I 

115TH CONGRESS 

1ST SESSION H. R. 1638 

To require the Secretary of the Treasury to submit a report to the appropriate 

congressional committees on the estimated total assets under direct or 

indirect control by certain senior Iranian leaders and other figures, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 20, 2017 

Mr. POLIQUIN introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Foreign Affairs, 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 

A BILL 

To require the Secretary of the Treasury to submit a report 

to the appropriate congressional committees on the estimated total assets under direct or indirect control by 

certain senior Iranian leaders and other figures, and 

for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Iranian Leadership 

5 Asset Transparency Act’’. 


rfrederick on DSKBCBPHB2PROD with BILLS
2 

•HR 1638 IH

1 SEC. 2. FINDINGS. 

2 The Congress finds the following: 

3 (1) Iran is characterized by high levels of offi4 cial and institutional corruption, and substantial in5 volvement by Iran’s security forces, particularly the 

6 Islamic Revolutionary Guard Corps (IRGC), in the 

7 economy. 

8 (2) Many members of Iran’s senior political and 

9 military leadership have acquired significant per10 sonal and institutional wealth by using their posi11 tions to secure control of significant portions of 

12 Iran’s national economy. 

13 (3) Sanctions relief provided through the Joint 

14 Comprehensive Plan of Action has resulted in the re15 moval of many Iranian entities that are tied to gov16 ernmental corruption from the list of entities sanc17 tioned by the United States. 

18 (4) The Department of Treasury in 2011 des19 ignated the Islamic Republic of Iran’s financial sec20 tor as a jurisdiction of primary money laundering 

21 concern under section 311 of the USA PATRIOT 

22 Act, stating ‘‘Treasury has for the first time identi23 fied the entire Iranian financial sector; including 

24 Iran’s Central Bank, private Iranian banks, and 

25 branches, and subsidiaries of Iranian banks operVerDate Sep 11 2014 06:31 Mar 22, 2017 Jkt 069200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1638.IH H1638

rfrederick on DSKBCBPHB2PROD with BILLS
3 

•HR 1638 IH

1 ating outside of Iran as posing illicit finance risks 

2 for the global financial system.’’. 

3 (5) Iran continues to be listed by the Financial 

4 Action Task Force (FATF) among the ‘‘Non-Coop5 erative Countries or Territories’’—countries which it 

6 perceived to be non-cooperative in the global fight 

7 against terror finance and money laundering. 

8 (6) Iran and North Korea are the only coun9 tries listed by the FATF as ‘‘Non-Cooperative Coun10 tries or Territories’’ against which FATF countries 

11 should take measures. 

12 (7) The Transparency International index of 

13 perceived public corruption ranks Iran 130th out of 

14 168 countries surveyed. 

15 (8) The State Department identified Iran as a 

16 country/jurisdiction of ‘‘primary concern’’ for money 

17 laundering in its 2014 International Narcotics Con18 trol Strategy Report (INCSR). 

19 (9) The State Department currently identifies 

20 Iran, along with Sudan and Syria, as a state sponsor 

21 of terrorism, ‘‘having repeatedly provided support 

22 for acts of international terrorism’’. 

23 (10) The State Department’s ‘‘Country Reports 

24 on Terrorism’’, published last in June 2015 noted 

25 that ‘‘Iran continued to sponsor terrorist groups 


rfrederick on DSKBCBPHB2PROD with BILLS
4 

•HR 1638 IH

1 around the world, principally through its Islamic 

2 Revolutionary Guard Corps–Qods Force (IRGC– 

3 QF). These groups included Lebanese Hizballah, 

4 several Iraqi Shia militant groups, Hamas, and Pal5 estine Islamic Jihad. Iran, Hizballah, and other Shia 

6 militia continued to provide support to the Asad re7 gime, dramatically bolstering its capabilities, pro8 longing the civil war in Syria, and worsening the 

9 human rights and refugee crisis there.’’. 

10 (11) The Iranian Government’s tolerance of 

11 corruption and nepotism in business limits opportu12 nities for foreign and domestic investment, particu13 larly given the significant involvement of the IRGC 

14 in many sectors of Iran’s economy. 

15 (12) The IRGC and the leadership-controlled 

16 bonyads (foundations) control an estimated one-third 

17 of Iran’s total economy, including large portions of 

18 Iran’s telecommunications, construction, and airport 

19 and port operations. These operations give the IRGC 

20 and bonyads vast funds to support terrorist organi21 zations such as Hezbollah and Hamas. 

22 (13) By gaining control of major economic sec23 tors, the IRGC and bonyads have also served to fur24 ther disadvantage the average Iranian. 


rfrederick on DSKBCBPHB2PROD with BILLS
5 

•HR 1638 IH

1 SEC. 3. REPORT REQUIREMENT RELATING TO ASSETS OF 

2 IRANIAN LEADERS AND CERTAIN SENIOR PO3 LITICAL FIGURES. 

4 (a) IN GENERAL.—Not later than 270 days after the 

5 date of enactment of this Act, and annually thereafter (or 

6 more frequently if the Secretary of the Treasury deter7 mines it appropriate based on new information received 

8 by the Secretary) for the following 2 years, the Secretary 

9 of the Treasury shall, in furtherance of the Secretary’s 

10 efforts to prevent the financing of terrorism, money laun11 dering, or related illicit finance and to make financial in12 stitutions’ required compliance with remaining sanctions 

13 more easily understood, submit a report to the appropriate 

14 congressional committees containing— 

15 (1) the estimated total funds or assets held in 

16 accounts at U.S. and foreign financial institutions 

17 that are under direct or indirect control by each nat18 ural person described in subsection (b) and a de19 scription of such assets; 

20 (2) an identification of any equity stake such 

21 natural person has in an entity on the Department 

22 of the Treasury’s list of Specially Designated Na23 tionals or in any other sanctioned entity; 

24 (3) a description of how such funds or assets or 

25 equity interests were acquired, and how they have 

26 been used or employed; 


rfrederick on DSKBCBPHB2PROD with BILLS
6 

•HR 1638 IH

1 (4) a description of any new methods or tech2 niques used to evade anti-money laundering and re3 lated laws, including recommendations to improve 

4 techniques to combat illicit uses of the U.S. financial 

5 system by each natural person described in sub6 section (b); 

7 (5) recommendations for how U.S. economic 

8 sanctions against Iran may be revised to prevent the 

9 funds or assets described under this subsection from 

10 being used by the natural persons described in sub11 section (b) to contribute to the continued develop12 ment, testing, and procurement of ballistic missile 

13 technology by Iran; 

14 (6) a description of how the Department of the 

15 Treasury assesses the impact and effectiveness of 

16 U.S. economic sanctions programs against Iran; and 

17 (7) recommendations for improving the ability 

18 of the Department of the Treasury to rapidly and ef19 fectively develop, implement, and enforce additional 

20 economic sanctions against Iran if so ordered by the 

21 President under the International Emergency Eco22 nomic Powers Act or other corresponding legislation. 

23 (b) PERSONS DESCRIBED.—The natural persons de24 scribed in this subsection are the following: 

25 (1) The Supreme Leader of Iran. 


rfrederick on DSKBCBPHB2PROD with BILLS
7 

•HR 1638 IH

1 (2) The President of Iran. 

2 (3) Members of the Council of Guardians. 

3 (4) Members of the Expediency Council. 

4 (5) The Minister of Intelligence and Security. 

5 (6) The Commander and the Deputy Com6 mander of the IRGC. 

7 (7) The Commander and the Deputy Com8 mander of the IRGC Ground Forces. 

9 (8) The Commander and the Deputy Com10 mander of the IRGC Aerospace Force. 

11 (9) The Commander and the Deputy Com12 mander of the IRGC Navy. 

13 (10) The Commander of the Basij-e14 Mostaz’afin. 

15 (11) The Commander of the Qods Force. 

16 (12) The Commander in Chief of the Police 

17 Force. 

18 (13) The head of the IRGC Joint Staff. 

19 (14) The Commander of the IRGC Intelligence. 

20 (15) The head of the IRGC Imam Hussein Uni21 versity. 

22 (16) The Supreme Leader’s Representative at 

23 the IRGC. 

24 (17) The Chief Executive Officer and the 

25 Chairman of the IRGC Cooperative Foundation. 


rfrederick on DSKBCBPHB2PROD with BILLS
8 

•HR 1638 IH

1 (18) The Commander of the Khatam-al-Anbia 

2 Construction Head Quarter. 

3 (19) The Chief Executive Officer of the Basij 

4 Cooperative Foundation. 

5 (20) The head of the Political Bureau of the 

6 IRGC. 

7 (21) The head of the Atomic Energy Organiza8 tion of Iran. 

9 (c) FORM OF REPORT; PUBLIC AVAILABILITY.— 

10 (1) FORM.—The report required under sub11 section (a) shall be submitted in unclassified form 

12 but may contain a classified annex. 

13 (2) PUBLIC AVAILABILITY.—The unclassified 

14 portion of such report shall be made available to the 

15 public and posted on the website of the Department 

16 of the Treasury— 

17 (A) in English, Farsi, Arabic, and Azeri; 

18 and 

19 (B) in precompressed, easily downloadable 

20 versions that are made available in all appro21 priate formats. 

22 (d) SOURCES OF INFORMATION.—In preparing a re23 port described under subsection (a), the Secretary of the 

24 Treasury may utilize any credible publication, database, 

25 web-based resource, and any credible information compiled 


rfrederick on DSKBCBPHB2PROD with BILLS
9 

•HR 1638 IH

1 by any government agency, nongovernmental organization, 

2 or other entity provided to or made available to the Sec3 retary. 

4 (e) DEFINITIONS.—For purposes of this section: 

5 (1) APPROPRIATE CONGRESSIONAL COMMIT6 TEES.—The term ‘‘appropriate congressional com7 mittees’’ means the Committees on Financial Serv8 ices and Foreign Affairs of the House of Represent9 atives and the Committees on Banking, Housing, 

10 and Urban Affairs and Foreign Relations of the 

11 Senate. 

12 (2) FUNDS.—The term ‘‘funds’’ means— 

13 (A) cash; 

14 (B) equity; 

15 (C) any other intangible asset whose value 

16 is derived from a contractual claim, including 

17 bank deposits, bonds, stocks, a security as de18 fined in section 2(a) of the Securities Act of 

19 1933 (15 U.S.C. 77b(a)), or a security or an 

20 equity security as defined in section 3(a) of the 

21 Securities Exchange Act of 1934 (15 U.S.C. 

22 78c(a)); and 

23 (D) anything else that the Secretary deter24 mines appropriate. 

Æ 


rfrederick on DSKBCBPHB2PROD with BILLS