I 

115TH CONGRESS 

2D SESSION H. R. 5612 

To require the Secretary of State, in coordination with the Director of 

National Intelligence, to report on Iranian expenditures supporting foreign military and terrorist activities, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 25, 2018 

Mr. LIPINSKI (for himself and Mr. ROSKAM) introduced the following bill; 

which was referred to the Committee on Foreign Affairs 

A BILL 

To require the Secretary of State, in coordination with the 

Director of National Intelligence, to report on Iranian 

expenditures supporting foreign military and terrorist activities, 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 Military and 

5 Terror Financing Reporting Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 


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1 (1) The Joint Comprehensive Plan of Action 

2 (‘‘JCPOA’’) was agreed to on July 14, 2015, and 

3 adopted in October 2015. 

4 (2) According to statements by Iranian officials, 

5 Iran entered into the agreement in order to improve 

6 its domestic economic situation, brought about, ac7 cording to experts, by economic mismanagement on 

8 the part of Iran’s leadership and by highly success9 ful sanctions targeting Iran’s energy and banking 

10 sectors. 

11 (3) Notwithstanding the implementation of the 

12 JCPOA and the aspirations of Iran’s clerical leader13 ship to moderate its behavior, Iran continues to en14 gage in regionally destabilizing activities, including 

15 support for terrorist proxies and illegal testing of 

16 ballistic missiles. 

17 (4) Meanwhile, Iran’s economy continued to 

18 sputter after the implementation of the JCPOA, ac19 cording to experts, despite the lifting or easing of 

20 many sanctions. 

21 (5) On December 29, 2017, peaceful protests 

22 broke out in several Iranian cities against Iran’s 

23 leadership based on economic discontent. 

24 (6) In response to the protests, Iran’s political 

25 leadership criticized the United States for ‘‘failing to 


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1 uphold’’ its commitments under the JCPOA, while 

2 Supreme Leader Khamenei blamed ‘‘enemies’’ for 

3 the protests. 

4 (7) However, according to the Financial Action 

5 Task Force, Iran has failed to improve its banking 

6 system or establish adequate accountability meas7 ures with respect to money laundering to attract for8 eign investment. 

9 (8) Iran’s Islamic Revolutionary Guard Corps, 

10 an entity included on the list of specially designated 

11 nationals and blocked persons maintained by the Of12 fice of Foreign Assets Control of the Department of 

13 the Treasury for its destabilizing activities, also con14 trols major aspects of Iran’s economy, which has a 

15 further chilling effect on foreign investment in Iran. 

16 SEC. 3. SENSE OF CONGRESS. 

17 It is the sense of Congress that— 

18 (1) in the absence of sanctions relating to nu19 clear activity, Iran’s economic woes are a function of 

20 poor management, sclerotic policies, the control of 

21 the Islamic Revolutionary Guard Corps (‘‘IRGC’’) 

22 over major industries, and continued foreign con23 cerns about Iran’s destabilizing activities, including 

24 ballistic missile launches and support for terrorist 

25 proxies; 


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1 (2) Iranian leaders should dedicate resources to 

2 domestic spending instead of foreign adventurism 

3 and implement the financial recommendations made 

4 by the Financial Action Task Force with respect to 

5 money laundering; and 

6 (3) the United States and its partners should 

7 have a firm sense of how much Iran spends, includ8 ing spending by the IRGC, on hostile foreign activi9 ties. 

10 SEC. 4. REPORT. 

11 (a) IN GENERAL.—Not later than 90 days after the 

12 enactment of this Act, and annually thereafter until the 

13 date described in subsection (c), the Secretary of State, 

14 in consultation with the Director of National Intelligence, 

15 shall submit to Congress a report describing Iranian ex16 penditures in the previous calendar year on military and 

17 terrorist activities outside the country, including each of 

18 the following: 

19 (1) The amount spent in such calendar year on 

20 activities by the Islamic Revolutionary Guard Corps, 

21 including activities providing support for— 

22 (A) Hezbollah; 

23 (B) Houthi rebels in Yemen; 

24 (C) Hamas; 

25 (D) proxy forces in Iraq and Syria; or 


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1 (E) any other entity or country the Sec2 retary determines to be relevant. 

3 (2) The amount spent in such calendar year for 

4 ballistic missile research and testing or other activi5 ties that the Secretary of State determines are de6 stabilizing to the Middle East region. 

7 (b) FORM.— 

8 (1) IN GENERAL.—The report required under 

9 subsection (a) shall be submitted in unclassified 

10 form, but may include a classified annex. 

11 (2) INCLUSION IN ANNUAL COUNTRY REPORTS

12 ON TERRORISM.—The Secretary of State may issue 

13 the reports required under subsection (a) by includ14 ing such reports in the annual reports required by 

15 section 140 of the Foreign Relations Authorization 

16 Act, Fiscal Years 1988 and 1989 (22 U.S.C. 2656f). 

17 (c) EXPIRATION DATE.—The date described in this 

18 subsection is the date on which the Secretary of State de19 termines that the government of Iran no longer provides 

20 support for international terrorism pursuant to the fol21 lowing: 

22 (1) Section 6(j) of the Export Administration 

23 Act of 1979 (as continued in effect under the Inter24 national Emergency Economic Powers Act (50 

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


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1 (2) Section 620A of the Foreign Assistance Act 

2 of 1961 (22 U.S.C. 2371). 

3 (3) Section 40 of the Arms Export Control Act 

4 (22 U.S.C. 2780). 

Æ 


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