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Union Calendar No. 334 

115TH CONGRESS 

1ST SESSION H. R. 4324 

[Report No. 115–452] 

To require the Secretary of the Treasury to make certifications with respect 

to United States and foreign financial institutions’ aircraft-related transactions involving Iran, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 9, 2017 

Mr. WILLIAMS introduced the following bill; which was referred to the 

Committee on Financial Services 

DECEMBER 7, 2017 

Additional sponsors: Mr. BUDD, Mr. POLIQUIN, Mr. BARR, Ms. TENNEY, Mr. 

ZELDIN, Mr. THOMAS J. ROONEY of Florida, Mr. HUIZENGA, Mr. 

ALLEN, Mr. ARRINGTON, Mr. HARRIS, Mr. LAMALFA, and Mr. CARTER

of Georgia 

DECEMBER 7, 2017 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on November 9, 2017] 


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A BILL 

To require the Secretary of the Treasury to make certifications with respect to United States and foreign financial institutions’ aircraft-related transactions involving 

Iran, and for other purposes. 


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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Strengthening Oversight 

5 of Iran’s Access to Finance Act’’. 

6 SEC. 2. FINDINGS. 

7 The Congress finds the following: 

8 (1) Under the Joint Comprehensive Plan of Ac9 tion (JCPOA), informally known as the Iran nuclear 

10 deal, the Obama administration agreed to license the 

11 sale of commercial passenger aircraft to Iran, the 

12 world’s foremost state sponsor of terrorism and a ju13 risdiction of primary money laundering concern. 

14 (2) In April 2015, prior to the adoption of the 

15 JCPOA, Secretary of the Treasury Jacob Lew, in 

16 publicly advocating for its provisions, stated: ‘‘Make 

17 no mistake: deal or no deal, we will continue to use 

18 all our available tools, including sanctions, to counter 

19 Iran’s menacing behavior. Iran knows that our host 

20 of sanctions focused on its support for terrorism and 

21 its violations of human rights are not, and have never 

22 been, up for discussion.’’. 

23 (3) In March 2016 remarks to the Carnegie En24 dowment for International Peace, Secretary Lew, in 

25 reference to U.S. commitments under the JCPOA, 


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1 stated: ‘‘While we have lifted the nuclear sanctions, we 

2 continue to enforce sanctions directed at support for 

3 terrorism and regional destabilization, and missile 

4 and human rights violations.’’. 

5 (4) In an April 2016 forum at the Council on 

6 Foreign Relations, Secretary Lew stated that, under 

7 the JCPOA, the U.S. committed to lifting its nuclear 

8 sanctions, ‘‘but the U.S. financial system is not open 

9 to Iran, and that is not something that is going to 

10 change’’. 

11 (5) In September 2016, the Department of the 

12 Treasury’s Office of Foreign Assets Control (OFAC) 

13 issued licenses permitting the export of up to 97 air14 craft for use by Iran Air, the Islamic Republic of 

15 Iran’s flagship state-owned carrier. These licenses in16 cluded authorization for U.S. financial institutions 

17 ‘‘to engage in all transactions necessary to provide fi18 nancing or other financial services’’ in order to effec19 tuate the sales. In November 2016, OFAC licensed an 

20 additional 106 aircraft for purchase by Iran Air, 

21 which are also eligible for financing authorized by 

22 OFAC. 

23 (6) The Department of the Treasury had sanc24 tioned Iran Air in 2011 for its use of commercial 

25 passenger aircraft to transport rockets, missiles, and 


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1 other military cargo on behalf of the Islamic Revolu2 tionary Guard Corps (IRGC) and Iran’s Ministry of 

3 Defense and Armed Forces Logistics, both of which 

4 had been designated under Executive Order 13382 for 

5 weapons proliferation-related activities. In October 

6 2017, the IRGC went on to be designated under Exec7 utive Order 13224 for its support of the IRGC-Qods 

8 Force, which has provided support to terrorist groups 

9 such as Hizballah, Hamas, and the Taliban. 

10 (7) Among Iran Air’s sanctionable activities, the 

11 airline delivered missile or rocket components to the 

12 Assad government in Syria, which like Iran is classi13 fied as a state sponsor of terrorism. 

14 (8) The Assad regime is responsible for a civil 

15 conflict that has claimed an estimated 400,000 lives, 

16 including through the government’s deployment of 

17 chemical weapons and barrel bombs against unarmed 

18 civilians and children. 

19 (9) Despite being delisted in 2016, Iran Air has 

20 continued to fly known weapons resupply routes to 

21 government-controlled areas of Syria. According to re22 search by the Foundation for Defense of Democracies, 

23 between Implementation Day of the JCPOA on Janu24 ary 16, 2016, and May 4, 2017, Iran Air operated at 

25 least 134 flights to Syria, which included stops in 


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1 Abadan, Iran, a suspected IRGC logistical hub for 

2 airlifts to the Assad regime. 

3 (10) In November 2016 correspondence to the 

4 Chairman of the House Committee on Financial 

5 Services, the Department of the Treasury noted that 

6 the commitment to delist Iran Air under the JCPOA 

7 ‘‘does not affect our ability to designate, or re-des8 ignate, any Iranian airline that engages in 

9 sanctionable activity. The United States retains the 

10 ability to designate any individual or entity that en11 gages in sanctionable activities under our authorities 

12 targeting conduct outside the scope of the JCPOA, in13 cluding Iran’s support for terrorism, human rights 

14 abuses, ballistic missile program, and other desta15 bilizing activities in the region.’’. 

16 (11) In April 2017, Iran announced a deal for 

17 Aseman Airlines to purchase up to 60 commercial 

18 aircraft, a transaction that would require authoriza19 tion by OFAC. Aseman Airlines’ chief executive offi20 cer, Hossein Alaei, has for decades served as a senior 

21 member of the IRGC. 


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1 SEC. 3. CERTIFICATIONS FOR AIRCRAFT-RELATED TRANS2 ACTIONS BY UNITED STATES AND FOREIGN 

3 FINANCIAL INSTITUTIONS. 

4 (a) IN GENERAL.—Not later than 30 days after au5 thorizing a transaction by a United States or foreign finan6 cial institution in connection with the export or re-export 

7 of a commercial passenger aircraft to Iran (or, for an au8 thorization made after January 16, 2016, but before the 

9 date of the enactment of this Act, not later than 60 days 

10 after such date of enactment), and every 180 days thereafter 

11 for the duration of the authorization, the Secretary of the 

12 Treasury shall submit the report described under subsection 

13 (b) to the appropriate congressional committees. 

14 (b) REPORT WITH RESPECT TO FINANCIAL INSTITU15 TIONS’ IRAN-RELATED TRANSACTIONS AND DUE DILI16 GENCE.—With respect to a financial institution and a 

17 transaction described under subsection (a), a report is de18 scribed under this subsection if it contains— 

19 (1) a list of financial institutions that, since 

20 January 16, 2016, have conducted transactions au21 thorized by the Secretary in connection with the ex22 port or re-export of commercial passenger aircraft to 

23 Iran; 

24 (2) either— 

25 (A) a certification that— 


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1 (i) the transaction does not pose a sig2 nificant money laundering or terrorism fi3 nancing risk to the United States financial 

4 system; 

5 (ii) the transaction will not benefit an 

6 Iranian person that, since the date that is 

7 one year preceding the date of the certifi8 cation— 

9 (I) has knowingly transported 

10 items used for the proliferation of 

11 weapons of mass destruction, including 

12 systems designed in whole or in part 

13 for the delivery of such weapons; or 

14 (II) has knowingly provided 

15 transportation services or material 

16 support for, or on behalf of, any person 

17 designated under Executive Orders 

18 13224, 13382, or 13572; and 

19 (iii) any financial institution de20 scribed under subsection (b)(1) has had 

21 since the date such authorization was made, 

22 or, if the authorization is no longer in ef23 fect, had for the duration of such authoriza24 tion, appropriate policies, procedures, and 

25 processes in place to avoid engaging in 


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1 sanctionable activities that may result from 

2 the financial institutions’ exposure to Iran; 

3 or 

4 (B) a statement that the Secretary is unable 

5 to make the certification described under sub6 paragraph (A) and a notice that the Secretary 

7 will, not later than 60 days after the date the de8 termination is submitted to the appropriate con9 gressional committees, issue a report on non-cer10 tification described under subsection (c) to the 

11 appropriate congressional committees. 

12 (c) REPORT ON NON-CERTIFICATION.—With respect to 

13 a financial institution and a transaction described under 

14 subsection (a), a report on non-certification is described 

15 under this subsection if it contains— 

16 (1) a detailed explanation for why the Secretary 

17 is unable to make the certification described under 

18 subsection (b)(2); 

19 (2) a notification of whether the Secretary will— 

20 (A) not amend the authorization of the 

21 transaction with respect to a financial institu22 tion, notwithstanding such non-certification; 

23 (B) suspend the authorization until the Sec24 retary is able to make such certification; 

25 (C) revoke the authorization; or 


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1 (D) otherwise amend the authorization; and 

2 (3) an explanation of the reasons for any action 

3 to be taken described under paragraph (2). 

4 (d) WAIVER.—The President may waive, on a case5 by-case basis, the provisions of this Act for up to one year 

6 at a time upon certifying to the appropriate congressional 

7 committees that— 

8 (1) the Government of Iran has— 

9 (A) made substantial progress towards com10 bating money laundering and terrorism financ11 ing risk emanating from Iran; or 

12 (B) has significantly reduced Iran’s— 

13 (i) destabilizing activities in the re14 gion; or 

15 (ii) material support for terrorist 

16 groups; or 

17 (2) such waiver is important to the national se18 curity interests of the United States, with an expla19 nation of the reasons therefor. 

20 (e) TERMINATION.—This section shall cease to be effec21 tive on the date that is 30 days after the date on which 

22 the President certifies to the appropriate congressional com23 mittees that— 

24 (1)(A) the Secretary does not find, under section 

25 5318A of title 31, United States Code, that reasonable 


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1 grounds exist for concluding that Iran is a jurisdic2 tion of primary money laundering concern; and 

3 (B) Iran has ceased providing support for acts 

4 of international terrorism; or 

5 (2) terminating the provisions of this section is 

6 vital to the national security interests of the United 

7 States, with an explanation of the reasons therefor. 

8 (f) DEFINITIONS.—For purposes of this section: 

9 (1) APPROPRIATE CONGRESSIONAL COMMIT10 TEES.—The term ‘‘appropriate congressional commit11 tees’’ means the committees on Financial Services and 

12 Foreign Affairs of the House of Representatives and 

13 the committees on Banking, Housing, and Urban Af14 fairs and Foreign Relations of the Senate. 

15 (2) FINANCIAL INSTITUTION.—The term ‘‘finan16 cial institution’’ means a United States financial in17 stitution or a foreign financial institution. 

18 (3) FOREIGN FINANCIAL INSTITUTION.—The term 

19 ‘‘foreign financial institution’’ has the meaning given 

20 that term under section 561.308 of title 31, Code of 

21 Federal Regulations. 

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

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

24 that a person has actual knowledge, or should have 

25 known, of the conduct, the circumstance, or the result. 


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1 (5) SECRETARY.—The term ‘‘Secretary’’ means 

2 the Secretary of the Treasury. 

3 (6) UNITED STATES FINANCIAL INSTITUTION.— 

4 The term ‘‘United States financial institution’’ has 

5 the meaning given the term ‘‘U.S. financial institu6 tion’’ under section 561.309 of title 31, Code of Fed7 eral Regulations. 


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Union Calendar No. 334 

115TH CONGRESS 

1ST SESSION H. R. 4324 

[Report No. 115–452] 

A BILL 

To require the Secretary of the Treasury to make 

poses. transactions involving Iran, and for other purforeign financial institutions’ aircraft-related certifications with respect to United States and 

DECEMBER 7, 2017 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


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