IB 

Union Calendar No. 296 

114TH CONGRESS 

2D SESSION H. R. 3662 

[Report No. 114–393, Part I] 

To enhance congressional oversight over the administration of sanctions 

against certain Iranian terrorism financiers, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 1, 2015 

Mr. RUSSELL (for himself, Mr. BRAT, Mr. WESTERMAN, Mrs. BLACK, Mr. 

HURD of Texas, Mr. ROUZER, Mr. MEEHAN, Mr. YOHO, Mr. GRAVES of 

Louisiana, Mrs. BROOKS of Indiana, Mr. GRAVES of Missouri, Mr. 

HARDY, Mr. JODY B. HICE of Georgia, Mr. BURGESS, Mr. FITZPATRICK, 

Mr. DESJARLAIS, Mr. DESANTIS, Mr. GIBBS, Ms. JENKINS of Kansas, 

Mr. MESSER, and Mr. LOUDERMILK) introduced the following bill; which 

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

Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

JANUARY 11, 2016 

Additional sponsors: Mr. ABRAHAM, Mr. WILSON of South Carolina, Mr. 

CURBELO of Florida, Mr. GIBSON, Mr. PALMER, Mrs. HARTZLER, Mr. 

ALLEN, Mr. BISHOP of Michigan, Mr. BOST, Mr. BUCSHON, Mr. NUNES, 

Mrs. WALORSKI, Mr. PERRY, Mr. MEADOWS, Mr. ZINKE, Mr. GOSAR, 

Mr. SESSIONS, Mr. WOMACK, Mr. LUCAS, Mr. GOODLATTE, Mr. 

BARLETTA, Ms. MCSALLY, Mrs. MCMORRIS RODGERS, Ms. STEFANIK, 

Mr. POSEY, Mr. LANCE, Mr. JOHNSON of Ohio, Mr. LAMALFA, Mr. ROSKAM, Mrs. BLACKBURN, Mr. CRAMER, Mr. DOLD, Mr. CHAFFETZ, Mr. 

CARTER of Georgia, Mr. COOK, Mr. BYRNE, Mr. FLORES, Mr. PEARCE, 

Mr. NEWHOUSE, Mr. JENKINS of West Virginia, Mr. THOMPSON of 

Pennsylvania, and Mr. POMPEO

JANUARY 11, 2016 

Reported from the Committee on Foreign Affairs 


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JANUARY 11, 2016 

The Committee on Financial Services discharged; committed to the Committee 

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

A BILL 

To enhance congressional oversight over the administration 

of sanctions against certain Iranian terrorism financiers, 

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 ‘‘Iran Terror Finance 

5 Transparency Act’’. 

6 SEC. 2. CERTIFICATION REQUIREMENT FOR REMOVAL OF 

7 FOREIGN FINANCIAL INSTITUTIONS, INCLUD8 ING IRANIAN FINANCIAL INSTITUTIONS, 

9 FROM THE LIST OF SPECIALLY DESIGNATED 

10 NATIONALS AND BLOCKED PERSONS. 

11 (a) IN GENERAL.—On or after July 19, 2015, the 

12 President may not remove a foreign financial institution, 

13 including an Iranian financial institution, described in 

14 subsection (b) from the list of specially designated nation15 als and blocked persons maintained by the Office of For16 eign Asset Control of the Department of the Treasury un17 less and until the President submits to the appropriate 

18 congressional committees a certification described in sub19 section (c) with respect to the foreign financial institution. 

20 (b) COVERED INSTITUTIONS.—A foreign financial in21 stitution, including an Iranian financial institution, de22 scribed in this subsection is a foreign financial institution 

23 listed in Attachment 3 or Attachment 4 to Annex II of 

24 the Joint Comprehensive Plan of Action. 


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1 (c) CERTIFICATION.—The President may remove a 

2 foreign financial institution, including an Iranian financial 

3 institution, described in subsection (b) from the list of spe4 cially designated nationals and blocked persons main5 tained by the Office of Foreign Asset Control of the De6 partment of the Treasury if the President submits to the 

7 appropriate congressional committees a certification that 

8 the foreign financial institution— 

9 (1) has not knowingly, directly or indirectly, fa10 cilitated a significant transaction or transactions or 

11 provided significant financial services for or on be12 half of— 

13 (A) Iran’s Revolutionary Guard Corps or 

14 any of its agents or affiliates whose property or 

15 interests in property are blocked pursuant to 

16 the International Emergency Economic Powers 

17 Act (50 U.S.C. 1701 et seq.); 

18 (B) a foreign terrorist organization for or 

19 on behalf of a person whose property or inter20 ests in property have been blocked pursuant to 

21 Executive Order 13224 (66 Fed. Reg. 49079; 

22 relating to blocking property and prohibiting 

23 transactions with persons who commit, threaten 

24 to commit, or support terrorism); and 


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1 (C) a person whose property or interests in 

2 property are blocked pursuant to the Inter3 national Emergency Economic Powers Act in 

4 connection with Iran’s proliferation of weapons 

5 of mass destruction or delivery systems for 

6 weapons of mass destruction, or to further 

7 Iran’s development of ballistic missiles and de8 stabilizing types and amounts of conventional 

9 weapons; and 

10 (2) no longer knowingly engages in illicit or de11 ceptive financial transactions or other activities. 

12 (d) FORM.—A certification described in subsection 

13 (c) shall be submitted in unclassified form, but may con14 tain a classified annex. 

15 (e) DEFINITIONS.—In this section: 

16 (1) FOREIGN FINANCIAL INSTITUTION.—The 

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

18 given such term in section 1010.605 of title 31, 

19 Code of Federal Regulations. 

20 (2) FOREIGN TERRORIST ORGANIZATION.—The 

21 term ‘‘foreign terrorist organization’’ means any or22 ganization designated by the Secretary of State as a 

23 foreign terrorist organization in accordance with sec24 tion 219(a) of the Immigration and Nationality Act 

25 (8 U.S.C. 1189(a)). 


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1 (3) IRANIAN FINANCIAL INSTITUTION.—The 

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

3 given the term in section 104A(d)(3) of the Com4 prehensive Iran Sanctions, Accountability, and Di5 vestment Act of 2010 (22 U.S.C. 8513b(d)(3)). 

6 SEC. 3. CERTIFICATION REQUIREMENT FOR REMOVAL OF 

7 CERTAIN FOREIGN PERSONS FROM THE LIST 

8 OF SPECIALLY DESIGNATED NATIONALS AND 

9 BLOCKED PERSONS. 

10 (a) IN GENERAL.—On or after July 19, 2015, the 

11 President may not remove a foreign person described in 

12 subsection (b) from the list of specially designated nation13 als and blocked persons maintained by the Office of For14 eign Asset Control of the Department of the Treasury 

15 until the President submits to the appropriate congres16 sional committees a certification described in subsection 

17 (c) with respect to the foreign person. 

18 (b) COVERED PERSONS AND ENTITIES.—A foreign 

19 person described in this subsection is a foreign person list20 ed in Attachment 3 or Attachment 4 to Annex II of the 

21 Joint Comprehensive Plan of Action. 

22 (c) CERTIFICATION.—The President may remove a 

23 foreign person described in subsection (b) from the list 

24 of specially designated nationals and blocked persons 

25 maintained by the Office of Foreign Asset Control of the 


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1 Department of the Treasury if the President submits to 

2 the appropriate congressional committees a certification 

3 that the foreign person— 

4 (1) has not knowingly assisted in, sponsored, or 

5 provided financial, material, or technological support 

6 for, or financial or other services to or in support of 

7 terrorism or a terrorist organization; and 

8 (2) has not knowingly engaged in significant ac9 tivities or transactions that have materially contrib10 uted to the Government of Iran’s proliferation of 

11 weapons of mass destruction or their means of deliv12 ery (including missiles capable of delivering such 

13 weapons), including any efforts to manufacture, ac14 quire, possess, develop, transport, transfer, or use 

15 such item. 

16 (d) FORM.—A certification described in subsection 

17 (c) shall be submitted in unclassified form, but may con18 tain a classified annex. 

19 (e) DEFINITIONS.—In this section: 

20 (1) FOREIGN PERSON.—The term ‘‘foreign per21 son’’— 

22 (A) means— 

23 (i) an individual who is not a United 

24 States person; 


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1 (ii) a corporation, partnership, or 

2 other nongovernmental entity which is not 

3 a United States person; or 

4 (iii) any representative, agent or in5 strumentality of, or an individual working 

6 on behalf of a foreign government; but 

7 (B) does not include a foreign financial in8 stitution, including an Iranian financial institu9 tion, described in section 2(b). 

10 (2) UNITED STATES PERSON.—The term 

11 ‘‘United States person’’ means— 

12 (A) a United States citizen or an alien law13 fully admitted for permanent residence to the 

14 United States; or 

15 (B) an entity organized under the laws of 

16 the United States or of any jurisdiction within 

17 the United States, including a foreign branch of 

18 such an entity. 

19 SEC. 4. CERTIFICATION REQUIREMENT FOR REMOVAL OF 

20 DESIGNATION OF IRAN AS A JURISDICTION 

21 OF PRIMARY MONEY LAUNDERING CONCERN. 

22 (a) IN GENERAL.—The President may not remove 

23 the designation of Iran as a jurisdiction of primary money 

24 laundering concern pursuant to section 5318A of title 31, 

25 United States Code, unless the President submits to the 


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1 appropriate congressional committees a certification de2 scribed in subsection (b) with respect to Iran. 

3 (b) CERTIFICATION.—The President may remove the 

4 designation of Iran as a jurisdiction of primary money 

5 laundering concern if the President submits to the appro6 priate congressional committees a certification that the 

7 Government of Iran is no longer engaged in support for 

8 terrorism, pursuit of weapons of mass destruction, and 

9 any illicit and deceptive financial activities. 

10 (c) FORM.—The certification described in subsection 

11 (b) shall be submitted in unclassified form, but may con12 tain a classified annex. 

13 (d) DEFINITION.—In this section, the term ‘‘appro14 priate congressional committees’’ means— 

15 (1) the Committee on Foreign Affairs and the 

16 Committee on Financial Services of the House of 

17 Representatives; and 

18 (2) the Committee on Banking, Housing, and 

19 Urban Affairs of the Senate. 

20 SEC. 5. APPLICABILITY OF CONGRESSIONAL REVIEW OF 

21 CERTAIN AGENCY RULEMAKING RELATING 

22 TO IRAN. 

23 (a) IN GENERAL.—Notwithstanding any other provi24 sion of law, any rule to amend or otherwise alter a covered 

25 regulatory provision as defined in subsection (c) that is 


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1 published on or after the date of the enactment of this 

2 Act shall be deemed to be a rule or major rule (as the 

3 case may be) for purposes of chapter 8 of title 5, United 

4 States Code, and shall be subject to all applicable require5 ments of chapter 8 of title 5, United States Code. 

6 (b) QUARTERLY REPORTS.—Not later than 60 days 

7 after the date of the enactment of this Act, and every 90 

8 days thereafter, the head of the applicable department or 

9 agency of the Federal Government shall submit to the ap10 propriate congressional committees a report on the oper11 ation of the licensing system under each covered regu12 latory provision as defined in subsection (c) for the pre13 ceding 2-year period, including— 

14 (1) the number and types of licenses applied 

15 for; 

16 (2) the number and types of licenses approved; 

17 (3) a summary of each license approved; 

18 (4) a summary of transactions conducted pur19 suant to a general license; 

20 (5) the average amount of time elapsed from 

21 the date of filing of a license application until the 

22 date of its approval; 

23 (6) the extent to which the licensing procedures 

24 were effectively implemented; and 


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1 (7) a description of comments received from in2 terested parties about the extent to which the licens3 ing procedures were effective, after the applicable 

4 department or agency holds a public 30-day com5 ment period. 

6 (c) DEFINITION.—In this section, the term ‘‘covered 

7 regulatory provision’’ means any provision of part 535, 

8 560, 561, or 1060 of title 31, Code of Federal Regula9 tions, as such part was in effect on June 1, 2015. 

10 SEC. 6. PROHIBITIONS AND CONDITIONS WITH RESPECT TO 

11 CERTAIN ACCOUNTS HELD BY FOREIGN FI12 NANCIAL INSTITUTIONS. 

13 Section 104(c)(2)(A)(ii) of the Comprehensive Iran 

14 Sanctions, Accountability, and Divestment Act of 2010 

15 (22 U.S.C. 8513(c)(2)(A)(ii)) is amended by adding at the 

16 end before the semicolon the following: ‘‘, including 

17 Hezbollah, Hamas, the Palestinian Islamic Jihad, and any 

18 affiliates or successors thereof’’. 

19 SEC. 7. DEFINITIONS. 

20 In this Act: 

21 (1) APPROPRIATE CONGRESSIONAL COMMIT22 TEES.—The term ‘‘appropriate congressional com23 mittees’’ has the meaning given the term in section 

24 14(2) of the Iran Sanctions Act of 1996 (Public 

25 Law 104–172; 50 U.S.C. 1701 note). 


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1 (2) JOINT COMPREHENSIVE PLAN OF ACTION.— 

2 The term ‘‘Joint Comprehensive Plan of Action’’ 

3 means the Joint Comprehensive Plan of Action, 

4 signed at Vienna July 14, 2015, by Iran and by the 

5 People’s Republic of China, France, Germany, the 

6 Russian Federation, the United Kingdom and the 

7 United States, with the High Representative of the 

8 European Union for Foreign Affairs and Security 

9 Policy, and all implementing materials and agree10 ments related to the Joint Comprehensive Plan of 

11 Action, and transmitted by the President to Con12 gress on July 19, 2015, pursuant to section 135(a) 

13 of the Atomic Energy Act of 1954, as amended by 

14 the Iran Nuclear Agreement Review Act of 2015 

15 (Public Law 114–17; 129 Stat. 201). 


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Union Calendar No. 296 

114TH CONGRESS 

2D SESSION H. R. 3662 

[Report No. 114–393, Part I] 

A BILL 

To enhance congressional oversight over the adminrorism financiers, and for other purposes. istration of sanctions against certain Iranian terJANUARY 11, 2016 

Reported from the Committee on Foreign Affairs 

JANUARY 11, 2016 

The Committee on Financial Services discharged; comState of the Union and ordered to be printed mitted to the Committee of the Whole House on the 


asabaliauskas on DSK5VPTVN1PROD with BILLS