IIB 

114TH CONGRESS 

2D SESSION H. R. 3662 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 3, 2016 

Received; read twice and referred to the Committee on Banking, Housing, and 

Urban Affairs 

AN ACT 

To enhance congressional oversight over the administration 

of sanctions against certain Iranian terrorism financiers, 

and for other purposes. 

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

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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Iran Terror Finance 

3 Transparency Act’’. 

4 SEC. 2. CERTIFICATION REQUIREMENT FOR REMOVAL OF 

5 FOREIGN FINANCIAL INSTITUTIONS, INCLUD6 ING IRANIAN FINANCIAL INSTITUTIONS, 

7 FROM THE LIST OF SPECIALLY DESIGNATED 

8 NATIONALS AND BLOCKED PERSONS. 

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

10 President may not remove a foreign financial institution, 

11 including an Iranian financial institution, 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 un15 less and until the President submits to the appropriate 

16 congressional committees a certification described in sub17 section (c) with respect to the foreign financial institution. 

18 (b) COVERED INSTITUTIONS.—A foreign financial in19 stitution, including an Iranian financial institution, de20 scribed in this subsection is a foreign financial institution 

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

22 the Joint Comprehensive Plan of Action. 

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

24 foreign financial institution, including an Iranian financial 

25 institution, described in subsection (b) from the list of spe26 cially designated nationals and blocked persons mainmstockstill on DSK4VPTVN1PROD with BILLS

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1 tained by the Office of Foreign Asset Control of the De2 partment of the Treasury if the President submits to the 

3 appropriate congressional committees a certification that 

4 the foreign financial institution— 

5 (1) has not knowingly, directly or indirectly, fa6 cilitated a significant transaction or transactions or 

7 provided significant financial services for or on be8 half of— 

9 (A) Iran’s Revolutionary Guard Corps or 

10 any of its agents or affiliates whose property or 

11 interests in property are blocked pursuant to 

12 the International Emergency Economic Powers 

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

14 (B) a foreign terrorist organization for or 

15 on behalf of a person whose property or inter16 ests in property have been blocked pursuant to 

17 Executive Order No. 13224 (66 Fed. Reg. 

18 49079; relating to blocking property and pro19 hibiting transactions with persons who commit, 

20 threaten to commit, or support terrorism); and 

21 (C) a person whose property or interests in 

22 property are blocked pursuant to the Inter23 national Emergency Economic Powers Act in 

24 connection with Iran’s proliferation of weapons 

25 of mass destruction or delivery systems for 

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1 weapons of mass destruction, or to further 

2 Iran’s development of ballistic missiles and de3 stabilizing types and amounts of conventional 

4 weapons; and 

5 (2) no longer knowingly engages in illicit or de6 ceptive financial transactions or other activities. 

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

8 (c) shall be submitted in unclassified form, but may con9 tain a classified annex. 

10 (e) DEFINITIONS.—In this section: 

11 (1) FOREIGN FINANCIAL INSTITUTION.—The 

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

13 given such term in section 1010.605 of title 31, 

14 Code of Federal Regulations. 

15 (2) FOREIGN TERRORIST ORGANIZATION.—The 

16 term ‘‘foreign terrorist organization’’ means any or17 ganization designated by the Secretary of State as a 

18 foreign terrorist organization in accordance with sec19 tion 219(a) of the Immigration and Nationality Act 

20 (8 U.S.C. 1189(a)). 

21 (3) IRANIAN FINANCIAL INSTITUTION.—The 

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

23 given the term in section 104A(d)(3) of the Com24 prehensive Iran Sanctions, Accountability, and Di25 vestment Act of 2010 (22 U.S.C. 8513b(d)(3)). 

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1 SEC. 3. CERTIFICATION REQUIREMENT FOR REMOVAL OF 

2 CERTAIN FOREIGN PERSONS FROM THE LIST 

3 OF SPECIALLY DESIGNATED NATIONALS AND 

4 BLOCKED PERSONS. 

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

6 President may not remove a foreign person described in 

7 subsection (b) from the list of specially designated nation8 als and blocked persons maintained by the Office of For9 eign Asset Control of the Department of the Treasury 

10 until the President submits to the appropriate congres11 sional committees a certification described in subsection 

12 (c) with respect to the foreign person. 

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

14 person described in this subsection is a foreign person list15 ed in Attachment 3 or Attachment 4 to Annex II of the 

16 Joint Comprehensive Plan of Action. 

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

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

19 of specially designated nationals and blocked persons 

20 maintained by the Office of Foreign Asset Control of the 

21 Department of the Treasury if the President submits to 

22 the appropriate congressional committees a certification 

23 that the foreign person— 

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

25 provided financial, material, or technological support 

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

2 terrorism or a terrorist organization; and 

3 (2) has not knowingly engaged in significant ac4 tivities or transactions that have materially contrib5 uted to the Government of Iran’s proliferation of 

6 weapons of mass destruction or their means of deliv7 ery (including missiles capable of delivering such 

8 weapons), including any efforts to manufacture, ac9 quire, possess, develop, transport, transfer, or use 

10 such item. 

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

12 (c) shall be submitted in unclassified form, but may con13 tain a classified annex. 

14 (e) DEFINITIONS.—In this section: 

15 (1) FOREIGN PERSON.—The term ‘‘foreign per16 son’’— 

17 (A) means— 

18 (i) an individual who is not a United 

19 States person; 

20 (ii) a corporation, partnership, or 

21 other nongovernmental entity which is not 

22 a United States person; or 

23 (iii) any representative, agent or in24 strumentality of, or an individual working 

25 on behalf of a foreign government; but 

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1 (B) does not include a foreign financial in2 stitution, including an Iranian financial institu3 tion, described in section 2(b). 

4 (2) UNITED STATES PERSON.—The term 

5 ‘‘United States person’’ means— 

6 (A) a United States citizen or an alien law7 fully admitted for permanent residence to the 

8 United States; or 

9 (B) an entity organized under the laws of 

10 the United States or of any jurisdiction within 

11 the United States, including a foreign branch of 

12 such an entity. 

13 SEC. 4. CERTIFICATION REQUIREMENT FOR REMOVAL OF 

14 DESIGNATION OF IRAN AS A JURISDICTION 

15 OF PRIMARY MONEY LAUNDERING CONCERN. 

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

17 the designation of Iran as a jurisdiction of primary money 

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

19 United States Code, unless the President submits to the 

20 appropriate congressional committees a certification de21 scribed in subsection (b) with respect to Iran. 

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

23 designation of Iran as a jurisdiction of primary money 

24 laundering concern if the President submits to the appro25 priate congressional committees a certification that the 

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1 Government of Iran is no longer engaged in support for 

2 terrorism, pursuit of weapons of mass destruction, and 

3 any illicit and deceptive financial activities. 

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

5 (b) shall be submitted in unclassified form, but may con6 tain a classified annex. 

7 (d) DEFINITION.—In this section, the term ‘‘appro8 priate congressional committees’’ means— 

9 (1) the Committee on Foreign Affairs and the 

10 Committee on Financial Services of the House of 

11 Representatives; and 

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

13 Urban Affairs of the Senate. 

14 SEC. 5. APPLICABILITY OF CONGRESSIONAL REVIEW OF 

15 CERTAIN AGENCY RULEMAKING RELATING 

16 TO IRAN. 

17 (a) IN GENERAL.—Notwithstanding any other provi18 sion of law, any rule to amend or otherwise alter a covered 

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

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

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

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

23 States Code, and shall be subject to all applicable require24 ments of chapter 8 of title 5, United States Code. 

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

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

3 days thereafter, the head of the applicable department or 

4 agency of the Federal Government shall submit to the ap5 propriate congressional committees a report on the oper6 ation of the licensing system under each covered regu7 latory provision as defined in subsection (c) for the pre8 ceding 2-year period, including— 

9 (1) the number and types of licenses applied 

10 for; 

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

12 (3) a summary of each license approved; 

13 (4) a summary of transactions conducted pur14 suant to a general license; 

15 (5) the average amount of time elapsed from 

16 the date of filing of a license application until the 

17 date of its approval; 

18 (6) the extent to which the licensing procedures 

19 were effectively implemented; and 

20 (7) a description of comments received from in21 terested parties about the extent to which the licens22 ing procedures were effective, after the applicable 

23 department or agency holds a public 30-day com24 ment period. 

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

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

3 560, 561, or 1060 of title 31, Code of Federal Regula4 tions, as such part was in effect on June 1, 2015. 

5 SEC. 6. PROHIBITIONS AND CONDITIONS WITH RESPECT TO 

6 CERTAIN ACCOUNTS HELD BY FOREIGN FI7 NANCIAL INSTITUTIONS. 

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

9 Sanctions, Accountability, and Divestment Act of 2010 

10 (22 U.S.C. 8513(c)(2)(A)(ii)) is amended by adding at the 

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

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

13 affiliates or successors thereof’’. 

14 SEC. 7. DEFINITIONS. 

15 In this Act: 

16 (1) APPROPRIATE CONGRESSIONAL COMMIT17 TEES.—The term ‘‘appropriate congressional com18 mittees’’ has the meaning given the term in section 

19 14(2) of the Iran Sanctions Act of 1996 (Public 

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

21 (2) JOINT COMPREHENSIVE PLAN OF ACTION.— 

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

23 means the Joint Comprehensive Plan of Action, 

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

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

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1 Russian Federation, the United Kingdom and the 

2 United States, with the High Representative of the 

3 European Union for Foreign Affairs and Security 

4 Policy, and all implementing materials and agree5 ments related to the Joint Comprehensive Plan of 

6 Action, and transmitted by the President to Con7 gress on July 19, 2015, pursuant to section 135(a) 

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

9 the Iran Nuclear Agreement Review Act of 2015 

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

Passed the House of Representatives February 2, 

2016. 

Attest: KAREN L. HAAS, 

Clerk. 

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