```

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5961 Engrossed in House (EH)]

<DOC>
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``No Funds for Iranian Terrorism 
Act''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) On October 7, 2023, Iran-backed Hamas terrorists 
        launched a massive, unprovoked war on Israel by air, land, and 
        sea, in which they engaged in the brutal murder of over 1,300 
        people and kidnapped at least 230 people who are now being held 
        hostage.
            (2) Hamas, Palestinian Islamic Jihad, and Hezbollah have 
        all been designated by the United States as Foreign Terrorist 
        Organizations pursuant to section 219 of the Immigration and 
        Nationality Act (8 U.S.C. 1189).
            (3) Hamas, Palestinian Islamic Jihad, and associated 
        terrorist organizations backed by Iran routinely and 
        unabashedly use civilians as ``human shields'' to shield their 
        weapons and terrorist militants from legitimate military 
        engagement, a contravention of international humanitarian law 
        and a heinous violation of the rights and dignity of civilian 
        noncombatants.
            (4) Only the cessation of Hamas' operations, the 
        unconditional surrender of Hamas, and the immediate 
        dismantlement of Hamas and all other Iran-backed terrorist 
        organizations that participated in the massacre of Israelis on 
        and since October 7, 2023, will ensure that innocent Israeli 
        and Palestinian civilian lives are saved.
            (5) According to an unclassified United States government 
        assessment, ``Iran has historically provided up to $100 million 
        annually in combined support to Palestinian terrorist groups, 
        including Hamas, Palestinian Islamic Jihad (PIJ), and the 
        Popular Front for the Liberation of Palestine-General 
        Command.''.
            (6) As National Security Advisor Jake Sullivan stated on 
        October 10, 2023, ``Iran is complicit in this attack in a broad 
        sense because they have provided the lion's share of the 
        funding for the military wing of Hamas, they have provided 
        training, they have provided capabilities, they have provided 
        support, and they have provided engagement and contact with 
        Hamas over years and years.''.
            (7) President Biden reached an agreement with the Iranian 
        regime to bring home Siamak Namazi, Morad Tahbaz, Emad Shargi, 
        and two additional American hostages all of whom were 
        wrongfully detained in Iran.

SEC. 3. IMPOSITION OF SANCTIONS WITH RESPECT TO COVERED IRANIAN ASSETS.

    (a) In General.--On and after the date of the enactment of this 
Act, the President shall impose the sanction described in subsection 
(c) with respect to each foreign financial institution that the 
President determines engages in an activity described in subsection 
(b).
    (b) Activities Described.--A foreign financial institution engages 
in an activity described in this subsection if the institution 
processes, participates in, or facilitates a transaction using or 
involving covered Iranian funds.
    (c) Blocking of Property.--The sanction described in this 
subsection is the exercise of all of the powers granted to the 
President under the International Emergency Economic Powers Act (50 
U.S.C. 1701 et seq.) to the extent necessary to block and prohibit all 
transactions in property and interests in property of a foreign 
financial institution described in subsection (a) if such property and 
interests in property are in the United States, come within the United 
States, or are or come within the possession or control of a United 
States person.
    (d) Penalties.--The penalties provided for in subsections (b) and 
(c) of section 206 of the International Emergency Economic Powers Act 
(50 U.S.C. 1705) shall apply to a person that violates, attempts to 
violate, conspires to violate, or causes a violation of this section or 
any regulations promulgated to carry out this section to the same 
extent that such penalties apply to a person that commits an unlawful 
act described in section 206(a) of that Act.
    (e) Termination of Sanctions.--The President shall not be required 
to impose sanctions under this section with respect to a foreign 
financial institution or international financial institution described 
in subsection (a) if the President certifies in writing to the 
appropriate congressional committees not later than 45 days before the 
termination of such sanctions that the Government of Iran--
            (1) no longer repeatedly provides support for international 
        terrorism as determined by the Secretary of State pursuant to--
                    (A) section 1754(c)(1)(A) of the Export Control 
                Reform Act of 2018 (50 U.S.C. 4318(c)(1)(A));
                    (B) section 620A of the Foreign Assistance Act of 
                1961 (22 U.S.C. 2371);
                    (C) section 40 of the Arms Export Control Act (22 
                U.S.C. 2780); or
                    (D) any other provision of law; and
            (2) has ceased the pursuit, acquisition, and development 
        of, and verifiably dismantled its, nuclear, biological, and 
        chemical weapons and ballistic missiles and ballistic missile 
        launch technology.
    (f) Exception Relating To Importation Of Goods.--
            (1) In general.--The authorities and requirements to impose 
        sanctions authorized under this Act shall not include the 
        authority or requirement to impose sanctions on the importation 
        of goods.
            (2) Good defined.--In this subsection, the term ``good'' 
        means any article, natural or man-made substance, material, 
        supply, or manufactured product, including inspection and test 
        equipment, and excluding technical data.

SEC. 4. SENSE OF CONGRESS.

    It is the sense of Congress that the terrorist-funding, human 
rights-violating Iranian regime should receive no additional funds but 
that basic humanitarian assistance for the people of Iran is important.

SEC. 5. LIMITATION OF APPLICABILITY OF CERTAIN LICENSES.

    (a) In General.--Notwithstanding any other provision of law, on and 
after the date of the enactment of this Act, the President may not--
            (1) exercise the waiver authority described in section 
        1245(d)(5) of the National Defense Authorization Act for Fiscal 
        Year 2012 and sections 1244(i) and 1247(f) of the Iran Freedom 
        and Counter-Proliferation Act of 2012 permitting the Government 
        of Iran or any Iranian person access to any account established 
        or maintained pursuant to or in accordance with section 
        1245(d)(4)(D)(ii)(II) of the National Defense Authorization Act 
        for Fiscal Year 2012; or
            (2) issue a general or specific license, frequently asked 
        question, or any other licensing action or guidance permitting 
        the Government of Iran or any Iranian person access to or to 
        benefit directly or indirectly from any account established 
        pursuant to or in accordance with any account described in 
        1245(d)(4)(D)(ii)(II) of the National Defense Authorization Act 
        for Fiscal Year 2012.
    (b) Importation of Goods.--
            (1) In general.--The exercise of the authorities and 
        requirements under paragraph (1) or (2) of subsection (a)--
                    (A) shall not include the authority or requirement 
                to impose sanctions on the importation of goods; and
                    (B) shall not apply to any procurement sanctions.
            (2) Good defined.--In this subsection, the term ``good'' 
        means any article, natural or manmade substance, material, 
        supply or manufactured product, including inspection and test 
        equipment, and excluding technical data.

SEC. 6. DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Foreign Affairs and the 
                Committee on Financial Services of the House of 
                Representatives; and
                    (B) the Committee on Foreign Relations and the 
                Committee on Banking, Housing, and Urban Affairs of the 
                Senate.
            (2) Covered iranian funds.--The term ``covered Iranian 
        funds'' means any funds transferred from accounts in the 
        Republic of Korea to Qatar pursuant to or under the authority 
        or guaranty of a waiver, license, assurance letter, or other 
        guidance issued pursuant to or in furtherance of the waiver 
        determination made pursuant to sections 1244(i) (22 U.S.C. 
        8803(i)) and 1247(f) of the Iran Freedom and Counter-
        Proliferation Act of 2012 (22 U.S.C. 8806(f)) and section 
        1245(d)(5) of the National Defense Authorization Act for Fiscal 
        Year 2012 (22 U.S.C. 8513a(d)(5)) that is the subject of the 
        document entitled ``Waiver of Sanctions with Respect to the 
        Transfer of Funds from the Republic of Korea to Qatar'' and was 
        transmitted to Congress in September 2023.
            (3) Foreign financial institution.--The term ``foreign 
        financial institution'' has the meaning given such term under 
        section 561.308 of title 31, Code of Federal Regulations.

SEC. 7. SENSE OF CONGRESS ON QATAR.

    It is the sense of Congress that the Government of Qatar should 
publicly condemn Hamas, turn Hamas leadership over the United States or 
Israeli control, and pledge never to facilitate the transfer of any 
covered Iranian funds to Iran or any agency or instrumentality of Iran.

SEC. 8. REPORT ON IRANIAN INTERNET CENSORSHIP.

    (a) In General.--The Secretary of the Treasury and the Secretary of 
State shall jointly submit to Congress a report regarding Iranian 
internet censorship and applicable United States licensing 
requirements. Such report shall include the following:
            (1) An assessment of the Iranian Government's ability to 
        impose internet shutdowns, censor the internet, and track 
        Iranian dissidents, labor organizers, political activists, or 
        human rights defenders inside Iran through targeted digital 
        surveillance or other digital means.
            (2) An assessment of the impact of General License D-2, 
        issued on September 23, 2022, on the availability of private 
        communications tools inside Iran, including encryption tools to 
        assist the people of Iran in circumventing targeted digital 
        surveillance by the Iranian Government.
            (3) A determination of whether additional updates to 
        General License D-2 or other licenses are needed to keep up 
        with the pace of technology and ensure that United States 
        restrictions do not unintentionally inhibit the flow of vital 
        communication tools to the people of Iran, including cloud 
        technology, hardware, software, and services incident to 
        personal communications, including set-top boxes (STB), 
        satellites, and web developer tools.
            (4) A strategy to ensure that resources are available for 
        digital rights experts to study Iran's online repression and 
        identify opportunities to counter it.
            (5) A strategy to prevent the Government of Iran from 
        acquiring or developing tools that could be exploited against 
        activists, including facial recognition software.
    (b) Form.--The report required pursuant to subsection (a) shall be 
submitted in unclassified form but may include a classified annex if 
such annex is provided separately from such unclassified version.
    (c) Definition.--In this section, the term ``targeted digital 
surveillance'' means the use of items or services that enable an 
individual or entity (with or without the knowing authorization of the 
product's owner) to detect, monitor, intercept, collect, exploit, 
preserve, protect, transmit, retain, or otherwise gain access to the 
communications, sensitive or protected information, work product, 
browsing data, research, identifying information, location history, or 
online or offline activities of other individuals, organizations, or 
entities.

SEC. 9. SENSE OF CONGRESS.

    It is the sense of Congress that all United States allies in the 
Middle East should publicly and unequivocally condemn the antisemitism 
displayed by Iranian-backed terrorist groups, including Hamas.

SEC. 10. PROHIBITION ON FUNDS.

    No federal funds may be used to make any funds (as such term is 
defined in section 2339C(e)(1) of title 18, United States Code) 
available to Iran.

SEC. 11. SENSE OF CONGRESS ON THE HOUTHIS.

    It is the sense of Congress that the Houthis, an Iran-backed 
terrorist group which has hijacked a Japanese-operated cargo ship, 
kidnapped and tortured United States citizens, and supports Hamas' 
ongoing war against Israel, continues to benefit from the Biden 
Administration's failure to unequivocally condemn it.

SEC. 12. REPORT ON POLICY RELATING TO HUMAN RIGHTS, NUCLEAR 
              PROLIFERATION, BALLISTIC MISSILES, AND REGIONAL TERRORISM 
              IN IRAN.

    Not later than 120 days after the date of the enactment of this 
Act, the President shall submit to Congress a report (which may contain 
a classified annex) outlining the policy of the United States with 
respect to human rights, nuclear proliferation, the ballistic missile 
program, 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 2023 hostage deal 
      between the United States and Iran, and for other purposes.
```