Secretary of Commerce, the Secretary of State, the Secretary of the 

Treasury, and the appropriate congressional committees a report 

that identifies each country the government of which the Director 

believes, based on all information available to the Director, is 

allowing the diversion through the country of goods, services, or 

technologies described in subsection (b) to Iranian end-users or 

Iranian intermediaries. 

(b) GOODS, SERVICES, AND TECHNOLOGIES DESCRIBED.—Goods, 

services, or technologies described in this subsection are goods, 

services, or technologies— 

(1) that— 

(A) originated in the United States; 

(B) would make a material contribution to Iran’s— 

(i) development of nuclear, chemical, or biological 

weapons; 

(ii) ballistic missile or advanced conventional 

weapons capabilities; or 

(iii) support for international terrorism; and 
H. R. 2194—36 

(C) are— 

(i) items on the Commerce Control List or services 

related to those items; or 

(ii) defense articles or defense services on the 

United States Munitions List; or 

(2) that are prohibited for export to Iran under a resolution 

of the United Nations Security Council. 

(c) UPDATES.—The Director of National Intelligence shall 

update the report required by subsection (a)— 

(1) as new information becomes available; and 

(2) not less frequently than annually. 

(d) FORM.—The report required by subsection (a) and the 

updates required by subsection (c) may be submitted in classified 

form. 

SEC. 303. DESTINATIONS OF DIVERSION CONCERN. 

(a) DESIGNATION.— 

(1) IN GENERAL.—The President shall designate a country 

as a Destination of Diversion Concern if the President determines that the government of the country allows substantial 

diversion of goods, services, or technologies described in section 

302(b) through the country to Iranian end-users or Iranian 

intermediaries. 

(2) DETERMINATION OF SUBSTANTIAL.—For purposes of paragraph (1), the President shall determine whether the government of a country allows substantial diversion of goods, services, or technologies described in section 302(b) through the 

country to Iranian end-users or Iranian intermediaries based 

on criteria that include— 

(A) the volume of such goods, services, and technologies 

that are diverted through the country to such end-users 

or intermediaries; 

(B) the inadequacy of the export controls of the country; 

(C) the unwillingness or demonstrated inability of the 

government of the country to control the diversion of such 

goods, services, and technologies to such end-users or intermediaries; and 

(D) the unwillingness or inability of the government 

of the country to cooperate with the United States in efforts 

to interdict the diversion of such goods, services, or technologies to such end-users or intermediaries. 

(b) REPORT ON DESIGNATION.—Upon designating a country as 

a Destination of Diversion Concern under subsection (a), the President shall submit to the appropriate congressional committees a 

report— 

(1) notifying those committees of the designation of the 

country; and 

(2) containing a list of the goods, services, and technologies 

described in section 302(b) that the President determines are 

diverted through the country to Iranian end-users or Iranian 

intermediaries. 

(c) LICENSING REQUIREMENT.—Not later than 45 days after 

submitting a report required by subsection (b) with respect to 

a country designated as a Destination of Diversion Concern under 

subsection (a), the President shall require a license under the 

Export Administration Regulations or the International Traffic in 

Arms Regulations (whichever is applicable) to export to that country 
H. R. 2194—37 

a good, service, or technology on the list required under subsection 

(b)(2), with the presumption that any application for such a license 

will be denied. 

(d) DELAY OF IMPOSITION OF LICENSING REQUIREMENT.— 

(1) IN GENERAL.—The President may delay the imposition 

of the licensing requirement under subsection (c) with respect 

to a country designated as a Destination of Diversion Concern 

under subsection (a) for a 12-month period if the President— 

(A) determines that the government of the country 

is taking steps— 

(i) to institute an export control system or 

strengthen the export control system of the country; 

(ii) to interdict the diversion of goods, services, 

or technologies described in section 302(b) through the 

country to Iranian end-users or Iranian intermediaries; 

and 

(iii) to comply with and enforce United Nations 

Security Council Resolutions 1696 (2006), 1737 (2006), 

1747 (2007), 1803 (2008), and 1929 (2010), and any 

other resolution that is agreed to by the Security 

Council and imposes sanctions with respect to Iran; 

(B) determines that it is appropriate to carry out 

government-to-government activities to strengthen the 

export control system of the country; and 

(C) submits to the appropriate congressional committees a report describing the steps specified in subparagraph 

(A) being taken by the government of the country. 

(2) ADDITIONAL 12-MONTH PERIODS.—The President may 

delay the imposition of the licensing requirement under subsection (c) with respect to a country designated as a Destination 

of Diversion Concern under subsection (a) for additional 12- 

month periods after the 12-month period referred to in paragraph (1) if the President, for each such 12-month period— 

(A) makes the determinations described in subparagraphs (A) and (B) of paragraph (1) with respect to the 

country; and 

(B) submits to the appropriate congressional committees an updated version of the report required by subparagraph (C) of paragraph (1). 

(3) STRENGTHENING EXPORT CONTROL SYSTEMS.—If the 

President determines under paragraph (1)(B) that is it appropriate to carry out government-to-government activities to 

strengthen the export control system of a country designated 

as a Destination of Diversion Concern under subsection (a), 

the United States shall initiate government-to-government 

activities that may include— 

(A) cooperation by agencies and departments of the 

United States with counterpart agencies and departments 

in the country— 

(i) to develop or strengthen the export control 

system of the country; 

(ii) to strengthen cooperation among agencies of 

the country and with the United States and facilitate 

enforcement of the export control system of the country; 

and 
H. R. 2194—38 

(iii) to promote information and data exchanges 

among agencies of the country and with the United 

States; 

(B) training officials of the country to strengthen the 

export control systems of the country— 

(i) to facilitate legitimate trade in goods, services, 

and technologies; and 

(ii) to prevent terrorists and state sponsors of terrorism, including Iran, from obtaining nuclear, 

biological, and chemical weapons, defense technologies, 

components for improvised explosive devices, and other 

defense articles; and 

(C) encouraging the government of the country to 

participate in the Proliferation Security Initiative, such 

as by entering into a ship boarding agreement pursuant 

to the Initiative. 

(e) TERMINATION OF DESIGNATION.—The designation of a 

country as a Destination of Diversion Concern under subsection 

(a) shall terminate on the date on which the President determines, 

and certifies to the appropriate congressional committees, that the 

country has adequately strengthened the export control system 

of the country to prevent the diversion of goods, services, and 

technologies described in section 302(b) to Iranian end-users or 

Iranian intermediaries. 

(f) FORM OF REPORTS.—A report required by subsection (b) 

or (d) may be submitted in classified form. 

SEC. 304. REPORT ON EXPANDING DIVERSION CONCERN SYSTEM TO 

ADDRESS THE DIVERSION OF UNITED STATES ORIGIN 

GOODS, SERVICES, AND TECHNOLOGIES TO CERTAIN 

COUNTRIES OTHER THAN IRAN. 

(a) IN GENERAL.—Not later than 1 year after the date of the 

enactment of this Act, the President shall submit to the appropriate 

congressional committees a report that— 

(1) identifies any country that the President determines 

is allowing the diversion, in violation of United States law, 

of items on the Commerce Control List or services related 

to those items, or defense articles or defense services on the 

United States Munitions List, that originated in the United 

States to another country if such other country— 

(A) is seeking to obtain nuclear, biological, or chemical 

weapons, or ballistic missiles; or 

(B) provides support for acts of international terrorism; 

and 

(2) assesses the feasability and advisability of expanding 

the system established under section 303 for designating countries as Destinations of Diversion Concern to include countries 

identified under paragraph (1). 

(b) FORM.—The report required by subsection (a) may be submitted in classified form. 

SEC. 305. ENFORCEMENT AUTHORITY. 

The Secretary of Commerce may designate any employee of 

the Office of Export Enforcement of the Department of Commerce 

to conduct activities specified in clauses (i), (ii), and (iii) of section 

12(a)(3)(B) of the Export Administration Act of 1979 (50 U.S.C. 

App. 2411(a)(3)(B)) when the employee is carrying out activities 

to enforce— 
H. R. 2194—39 

(1) the provisions of the Export Administration Act of 1979 

(50 U.S.C. App. 2401 et seq.) (as in effect pursuant to the 

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

et seq.)); 

(2) the provisions of this title, or any other provision of 

law relating to export controls, with respect to which the Secretary of Commerce has enforcement responsibility; or 

(3) any license, order, or regulation issued under— 

(A) the Export Administration Act of 1979 (50 U.S.C. 

App. 2401 et seq.) (as in effect pursuant to the International 

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

or 

(B) a provision of law referred to in paragraph (2). 

TITLE IV—GENERAL PROVISIONS 

SEC. 401. GENERAL PROVISIONS. 

(a) SUNSET.—The provisions of this Act (other than sections 

105 and 305 and the amendments made by sections 102, 107, 

109, and 205) shall terminate, and section 13(c)(1)(B) of the Investment Company Act of 1940, as added by section 203(a), shall 

cease to be effective, on the date that is 30 days after the date 

on which the President certifies to Congress that— 

(1) the Government of Iran has ceased providing support 

for acts of international terrorism and no longer satisfies the 

requirements for designation as a state sponsor of terrorism 

(as defined in section 301) under— 

(A) section 6(j)(1)(A) of the Export Administration Act 

of 1979 (50 U.S.C. App. 2405(j)(1)(A)) (or any successor 

thereto); 

(B) section 40(d) of the Arms Export Control Act (22 

U.S.C. 2780(d)); or 

(C) section 620A(a) of the Foreign Assistance Act of 

1961 (22 U.S.C. 2371(a)); and 

(2) Iran has ceased the pursuit, acquisition, and development of nuclear, biological, and chemical weapons and ballistic 

missiles and ballistic missile launch technology. 

(b) PRESIDENTIAL WAIVERS.— 

(1) IN GENERAL.—The President may waive the application 

of sanctions under section 103(b), the requirement to impose 

or maintain sanctions with respect to a person under section 

105(a), the requirement to include a person on the list required 

by section 105(b), the application of the prohibition under section 106(a), or the imposition of the licensing requirement under 

section 303(c) with respect to a country designated as a Destination of Diversion Concern under section 303(a), if the President 

determines that such a waiver is in the national interest of 

the United States. 

(2) REPORTS.— 

(A) IN GENERAL.—If the President waives the application of a provision pursuant to paragraph (1), the President 

shall submit to the appropriate congressional committees 

a report describing the reasons for the waiver. 

(B) SPECIAL RULE FOR REPORT ON WAIVING IMPOSITION

OF LICENSING REQUIREMENT UNDER SECTION 303(c).—In any 

case in which the President waives, pursuant to paragraph 
H. R. 2194—40 

(1), the imposition of the licensing requirement under section 303(c) with respect to a country designated as a Destination of Diversion Concern under section 303(a), the 

President shall include in the report required by subparagraph (A) of this paragraph an assessment of whether 

the government of the country is taking the steps described 

in subparagraph (A) of section 303(d)(1). 

(c) AUTHORIZATIONS OF APPROPRIATIONS.— 

(1) AUTHORIZATION OF APPROPRIATIONS FOR THE DEPART- MENT OF STATE AND THE DEPARTMENT OF THE TREASURY.— There are authorized to be appropriated to the Secretary of 

State and to the Secretary of the Treasury such sums as may 

be necessary to implement the provisions of, and amendments 

made by, titles I and III of this Act. 

(2) AUTHORIZATION OF APPROPRIATIONS FOR THE DEPARTMENT OF COMMERCE.—There are authorized to be appropriated 

to the Secretary of Commerce such sums as may be necessary 

to carry out title III. 

SEC. 402. DETERMINATION OF BUDGETARY EFFECTS. 

The budgetary effects of this Act, for the purpose of complying 

with the Statutory Pay-As-You-Go-Act of 2010, shall be determined 

by reference to the latest statement titled ‘‘Budgetary Effects of 

PAYGO Legislation’’ for this Act, jointly submitted for printing 

in the Congressional Record by the Chairmen of the House and 

Senate Budget Committees, provided that such statement has been 

submitted prior to the vote on passage in the House acting first 

on this conference report or amendment between the Houses. 

Speaker of the House of Representatives. 

Vice President of the United States and

President of the Senate.