118TH CONGRESS 

1ST SESSION H. R. 5961 

AN ACT 

To freeze certain Iranian funds involved in the 2023 hostage 

deal between the United States and Iran, 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 ‘‘No Funds for Iranian 

3 Terrorism Act’’. 

4 SEC. 2. FINDINGS. 

5 Congress makes the following findings: 

6 (1) On October 7, 2023, Iran-backed Hamas 

7 terrorists launched a massive, unprovoked war on 

8 Israel by air, land, and sea, in which they engaged 

9 in the brutal murder of over 1,300 people and kid10 napped at least 230 people who are now being held 

11 hostage. 

12 (2) Hamas, Palestinian Islamic Jihad, and 

13 Hezbollah have all been designated by the United 

14 States as Foreign Terrorist Organizations pursuant 

15 to section 219 of the Immigration and Nationality 

16 Act (8 U.S.C. 1189). 

17 (3) Hamas, Palestinian Islamic Jihad, and as18 sociated terrorist organizations backed by Iran rou19 tinely and unabashedly use civilians as ‘‘human 

20 shields’’ to shield their weapons and terrorist mili21 tants from legitimate military engagement, a con22 travention of international humanitarian law and a 

23 heinous violation of the rights and dignity of civilian 

24 noncombatants. 

25 (4) Only the cessation of Hamas’ operations, 

26 the unconditional surrender of Hamas, and the im-
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1 mediate dismantlement of Hamas and all other Iran2 backed terrorist organizations that participated in 

3 the massacre of Israelis on and since October 7, 

4 2023, will ensure that innocent Israeli and Pales5 tinian civilian lives are saved. 

6 (5) According to an unclassified United States 

7 government assessment, ‘‘Iran has historically pro8 vided up to $100 million annually in combined sup9 port to Palestinian terrorist groups, including 

10 Hamas, Palestinian Islamic Jihad (PIJ), and the 

11 Popular Front for the Liberation of Palestine-Gen12 eral Command.’’. 

13 (6) As National Security Advisor Jake Sullivan 

14 stated on October 10, 2023, ‘‘Iran is complicit in 

15 this attack in a broad sense because they have pro16 vided the lion’s share of the funding for the military 

17 wing of Hamas, they have provided training, they 

18 have provided capabilities, they have provided sup19 port, and they have provided engagement and con20 tact with Hamas over years and years.’’. 

21 (7) President Biden reached an agreement with 

22 the Iranian regime to bring home Siamak Namazi, 

23 Morad Tahbaz, Emad Shargi, and two additional 

24 American hostages all of whom were wrongfully de25 tained in Iran. 
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1 SEC. 3. IMPOSITION OF SANCTIONS WITH RESPECT TO COV2 ERED IRANIAN ASSETS. 

3 (a) IN GENERAL.—On and after the date of the en4 actment of this Act, the President shall impose the sanc5 tion described in subsection (c) with respect to each for6 eign financial institution that the President determines en7 gages in an activity described in subsection (b). 

8 (b) ACTIVITIES DESCRIBED.—A foreign financial in9 stitution engages in an activity described in this subsection 

10 if the institution processes, participates in, or facilitates 

11 a transaction using or involving covered Iranian funds. 

12 (c) BLOCKING OF PROPERTY.—The sanction de13 scribed in this subsection is the exercise of all of the pow14 ers granted to the President under the International 

15 Emergency Economic Powers Act (50 U.S.C. 1701 et 

16 seq.) to the extent necessary to block and prohibit all 

17 transactions in property and interests in property of a for18 eign financial institution described in subsection (a) if 

19 such property and interests in property are in the United 

20 States, come within the United States, or are or come 

21 within the possession or control of a United States person. 

22 (d) PENALTIES.—The penalties provided for in sub23 sections (b) and (c) of section 206 of the International 

24 Emergency Economic Powers Act (50 U.S.C. 1705) shall 

25 apply to a person that violates, attempts to violate, con26 spires to violate, or causes a violation of this section or 
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1 any regulations promulgated to carry out this section to 

2 the same extent that such penalties apply to a person that 

3 commits an unlawful act described in section 206(a) of 

4 that Act. 

5 (e) TERMINATION OF SANCTIONS.—The President 

6 shall not be required to impose sanctions under this sec7 tion with respect to a foreign financial institution or inter8 national financial institution described in subsection (a) 

9 if the President certifies in writing to the appropriate con10 gressional committees not later than 45 days before the 

11 termination of such sanctions that the Government of 

12 Iran— 

13 (1) no longer repeatedly provides support for 

14 international terrorism as determined by the Sec15 retary of State pursuant to— 

16 (A) section 1754(c)(1)(A) of the Export 

17 Control Reform Act of 2018 (50 U.S.C. 

18 4318(c)(1)(A)); 

19 (B) section 620A of the Foreign Assistance 

20 Act of 1961 (22 U.S.C. 2371); 

21 (C) section 40 of the Arms Export Control 

22 Act (22 U.S.C. 2780); or 

23 (D) any other provision of law; and 

24 (2) has ceased the pursuit, acquisition, and de25 velopment of, and verifiably dismantled its, nuclear, 
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1 biological, and chemical weapons and ballistic mis2 siles and ballistic missile launch technology. 

3 (f) EXCEPTION RELATING TO IMPORTATION OF

4 GOODS.— 

5 (1) IN GENERAL.—The authorities and require6 ments to impose sanctions authorized under this Act 

7 shall not include the authority or requirement to im8 pose sanctions on the importation of goods. 

9 (2) GOOD DEFINED.—In this subsection, the 

10 term ‘‘good’’ means any article, natural or man11 made substance, material, supply, or manufactured 

12 product, including inspection and test equipment, 

13 and excluding technical data. 

14 SEC. 4. SENSE OF CONGRESS. 

15 It is the sense of Congress that the terrorist-funding, 

16 human rights-violating Iranian regime should receive no 

17 additional funds but that basic humanitarian assistance 

18 for the people of Iran is important. 

19 SEC. 5. LIMITATION OF APPLICABILITY OF CERTAIN LI20 CENSES. 

21 (a) IN GENERAL.—Notwithstanding any other provi22 sion of law, on and after the date of the enactment of 

23 this Act, the President may not— 

24 (1) exercise the waiver authority described in 

25 section 1245(d)(5) of the National Defense Author-
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1 ization Act for Fiscal Year 2012 and sections 

2 1244(i) and 1247(f) of the Iran Freedom and 

3 Counter-Proliferation Act of 2012 permitting the 

4 Government of Iran or any Iranian person access to 

5 any account established or maintained pursuant to 

6 or in accordance with section 1245(d)(4)(D)(ii)(II) 

7 of the National Defense Authorization Act for Fiscal 

8 Year 2012; or 

9 (2) issue a general or specific license, frequently 

10 asked question, or any other licensing action or 

11 guidance permitting the Government of Iran or any 

12 Iranian person access to or to benefit directly or in13 directly from any account established pursuant to or 

14 in accordance with any account described in 

15 1245(d)(4)(D)(ii)(II) of the National Defense Au16 thorization Act for Fiscal Year 2012. 

17 (b) IMPORTATION OF GOODS.— 

18 (1) IN GENERAL.—The exercise of the authori19 ties and requirements under paragraph (1) or (2) of 

20 subsection (a)— 

21 (A) shall not include the authority or re22 quirement to impose sanctions on the importa23 tion of goods; and 

24 (B) shall not apply to any procurement 

25 sanctions. 
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1 (2) GOOD DEFINED.—In this subsection, the 

2 term ‘‘good’’ means any article, natural or manmade 

3 substance, material, supply or manufactured prod4 uct, including inspection and test equipment, and ex5 cluding technical data. 

6 SEC. 6. DEFINITIONS. 

7 In this Act: 

8 (1) APPROPRIATE CONGRESSIONAL COMMIT9 TEES.—The term ‘‘appropriate congressional com10 mittees’’ means— 

11 (A) the Committee on Foreign Affairs and 

12 the Committee on Financial Services of the 

13 House of Representatives; and 

14 (B) the Committee on Foreign Relations 

15 and the Committee on Banking, Housing, and 

16 Urban Affairs of the Senate. 

17 (2) COVERED IRANIAN FUNDS.—The term ‘‘cov18 ered Iranian funds’’ means any funds transferred 

19 from accounts in the Republic of Korea to Qatar 

20 pursuant to or under the authority or guaranty of 

21 a waiver, license, assurance letter, or other guidance 

22 issued pursuant to or in furtherance of the waiver 

23 determination made pursuant to sections 1244(i) 

24 (22 U.S.C. 8803(i)) and 1247(f) of the Iran Free25 dom and Counter-Proliferation Act of 2012 (22 
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1 U.S.C. 8806(f)) and section 1245(d)(5) of the Na2 tional Defense Authorization Act for Fiscal Year 

3 2012 (22 U.S.C. 8513a(d)(5)) that is the subject of 

4 the document entitled ‘‘Waiver of Sanctions with Re5 spect to the Transfer of Funds from the Republic of 

6 Korea to Qatar’’ and was transmitted to Congress in 

7 September 2023. 

8 (3) FOREIGN FINANCIAL INSTITUTION.—The 

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

10 given such term under section 561.308 of title 31, 

11 Code of Federal Regulations. 

12 SEC. 7. SENSE OF CONGRESS ON QATAR. 

13 It is the sense of Congress that the Government of 

14 Qatar should publicly condemn Hamas, turn Hamas lead15 ership over the United States or Israeli control, and pledge 

16 never to facilitate the transfer of any covered Iranian 

17 funds to Iran or any agency or instrumentality of Iran. 

18 SEC. 8. REPORT ON IRANIAN INTERNET CENSORSHIP. 

19 (a) IN GENERAL.—The Secretary of the Treasury 

20 and the Secretary of State shall jointly submit to Congress 

21 a report regarding Iranian internet censorship and appli22 cable United States licensing requirements. Such report 

23 shall include the following: 

24 (1) An assessment of the Iranian Government’s 

25 ability to impose internet shutdowns, censor the 
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1 internet, and track Iranian dissidents, labor orga2 nizers, political activists, or human rights defenders 

3 inside Iran through targeted digital surveillance or 

4 other digital means. 

5 (2) An assessment of the impact of General Li6 cense D-2, issued on September 23, 2022, on the 

7 availability of private communications tools inside 

8 Iran, including encryption tools to assist the people 

9 of Iran in circumventing targeted digital surveillance 

10 by the Iranian Government. 

11 (3) A determination of whether additional up12 dates to General License D-2 or other licenses are 

13 needed to keep up with the pace of technology and 

14 ensure that United States restrictions do not unin15 tentionally inhibit the flow of vital communication 

16 tools to the people of Iran, including cloud tech17 nology, hardware, software, and services incident to 

18 personal communications, including set-top boxes 

19 (STB), satellites, and web developer tools. 

20 (4) A strategy to ensure that resources are 

21 available for digital rights experts to study Iran’s 

22 online repression and identify opportunities to 

23 counter it. 

24 (5) A strategy to prevent the Government of 

25 Iran from acquiring or developing tools that could be 
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1 exploited against activists, including facial recogni2 tion software. 

3 (b) FORM.—The report required pursuant to sub4 section (a) shall be submitted in unclassified form but may 

5 include a classified annex if such annex is provided sepa6 rately from such unclassified version. 

7 (c) DEFINITION.—In this section, the term ‘‘targeted 

8 digital surveillance’’ means the use of items or services 

9 that enable an individual or entity (with or without the 

10 knowing authorization of the product’s owner) to detect, 

11 monitor, intercept, collect, exploit, preserve, protect, trans12 mit, retain, or otherwise gain access to the communica13 tions, sensitive or protected information, work product, 

14 browsing data, research, identifying information, location 

15 history, or online or offline activities of other individuals, 

16 organizations, or entities. 

17 SEC. 9. SENSE OF CONGRESS. 

18 It is the sense of Congress that all United States al19 lies in the Middle East should publicly and unequivocally 

20 condemn the antisemitism displayed by Iranian-backed 

21 terrorist groups, including Hamas. 

22 SEC. 10. PROHIBITION ON FUNDS. 

23 No federal funds may be used to make any funds (as 

24 such term is defined in section 2339C(e)(1) of title 18, 

25 United States Code) available to Iran. 
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1 SEC. 11. SENSE OF CONGRESS ON THE HOUTHIS. 

2 It is the sense of Congress that the Houthis, an Iran3 backed terrorist group which has hijacked a Japanese-op4 erated cargo ship, kidnapped and tortured United States 

5 citizens, and supports Hamas’ ongoing war against Israel, 

6 continues to benefit from the Biden Administration’s fail7 ure to unequivocally condemn it. 

8 SEC. 12. REPORT ON POLICY RELATING TO HUMAN RIGHTS, 

9 NUCLEAR PROLIFERATION, BALLISTIC MIS10 SILES, AND REGIONAL TERRORISM IN IRAN. 

11 Not later than 120 days after the date of the enact12 ment of this Act, the President shall submit to Congress 

13 a report (which may contain a classified annex) outlining 

14 the policy of the United States with respect to human 

15 rights, nuclear proliferation, the ballistic missile program, 

16 and regional terrorism in Iran. 

Passed the House of Representatives November 30, 

2023. 

Attest: 

Clerk. 

118TH CONGRESS 

1ST SESSION H. R. 5961 

AN ACT 

To freeze certain Iranian funds involved in the 

Iran, and for other purposes. 2023 hostage deal between the United States and