II 

114TH CONGRESS 

2D SESSION S. 3518 

To impose nonnuclear sanctions with respect to Iran, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 7, 2016 

Mr. RUBIO (for himself, Mr. KIRK, Ms. AYOTTE, and Mr. CORNYN) introduced 

the following bill; which was read twice and referred to the Committee 

on Banking, Housing, and Urban Affairs 

A BILL 

To impose nonnuclear sanctions with respect to 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, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Nonnuclear Iran Sanctions Act of 2016’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

Sec. 3. Findings. 

Sec. 4. Statement of policy. 

TITLE I—SANCTIONS WITH RESPECT TO ENTITIES OWNED BY 

IRAN’S REVOLUTIONARY GUARD CORPS 


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Subtitle A—Iran’s Revolutionary Guard Corps Sanctions, Watch List, and 

Report 

Sec. 101. Findings. 

Sec. 102. Imposition of sanctions with respect to the IRGC. 

Sec. 103. Imposition of sanctions against entities owned in whole or in part by 

IRGC. 

Sec. 104. IRGC watch list and report. 

Sec. 105. Imposition of sanctions against Mahan Air. 

Sec. 106. Additional measures on Mahan Air. 

Sec. 107. Modification and extension of reporting requirements on the use of 

certain Iranian seaports by foreign vessels and use of foreign 

airports by sanctioned Iranian air carriers. 

Subtitle B—Other Provisions 

Sec. 111. Authority of States and local governments to divest from persons that 

engage in investment or business activities with Iran’s Revolutionary Guard Corps. 

Sec. 112. Safe harbor for changes in investment policies by asset managers. 

Subtitle C—Termination 

Sec. 121. Termination. 

TITLE II—SANCTIONS RELATING TO HUMAN RIGHTS ABUSES IN 

IRAN 

Sec. 201. Findings. 

Sec. 202. Expansion of list of persons involved in human rights abuses in Iran. 

Sec. 203. Identification of, and imposition of sanctions with respect to, certain 

Iranian individuals. 

Sec. 204. Imposition of sanctions with respect to persons who conduct transactions with or on behalf of certain Iranian individuals. 

Sec. 205. Mandatory sanctions with respect to financial institutions that engage 

in certain transactions on behalf of persons involved in human 

rights abuses or that export sensitive technology to Iran. 

Sec. 206. United States support for the people of Iran. 

Sec. 207. United States Special Coordinator on Human Rights and Democracy 

in Iran. 

Sec. 208. Broadcasting to Iran. 

Sec. 209. Report on United States citizens detained by Iran. 

Sec. 210. Sense of Congress on establishment of multilateral mechanism to promote human rights in Iran. 

Sec. 211. Sense of Congress on role of the United Nations in promoting human 

rights in Iran. 

TITLE III—SANCTIONS WITH RESPECT TO THE BALLISTIC 

MISSILE PROGRAM OF IRAN 

Sec. 301. Findings. 

Sec. 302. Sense of Congress. 

Sec. 303. Expansion of sanctions with respect to efforts by Iran to acquire ballistic missile and related technology. 

Sec. 304. Imposition of sanctions with respect to ballistic missile program of 

Iran. 


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Sec. 305. Expansion of mandatory sanctions with respect to financial institutions that engage in certain transactions relating to ballistic 

missile capabilities of Iran. 

Sec. 306. Disclosure to the Securities and Exchange Commission of activities 

with certain sectors of Iran that support the ballistic missile 

program of Iran. 

Sec. 307. Regulations. 

TITLE IV—SANCTIONS WITH RESPECT TO CERTAIN IRANIAN 

TRANSACTIONS 

Subtitle A—Sanctions Relating to Iran’s Support of Terrorism 

Sec. 401. Findings. 

Sec. 402. Special measures with respect to Iran relating to its designation as 

a jurisdiction of primary money laundering concern. 

Subtitle B—Prohibition on and Other Sanctions Relating to Transactions 

With Iran 

Sec. 411. Prohibition on facilitation of certain transactions involving the Government of Iran or Iranian persons. 

Sec. 412. Reports on, and authorization of imposition of sanctions with respect 

to, offshore United States dollar clearing for transactions involving the Government of Iran or Iranian persons. 

Sec. 413. Clarification that freezing of assets of Iranian financial institutions 

includes assets in possession or control of a United States person pursuant to a U-turn transaction. 

TITLE V—MISCELLANEOUS 

Sec. 501. Modification of requirements relating to state sponsors of terrorism. 

1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 (1) ENTITY.—The term ‘‘entity’’ means a cor4 poration, business association, partnership, trust, so5 ciety, or any other entity. 

6 (2) FOREIGN PERSON.—The term ‘‘foreign per7 son’’ means a person that is not a United States 

8 person. 

9 (3) IRGC.—The term ‘‘IRGC’’ means Iran’s 

10 Revolutionary Guard Corps. 


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1 (4) PERSON.—The term ‘‘person’’ means an in2 dividual or entity. 

3 (5) UNITED STATES PERSON.—The term 

4 ‘‘United States person’’ means— 

5 (A) a United States citizen or an alien law6 fully admitted for permanent residence to the 

7 United States; or 

8 (B) an entity organized under the laws of 

9 the United States or of any jurisdiction within 

10 the United States, including a foreign branch of 

11 such an entity. 

12 SEC. 3. FINDINGS. 

13 Congress makes the following findings: 

14 (1) Secretary of State John Kerry stated on 

15 July 23, 2015, ‘‘We will not violate the [Joint Com16 prehensive Plan of Action (JCPOA)] if we use our 

17 authorities to impose sanctions on Iran for ter18 rorism, human rights, missiles, or other nonnuclear 

19 reasons. And the JCPOA does not provide Iran any 

20 relief from United States sanctions under any of 

21 those authorities or other authorities.’’. 

22 (2) President Barack Obama stated on April 2, 

23 2015, ‘‘Other American sanctions on Iran for its 

24 support for terrorism, its human rights abuses, its 


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1 ballistic missile program, will continue to be fully en2 forced.’’. 

3 (3) Director of National Intelligence James 

4 Clapper wrote on February 9, 2016, ‘‘[T]he Islamic 

5 Republic of Iran presents an enduring threat to U.S. 

6 national interests because of its support to regional 

7 terrorist and militant groups and the Assad regime, 

8 as well as its development of advanced military capa9 bilities. Tehran views itself as leading the ‘axis of re10 sistance’ which includes the Assad regime and sub11 national groups aligned with Iran, especially Leba12 nese Hezbollah and Iraqi Shia militants . . . Tehran 

13 might even use American citizens detained when en14 tering Iranian territories as bargaining pieces to 

15 achieve financial or political concessions in line with 

16 their strategic intentions.’’. 

17 (4) Director of National Intelligence James 

18 Clapper wrote on June 3, 2015, ‘‘The United States 

19 Intelligence Community continues to assess that 

20 Iran and Hezbollah directly threaten the interests of 

21 the United States and our allies and that Hezbollah 

22 remains a global terrorist threat. Iran remains the 

23 foremost state sponsor of terrorism and is increasing 

24 its ability to influence regional crises and conduct 

25 terrorism. Iran is doing this largely through the IsVerDate Sep 11 2014 02:54 Dec 09, 2016 Jkt 069200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S3518.IS S3518

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1 lamic Revolutionary Guard Corps-Qods Force 

2 (IRGC–QF) and Lebanese Hezbollah, as well as the 

3 support and use of sectarian political and militant 

4 proxies closely aligned with the IRGC–QF and its 

5 anti-Western ideology.’’. 

6 (5) Secretary of the Treasury Jacob Lew stated 

7 on July 14, 2015, ‘‘We harbor no illusions about the 

8 Iranian government’s nefarious activities beyond its 

9 nuclear program. Make no mistake: We will continue 

10 to impose and aggressively enforce sanctions to com11 bat Iran’s support for terrorist groups, its fomenting 

12 of violence in the region, and its perpetration of 

13 human rights abuses.’’. 

14 (6) Jake Sullivan, at the time Deputy Assistant 

15 to President Obama and National Security Advisor 

16 to Vice President Biden, stated on May 1, 2014, 

17 ‘‘The wording of the Joint Plan of Action . . . 

18 speaks to the issue of nuclear-related sanctions. And 

19 that word was chosen very carefully, nuclear-related, 

20 because we have made clear that sanctions relating 

21 to terrorism and sanctions relating to human rights 

22 violations are not covered by the discussions that we 

23 are having on the nuclear file and that we are pre24 pared to continue to follow through on that . . . I 

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1 tion is committed to continuing to enforce and follow 

2 through on that set of sanctions.’’. 

3 (7) Jake Sullivan further stated on May 1, 

4 2014, ‘‘We must continue to speak out against the 

5 gross violations of human rights and fundamental 

6 freedoms in Iran and the hateful anti-Semitic rhet7 oric from some of its leaders, and we must keep pro8 viding support and assistance to those brave Ira9 nians seeking to have their voices heard . . . we’ve 

10 got to stand up for our values, and we need to stand 

11 against the human rights abuses and violations of 

12 fundamental freedom, including religious freedom, 

13 happening in Iran. And we have to provide real sup14 port to those voices on the ground who want to be 

15 heard, who want to push for a better future . . . 

16 this is an important line of effort that has to con17 tinue regardless of what is happening on the nuclear 

18 file or on any other issue.’’. 

19 (8) Iranian Foreign Minister Mohammad Javad 

20 Zarif stated on February 4, 2016, ‘‘Rebuilding the 

21 confidence of the banks that the United States will 

22 not re-intervene in their relations with Iran may re23 quire some further assurance from the United 

24 States.’’. 


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1 SEC. 4. STATEMENT OF POLICY. 

2 It is the policy of the United States— 

3 (1) to continue to impose pressure on the Gov4 ernment of Iran for its role as the foremost state 

5 sponsor of terrorism, its continued development of 

6 ballistic missiles, its ongoing human rights abuses 

7 against the citizens of Iran and other peoples, and 

8 its unjust detention of United States citizens; 

9 (2) to continue to use sanctions as an element 

10 of that pressure and to discourage financial institu11 tions and entities from engaging in business and 

12 commerce with Iranian entities tied to Iran’s Revolu13 tionary Guard Corps and to Iranian officials in14 volved in human rights abuses; 

15 (3) not to encourage any foreign financial insti16 tution or other foreign entity to do business in Iran; 

17 and 

18 (4) not to provide any assurances regarding 

19 protections from United States law or penalties to 

20 those foreign entities that decide to engage or re21 engage in business and commerce with Iran. 


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1 TITLE I—SANCTIONS WITH RE2 SPECT TO ENTITIES OWNED 

3 BY IRAN’S REVOLUTIONARY 

4 GUARD CORPS 

5 Subtitle A—Iran’s Revolutionary 

6 Guard Corps Sanctions, Watch 

7 List, and Report 

8 SEC. 101. FINDINGS. 

9 Congress finds the following: 

10 (1) The IRGC threatens the national security of 

11 the United States and United States allies. 

12 (2) The IRGC is the key entity carrying out the 

13 efforts of the Government of Iran to sow chaos and 

14 instability throughout the Middle East, including 

15 threatening activities against the United States, 

16 Israel, and other allies and partners of the United 

17 States in the region. 

18 (3) The IRGC provides direct sponsorship and 

19 support to numerous foreign terrorist organizations, 

20 including Hamas, Hezbollah, and Palestinian Islamic 

21 Jihad. 

22 (4) According to General Joseph Dunford, 

23 Chairman of the Joint Chiefs of Staff, the IRGC is 

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1 stan and Iraq, including through the provision of ex2 plosive materials to Shia militias in Iraq. 

3 (5) The IRGC is complicit in the ongoing 

4 slaughter of the people of Syria as it maintains sup5 port for, and seeks to preserve, the regime of Bashar 

6 al-Assad, which is responsible for hundreds of thou7 sands of deaths and millions of displaced citizens of 

8 Syria. 

9 (6) The Government of Iran and the IRGC 

10 have been responsible for the repeated testing of ille11 gal ballistic missiles capable of carrying a nuclear 

12 device, including observed tests in October and No13 vember 2015 and March 2016 that violated United 

14 Nations Security Council resolutions. 

15 (7) The United States holds the IRGC respon16 sible for severe and continuing human rights viola17 tions against the people of Iran, including unlawful 

18 arrests, torture, and harassment. 

19 (8) The United States upholds sanctions 

20 against the IRGC for its proliferation-related activi21 ties and human rights abuses, and also against 

22 Iran’s Revolutionary Guard Corps-Qods Force for its 

23 support of terrorism. 

24 (9) The Office of Foreign Assets Control of the 

25 Department of the Treasury includes the IRGC on 


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1 the list of specially designated nationals and blocked 

2 persons (in this section referred to as the ‘‘SDN 

3 list’’). 

4 (10) Pursuant to section 561.405 of title 31, 

5 Code of Federal Regulations, entities owned by the 

6 IRGC, directly or indirectly, with 50 percent or 

7 greater interest are subject to sanctions and may be 

8 listed by the Office of Foreign Assets Control on the 

9 SDN list. Such entities’ property and interest in 

10 property are blocked regardless of whether such enti11 ties are included on the SDN List. That regulation, 

12 commonly termed the ‘‘50 percent rule’’, is the 

13 standard used by the Office of Foreign Assets Con14 trol when determining ownership of entities by 

15 blocked or sanctioned persons. 

16 (11) Under section 218 of the Iran Threat Re17 duction and Syria Human Rights Act of 2012 (22 

18 U.S.C. 8725), the term ‘‘own or control’’, with re19 spect to an entity, means— 

20 (A) holding more than 50 percent of the 

21 equity interest by vote or value in the entity; 

22 (B) holding a majority of seats on the 

23 board of directors of the entity; or 

24 (C) otherwise controlling the actions, poli25 cies, or personnel decisions of the entity. 


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1 (12) The IRGC maintains a powerful and ex2 pansive presence throughout Iran’s financial, com3 mercial, and oil and energy sectors, owning, control4 ling, operating, and influencing Iranian entities 

5 while producing revenues estimated in the billions of 

6 dollars. According to the Department of the Treas7 ury, ‘‘The IRGC has a growing presence in Iran’s fi8 nancial and commercial sectors and extensive eco9 nomic interests in the defense production, construc10 tion, and oil industries, controlling billions of dollars 

11 in corporate business.’’ 

12 (13) The IRGC has continuously engaged in 

13 sanctions evasion and deceptive business practices to 

14 conceal its ownership or control of Iranian entities, 

15 owning numerous Iranian entities that are not sub16 ject to sanctions because the IRGC has less than a 

17 50-percent ownership interest, leaving such entities 

18 unsanctioned and open to business. 

19 (14) As sanctions are lifted pursuant to the 

20 Joint Comprehensive Plan of Action and Iran be21 comes more open to international commerce, the 

22 international community must be aware of any and 

23 all entities that are owned, controlled, operated, or 

24 influenced by the IRGC or its agents or affiliates, 


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1 including those entities that do not make the thresh2 old to be covered by the ‘‘50 percent rule’’. 

3 (15) There is no prohibition in section 219 of 

4 the Immigration and Nationality Act (8 U.S.C. 

5 1189) that prevents the Secretary of State from des6 ignating entities affiliated with the government of a 

7 foreign country as a foreign terrorist organization. 

8 (16) The Financial Crimes Enforcement Net9 work of the Department of the Treasury issued a 

10 notice of proposed rulemaking on August 4, 2014 

11 (79 Fed. Reg. 45151; relating to customer due dili12 gence requirements for financial institutions), pro13 posing to amend chapter X of title 31, Code of Fed14 eral Regulations, to provide greater transparency to 

15 allow the identification of persons that own, control, 

16 and profit from entities to which banks and other fi17 nancial institutions provide services. The proposed 

18 rule, known also as the ‘‘beneficial ownership re19 quirement’’, would require financial institutions to 

20 identify and verify any individual who owns 25 per21 cent or more of an entity that is a customer and an 

22 individual who controls such an entity. 

23 (17) David Cohen, at the time Under Secretary 

24 of the Treasury for Terrorism and Financial Intel25 ligence, stated on July 30, 2014, ‘‘The beneficial 


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1 ownership requirement is intended to provide us 

2 with an important new tool to track down the real 

3 people behind companies that abuse our financial 

4 system to secretly move and launder their illicit 

5 gains. Along with meeting our international commit6 ments, this rule would make our financial system 

7 more transparent by exposing the activities of illicit 

8 actors who will no longer be able to hide behind 

9 their anonymity.’’. 

10 (18) On October 12, 2011, the Department of 

11 the Treasury imposed sanctions on Mahan Air for 

12 providing financial, material, and technological sup13 port to Iran’s Revolutionary Guards Corps-Qods 

14 Force. The Department of the Treasury noted that 

15 Mahan Air also provides transportation, funds trans16 fers, and personal travel services to Iran’s Revolu17 tionary Guards Corps-Qods Force. The Department 

18 of the Treasury further noted that Mahan Air pro19 vides transportation services to Hezbollah, which 

20 was designated as a Specially Designated Global 

21 Terrorist under Executive Order 13224 (50 U.S.C. 

22 1701 note; relating to blocking property and prohib23 iting transactions with persons who commit, threat24 en to commit, or support terrorism) in October 


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1 2001, and Mahan Air has transported personnel, 

2 weapons, and goods on behalf of Hezbollah. 

3 (19) David Cohen, at the time Under Secretary 

4 of the Treasury for Terrorism and Financial Intel5 ligence, stated on October 12, 2011, ‘‘Mahan Air’s 

6 close coordination with [Iran’s Revolutionary Guards 

7 Corps-Qods Force (IRGC–QF)]—secretly ferrying 

8 operatives, weapons and funds on its flights—reveals 

9 yet another facet of the IRGC’s extensive infiltration 

10 of Iran’s commercial sector to facilitate its support 

11 for terrorism. Following the revelation about the 

12 IRGC–QF’s use of the international financial system 

13 to fund its murder-for-hire plot, today’s action high14 lights further the undeniable risks of doing business 

15 with Iran.’’. 

16 SEC. 102. IMPOSITION OF SANCTIONS WITH RESPECT TO 

17 THE IRGC. 

18 (a) IN GENERAL.—Beginning on the date that is 90 

19 days after the date of the enactment of this Act, the Presi20 dent shall impose the sanctions described in subsection (b) 

21 with respect to the IRGC and foreign persons that are 

22 officials, agents, or affiliates of the IRGC. 

23 (b) SANCTIONS DESCRIBED.—The sanctions de24 scribed in this subsection are the following: 


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1 (1) Sanctions applicable with respect to a for2 eign person pursuant to Executive Order 13224 (50 

3 U.S.C. 1701 note; relating to blocking property and 

4 prohibiting transactions with persons who commit, 

5 threaten to commit, or support terrorism). 

6 (2) Sanctions applicable with respect to an enti7 ty that is designated as a foreign terrorist organiza8 tion under section 219 of the Immigration and Na9 tionality Act (8 U.S.C. 1189). 

10 SEC. 103. IMPOSITION OF SANCTIONS AGAINST ENTITIES 

11 OWNED IN WHOLE OR IN PART BY IRGC. 

12 (a) IN GENERAL.—The President shall impose the 

13 sanctions described in subsection (b) with respect to— 

14 (1) an entity, regardless of whether the entity 

15 is included on the list of specially designated nation16 als and blocked persons maintained by the Office of 

17 Foreign Assets Control of the Department of the 

18 Treasury, that is owned, directly or indirectly, by a 

19 25 percent or greater interest— 

20 (A) by the IRGC or an agent or affiliate 

21 of the IRGC; or 

22 (B) collectively by a group of individuals 

23 that are members of the IRGC or an agent or 

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1 viduals hold a 25 percent or greater interest in 

2 the entity; 

3 (2) a person that controls, manages, or directs 

4 an entity described in paragraph (1); or 

5 (3) an individual who is on the board of direc6 tors of an entity described in paragraph (1). 

7 (b) SANCTIONS DESCRIBED.— 

8 (1) BLOCKING OF PROPERTY.—The President 

9 shall block, in accordance with the International 

10 Emergency Economic Powers Act (50 U.S.C. 1701 

11 et seq.), all transactions in all property and interests 

12 in property of any person subject to subsection (a) 

13 if such property and interests in property are in the 

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

15 or come within the possession or control of a United 

16 States person. 

17 (2) EXCLUSION FROM UNITED STATES.—The 

18 Secretary of State shall deny a visa to, and the Sec19 retary of Homeland Security shall exclude from the 

20 United States, any person subject to subsection (a) 

21 that is an alien. 

22 (c) EXCEPTIONS AND SPECIAL RULES.— 

23 (1) INAPPLICABILITY OF NATIONAL EMER24 GENCY REQUIREMENT.—The requirements of section 

25 202 of the International Emergency Economic PowVerDate Sep 11 2014 02:54 Dec 09, 2016 Jkt 069200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\S3518.IS S3518

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1 ers Act (50 U.S.C. 1701) shall not apply for pur2 poses of subsection (b)(1). 

3 (2) COMPLIANCE WITH UNITED NATIONS HEAD4 QUARTERS AGREEMENT.—Subsection (b)(2) shall 

5 not apply to the head of state of Iran, or necessary 

6 staff of that head of state, if admission to the 

7 United States is necessary to permit the United 

8 States to comply with the Agreement regarding the 

9 Headquarters of the United Nations, signed at Lake 

10 Success June 26, 1947, and entered into force No11 vember 21, 1947, between the United Nations and 

12 the United States. 

13 (d) APPLICABILITY OF ADDITIONAL SANCTIONS.—A 

14 person with respect to which the President imposes sanc15 tions under subsection (a) shall be considered an agent 

16 or affiliate of the IRGC for purposes of sections 104 and 

17 104A of the Comprehensive Iran Sanctions, Account18 ability, and Divestment Act of 2010 (22 U.S.C. 8513 and 

19 8513b). 

20 SEC. 104. IRGC WATCH LIST AND REPORT. 

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

22 shall establish, maintain, and publish in the Federal Reg23 ister a list (to be known as the ‘‘IRGC Watch List’’) of— 


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1 (1) each entity in which the IRGC or an agent 

2 or affiliate of the IRGC has an ownership interest 

3 of less than 25 percent; 

4 (2) each entity in which the IRGC does not 

5 have an ownership interest if the IRGC or an agent 

6 or affiliate of the IRGC maintains a presence on the 

7 board of directors of the entity or otherwise influ8 ences the actions, policies, or personnel decisions of 

9 the entity; and 

10 (3) each person that controls, manages, or di11 rects an entity described in paragraph (1) or (2). 

12 (b) REPORTS REQUIRED.— 

13 (1) TREASURY REPORT.— 

14 (A) IN GENERAL.—Not later than 90 days 

15 after the date of the enactment of this Act, and 

16 annually thereafter, the Secretary of the Treas17 ury shall submit to Congress a report that in18 cludes— 

19 (i) the list required by subsection (a) 

20 and, in the case of any report submitted 

21 under this subparagraph after the first 

22 such report, any changes to the list since 

23 the submission of the preceding such re24 port; and 


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1 (ii) an assessment of the role of the 

2 IRGC and its agents and affiliates in, and 

3 its penetration into, the economy of Iran. 

4 (B) FORM OF REPORT.—Each report re5 quired by subparagraph (A) shall be submitted 

6 in unclassified form, but may include a classi7 fied annex if necessary. 

8 (2) GOVERNMENT ACCOUNTABILITY OFFICE RE9 PORT.— 

10 (A) IN GENERAL.—The Comptroller Gen11 eral of the United States shall— 

12 (i) conduct a review of the list re13 quired by subsection (a); and 

14 (ii) not later than 60 days after each 

15 report required by paragraph (1) is sub16 mitted to Congress, submit to Congress a 

17 report— 

18 (I) on the review conducted 

19 under clause (i); and 

20 (II) that includes a list of per21 sons not included in the list required 

22 by subsection (a) that qualify for in23 clusion in that list. 

24 (B) CONSULTATIONS.—In preparing the 

25 report required by subparagraph (A)(ii), the 


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1 Comptroller General shall consult with non2 governmental organizations. 

3 SEC. 105. IMPOSITION OF SANCTIONS AGAINST MAHAN AIR. 

4 (a) IN GENERAL.—The President shall impose the 

5 sanctions described in subsection (b) with respect to— 

6 (1) a person that provides, directly or indi7 rectly, goods, services, technology, or financial serv8 ices, including the sale or provision of aircraft or air9 craft parts, fuel, ramp assistance, baggage and 

10 cargo handling, catering, refueling, ticketing, check11 in services, crew handling, or other services related 

12 to flight operations, to Mahan Air or its agents or 

13 affiliates, or for aircraft of Mahan Air or its agents 

14 or affiliates; 

15 (2) a person that controls, manages, or directs 

16 Mahan Air or any of its agents or affiliates; 

17 (3) an individual who is on the board of direc18 tors of Mahan Air or any of its agents or affiliates; 

19 or 

20 (4) an entity in which Mahan Air or an agent 

21 or affiliate of Mahan Air that owns, directly or indi22 rectly, a 25 percent or greater interest, regardless of 

23 whether the entity is included on the list of specially 

24 designated nationals and blocked persons maintained 


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1 by the Office of Foreign Assets Control of the De2 partment of the Treasury. 

3 (b) SANCTIONS DESCRIBED.— 

4 (1) BLOCKING OF PROPERTY.—The President 

5 shall block, in accordance with the International 

6 Emergency Economic Powers Act (50 U.S.C. 1701 

7 et seq.), all transactions in all property and interests 

8 in property of any person subject to subsection (a) 

9 if such property and interests in property are in the 

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

11 or come within the possession or control of a United 

12 States person. 

13 (2) EXCLUSION FROM UNITED STATES.—The 

14 Secretary of State shall deny a visa to, and the Sec15 retary of Homeland Security shall exclude from the 

16 United States, any person subject to subsection (a) 

17 that is an alien. 

18 (c) EXCEPTIONS AND SPECIAL RULES.— 

19 (1) INAPPLICABILITY OF NATIONAL EMER20 GENCY REQUIREMENT.—The requirements of section 

21 202 of the International Emergency Economic Pow22 ers Act (50 U.S.C. 1701) shall not apply for pur23 poses of subsection (b)(1). 

24 (2) COMPLIANCE WITH UNITED NATIONS HEAD25 QUARTERS AGREEMENT.—Subsection (b)(2) shall 


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1 not apply to the head of state of Iran, or necessary 

2 staff of that head of state, if admission to the 

3 United States is necessary to permit the United 

4 States to comply with the Agreement regarding the 

5 Headquarters of the United Nations, signed at Lake 

6 Success June 26, 1947, and entered into force No7 vember 21, 1947, between the United Nations and 

8 the United States. 

9 (d) APPLICABILITY OF ADDITIONAL SANCTIONS.—A 

10 person with respect to which the President imposes sanc11 tions under subsection (a) shall be considered an agent 

12 or affiliate of the IRGC for purposes of sections 104 and 

13 104A of the Comprehensive Iran Sanctions, Account14 ability, and Divestment Act of 2010 (22 U.S.C. 8513 and 

15 8513b). 

16 SEC. 106. ADDITIONAL MEASURES ON MAHAN AIR. 

17 (a) IN GENERAL.—The President shall require each 

18 covered person to provide a certification to the President 

19 that the person does not conduct transactions with any 

20 entity that provides, directly or indirectly, goods, services, 

21 technology, or financial services, including the sale or pro22 vision of aircraft or aircraft parts, fuel, ramp assistance, 

23 baggage or cargo handling, catering, refueling, ticketing, 

24 check-in services, crew handling, or other services related 

25 to flight operations— 


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1 (1) to Mahan Air or its agents or affiliates; 

2 (2) for aircraft owned or operated by Mahan 

3 Air or its agents or affiliates; or 

4 (3) to a person described in section 105(a). 

5 (b) REPORTS REQUIRED.— 

6 (1) DNI LIST.— 

7 (A) IN GENERAL.—Not later than 90 days 

8 after the date of the enactment of the Act, and 

9 annually thereafter, the Director of National 

10 Intelligence, in consultation with the Secretary 

11 of the Treasury, shall submit to Congress a list 

12 of each entity described in subsection (a). 

13 (B) FORM OF LIST.—Each list required by 

14 subparagraph (A) shall be submitted in unclas15 sified form, but may include a classified annex 

16 if necessary. 

17 (2) REPORT.— 

18 (A) IN GENERAL.—Not later than 90 days 

19 after the date of the enactment of the Act, and 

20 annually thereafter, the President shall submit 

21 to Congress a report that includes— 

22 (i) a list of countries where aircraft of 

23 Mahan Air or its agents or affiliates land; 

24 (ii) a description of the efforts of the 

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1 hibit aircraft of Mahan Air or its agents or 

2 affiliates from landing in the territory of 

3 those countries; and 

4 (iii) if the President has not imposed 

5 sanctions under section 105(a) with re6 spect to any entity described in subsection 

7 (a), an explanation for why the President 

8 has not imposed such sanctions. 

9 (B) FORM OF REPORT.—Each report re10 quired by subparagraph (A) shall be submitted 

11 in unclassified form, but may include a classi12 fied annex if necessary. 

13 (3) GOVERNMENT ACCOUNTABILITY OFFICE RE14 PORT.— 

15 (A) IN GENERAL.—The Comptroller Gen16 eral of the United States shall— 

17 (i) conduct a review of the certifi18 cations required by subsection (a), the lists 

19 required by paragraph (1), and the reports 

20 required by paragraph (2); and 

21 (ii) not later than 60 days after the 

22 submission of each list required by para23 graph (1) and each report required by 

24 paragraph (2), submit to Congress a re25 port— 


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1 (I) on the review conducted 

2 under clause (i); and 

3 (II) assessing the implementation 

4 of section 105. 

5 (B) CONSULTATIONS.—In preparing the 

6 report required by subparagraph (A)(ii), the 

7 Comptroller General shall consult with non8 governmental organizations. 

9 (c) COVERED PERSON DEFINED.—In this section, 

10 the term ‘‘covered person’’ means— 

11 (1) an air carrier or foreign air carrier, as those 

12 terms are defined in section 40102 of title 49, 

13 United States Code; or 

14 (2) a United States person that exports aircraft 

15 or components for aircraft. 

16 SEC. 107. MODIFICATION AND EXTENSION OF REPORTING 

17 REQUIREMENTS ON THE USE OF CERTAIN 

18 IRANIAN SEAPORTS BY FOREIGN VESSELS 

19 AND USE OF FOREIGN AIRPORTS BY SANC20 TIONED IRANIAN AIR CARRIERS. 

21 (a) IN GENERAL.—Section 1252(a) of the Iran Free22 dom and Counter-Proliferation Act of 2012 (22 U.S.C. 

23 8808(a)) is amended— 

24 (1) in the matter preceding paragraph (1), by 

25 striking ‘‘2016’’ and inserting ‘‘2019’’; 


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1 (2) in paragraph (1), by striking ‘‘and’’ at the 

2 end; 

3 (3) in paragraph (2), by striking the period at 

4 the end and inserting ‘‘; and’’; and 

5 (4) by adding at the end the following: 

6 ‘‘(3) a description of all efforts the Department 

7 of State has made to encourage other countries to 

8 prohibit the use of air space and airports by Iranian 

9 air carriers described in paragraph (2) during the 

10 period specified in subsection (b).’’. 

11 (b) EFFECTIVE DATE.—The amendments made by 

12 subsection (a) take effect on the date of the enactment 

13 of this Act and apply with respect to reports required to 

14 be submitted under section 1252(a) of the Iran Freedom 

15 and Counter-Proliferation Act of 2012 on or after such 

16 date of enactment. 

17 Subtitle B—Other Provisions 

18 SEC. 111. AUTHORITY OF STATES AND LOCAL GOVERN19 MENTS TO DIVEST FROM PERSONS THAT EN20 GAGE IN INVESTMENT OR BUSINESS ACTIVI21 TIES WITH IRAN’S REVOLUTIONARY GUARD 

22 CORPS. 

23 (a) IN GENERAL.—Subtitle B of title III of the Iran 

24 Threat Reduction and Syria Human Rights Act of 2012 


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1 (Public Law 112–158; 126 Stat. 1247) is amended by 

2 adding at the end the following: 

3 ‘‘SEC. 313. AUTHORITY OF STATES AND LOCAL GOVERN4 MENTS TO DIVEST FROM PERSONS THAT EN5 GAGE IN INVESTMENT OR BUSINESS ACTIVI6 TIES WITH IRAN’S REVOLUTIONARY GUARD 

7 CORPS. 

8 ‘‘(a) SENSE OF CONGRESS.—It is the sense of Con9 gress that the United States should support the decision 

10 of any State or local government that for moral, pruden11 tial, or reputational reasons divests from, or prohibits the 

12 investment of assets of the State or local government in, 

13 a person that engages in investment or business activities 

14 with Iran’s Revolutionary Guard Corps or a person de15 scribed in subsection (c), as long as Iran’s Revolutionary 

16 Guard Corps is subject to economic sanctions imposed by 

17 the United States. 

18 ‘‘(b) AUTHORITY TO DIVEST.—Notwithstanding any 

19 other provision of law, a State or local government may 

20 adopt and enforce measures that meet the requirements 

21 of subsection (e) to divest the assets of the State or local 

22 government from, or prohibit investment of the assets of 

23 the State or local government in, any person that the 

24 State or local government determines, using credible infor25 mation available to the public, engages in investment or 


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1 business activities described in subsection (d) with Iran’s 

2 Revolutionary Guard Corps or a person described in sub3 section (c). 

4 ‘‘(c) PERSONS DESCRIBED.—A person described in 

5 this subsection is— 

6 ‘‘(1) an entity, regardless of whether the entity 

7 is included on the list of specially designated nation8 als and blocked persons maintained by the Office of 

9 Foreign Assets Control of the Department of the 

10 Treasury, that is owned, directly or indirectly, by a 

11 25 percent or greater interest— 

12 ‘‘(A) by Iran’s Revolutionary Guard Corps 

13 or an agent or affiliate of Iran’s Revolutionary 

14 Guard Corps; or 

15 ‘‘(B) collectively by a group of individuals 

16 that are members of Iran’s Revolutionary 

17 Guard Corps or an agent or affiliate of Iran’s 

18 Revolutionary Guard Corps, even if none of 

19 such individuals hold a 25 percent or greater 

20 interest in the entity; 

21 ‘‘(2) a person that controls, manages, or directs 

22 an entity described in paragraph (1); 

23 ‘‘(3) an individual who is on the board of direc24 tors of an entity described in paragraph (1); or 


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1 ‘‘(4) a person on the IRGC Watch List required 

2 by section 104 of the Nonnuclear Iran Sanctions Act 

3 of 2016. 

4 ‘‘(d) INVESTMENT OR BUSINESS ACTIVITIES DE5 SCRIBED.—A person engages in investment or business ac6 tivities with Iran’s Revolutionary Guard Corps or a person 

7 described in subsection (c) if the person— 

8 ‘‘(1) has a financial investment in Iran’s Revo9 lutionary Guard Corps or such a person; 

10 ‘‘(2) owns, in whole or in part, such a person; 

11 or 

12 ‘‘(3) is a financial institution that extends cred13 it or financing to another person, for 45 days or 

14 more, if that person will use the credit or financing 

15 for investment in a person described in subsection 

16 (c). 

17 ‘‘(e) REQUIREMENTS.—Any measure taken by a 

18 State or local government under subsection (b) shall meet 

19 the following requirements: 

20 ‘‘(1) NOTICE.—The State or local government 

21 shall provide written notice to each person to which 

22 a measure is to be applied. 

23 ‘‘(2) TIMING.—The measure shall apply to a 

24 person not earlier than the date that is 90 days 


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1 after the date on which written notice is provided to 

2 the person under paragraph (1). 

3 ‘‘(3) OPPORTUNITY FOR HEARING.—The State 

4 or local government shall provide an opportunity to 

5 comment in writing to each person to which a meas6 ure is to be applied. If the person demonstrates to 

7 the State or local government that the person does 

8 not engage in investment or business activities de9 scribed in subsection (d) with Iran’s Revolutionary 

10 Guard Corps or a person described in subsection (c), 

11 the measure shall not apply to the person. 

12 ‘‘(4) SENSE OF CONGRESS ON AVOIDING ERRO13 NEOUS TARGETING.—It is the sense of Congress 

14 that a State or local government should not adopt 

15 a measure under subsection (b) with respect to a 

16 person unless the State or local government has 

17 made every effort to avoid erroneously targeting the 

18 person and has verified that the person engages in 

19 investment or business activities described in sub20 section (d) with Iran’s Revolutionary Guard Corps 

21 or a person described in subsection (c). 

22 ‘‘(f) NOTICE TO DEPARTMENT OF JUSTICE.—Not 

23 later than 30 days after adopting a measure pursuant to 

24 subsection (b), a State or local government shall submit 


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1 written notice to the Attorney General describing the 

2 measure. 

3 ‘‘(g) NONPREEMPTION.—A measure of a State or 

4 local government authorized under subsection (b) or (i) 

5 is not preempted by any Federal law or regulation. 

6 ‘‘(h) EFFECTIVE DATE.— 

7 ‘‘(1) IN GENERAL.—Except as provided in para8 graph (2) or subsection (i), this section applies to 

9 measures adopted by a State or local government be10 fore, on, or after the date of the enactment of the 

11 Nonnuclear Iran Sanctions Act of 2016. 

12 ‘‘(2) NOTICE REQUIREMENTS.—Except as pro13 vided in subsection (i), subsections (e) and (f) apply 

14 to measures adopted by a State or local government 

15 on or after the date of the enactment of the Non16 nuclear Iran Sanctions Act of 2016. 

17 ‘‘(i) AUTHORIZATION FOR PRIOR ENACTED MEAS18 URES.— 

19 ‘‘(1) IN GENERAL.—Notwithstanding any other 

20 provision of this section or any other provision of 

21 law, a State or local government may enforce a 

22 measure (without regard to the requirements of sub23 section (e), except as provided in paragraph (2)) 

24 adopted by the State or local government before the 

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1 tions Act of 2016 that provides for the divestment 

2 of assets of the State or local government from, or 

3 prohibits the investment of the assets of the State 

4 or local government in, any person that the State or 

5 local government determines, using credible informa6 tion available to the public, engages in investment or 

7 business activities with Iran’s Revolutionary Guard 

8 Corps or a person described in subsection (c) (deter9 mined without regard to subsection (d)) or other 

10 business or investment activities that are identified 

11 in the measure. 

12 ‘‘(2) APPLICATION OF NOTICE REQUIRE13 MENTS.—A measure described in paragraph (1) 

14 shall be subject to the requirements of paragraphs 

15 (1) and (2) and the first sentence of paragraph (3) 

16 of subsection (e) on and after the date that is 2 

17 years after the date of the enactment of the Non18 nuclear Iran Sanctions Act of 2016. 

19 ‘‘(j) RULE OF CONSTRUCTION.—Nothing in this sec20 tion or any other provision of law authorizing sanctions 

21 with respect to Iran shall be construed to abridge the au22 thority of a State to issue and enforce rules governing the 

23 safety, soundness, and solvency of a financial institution 

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1 suant to the Act of March 9, 1945 (15 U.S.C. 1011 et 

2 seq.) (commonly known as the ‘McCarran-Ferguson Act’). 

3 ‘‘(k) DEFINITIONS.—In this section: 

4 ‘‘(1) ASSETS.— 

5 ‘‘(A) IN GENERAL.—Except as provided in 

6 subparagraph (B), the term ‘assets’ refers to 

7 public monies and includes any pension, retire8 ment, annuity, or endowment fund, or similar 

9 instrument, that is controlled by a State or 

10 local government. 

11 ‘‘(B) EXCEPTION.—The term ‘assets’ does 

12 not include employee benefit plans covered by 

13 title I of the Employee Retirement Income Se14 curity Act of 1974 (29 U.S.C. 1001 et seq.). 

15 ‘‘(2) INVESTMENT.—The ‘investment’ in16 cludes— 

17 ‘‘(A) a commitment or contribution of 

18 funds or property; 

19 ‘‘(B) a loan or other extension of credit; 

20 and 

21 ‘‘(C) the entry into or renewal of a con22 tract for goods or services.’’. 

23 (b) CLERICAL AMENDMENT.—The table of contents 

24 for the Iran Threat Reduction and Syria Human Rights 


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1 Act of 2012 is amended by adding after the item relating 

2 to section 312 the following: 

‘‘Sec. 313. Authority of States and local governments to divest from persons 

that engage in investment or business activities with Iran’s 

Revolutionary Guard Corps.’’. 

3 SEC. 112. SAFE HARBOR FOR CHANGES IN INVESTMENT 

4 POLICIES BY ASSET MANAGERS. 

5 Section 13(c)(1) of the Investment Company Act of 

6 1940 (15 U.S.C. 80a–13(c)(1)) is amended— 

7 (1) in subparagraph (A), by striking ‘‘; or’’ and 

8 inserting a semicolon; 

9 (2) in subparagraph (B), by striking the period 

10 at the end and inserting ‘‘; or’’; and 

11 (3) by adding at the end the following: 

12 ‘‘(C) engage in investment or business ac13 tivities described in subsection (d) of section 

14 313 of the Iran Threat Reduction and Syria 

15 Human Rights Act of 2012 with Iran’s Revolu16 tionary Guard Corps or a person described in 

17 subsection (c) of that section.’’. 

18 Subtitle C—Termination 

19 SEC. 121. TERMINATION. 

20 This title and the amendments made by this title 

21 shall terminate on the date that is 30 days after the date 

22 on which the President makes the certification described 

23 in section 401(a) of the Comprehensive Iran Sanctions, 


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1 Accountability, and Divestment Act of 2010 (22 U.S.C. 

2 8551(a)). 

3 TITLE II—SANCTIONS RELATING 

4 TO HUMAN RIGHTS ABUSES 

5 IN IRAN 

6 SEC. 201. FINDINGS. 

7 Congress makes the following findings: 

8 (1) According to Freedom House, none of the 

9 elections held in Iran after the Islamic revolution in 

10 1979 have been regarded as free or fair. 

11 (2) According to the October 2015 report by 

12 the United Nations Special Rapporteur on the situa13 tion of human rights in the Islamic Republic of Iran, 

14 Iran continues to execute more individuals per cap15 ita than any other country in the world. Executions 

16 have been rising at an exponential rate since 2005 

17 and peaked in 2015, when human rights groups re18 ported a shocking 830 executions between January 

19 and November 2015, and as many as 1,084 execu20 tions during the entire year. 

21 (3) According to an October 2015 United Na22 tions report on human rights in Iran, ‘‘Some 150 

23 Sunni Muslims are in prison on charges related to 

24 their beliefs and religion activities. More than 30 are 


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1 on death row after having been convicted of ‘enmity 

2 against God’ in unfair judicial proceedings.’’. 

3 (4) In 2015, Iran was rated as ‘‘not free’’ in a 

4 report on the freedom of the press by Freedom 

5 House for a lack of flow of independent information 

6 and the inability of news outlets, whether through 

7 print, broadcast, or the Internet, to operate freely 

8 and without fear of repercussions. 

9 (5) Journalists, social media activists, writers, 

10 and human rights activists are routinely arrested 

11 and interrogated by Iran’s Revolutionary Guard 

12 Corps, the Ministry of Intelligence, and cyber-polic13 ing units. 

14 (6) According to the Committee to Protect 

15 Journalists— 

16 (A) from the 2015 prison census, Iran is 

17 one of the leading jailers of journalists, with 19 

18 behind bars; 

19 (B) Iran ranks as first among countries 

20 from which journalists have fled into exile be21 tween 2009 and 2015; and 

22 (C) in 2015, Iran ranked number 7 among 

23 the top 10 most censored countries in the 

24 world. 


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1 (7) According to the United Nations Special 

2 Rapporteur on the situation of human rights in the 

3 Islamic Republic of Iran, as of January 2014, there 

4 were 895 political prisoners and prisoners of con5 science unjustly detained in Iran. 

6 (8) On February 22, 2016, 80-year-old Baquer 

7 Namazi, a United States citizen and the father of 

8 imprisoned dual United States-Iran citizen Siamak 

9 Namazi, was arrested while visiting family in Tehran 

10 and taken to Evin Prison without charge. Baquer 

11 Namazi suffers from a serious heart condition that 

12 requires special medical attention. 

13 (9) On January 12, 2016, Iran’s Revolutionary 

14 Guard Corps unjustly detained 10 United States 

15 sailors whose vessel had misnavigated into Iranian 

16 territorial waters but had a right to innocent pas17 sage under international law. While the United 

18 States sailors were released after 16 hours, Iran’s 

19 Revolutionary Guard Corps released humiliating vid20 eos of the capture of the sailors at gunpoint and 

21 their detention for propagandistic purposes. 

22 (10) On October 15, 2015, Siamak Namazi was 

23 arrested while visiting Tehran and detained in Evin 

24 Prison, where he remains held by Iranian officials 

25 without charge. 


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1 (11) In July 2014, Jason Rezaian, a reporter 

2 from the United States working for the Washington 

3 Post, was unjustly arrested and held in Iran while 

4 his health deteriorated until his release on January 

5 16, 2016. 

6 (12) On January 27, 2013, Saeed Abedini, a 

7 pastor from the United States, was sentenced to an 

8 8-year prison term in Iran based on charges relating 

9 to his Christian faith and had been unjustly incar10 cerated since September 26, 2012, despite serious 

11 health issues until his release on January 16, 2016. 

12 (13) In August 2011, Amir Hekmati, a veteran 

13 of the Armed Forces of the United States, was un14 justly detained while visiting his family in Iran and 

15 remained in a prison in Iran on false espionage 

16 charges until his release on January 16, 2016. 

17 (14) In March 2007, Robert Levinson, a former 

18 agent of the Federal Bureau of Investigation, dis19 appeared in Iran during a business trip and Iran 

20 has refused to cooperate in the investigation into his 

21 disappearance. Mr. Levinson is the longest unjustly 

22 held United States citizens in history. 

23 (15) The principal leaders of the Green Revolu24 tion in Iran, Mir Hussein Moussavi and Mehdi 


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1 Karroubi, have been under house arrest since Feb2 ruary 2011. 

3 (16) The United States has designated Iran as 

4 a country of particular concern for religious freedom 

5 pursuant to section 402(b)(1) of the International 

6 Religious Freedom Act of 1998 (22 U.S.C. 

7 6442(b)(1)) for severe violations of religious freedom 

8 in every year from 1999 through 2015. 

9 (17) In 2015, the United States Commission on 

10 International Religious Freedom found in its annual 

11 report that the Government of Iran ‘‘continues to 

12 engage in systematic, ongoing, and egregious viola13 tions of religious freedom, including prolonged de14 tention, torture, and executions based primarily or 

15 entirely upon the religion of the accused’’. 

16 (18) The Government of Iran continues to 

17 propagate anti-Semitism and target members of the 

18 Jewish community, and reinstated, in 2014, a Holo19 caust denial conference, which had been cancelled 

20 the previous year. 

21 (19) On January 27, 2016, as the world 

22 marked International Holocaust Remembrance Day, 

23 Iranian Supreme Leader Ali Khamenei published a 

24 video denying the Holocaust on his official website. 


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1 (20) Members of the Baha’i Faith in Iran, esti2 mated to number between 300,000 and 350,000, are 

3 not recognized as a religious minority under the 

4 Constitution of Iran, enjoy virtually no rights under 

5 the law, and are banned from practicing their faith. 

6 Throughout 2014 and 2015, Iranian authorities 

7 shut down numerous Baha’i-owned businesses across 

8 the country. 

9 (21) More than 100 Baha’is are being held in 

10 prison solely because of their religious beliefs, in11 cluding the Baha’i leaders Fariba Kamalabadi, 

12 Jamaloddin Khanjani, Afif Naemi, Saeid Rezaie, 

13 Mahvash Sabet, Behrouz Tavakkoli, and Vahid 

14 Tizfahm. 

15 (22) Christians, particularly converts and un16 derground house church leaders, face sustained per17 secution, arrests, legal harassment, and long-term 

18 prison sentences. Since 2010, more than 500 Chris19 tians have been arrested or detained. 

20 (23) Officials of the United States have stated 

21 that the human rights record of Iran is ‘‘abysmal’’ 

22 and the Department of State has reported that there 

23 has been ‘‘little meaningful improvement in human 

24 rights in Iran under the new government, including 


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1 torture, political imprisonment, and harassment of 

2 religious and ethnic minorities’’. 

3 (24) According to the Country Reports on 

4 Human Rights Practices for 2014 of the Depart5 ment of State, Iranian law states that same-sex sex6 ual activity is punishable by death, flogging, or other 

7 punishments. Iranian authorities ‘‘harassed, ar8 rested, and detained individuals they suspected of 

9 being gay’’. While detained, lesbian, gay, bisexual, 

10 and transgender individuals have reported physical 

11 abuse and torture by security officers, including sex12 ual assault and rape. 

13 (25) The Government of Iran continues to com14 mit egregious human rights abuses against its own 

15 citizens in violation of its international obligations 

16 under the Universal Declaration of Human Rights, 

17 the International Covenant on Economic, Social and 

18 Cultural Rights, the International Covenant on Civil 

19 and Political Rights, and the International Conven20 tion on the Elimination of All Forms of Racial Dis21 crimination. 


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1 SEC. 202. EXPANSION OF LIST OF PERSONS INVOLVED IN 

2 HUMAN RIGHTS ABUSES IN IRAN. 

3 (a) IN GENERAL.—Section 105 of the Comprehensive 

4 Iran Sanctions, Accountability, and Divestment Act of 

5 2010 (22 U.S.C. 8514) is amended— 

6 (1) in the section heading, by striking ‘‘CER7 TAIN PERSONS WHO ARE RESPONSIBLE FOR

8 OR COMPLICIT’’ and inserting ‘‘PERSONS IN9 VOLVED’’; 

10 (2) in subsection (b)— 

11 (A) in the subsection heading, by striking 

12 ‘‘WHO ARE RESPONSIBLE FOR OR COMPLICIT’’ 

13 and inserting ‘‘INVOLVED’’; 

14 (B) by striking paragraph (1) and insert15 ing the following: 

16 ‘‘(1) IN GENERAL.—Not later than 90 days 

17 after the date of the enactment of the Nonnuclear 

18 Iran Sanctions Act of 2016, the President shall sub19 mit to the appropriate congressional committees a 

20 list of persons the President determines have com21 mitted or facilitated, directly or indirectly, human 

22 rights abuses or other acts of violence, intimidation, 

23 or harassment, on behalf of the Government of Iran 

24 on or after June 12, 2009, regardless of whether 

25 such abuses or acts occurred in Iran.’’; and 


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1 (C) in paragraph (2)(A), by striking ‘‘this 

2 Act’’ and inserting ‘‘the Nonnuclear Iran Sanc3 tions Act of 2016’’; and 

4 (3) by adding at the end the following: 

5 ‘‘(e) INCLUSION OF ACTIONS THAT VIOLATE UNI6 VERSAL DECLARATION OF HUMAN RIGHTS.—For pur7 poses of subsection (b)(1), the term ‘human rights abuses’ 

8 includes actions that violate the rights listed in the United 

9 Nations Universal Declaration of Human Rights, adopted 

10 at Paris December 10, 1948.’’. 

11 (b) CLERICAL AMENDMENT.—The table of contents 

12 for the Comprehensive Iran Sanctions, Accountability, and 

13 Divestment Act of 2010 is amended by striking the item 

14 relating to section 105 and inserting the following: 

‘‘Sec. 105. Imposition of sanctions on persons involved in human rights abuses 

committed against citizens of Iran or their family members 

after the June 12, 2009, elections in Iran.’’. 

15 SEC. 203. IDENTIFICATION OF, AND IMPOSITION OF SANC16 TIONS WITH RESPECT TO, CERTAIN IRANIAN 

17 INDIVIDUALS. 

18 (a) IN GENERAL.—Section 221 of the Iran Threat 

19 Reduction and Syria Human Rights Act of 2012 (22 

20 U.S.C. 8727) is amended to read as follows: 


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1 ‘‘SEC. 221. IDENTIFICATION OF, AND IMPOSITION OF SANC2 TIONS WITH RESPECT TO, CERTAIN IRANIAN 

3 INDIVIDUALS. 

4 ‘‘(a) IDENTIFICATION OF INDIVIDUALS.—Not later 

5 than 90 days after the date of the enactment of the Non6 nuclear Iran Sanctions Act of 2016, and every 180 days 

7 thereafter, the President shall submit to the appropriate 

8 congressional committees and publish in the Federal Reg9 ister a list of all individuals the President determines are 

10 described in subsection (b). 

11 ‘‘(b) INDIVIDUALS DESCRIBED.—An individual de12 scribed in this subsection is— 

13 ‘‘(1) the Supreme Leader of Iran; 

14 ‘‘(2) the President of Iran; 

15 ‘‘(3) a current or former key official, manager, 

16 or director of an entity that is owned or controlled 

17 after November 14, 1979, by— 

18 ‘‘(A) the Supreme Leader of Iran; 

19 ‘‘(B) the Office of the Supreme Leader of 

20 Iran; 

21 ‘‘(C) the President of Iran; 

22 ‘‘(D) the Office of the President of Iran; 

23 ‘‘(E) Iran’s Revolutionary Guard Corps; 

24 ‘‘(F) the Basij-e Motaz’afin; 

25 ‘‘(G) the Guardian Council; 


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1 ‘‘(H) the Ministry of Intelligence and Se2 curity of Iran; 

3 ‘‘(I) the Atomic Energy Organization of 

4 Iran; 

5 ‘‘(J) the Islamic Consultative Assembly of 

6 Iran; 

7 ‘‘(K) the Assembly of Experts of Iran; 

8 ‘‘(L) the Ministry of Defense and Armed 

9 Forces Logistics of Iran; 

10 ‘‘(M) the Ministry of Justice of Iran; 

11 ‘‘(N) the Ministry of Interior of Iran; 

12 ‘‘(O) the prison system of Iran; 

13 ‘‘(P) the judicial system of Iran, including 

14 the Islamic Revolutionary Courts; or 

15 ‘‘(Q) any citizen of Iran included on the 

16 list of specially designated nationals and 

17 blocked persons maintained by the Office of 

18 Foreign Assets Control of the Department of 

19 the Treasury; 

20 ‘‘(4) a citizen of Iran indicted in a foreign coun21 try for, or otherwise suspected of, participation in a 

22 terrorist attack; 

23 ‘‘(5) an individual involved in the kidnapping or 

24 unjust detention of a United States citizen, includVerDate Sep 11 2014 02:54 Dec 09, 2016 Jkt 069200 PO 00000 Frm 00046 Fmt 6652 Sfmt 6201 E:\BILLS\S3518.IS S3518

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1 ing a United States citizen who is also a citizen of 

2 another country; or 

3 ‘‘(6) a politically exposed individual associated 

4 with an individual described in any of paragraphs 

5 (1) through (5) who is not a United States person. 

6 ‘‘(c) EXCLUSION FROM UNITED STATES.—Except as 

7 provided in subsection (f), the Secretary of State shall 

8 deny a visa to, and the Secretary of Homeland Security 

9 shall exclude from the United States, any alien who is on 

10 the list required by subsection (a). 

11 ‘‘(d) BLOCKING OF PROPERTY.—Except as provided 

12 in subsection (f), the President shall block and prohibit 

13 all transactions in all property and interests in property 

14 of any individual who is on the list required by subsection 

15 (a) if such property and interests in property are in the 

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

17 come within the possession or control of a United States 

18 person. 

19 ‘‘(e) REPORT.— 

20 ‘‘(1) IN GENERAL.—Not later than 90 days 

21 after the date of the enactment of the Nonnuclear 

22 Iran Sanctions Act of 2016, and every 90 days 

23 thereafter, the President shall submit to the appro24 priate congressional committees a report that de25 scribes the efforts the President has taken during 


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1 the 90 days preceding the submission of the report 

2 to locate and block all property and interests in 

3 property of any individual who is on the list required 

4 by subsection (a). 

5 ‘‘(2) FORM OF REPORT.—Each report required 

6 by paragraph (1) shall be submitted in unclassified 

7 form, but may include a classified annex if nec8 essary. 

9 ‘‘(f) EXCEPTIONS.— 

10 ‘‘(1) IN GENERAL.—The President may not in11 clude an individual on the list required by subsection 

12 (a) if the President determines that, during the 10- 

13 year period preceding the determination, the indi14 vidual has not in any way engaged in, facilitated, or 

15 otherwise supported— 

16 ‘‘(A) human rights abuses; 

17 ‘‘(B) acts of international terrorism; or 

18 ‘‘(C) the proliferation of weapons of mass 

19 destruction. 

20 ‘‘(2) COMPLIANCE WITH UNITED NATIONS

21 HEADQUARTERS AGREEMENT.—Subsection (c) shall 

22 not apply to the head of state of Iran, or necessary 

23 staff of that head of state, if admission to the 

24 United States is necessary to permit the United 

25 States to comply with the Agreement regarding the 


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1 Headquarters of the United Nations, signed at Lake 

2 Success June 26, 1947, and entered into force No3 vember 21, 1947, between the United Nations and 

4 the United States. 

5 ‘‘(g) WAIVER.— 

6 ‘‘(1) IN GENERAL.—The President may waive 

7 the application of subsection (c) or (d) with respect 

8 to an individual for a period of 180 days, and may 

9 renew that waiver for additional periods of 180 days, 

10 if the President— 

11 ‘‘(A) determines that the waiver is vital to 

12 the national security of the United States; and 

13 ‘‘(B) not less than 7 days before the waiv14 er or the renewal of the waiver, as the case may 

15 be, takes effect, submits a report to the appro16 priate congressional committees on the waiver 

17 and the reason for the waiver. 

18 ‘‘(2) LIMITATION ON WAIVER AUTHORITY.—The 

19 President may not exercise the waiver authority pro20 vided under paragraph (1) to implement any inter21 national agreement with Iran unless, before exer22 cising the waiver authority, the agreement is ap23 proved through the enactment of a joint resolution 

24 or the Senate provides its advice and consent with 


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1 respect to the agreement pursuant to section 2 of ar2 ticle II of the Constitution of the United States. 

3 ‘‘(3) FORM OF REPORT.—Each report sub4 mitted under paragraph (1)(B) shall be submitted in 

5 unclassified form, but may include a classified annex 

6 if necessary. 

7 ‘‘(h) DEFINITIONS.—In this section: 

8 ‘‘(1) OWN OR CONTROL.—The term ‘own or 

9 control’ means, with respect to an entity— 

10 ‘‘(A) to hold more than 25 percent of the 

11 equity interest by vote or value in the entity; 

12 ‘‘(B) to hold any seats on the board of di13 rectors of the entity; or 

14 ‘‘(C) to otherwise control the actions, poli15 cies, or personnel decisions of the entity. 

16 ‘‘(2) POLITICALLY EXPOSED INDIVIDUAL.— 

17 ‘‘(A) IN GENERAL.—The term ‘politically 

18 exposed individual’ includes a current or former 

19 senior political figure, the immediate family of 

20 such a figure, and close associates of such a fig21 ure. 

22 ‘‘(B) ADDITIONAL DEFINITIONS.—For 

23 purposes of subparagraph (A): 


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1 ‘‘(i) CLOSE ASSOCIATE.—The term 

2 ‘close associate’, with respect to a senior 

3 political figure— 

4 ‘‘(I) means an individual who is 

5 widely and publicly known to maintain 

6 an unusually close relationship with 

7 the senior political figure; and 

8 ‘‘(II) includes an individual who 

9 is in a position to conduct substantial 

10 domestic and international financial 

11 transactions on behalf of the senior 

12 political figure. 

13 ‘‘(ii) IMMEDIATE FAMILY.—The term 

14 ‘immediate family’, with respect to a senior 

15 foreign political figure, means the parents, 

16 siblings, spouse, children, and in-laws of 

17 the senior political figure. 

18 ‘‘(iii) SENIOR POLITICAL FIGURE.— 

19 The term ‘senior political figure’ means a 

20 senior official in the executive, legislative, 

21 administrative, military, or judicial 

22 branches of the Government of Iran 

23 (whether elected or not), a senior official of 

24 a major political party in Iran, or a senior 


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1 executive of an entity owned or controlled 

2 by the Government of Iran.’’. 

3 (b) CLERICAL AMENDMENT.—The table of contents 

4 for the Iran Threat Reduction and Syria Human Rights 

5 Act of 2012 (22 U.S.C. 8701 et seq.) is amended by strik6 ing the item relating to section 221 and inserting the fol7 lowing: 

‘‘Sec. 221. Identification of, and imposition of sanctions with respect to, certain 

Iranian individuals.’’. 

8 SEC. 204. IMPOSITION OF SANCTIONS WITH RESPECT TO 

9 PERSONS WHO CONDUCT TRANSACTIONS 

10 WITH OR ON BEHALF OF CERTAIN IRANIAN 

11 INDIVIDUALS. 

12 (a) IN GENERAL.—Subtitle B of title II of the Iran 

13 Threat Reduction and Syria Human Rights Act of 2012 

14 (22 U.S.C. 8721 et seq.) is amended by inserting after 

15 section 221 the following: 

16 ‘‘SEC. 221A. IMPOSITION OF SANCTIONS WITH RESPECT TO 

17 PERSONS WHO CONDUCT TRANSACTIONS 

18 WITH OR ON BEHALF OF CERTAIN IRANIAN 

19 INDIVIDUALS. 

20 ‘‘(a) SALE, SUPPLY, OR TRANSFER OF GOODS AND

21 SERVICES.—The President shall impose five or more of 

22 the sanctions described in section 6(a) of the Iran Sanc23 tions Act of 1996 (Public Law 104–172; 50 U.S.C. 1701 

24 note) with respect to a person that knowingly, on or after 


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1 the date that is 120 days after the date of the enactment 

2 of the Nonnuclear Iran Sanctions Act of 2016, sells, sup3 plies, or transfers goods or services to an individual who 

4 is on the list required by section 221(a). 

5 ‘‘(b) FACILITATION OF CERTAIN TRANSACTIONS.— 

6 The President shall prohibit the opening, and prohibit or 

7 impose strict conditions on the maintaining, in the United 

8 States of a correspondent account or a payable-through 

9 account by any foreign financial institution that has know10 ingly conducted or facilitated a significant financial trans11 action on behalf of an individual who is on the list required 

12 by section 221(a). 

13 ‘‘(c) WAIVER.— 

14 ‘‘(1) IN GENERAL.—The President may waive 

15 the application of subsection (a) or (b) with respect 

16 to a person for a period of 180 days, and may renew 

17 that waiver for additional periods of 180 days, if the 

18 President— 

19 ‘‘(A) determines that the waiver is vital to 

20 the national security of the United States; and 

21 ‘‘(B) not less than 7 days before the waiv22 er or the renewal of the waiver, as the case may 

23 be, takes effect, submits a report to the appro24 priate congressional committees on the waiver 

25 and the reason for the waiver. 


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1 ‘‘(2) LIMITATION ON WAIVER AUTHORITY.—The 

2 President may not exercise the waiver authority pro3 vided under paragraph (1) to implement any inter4 national agreement with Iran unless, before exer5 cising the waiver authority, the agreement is ap6 proved through the enactment of a joint resolution 

7 or the Senate provides its advice and consent with 

8 respect to the agreement pursuant to section 2 of ar9 ticle II of the Constitution of the United States. 

10 ‘‘(3) FORM OF REPORT.—Each report sub11 mitted under paragraph (1)(B) shall be submitted in 

12 unclassified form, but may include a classified annex 

13 if necessary. 

14 ‘‘(d) APPLICATION OF CERTAIN PROVISIONS OF THE

15 IRAN SANCTIONS ACT OF 1996.—The following provisions 

16 of the Iran Sanctions Act of 1996 (Public Law 104–172; 

17 50 U.S.C. 1701 note) shall apply with respect to the impo18 sition of sanctions under subsection (a) to the same extent 

19 that such provisions apply with respect to the imposition 

20 of sanctions under section 5(a) of the Iran Sanctions Act 

21 of 1996: 

22 ‘‘(1) Subsections (c), (d), and (f) of section 5. 

23 ‘‘(2) Section 8. 

24 ‘‘(3) Section 11. 

25 ‘‘(4) Section 12. 


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1 ‘‘(5) Section 13(b). 

2 ‘‘(e) DEFINITIONS.—In this Act: 

3 ‘‘(1) ACCOUNT; CORRESPONDENT ACCOUNT; 

4 PAYABLE-THROUGH ACCOUNT.—The terms ‘ac5 count’, ‘correspondent account’, and ‘payable6 through account’ have the meanings given those 

7 terms in section 5318A of title 31, United States 

8 Code. 

9 ‘‘(2) FOREIGN FINANCIAL INSTITUTION.—The 

10 term ‘foreign financial institution’ has the meaning 

11 given that term in section 561.308 of title 31, Code 

12 of Federal Regulations (or any corresponding similar 

13 regulation or ruling).’’. 

14 (b) CLERICAL AMENDMENT.—The table of contents 

15 for the Iran Threat Reduction and Syria Human Rights 

16 Act of 2012 (22 U.S.C. 8701 et seq.) is amended by in17 serting after the item relating to section 221 the following: 

‘‘Sec. 221A. Imposition of sanctions with respect to persons who conduct transactions with or on behalf of certain Iranian individuals.’’. 


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1 SEC. 205. MANDATORY SANCTIONS WITH RESPECT TO FI2 NANCIAL INSTITUTIONS THAT ENGAGE IN 

3 CERTAIN TRANSACTIONS ON BEHALF OF 

4 PERSONS INVOLVED IN HUMAN RIGHTS 

5 ABUSES OR THAT EXPORT SENSITIVE TECH6 NOLOGY TO IRAN. 

7 (a) IN GENERAL.—Section 104(c)(2) of the Com8 prehensive Iran Sanctions, Accountability, and Divestment 

9 Act of 2010 (22 U.S.C. 8513(c)(2)) is amended— 

10 (1) in subparagraph (D), by striking ‘‘or’’ at 

11 the end; 

12 (2) in subparagraph (E), by striking the period 

13 at the end and inserting ‘‘; or’’; and 

14 (3) by adding at the end the following: 

15 ‘‘(F) facilitates a significant transaction or 

16 transactions or provides significant financial 

17 services for— 

18 ‘‘(i) a person that is subject to sanc19 tions under section 105(c), 105A(c), 

20 105B(c), or 105C(a); or 

21 ‘‘(ii) a person that exports sensitive 

22 technology to Iran and is subject to the 

23 prohibition on procurement contracts as 

24 described in section 106.’’. 

25 (b) EFFECTIVE DATE.—The amendments made by 

26 subsection (a) take effect on the date of the enactment 


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1 of this Act and apply with respect to any activity described 

2 in subparagraph (F) of section 104(c)(2) of the Com3 prehensive Iran Sanctions, Accountability, and Divestment 

4 Act of 2010, as added by subsection (a)(3), initiated on 

5 or after the date that is 90 days after such date of enact6 ment. 

7 (c) REGULATIONS.—Not later than 90 days after the 

8 date of the enactment of this Act, the Secretary of the 

9 Treasury shall prescribe regulations to carry out the 

10 amendments made by subsection (a). 

11 SEC. 206. UNITED STATES SUPPORT FOR THE PEOPLE OF 

12 IRAN. 

13 (a) IN GENERAL.—Subtitle B of title IV of the Iran 

14 Threat Reduction and Syria Human Rights Act of 2012 

15 (22 U.S.C. 8751 et seq.) is amended by adding at the end 

16 the following: 

17 ‘‘SEC. 416. UNITED STATES SUPPORT FOR THE PEOPLE OF 

18 IRAN. 

19 ‘‘(a) POLICY OF THE UNITED STATES.—It is the pol20 icy of the United States— 

21 ‘‘(1) to support the efforts of the people of Iran 

22 to promote the establishment of basic freedoms in 

23 Iran; 

24 ‘‘(2) to lay the foundation for the emergence of 

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1 tem in Iran that is not a threat to its neighbors or 

2 to the United States and to work with all citizens of 

3 Iran who seek to establish such a political system; 

4 ‘‘(3) to support the emergence of a government 

5 in Iran that does not oppress the people of Iran and 

6 does not persecute, intimidate, arrest, imprison, or 

7 execute dissidents or minorities; 

8 ‘‘(4) to advocate on behalf of those in Iran per9 secuted for their religion or belief; 

10 ‘‘(5) to assist the people of Iran to produce, ac11 cess, and share information freely and safely 

12 through the Internet and other media; and 

13 ‘‘(6) to defeat all attempts by the Government 

14 of Iran to jam or otherwise obstruct international 

15 satellite broadcast signals. 

16 ‘‘(b) SENSE OF CONGRESS.—It is the sense of Con17 gress that— 

18 ‘‘(1) the United States should support citizens 

19 of Iran that actively work to advance political, eco20 nomic, and social reforms, including freedom of the 

21 press, freedom of assembly, freedom of religion, and 

22 representative government; 

23 ‘‘(2) the President should use all available non24 violent means to support citizens of Iran that advoVerDate Sep 11 2014 02:54 Dec 09, 2016 Jkt 069200 PO 00000 Frm 00058 Fmt 6652 Sfmt 6201 E:\BILLS\S3518.IS S3518

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1 cate for pluralistic, prosperous, and participatory so2 cieties; 

3 ‘‘(3) programs of the Department of State to 

4 support reform in Iran have not resulted in a more 

5 democratic Iran; 

6 ‘‘(4) the Government of Iran continues to play 

7 a pernicious role in the Middle East, undermining 

8 democratic consolidation in Iraq, supporting inter9 national terrorism through Hezbollah, and aiding 

10 the autocratic regime of Bashar al-Assad in Syria; 

11 ‘‘(5) the Secretary of State should make every 

12 effort to deliver support directly to people working 

13 in Iran to implement programs carried out using as14 sistance provided by the Department of State when 

15 possible and all possible means of delivering such as16 sistance should be used; and 

17 ‘‘(6) oversight, management, and implementa18 tion of programs of the Department of State to sup19 port reform in Iran should be under the direction of 

20 the Special Coordinator on Human Rights and De21 mocracy in Iran established under section 207 of the 

22 Nonnuclear Iran Sanctions Act of 2016, in consulta23 tion with the Assistant Secretary of State for De24 mocracy, Human Rights, and Labor. 

25 ‘‘(c) ASSISTANCE TO SUPPORT REFORM IN IRAN.— 


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1 ‘‘(1) ASSISTANCE AUTHORIZED.—Notwithstand2 ing any other provision of law, the Secretary of 

3 State may provide assistance (including through the 

4 award of grants) to individuals and entities working 

5 in Iran for the purpose of supporting and promoting 

6 the rule of law, good governance, civil society, and 

7 economic opportunity in Iran. 

8 ‘‘(2) ELIGIBILITY FOR ASSISTANCE.—Assist9 ance authorized under this subsection should be pro10 vided only to an individual or entity that— 

11 ‘‘(A) officially opposes the use of violence 

12 and terrorism and has not been designated as 

13 a foreign terrorist organization under section 

14 219 of the Immigration and Nationality Act (8 

15 U.S.C. 1189) at any time during the 4-year pe16 riod ending on the date of the enactment of the 

17 Nonnuclear Iran Sanctions Act of 2016; 

18 ‘‘(B) advocates the adherence by Iran to 

19 nonproliferation regimes for nuclear, chemical, 

20 and biological weapons and materiel, and bal21 listic missiles; 

22 ‘‘(C) is dedicated to democratic values and 

23 supports the adoption of a democratic form of 

24 government in Iran; 


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1 ‘‘(D) is dedicated to respect for human 

2 rights, including the fundamental equality of 

3 women; and 

4 ‘‘(E) supports freedom of the press, free5 dom of speech, freedom of association, and free6 dom of religion. 

7 ‘‘(3) NOTIFICATION REQUIREMENT.—Not later 

8 than 15 days before each obligation of assistance 

9 under this subsection, the Secretary of State shall 

10 notify the Committee on Foreign Relations and the 

11 Committee on Appropriations of the Senate and the 

12 Committee on Foreign Affairs and the Committee on 

13 Appropriations of the House of Representatives in 

14 accordance with the procedures applicable to re15 programming notifications under section 634A of 

16 the Foreign Assistance Act of 1961 (22 U.S.C. 

17 2394–1). 

18 ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.—Of 

19 the amounts made available to carry out chapter 4 

20 of part II of the Foreign Assistance Act of 1961 (22 

21 U.S.C. 2346 et seq.; relating to the Economic Sup22 port Fund) for fiscal year 2015, not less than 

23 $32,000,000 shall be made available to the Sec24 retary of State to carry out this subsection. 


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1 ‘‘(5) TERMINATION.—The authority to provide 

2 assistance under this subsection shall expire on De3 cember 31, 2020. 

4 ‘‘(d) REPORTS.— 

5 ‘‘(1) IN GENERAL.—Not later than 60 days 

6 after the date of the enactment of the Nonnuclear 

7 Iran Sanctions Act of 2016, and every 180 days 

8 thereafter, the Secretary of State shall submit to the 

9 appropriate congressional committees a report on 

10 the implementation of this section that includes the 

11 following: 

12 ‘‘(A) An identification of the actions the 

13 President has taken during the 180-day period 

14 immediately preceding the submission of the re15 port to advance each of the policies described in 

16 subsection (a). 

17 ‘‘(B) A clear strategy for advancing polit18 ical, economic, and social reform in Iran that 

19 includes benchmarks for success that lead to a 

20 set of identified discrete goals and objectives. 

21 ‘‘(C) A plan to monitor and evaluate the 

22 effectiveness of the provision of assistance au23 thorized under subsection (c), including meas24 ures of effectiveness. 


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1 ‘‘(D) The status of the programming of as2 sistance under subsection (c). 

3 ‘‘(E) An analysis of any past programming 

4 of assistance under subsection (c) and its effec5 tiveness with respect to supporting and pro6 moting the rule of law, good governance, civil 

7 society, and economic opportunity in Iran. 

8 ‘‘(2) FORM OF REPORT.—Each report required 

9 by paragraph (1) shall be submitted in unclassified 

10 form, but may include a classified annex if nec11 essary.’’. 

12 (b) CLERICAL AMENDMENT.—The table of contents 

13 for the Iran Threat Reduction and Syria Human Rights 

14 Act of 2012 is amended by inserting after the item relat15 ing to section 415 the following: 

‘‘Sec. 416. United States support for the people of Iran.’’. 

16 SEC. 207. UNITED STATES SPECIAL COORDINATOR ON 

17 HUMAN RIGHTS AND DEMOCRACY IN IRAN. 

18 (a) DESIGNATION.—The President shall designate 

19 within the Department of State a Special Coordinator on 

20 Human Rights and Democracy in Iran (in this section re21 ferred to as the ‘‘Special Coordinator’’). 

22 (b) CONSULTATION AND QUALIFICATIONS.—Before 

23 the President designates a Special Coordinator under sub24 section (a), the Secretary of State shall consult with the 

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1 gressional committees. The role of Special Coordinator 

2 should be filled by an official of the Department of State 

3 appointed by and serving at the pleasure of the President 

4 in a position not lower than Under Secretary on the day 

5 before the date of the enactment of this Act. 

6 (c) DUTIES.—The Special Coordinator shall carry out 

7 the following duties: 

8 (1) Coordinate the activities of the United 

9 States Government that promote human rights, de10 mocracy, political freedom, and religious freedom in11 side Iran. 

12 (2) Coordinate the activities of the United 

13 States Government that promote human rights, po14 litical freedom, and religious freedom for Iranian 

15 refugees and asylees living outside Iran. 

16 (3) Ensure the comprehensive investigation and 

17 designation of Iranian human rights abusers in ac18 cordance with section 105 of the Comprehensive 

19 Iran Sanctions, Accountability, and Divestment Act 

20 of 2010 (22 U.S.C. 8514). 

21 (4) Coordinate the documentation and publi22 cizing of political dissidents and cases of human 

23 rights abuse inside Iran. 

24 (5) Coordinate multilateral efforts to build 

25 international support for the promotion of human 


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1 rights, democracy, political freedom, and religious 

2 freedom in Iran, including broadcasting, Internet ac3 cess, and dissemination of information. 

4 (6) Encourage the United Nations, multilateral 

5 organizations, and human rights nongovernmental 

6 organizations to more robustly investigate and re7 port on human rights abuses in Iran. 

8 (7) Encourage foreign governments to down9 grade or sever diplomatic relations with the Govern10 ment of Iran, enact economic sanctions, and assist 

11 Iranian dissidents in response to the continued viola12 tions of human rights by the Government of Iran. 

13 (8) Encourage foreign governments to expel 

14 Iran from international fora and organizations with 

15 a human rights component, including the United 

16 Nations Commission on the Status of Women, the 

17 United Nations Educational, Scientific and Cultural 

18 Organization, the United Nations Children’s Fund, 

19 and the International Labour Organization. 

20 (9) Coordinate all programs funded under the 

21 Iran Freedom Support Act (Public Law 109–293; 

22 22 U.S.C. 2151 note). 

23 (d) AUTHORITY.— 

24 (1) COORDINATION OF ACTIVITIES.—The Spe25 cial Coordinator shall coordinate all activities related 


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1 to Iran carried out by the Bureau of Near Eastern 

2 Affairs, the Bureau of Democracy, Human Rights 

3 and Labor, and the Bureau of Population, Refugees 

4 and Migration of the Department of State, the Am5 bassador-at-Large for International Religious Free6 dom, the Special Envoy to Monitor and Combat 

7 Anti-Semitism, the United States Commission on 

8 International Religious Freedom, the National En9 dowment for Democracy, and the Broadcasting 

10 Board of Governors. 

11 (2) COORDINATION OF USE OF FUNDS.—The 

12 Special Coordinator shall coordinate and oversee the 

13 obligation and expenditure of funds related to 

14 human rights, democracy, Internet freedom, and 

15 broadcasting activities in Iran, including funds made 

16 available for such purposes to the Middle East Part17 nership Initiative, the United States Commission on 

18 International Religious Freedom, the Broader Mid19 dle East and North Africa Initiative, the Human 

20 Rights and Democracy Fund, and the Near Eastern 

21 Regional Democracy Fund. 

22 (e) DIPLOMATIC REPRESENTATION.—Subject to the 

23 direction of the President and the Secretary of State, the 

24 Special Coordinator shall represent the United States in 

25 matters and cases relevant to the promotion of human 


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1 rights, democracy, political freedom, and religious freedom 

2 in Iran in— 

3 (1) contacts with foreign governments, intergov4 ernmental organizations, and specialized agencies of 

5 the United Nations, the Organization for Security 

6 and Co-operation in Europe, and other international 

7 organizations of which the United States is a mem8 ber; and 

9 (2) multilateral conferences and meetings rel10 evant to the promotion of human rights, democracy, 

11 political freedom, and religious freedom in Iran. 

12 (f) CONSULTATIONS.—The Special Coordinator shall 

13 consult with Congress, domestic and international non14 governmental organizations, labor organizations, and mul15 tilateral organizations and institutions as the Special Co16 ordinator considers appropriate to fulfill the purposes of 

17 this section. 

18 (g) FUNDING.—From amounts made available for 

19 the Department of State for Near East Affairs in fiscal 

20 years before fiscal year 2016, the Secretary of State shall 

21 provide to the Special Coordinator such sums as may be 

22 necessary for fiscal year 2016 for the hiring of staff, for 

23 the conduct of investigations, and for necessary travel to 

24 carry out this section. 


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1 (h) APPROPRIATE CONGRESSIONAL COMMITTEES

2 DEFINED.—In this section, the term ‘‘appropriate con3 gressional committees’’ means— 

4 (1) the Committee on Foreign Relations and 

5 the Committee on Appropriations of the Senate; and 

6 (2) the Committee on Foreign Affairs and the 

7 Committee on Appropriations of the House of Rep8 resentatives. 

9 SEC. 208. BROADCASTING TO IRAN. 

10 (a) IN GENERAL.—Radio Free Europe/Radio Liberty 

11 and the Voice of America services broadcasting to Iran 

12 shall— 

13 (1) provide news and information that is acces14 sible, credible, comprehensive, and accurate; 

15 (2) emphasize investigative and analytical jour16 nalism provided by Iranian or pro-Iranian media 

17 outlets; and 

18 (3) strengthen civil society by promoting demo19 cratic processes, respect for human rights, and free20 dom of the press and expression. 

21 (b) PROGRAMMING SURGE.—Radio Free Europe/ 

22 Radio Liberty and Voice of America programming to Iran 

23 shall— 

24 (1) provide programming content 24 hours a 

25 day and 7 days a week to target populations using 


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1 all available and effective distribution outlets, includ2 ing at least 12 hours a day of original television and 

3 video content, not including live video streaming of 

4 breaking news; 

5 (2) create mobile platforms with an embedded 

6 proxy to offer the people of Iran the opportunity to 

7 securely listen to programming; 

8 (3) increase number of staffers based in the re9 gion to allow for more direct contact with the people 

10 of Iran; 

11 (4) expand the use, audience, and audience en12 gagement of mobile news and multimedia platforms 

13 by the Voice of America and the Radio Farda serv14 ice of Radio Free Europe/Radio Liberty, including 

15 through Internet-based social networking platforms; 

16 and 

17 (5) establish fellowships for Iranian journalists 

18 who have fled the country to learn about free, com19 petitive media and be trained in surrogate reporting. 

20 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

21 are authorized to be appropriated for fiscal year 2017, in 

22 addition to funds otherwise made available for such pur23 poses, $10,000,000 to carry out Iran-focused program24 ming by Radio Free Europe/Radio Liberty and the Voice 

25 of America, for the purpose of bolstering existing United 


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1 States programming to the people of Iran and increasing 

2 programming capacity and jamming circumvention tech3 nology to overcome any disruptions to service. 

4 SEC. 209. REPORT ON UNITED STATES CITIZENS DETAINED 

5 BY IRAN. 

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

7 date of the enactment of this Act, and every 180 days 

8 thereafter, the President shall submit to the appropriate 

9 congressional committees a report on United States citi10 zens, including dual citizens, detained by Iran or groups 

11 supported by Iran that includes— 

12 (1) information regarding any officials of the 

13 Government of Iran involved in any way in the de14 tentions; and 

15 (2) a summary of efforts the United States 

16 Government has taken to secure the swift release of 

17 those United States citizens, including United States 

18 citizens who are also citizens of other countries. 

19 (b) FORM OF REPORT.—The report required by sub20 section (a) shall be submitted in unclassified form, but 

21 may include a classified annex if necessary. 

22 (c) APPROPRIATE CONGRESSIONAL COMMITTEES DE23 FINED.—In this section, the term ‘‘appropriate congres24 sional committees’’ has the meaning given that term in 


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1 section 14 of the Iran Sanctions Act of 1996 (Public Law 

2 104–172; 50 U.S.C. 1701 note). 

3 SEC. 210. SENSE OF CONGRESS ON ESTABLISHMENT OF 

4 MULTILATERAL MECHANISM TO PROMOTE 

5 HUMAN RIGHTS IN IRAN. 

6 It is the sense of Congress that the United States 

7 should work with the European Union and other countries 

8 with a common commitment to fundamental rights and 

9 freedoms to explore the possibility of establishing a formal 

10 multilateral mechanism to advocate for the promotion of 

11 human rights, democracy, political freedom, and religious 

12 freedom in Iran. 

13 SEC. 211. SENSE OF CONGRESS ON ROLE OF THE UNITED 

14 NATIONS IN PROMOTING HUMAN RIGHTS IN 

15 IRAN. 

16 It is the sense of Congress that— 

17 (1) the United Nations has a significant role to 

18 play in promoting and improving human rights in 

19 Iran; 

20 (2) the United States should continue to sup21 port the work of the United Nations Special 

22 Rapporteur on the situation of human rights in the 

23 Islamic Republic of Iran; and 

24 (3) the egregious human rights violations in 

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1 ued reporting by the Special Rapporteur on the situ2 ation of human rights in the Islamic Republic of 

3 Iran, the Special Rapporteur on torture and other 

4 cruel, inhuman, or degrading treatment or punish5 ment, the Working Group on Arbitrary Detention, 

6 the Special Rapporteur on extrajudicial, summary, 

7 or arbitrary executions, the Special Rapporteur on 

8 the promotion and protection of the right to freedom 

9 of opinion and expression, the Special Rapporteur on 

10 freedom of religion or belief, and the Special 

11 Rapporteur on violence against women, its causes, 

12 and consequences, of the United Nations. 

13 TITLE III—SANCTIONS WITH RE14 SPECT TO THE BALLISTIC 

15 MISSILE PROGRAM OF IRAN 

16 SEC. 301. FINDINGS. 

17 Congress finds the following: 

18 (1) On April 2, 2015, President Barack Obama 

19 said, ‘‘Other American sanctions on Iran for its sup20 port of terrorism, its human rights abuses, its bal21 listic missile program, will continue to be fully en22 forced.’’. 

23 (2) On July 7, 2015, General Martin Dempsey, 

24 then-Chairman of the Joint Chiefs of Staff, said, 

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1 sure on Iran relative to ballistic missile capabili2 ties.’’. 

3 (3) On July 29, 2015, in his role as the top 

4 military officer in the United States and advisor to 

5 the President, General Dempsey confirmed that his 

6 military recommendation was that sanctions relating 

7 to the ballistic missile program of Iran not be lifted. 

8 (4) The Government of Iran and Iran’s Revolu9 tionary Guard Corps have been responsible for the 

10 repeated testing of illegal ballistic missiles capable of 

11 carrying a nuclear device, including observed tests in 

12 October and November 2015 and March 2016, vio13 lating United Nations Security Council resolutions. 

14 (5) On October 14, 2015, Samantha Power, 

15 United States Ambassador to the United Nations, 

16 said, ‘‘One of the really important features in imple17 mentation of the recent Iran deal to dismantle Iran’s 

18 nuclear program is going to have to be enforcement 

19 of the resolutions and the standards that remain on 

20 the books.’’. 

21 (6) On December 11, 2015, the United Nations 

22 Panel of Experts concluded that the missile launch 

23 on October 10, 2015, ‘‘was a violation by Iran of 

24 paragraph 9 of Security Council resolution 1929 

25 (2010)’’. 


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1 (7) On January 17, 2016, Adam Szubin, Acting 

2 Under Secretary for Terrorism and Financial Intel3 ligence, stated, ‘‘Iran’s ballistic missile program 

4 poses a significant threat to regional and global se5 curity, and it will continue to be subject to inter6 national sanctions. We have consistently made clear 

7 that the United States will vigorously press sanc8 tions against Iranian activities outside of the Joint 

9 Comprehensive Plan of Action—including those re10 lated to Iran’s support for terrorism, regional desta11 bilization, human rights abuses, and ballistic missile 

12 program.’’. 

13 (8) On February 9, 2016, James Clapper, Di14 rector of National Intelligence, testified that, ‘‘We 

15 judge that Tehran would choose ballistic missiles as 

16 its preferred method of delivering nuclear weapons, 

17 if it builds them. Iran’s ballistic missiles are inher18 ently capable of delivering WMD, and Tehran al19 ready has the largest inventory of ballistic missiles 

20 in the Middle East. Iran’s progress on space launch 

21 vehicles—along with its desire to deter the United 

22 States and its allies—provides Tehran with the 

23 means and motivation to develop longer-range mis24 siles, including ICBMs.’’. 


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1 (9) On March 9, 2016, Iran reportedly fired 

2 two Qadr ballistic missiles with a range of more 

3 than 1,000 miles and according to public reports, 

4 the missiles were marked with a statement in He5 brew reading, ‘‘Israel must be wiped off the arena 

6 of time.’’. 

7 (10) On March 11, 2016, Ambassador Power 

8 called the recent ballistic missile launches by Iran 

9 ‘‘provocative and destabilizing’’ and called on the 

10 international community to ‘‘degrade Iran’s missile 

11 program’’. 

12 (11) On March 14, 2016, Ambassador Power 

13 said that the recent ballistic missile launches by Iran 

14 were ‘‘in defiance of provisions of UN Security 

15 Council Resolution 2231’’. 

16 (12) Iran has demonstrated the ability to 

17 launch multiple rockets from fortified underground 

18 facilities and mobile launch sites not previously 

19 known. 

20 (13) The ongoing procurement by Iran of tech21 nologies needed to boost the range, accuracy, and 

22 payloads of its diverse ballistic missile arsenal rep23 resents a threat to deployed personnel of the United 

24 States and allies of the United States in Europe and 

25 the Middle East, including Israel. 


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1 (14) Ashton Carter, Secretary of Defense, testi2 fied in a hearing before the Armed Services Com3 mittee of the Senate on July 7, 2015, that, ‘‘[T]he 

4 reason that we want to stop Iran from having an 

5 ICBM program is that the I in ICBM stands for 

6 intercontinental, which means having the capability 

7 to fly from Iran to the United States, and we don’t 

8 want that. That’s why we oppose ICBMs.’’. 

9 (15) Through recent ballistic missile launch 

10 tests the Government of Iran has shown blatant dis11 regard for international laws and its intention to 

12 continue tests of that nature throughout the imple13 mentation of the Joint Comprehensive Plan of Ac14 tion. 

15 (16) The banking sector of Iran has facilitated 

16 the financing of the ballistic missile programs in 

17 Iran and evidence has not been provided that enti18 ties in that sector have ceased facilitating the financ19 ing of those programs. 

20 (17) Iran has been able to amass a large arse21 nal of ballistic missiles through its illicit smuggling 

22 networks and domestic manufacturing capabilities 

23 that have been supported and maintained by Iran’s 

24 Revolutionary Guard Corps and specific sectors of 

25 the economy of Iran. 


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1 (18) Penetration by Iran’s Revolutionary Guard 

2 Corps into the economy of Iran is well documented 

3 including investments in the construction, auto4 motive, telecommunications, electronics, mining, 

5 metallurgy, and petrochemical sectors of the econ6 omy of Iran. 

7 (19) Items procured through sectors of Iran 

8 specified in paragraph (18) have dual use applica9 tions that are currently being used to create ballistic 

10 missiles in Iran and will continue to be a source of 

11 materials for the creation of future weapons. 

12 (20) In order to curb future illicit activity by 

13 Iran, the Government of the United States and the 

14 international community must take action against 

15 persons that facilitate and profit from the illegal ac16 quisition of ballistic missile parts and technology in 

17 support of the missile programs of Iran. 

18 SEC. 302. SENSE OF CONGRESS. 

19 It is the sense of Congress that— 

20 (1) the ballistic missile program of Iran rep21 resents a serious threat to allies of the United States 

22 in the Middle East and Europe, members of the 

23 Armed Forces deployed in the those regions, and ul24 timately the United States; 


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1 (2) the testing and production by Iran of bal2 listic missiles capable of carrying a nuclear device is 

3 a clear violation of United Nations Security Council 

4 Resolution 2231 (2015), which was unanimously 

5 adopted by the international community; 

6 (3) Iran is using its space launch program to 

7 develop the capabilities necessary to deploy an inter8 continental ballistic missile that could threaten the 

9 United States, and the Director of National Intel10 ligence has assessed that Iran would use ballistic 

11 missiles as its ‘‘preferred method of delivering nu12 clear weapons’’; and 

13 (4) the Government of the United States should 

14 impose tough primary and secondary sanctions 

15 against any sector of the economy of Iran or any 

16 Iranian person that directly or indirectly supports 

17 the ballistic missile program of Iran as well as any 

18 foreign person or financial institution that engages 

19 in transactions or trade that support that program. 

20 SEC. 303. EXPANSION OF SANCTIONS WITH RESPECT TO EF21 FORTS BY IRAN TO ACQUIRE BALLISTIC MIS22 SILE AND RELATED TECHNOLOGY. 

23 (a) CERTAIN PERSONS.—Section 1604(a) of the 

24 Iran-Iraq Arms Non-Proliferation Act of 1992 (Public 

25 Law 102–484; 50 U.S.C. 1701 note) is amended, in the 


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1 matter preceding paragraph (1), by inserting ‘‘, to acquire 

2 ballistic missile or related technology,’’ after ‘‘nuclear 

3 weapons’’. 

4 (b) FOREIGN COUNTRIES.—Section 1605(a) of the 

5 Iran-Iraq Arms Non-Proliferation Act of 1992 (Public 

6 Law 102–484; 50 U.S.C. 1701 note) is amended, in the 

7 matter preceding paragraph (1), by inserting ‘‘, to acquire 

8 ballistic missile or related technology,’’ after ‘‘nuclear 

9 weapons’’. 

10 SEC. 304. IMPOSITION OF SANCTIONS WITH RESPECT TO 

11 BALLISTIC MISSILE PROGRAM OF IRAN. 

12 (a) IN GENERAL.—Title II of the Iran Threat Reduc13 tion and Syria Human Rights Act of 2012 (22 U.S.C. 

14 8721 et seq.) is amended by adding at the end the fol15 lowing: 

16 ‘‘Subtitle C—Measures Relating to 

17 Ballistic Missile Program of Iran 

18 ‘‘SEC. 231. DEFINITIONS. 

19 ‘‘(a) IN GENERAL.—In this subtitle: 

20 ‘‘(1) AGRICULTURAL COMMODITY.—The term 

21 ‘agricultural commodity’ has the meaning given that 

22 term in section 102 of the Agricultural Trade Act of 

23 1978 (7 U.S.C. 5602). 


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1 ‘‘(2) APPROPRIATE COMMITTEES OF CON2 GRESS.—The term ‘appropriate committees of Con3 gress’ means— 

4 ‘‘(A) the committees specified in section 

5 14(2) of the Iran Sanctions Act of 1996 (Public 

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

7 ‘‘(B) the congressional defense committees, 

8 as defined in section 101 of title 10, United 

9 States Code. 

10 ‘‘(3) CORRESPONDENT ACCOUNT; PAYABLE11 THROUGH ACCOUNT.—The terms ‘correspondent ac12 count’ and ‘payable-through account’ have the mean13 ings given those terms in section 5318A of title 31, 

14 United States Code. 

15 ‘‘(4) FOREIGN FINANCIAL INSTITUTION.—The 

16 term ‘foreign financial institution’ has the meaning 

17 of that term as determined by the Secretary of the 

18 Treasury pursuant to section 104(i) of the Com19 prehensive Iran Sanctions, Accountability, and Di20 vestment Act of 2010 (22 U.S.C. 8513(i)). 

21 ‘‘(5) GOOD.—The term ‘good’ has the meaning 

22 given that term in section 16 of the Export Adminis23 tration Act of 1979 (50 U.S.C. 4618) (as continued 

24 in effect pursuant to the International Emergency 

25 Economic Powers Act (50 U.S.C. 1701 et seq.)). 


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1 ‘‘(6) GOVERNMENT.—The term ‘Government’, 

2 with respect to a foreign country, includes any agen3 cies or instrumentalities of that Government and any 

4 entities controlled by that Government. 

5 ‘‘(7) MEDICAL DEVICE.—The term ‘medical de6 vice’ has the meaning given the term ‘device’ in sec7 tion 201 of the Federal Food, Drug, and Cosmetic 

8 Act (21 U.S.C. 321). 

9 ‘‘(8) MEDICINE.—The term ‘medicine’ has the 

10 meaning given the term ‘drug’ in section 201 of the 

11 Federal Food, Drug, and Cosmetic Act (21 U.S.C. 

12 321). 

13 ‘‘(b) DETERMINATIONS OF SIGNIFICANCE.—For pur14 poses of this subtitle, in determining if financial trans15 actions or financial services are significant, the President 

16 may consider the totality of the facts and circumstances, 

17 including factors similar to the factors set forth in section 

18 561.404 of title 31, Code of Federal Regulations (or any 

19 corresponding similar regulation or ruling). 

20 ‘‘SEC. 232. IMPOSITION OF SANCTIONS WITH RESPECT TO 

21 PERSONS THAT SUPPORT THE BALLISTIC 

22 MISSILE PROGRAM OF IRAN. 

23 ‘‘(a) IDENTIFICATION OF PERSONS.— 

24 ‘‘(1) IN GENERAL.—Not later than 120 days 

25 after the date of the enactment of the Nonnuclear 


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1 Iran Sanctions Act of 2016, and not less frequently 

2 than once every 180 days thereafter, the President 

3 shall, in coordination with the Secretary of Defense, 

4 the Director of National Intelligence, the Secretary 

5 of the Treasury, and the Secretary of State, submit 

6 to the appropriate committees of Congress a report 

7 identifying persons that have knowingly aided the 

8 Government of Iran in the development of the bal9 listic missile program of Iran. 

10 ‘‘(2) ELEMENTS.—Each report required by 

11 paragraph (1) shall include the following: 

12 ‘‘(A) An identification of persons 

13 (disaggregated by Iranian and non-Iranian per14 sons) that have knowingly aided the Govern15 ment of Iran in the development of the ballistic 

16 missile program of Iran, including persons that 

17 have— 

18 ‘‘(i) knowingly engaged in the direct 

19 or indirect provision of material support to 

20 such program; 

21 ‘‘(ii) knowingly facilitated, supported, 

22 or engaged in activities to further the de23 velopment of such program; 


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1 ‘‘(iii) knowingly transmitted informa2 tion relating to ballistic missiles to the 

3 Government of Iran; or 

4 ‘‘(iv) otherwise knowingly aided such 

5 program. 

6 ‘‘(B) A description of the character and 

7 significance of the cooperation of each person 

8 identified under subparagraph (A) with the 

9 Government of Iran with respect to such pro10 gram. 

11 ‘‘(C) An assessment of the cooperation of 

12 the Government of the Democratic People’s Re13 public of Korea with the Government of Iran 

14 with respect to such program. 

15 ‘‘(3) CLASSIFIED ANNEX.—Each report re16 quired by paragraph (1) shall be submitted in un17 classified form, but may contain a classified annex. 

18 ‘‘(b) BLOCKING OF PROPERTY.— 

19 ‘‘(1) IN GENERAL.—Not later than 15 days 

20 after submitting a report required by subsection 

21 (a)(1), the President shall, in accordance with the 

22 International Emergency Economic Powers Act (50 

23 U.S.C. 1701 et seq.), block and prohibit all trans24 actions in all property and interests in property of 

25 any person specified in such report if such property 


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1 and interests in property are in the United States, 

2 come within the United States, or are or come with3 in the possession or control of a United States per4 son. 

5 ‘‘(2) INAPPLICABILITY OF NATIONAL EMER6 GENCY REQUIREMENT.—The requirements under 

7 section 202 of the International Emergency Eco8 nomic Powers Act (50 U.S.C. 1701) shall not apply 

9 for purposes of this subsection. 

10 ‘‘(c) EXCLUSION FROM UNITED STATES.— 

11 ‘‘(1) IN GENERAL.—Except as provided in para12 graph (2), the Secretary of State shall deny a visa 

13 to, and the Secretary of Homeland Security shall ex14 clude from the United States, any alien subject to 

15 blocking of property and interests in property under 

16 subsection (b). 

17 ‘‘(2) COMPLIANCE WITH UNITED NATIONS

18 HEADQUARTERS AGREEMENT.—Paragraph (1) shall 

19 not apply to the head of state of Iran, or necessary 

20 staff of that head of state, if admission to the 

21 United States is necessary to permit the United 

22 States to comply with the Agreement regarding the 

23 Headquarters of the United Nations, signed at Lake 

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1 vember 21, 1947, between the United Nations and 

2 the United States. 

3 ‘‘(d) FACILITATION OF CERTAIN TRANSACTIONS.— 

4 The President shall prohibit the opening, and prohibit or 

5 impose strict conditions on the maintaining, in the United 

6 States of a correspondent account or a payable-through 

7 account by a foreign financial institution that the Presi8 dent determines knowingly, on or after the date that is 

9 180 days after the date of the enactment of the Non10 nuclear Iran Sanctions Act of 2016, conducts or facilitates 

11 a significant financial transaction for a person subject to 

12 blocking of property and interests in property under sub13 section (b). 

14 ‘‘SEC. 233. BLOCKING OF PROPERTY OF PERSONS AFFILI15 ATED WITH CERTAIN IRANIAN ENTITIES. 

16 ‘‘(a) BLOCKING OF PROPERTY.— 

17 ‘‘(1) IN GENERAL.—The President shall, in ac18 cordance with the International Emergency Eco19 nomic Powers Act (50 U.S.C. 1701 et seq.), block 

20 and prohibit all transactions in all property and in21 terests in property of any person described in para22 graph (3) if such property and interests in property 

23 are in the United States, come within the United 

24 States, or are or come within the possession or con25 trol of a United States person. 


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1 ‘‘(2) INAPPLICABILITY OF NATIONAL EMER2 GENCY REQUIREMENT.—The requirements under 

3 section 202 of the International Emergency Eco4 nomic Powers Act (50 U.S.C. 1701) shall not apply 

5 for purposes of this subsection. 

6 ‘‘(3) PERSONS DESCRIBED.—A person de7 scribed in this paragraph is— 

8 ‘‘(A) an entity that is owned, directly or 

9 indirectly, by a 25 percent or greater interest— 

10 ‘‘(i) by the Aerospace Industries Or11 ganization, the Shahid Hemmat Industrial 

12 Group, the Shahid Bakeri Industrial 

13 Group, or any agent or affiliate of such or14 ganization or group; or 

15 ‘‘(ii) collectively by a group of individ16 uals that hold an interest in the Aerospace 

17 Industries Organization, the Shahid 

18 Hemmat Industrial Group, the Shahid 

19 Bakeri Industrial Group, or any agent or 

20 affiliate of such organization or group, 

21 even if none of those individuals hold a 25 

22 percent or greater interest in the entity; 

23 ‘‘(B) a person that controls, manages, or 

24 directs an entity described in subparagraph (A); 

25 or 


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1 ‘‘(C) an individual who is on the board of 

2 directors of an entity described in subparagraph 

3 (A). 

4 ‘‘(b) FACILITATION OF CERTAIN TRANSACTIONS.— 

5 The President shall prohibit the opening, and prohibit or 

6 impose strict conditions on the maintaining, in the United 

7 States of a correspondent account or a payable-through 

8 account by a foreign financial institution that the Presi9 dent determines knowingly, on or after the date that is 

10 180 days after the date of the enactment of the Non11 nuclear Iran Sanctions Act of 2016, conducts or facilitates 

12 a significant financial transaction for a person subject to 

13 blocking of property and interests in property under sub14 section (a). 

15 ‘‘(c) IRAN MISSILE PROLIFERATION WATCH LIST.— 

16 ‘‘(1) IN GENERAL.—Not later than 90 days 

17 after the date of the enactment of the Nonnuclear 

18 Iran Sanctions Act of 2016, and not less frequently 

19 than annually thereafter, the Secretary of the Treas20 ury shall submit to the appropriate committees of 

21 Congress and publish in the Federal Register a list 

22 of— 

23 ‘‘(A) each entity in which the Aerospace 

24 Industries Organization, the Shahid Hemmat 

25 Industrial Group, the Shahid Bakeri Industrial 


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1 Group, or any agent or affiliate of such organi2 zation or group has an ownership interest of 

3 more than 0 percent and less than 25 percent; 

4 ‘‘(B) each entity in which the Aerospace 

5 Industries Organization, the Shahid Hemmat 

6 Industrial Group, the Shahid Bakeri Industrial 

7 Group, or any agent or affiliate of such organi8 zation or group does not have an ownership in9 terest but maintains a presence on the board of 

10 directors of the entity or otherwise influences 

11 the actions, policies, or personnel decisions of 

12 the entity; and 

13 ‘‘(C) each person that controls, manages, 

14 or directs an entity described in subparagraph 

15 (A) or (B). 

16 ‘‘(2) REFERENCE.—The list required by para17 graph (1) may be referred to as the ‘Iran Missile 

18 Proliferation Watch List’. 

19 ‘‘(d) COMPTROLLER GENERAL REPORT.— 

20 ‘‘(1) IN GENERAL.—The Comptroller General of 

21 the United States shall— 

22 ‘‘(A) conduct a review of each list required 

23 by subsection (c)(1); and 

24 ‘‘(B) not later than 60 days after each 

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1 mittees of Congress under that subsection, sub2 mit to the appropriate committees of Congress 

3 a report on the review conducted under sub4 paragraph (A) that includes a list of persons 

5 not included in that list that qualify for inclu6 sion in that list, as determined by the Comp7 troller General. 

8 ‘‘(2) CONSULTATIONS.—In preparing the report 

9 required by paragraph (1)(B), the Comptroller Gen10 eral shall consult with nongovernmental organiza11 tions. 

12 ‘‘SEC. 234. IMPOSITION OF SANCTIONS WITH RESPECT TO 

13 CERTAIN PERSONS INVOLVED IN BALLISTIC 

14 MISSILE ACTIVITIES. 

15 ‘‘(a) CERTIFICATION.—Not later than 120 days after 

16 the date of the enactment of the Nonnuclear Iran Sanc17 tions Act of 2016, and not less frequently than once every 

18 180 days thereafter, the President shall submit to the ap19 propriate committees of Congress a certification that each 

20 person listed in an annex of United Nations Security 

21 Council Resolution 1737 (2006), 1747 (2007), or 1929 

22 (2010) is not directly or indirectly facilitating, supporting, 

23 or involved with the development of or transfer to Iran 

24 of ballistic missiles or technology, parts, components, or 

25 technology information relating to ballistic missiles. 


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1 ‘‘(b) BLOCKING OF PROPERTY.— 

2 ‘‘(1) IN GENERAL.—If the President is unable 

3 to make a certification under subsection (a) with re4 spect to a person and the person is not currently 

5 subject to sanctions with respect to Iran under any 

6 other provision of law, the President shall, not later 

7 than 15 days after that certification would have been 

8 required under that subsection— 

9 ‘‘(A) in accordance with the International 

10 Emergency Economic Powers Act (50 U.S.C. 

11 1701 et seq.), block and prohibit all trans12 actions in all property and interests in property 

13 of that person if such property and interests in 

14 property are in the United States, come within 

15 the United States, or are or come within the 

16 possession or control of a United States person; 

17 and 

18 ‘‘(B) publish in the Federal Register a re19 port describing the reason why the President 

20 was unable to make a certification with respect 

21 to that person. 

22 ‘‘(2) INAPPLICABILITY OF NATIONAL EMER23 GENCY REQUIREMENT.—The requirements under 

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1 nomic Powers Act (50 U.S.C. 1701) shall not apply 

2 for purposes of this subsection. 

3 ‘‘(c) EXCLUSION FROM UNITED STATES.— 

4 ‘‘(1) IN GENERAL.—Except as provided in para5 graph (2), the Secretary of State shall deny a visa 

6 to, and the Secretary of Homeland Security shall ex7 clude from the United States, any alien subject to 

8 blocking of property and interests in property under 

9 subsection (b). 

10 ‘‘(2) COMPLIANCE WITH UNITED NATIONS

11 HEADQUARTERS AGREEMENT.—Paragraph (1) shall 

12 not apply to the head of state of Iran, or necessary 

13 staff of that head of state, if admission to the 

14 United States is necessary to permit the United 

15 States to comply with the Agreement regarding the 

16 Headquarters of the United Nations, signed at Lake 

17 Success June 26, 1947, and entered into force No18 vember 21, 1947, between the United Nations and 

19 the United States. 

20 ‘‘(d) FACILITATION OF CERTAIN TRANSACTIONS.— 

21 The President shall prohibit the opening, and prohibit or 

22 impose strict conditions on the maintaining, in the United 

23 States of a correspondent account or a payable-through 

24 account by a foreign financial institution that the Presi25 dent determines knowingly, on or after the date that is 


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1 180 days after the date of the enactment of the Non2 nuclear Iran Sanctions Act of 2016, conducts or facilitates 

3 a significant financial transaction for a person subject to 

4 blocking of property and interests in property under sub5 section (b). 

6 ‘‘SEC. 235. IMPOSITION OF SANCTIONS WITH RESPECT TO 

7 CERTAIN SECTORS OF IRAN THAT SUPPORT 

8 THE BALLISTIC MISSILE PROGRAM OF IRAN. 

9 ‘‘(a) LIST OF SECTORS.— 

10 ‘‘(1) IN GENERAL.—Not later than 120 days 

11 after the date of the enactment of the Nonnuclear 

12 Iran Sanctions Act of 2016, and not less frequently 

13 than once every 180 days thereafter, the President 

14 shall submit to the appropriate committees of Con15 gress and publish in the Federal Register a list of 

16 the sectors of the economy of Iran that are directly 

17 or indirectly facilitating, supporting, or involved with 

18 the development of or transfer to Iran of ballistic 

19 missiles or technology, parts, components, or tech20 nology information relating to ballistic missiles. 

21 ‘‘(2) CERTAIN SECTORS.— 

22 ‘‘(A) IN GENERAL.—Not later than 120 

23 days after the date of enactment of the Non24 nuclear Iran Sanctions Act of 2016, the Presi25 dent shall submit to the appropriate committees 


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1 of Congress a determination as to whether each 

2 of the automotive, chemical, computer science, 

3 construction, electronic, energy, metallurgy, 

4 mining, petrochemical, research (including uni5 versities and research institutions), and tele6 communications sectors of Iran meet the cri7 teria specified in paragraph (1). 

8 ‘‘(B) INCLUSION IN INITIAL LIST.—If the 

9 President determines under subparagraph (A) 

10 that the sectors of the economy of Iran speci11 fied in such subparagraph meet the criteria 

12 specified in paragraph (1), that sector shall be 

13 included in the initial list submitted and pub14 lished under that paragraph. 

15 ‘‘(b) SANCTIONS WITH RESPECT TO SPECIFIED SEC16 TORS OF IRAN.— 

17 ‘‘(1) BLOCKING OF PROPERTY.— 

18 ‘‘(A) IN GENERAL.—The President shall, 

19 in accordance with the International Emergency 

20 Economic Powers Act (50 U.S.C. 1701 et seq.), 

21 block and prohibit all transactions in all prop22 erty and interests in property of any person de23 scribed in paragraph (4) if such property and 

24 interests in property are in the United States, 

25 come within the United States, or are or come 


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1 within the possession or control of a United 

2 States person. 

3 ‘‘(B) INAPPLICABILITY OF NATIONAL

4 EMERGENCY REQUIREMENT.—The requirements 

5 under section 202 of the International Emer6 gency Economic Powers Act (50 U.S.C. 1701) 

7 shall not apply for purposes of this paragraph. 

8 ‘‘(2) EXCLUSION FROM UNITED STATES.— 

9 ‘‘(A) IN GENERAL.—Except as provided in 

10 subparagraph (B), the Secretary of State shall 

11 deny a visa to, and the Secretary of Homeland 

12 Security shall exclude from the United States, 

13 any alien that is a person described in para14 graph (4). 

15 ‘‘(B) COMPLIANCE WITH UNITED NATIONS

16 HEADQUARTERS AGREEMENT.—Subparagraph 

17 (A) shall not apply to the head of state of Iran, 

18 or necessary staff of that head of state, if ad19 mission to the United States is necessary to 

20 permit the United States to comply with the 

21 Agreement regarding the Headquarters of the 

22 United Nations, signed at Lake Success June 

23 26, 1947, and entered into force November 21, 

24 1947, between the United Nations and the 

25 United States. 


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1 ‘‘(3) FACILITATION OF CERTAIN TRANS2 ACTIONS.—Except as provided in this section, the 

3 President shall prohibit the opening, and prohibit or 

4 impose strict conditions on the maintaining, in the 

5 United States of a correspondent account or a pay6 able-through account by a foreign financial institu7 tion that the President determines knowingly, on or 

8 after the date that is 180 days after the date of the 

9 enactment of the Nonnuclear Iran Sanctions Act of 

10 2016, conducts or facilitates a significant financial 

11 transaction for a person described in paragraph (4). 

12 ‘‘(4) PERSONS DESCRIBED.—A person is de13 scribed in this paragraph if the President determines 

14 that the person, on or after the date that is 180 

15 days after the date of the enactment of the Non16 nuclear Iran Sanctions Act of 2016— 

17 ‘‘(A) operates in a sector of the economy 

18 of Iran included in the most recent list pub19 lished by the President under subsection (a); 

20 ‘‘(B) knowingly provides significant finan21 cial, material, technological, or other support to, 

22 or goods or services in support of, any activity 

23 or transaction on behalf of or for the benefit of 

24 a person described in subparagraph (A); or 


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1 ‘‘(C) is owned or controlled by a person de2 scribed in subparagraph (A). 

3 ‘‘(c) HUMANITARIAN EXCEPTION.—The President 

4 may not impose sanctions under this section with respect 

5 to any person for conducting or facilitating a transaction 

6 for the sale of agricultural commodities, food, medicine, 

7 or medical devices to Iran or for the provision of humani8 tarian assistance to the people of Iran. 

9 ‘‘SEC. 236. IDENTIFICATION OF FOREIGN PERSONS THAT 

10 SUPPORT THE BALLISTIC MISSILE PROGRAM 

11 OF IRAN IN CERTAIN SECTORS OF IRAN. 

12 ‘‘(a) IN GENERAL.—Not later than 120 days after 

13 the date of the enactment of the Nonnuclear Iran Sanc14 tions Act of 2016, and not less frequently than annually 

15 thereafter, the President shall submit to the appropriate 

16 committees of Congress and publish in the Federal Reg17 ister a list of all foreign persons that have, based on cred18 ible information, directly or indirectly facilitated, sup19 ported, or been involved with the development of ballistic 

20 missiles or technology, parts, components, or technology 

21 information related to ballistic missiles in the following 

22 sectors of the economy of Iran during the period specified 

23 in subsection (b): 

24 ‘‘(1) Automotive. 

25 ‘‘(2) Chemical. 


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1 ‘‘(3) Computer Science. 

2 ‘‘(4) Construction. 

3 ‘‘(5) Electronic. 

4 ‘‘(6) Energy. 

5 ‘‘(7) Metallurgy. 

6 ‘‘(8) Mining. 

7 ‘‘(9) Petrochemical. 

8 ‘‘(10) Research (including universities and re9 search institutions). 

10 ‘‘(11) Telecommunications. 

11 ‘‘(12) Any other sector of the economy of Iran 

12 identified under section 235(a). 

13 ‘‘(b) PERIOD SPECIFIED.—The period specified in 

14 this subsection is— 

15 ‘‘(1) with respect to the first list submitted 

16 under subsection (a), the period beginning on the 

17 date of the enactment of the Nonnuclear Iran Sanc18 tions Act of 2016 and ending on the date that is 

19 120 days after such date of enactment; and 

20 ‘‘(2) with respect to each subsequent list sub21 mitted under such subsection, the one-year period 

22 preceding the submission of the list. 

23 ‘‘(c) COMPTROLLER GENERAL REPORT.— 

24 ‘‘(1) IN GENERAL.—With respect to each list 

25 submitted under subsection (a), not later than 120 


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1 days after the list is submitted under that sub2 section, the Comptroller General of the United 

3 States shall submit to the appropriate committees of 

4 Congress— 

5 ‘‘(A) an assessment of the processes fol6 lowed by the President in preparing the list; 

7 ‘‘(B) an assessment of the foreign persons 

8 included in the list; and 

9 ‘‘(C) a list of persons not included in the 

10 list that qualify for inclusion in the list, as de11 termined by the Comptroller General. 

12 ‘‘(2) CONSULTATIONS.—In preparing the report 

13 required by paragraph (1), the Comptroller General 

14 shall consult with nongovernmental organizations. 

15 ‘‘(d) CREDIBLE INFORMATION DEFINED.—In this 

16 section, the term ‘credible information’ has the meaning 

17 given that term in section 14 of the Iran Sanctions Act 

18 of 1996 (Public Law 104–172; 50 U.S.C. 1701 note).’’. 

19 (b) CLERICAL AMENDMENT.—The table of contents 

20 for the Iran Threat Reduction and Syria Human Rights 

21 Act of 2012 is amended by inserting after the item relat22 ing to section 224 the following: 

‘‘Subtitle C—Measures Relating to Ballistic Missile Program of Iran 

‘‘Sec. 231. Definitions. 

‘‘Sec. 232. Imposition of sanctions with respect to persons that support the ballistic missile program of Iran. 

‘‘Sec. 233. Blocking of property of persons affiliated with certain Iranian entities. 


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‘‘Sec. 234. Imposition of sanctions with respect to certain persons involved in 

ballistic missile activities. 

‘‘Sec. 235. Imposition of sanctions with respect to certain sectors of Iran that 

support the ballistic missile program of Iran. 

‘‘Sec. 236. Identification of foreign persons that support the ballistic missile 

program of Iran in certain sectors of Iran.’’. 

1 SEC. 305. EXPANSION OF MANDATORY SANCTIONS WITH 

2 RESPECT TO FINANCIAL INSTITUTIONS THAT 

3 ENGAGE IN CERTAIN TRANSACTIONS RELAT4 ING TO BALLISTIC MISSILE CAPABILITIES OF 

5 IRAN. 

6 Section 104 of the Comprehensive Iran Sanctions, 

7 Accountability, and Divestment Act of 2010 (22 U.S.C. 

8 8513) is amended— 

9 (1) in subsection (c)(2)— 

10 (A) in subparagraph (A)— 

11 (i) in clause (i), by striking ‘‘; or’’ and 

12 inserting a semicolon; 

13 (ii) by redesignating clause (ii) as 

14 clause (iii); and 

15 (iii) by inserting after clause (i) the 

16 following: 

17 ‘‘(ii) to acquire or develop ballistic 

18 missiles and capabilities and launch tech19 nology relating to ballistic missiles; or’’; 

20 and 

21 (B) in subparagraph (E)(ii)— 


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1 (i) in subclause (I), by striking ‘‘; or’’ 

2 and inserting a semicolon; 

3 (ii) by redesignating subclause (II) as 

4 subclause (III); and 

5 (iii) by inserting after subclause (I) 

6 the following: 

7 ‘‘(II) Iran’s development of bal8 listic missiles and capabilities and 

9 launch technology relating to ballistic 

10 missiles; or’’; and 

11 (2) in subsection (f)— 

12 (A) by redesignating paragraphs (1) and 

13 (2) as subparagraphs (A) and (B), respectively, 

14 and moving those subparagraphs, as so redesig15 nated, two ems to the right; 

16 (B) by striking ‘‘WAIVER.—The’’ and in17 serting ‘‘WAIVER.— 

18 ‘‘(1) IN GENERAL.—Except as provided in para19 graph (2), the’’; and 

20 (C) by adding at the end the following: 

21 ‘‘(2) EXCEPTION.—The Secretary of the Treas22 ury may not waive under paragraph (1) the applica23 tion of a prohibition or condition imposed with re24 spect to an activity described in subparagraph 

25 (A)(ii) or (E)(ii)(II) of subsection (c)(2).’’. 


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1 SEC. 306. DISCLOSURE TO THE SECURITIES AND EX2 CHANGE COMMISSION OF ACTIVITIES WITH 

3 CERTAIN SECTORS OF IRAN THAT SUPPORT 

4 THE BALLISTIC MISSILE PROGRAM OF IRAN. 

5 (a) IN GENERAL.—Section 13(r)(1) of the Securities 

6 Exchange Act of 1934 (15 U.S.C. 78m(r)(1)) is amend7 ed— 

8 (1) in subparagraph (C), by striking ‘‘; or’’ and 

9 inserting a semicolon; 

10 (2) by redesignating subparagraph (D) as sub11 paragraph (E); and 

12 (3) by inserting after subparagraph (C) the fol13 lowing: 

14 ‘‘(D) knowingly engaged in any activity for 

15 which sanctions may be imposed under section 

16 235 of the Iran Threat Reduction and Syria 

17 Human Rights Act of 2012;’’. 

18 (b) INVESTIGATIONS.—Section 13(r)(5)(A) of the Se19 curities Exchange Act of 1934 is amended by striking ‘‘an 

20 Executive order specified in clause (i) or (ii) of paragraph 

21 (1)(D)’’ and inserting ‘‘section 235 of the Iran Threat Re22 duction and Syria Human Rights Act of 2012, an Execu23 tive order specified in clause (i) or (ii) of paragraph 

24 (1)(E)’’. 

25 (c) CONFORMING AMENDMENT.—Section 13(r)(5) of 

26 the Securities Exchange Act of 1934 is amended, in the 


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1 matter preceding subparagraph (A), by striking ‘‘subpara2 graph (D)(iii)’’ and inserting ‘‘subparagraph (E)(iii)’’. 

3 (d) EFFECTIVE DATE.—The amendments made by 

4 this section shall take effect with respect to reports re5 quired to be filed with the Securities and Exchange Com6 mission after the date that is 180 days after the date of 

7 the enactment of this Act. 

8 SEC. 307. REGULATIONS. 

9 Not later than 90 days after the date of the enact10 ment of this Act, the President shall prescribe regulations 

11 to carry out this title and the amendments made by this 

12 title. 

13 TITLE IV—SANCTIONS WITH RE14 SPECT TO CERTAIN IRANIAN 

15 TRANSACTIONS 

16 Subtitle A—Sanctions Relating to 

17 Iran’s Support of Terrorism 

18 SEC. 401. FINDINGS. 

19 Congress makes the following findings: 

20 (1) The Financial Action Task Force, an inter21 governmental body the purpose of which is to de22 velop and promote national and international policies 

23 to combat money laundering and terrorist financ24 ing— 


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1 (A) has noted it is concerned about Iran’s 

2 failure to address the risk of terrorist financing 

3 and serious threat that failure poses to the in4 tegrity of the international financial system; 

5 (B) since February 25, 2009, has called on 

6 its members and urged all jurisdictions to apply 

7 countermeasures against Iran to protect finan8 cial sectors from money laundering and financ9 ing of terrorism risks emanating from Iran; and 

10 (C) states that it ‘‘urges jurisdictions to 

11 protect against correspondent relationships 

12 being used to bypass or evade countermeasures 

13 and risk mitigation practices and to take into 

14 account [money laundering and terrorist financ15 ing (ML/FT)] risks when considering requests 

16 by Iranian financial institutions to open 

17 branches and subsidiaries in their jurisdiction. 

18 Due to the continuing terrorist financing threat 

19 emanating from Iran, jurisdictions should con20 sider the steps already taken and possible addi21 tional safeguards or strengthen existing ones.’’ 

22 (2) The Financial Action Task Force renewed 

23 its call for countermeasures on February 19, 2016, 

24 and called on Iran to address its deficiencies with reVerDate Sep 11 2014 02:54 Dec 09, 2016 Jkt 069200 PO 00000 Frm 00103 Fmt 6652 Sfmt 6201 E:\BILLS\S3518.IS S3518

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1 spect to measures countering money laundering and 

2 terrorist financing. 

3 (3) The Financial Crimes Enforcement Net4 work of the Department of the Treasury on Novem5 ber 25, 2011, issued a notice of finding that Iran is 

6 a jurisdiction of primary money laundering concern 

7 pursuant to section 5318A of title 31, United States 

8 Code. 

9 (4) The Financial Crimes Enforcement Net10 work on November 28, 2011, issued a notice of pro11 posed rulemaking that stated the intent to impose 

12 special measures against Iran under that section. 

13 (5) Section 1245 of the National Defense Au14 thorization Act for Fiscal Year 2012 (22 U.S.C. 

15 8513a) designated the financial sector of Iran as a 

16 primary money laundering concern, but did not im17 pose special measures pursuant to that designation. 

18 SEC. 402. SPECIAL MEASURES WITH RESPECT TO IRAN RE19 LATING TO ITS DESIGNATION AS A JURISDIC20 TION OF PRIMARY MONEY LAUNDERING CON21 CERN. 

22 (a) PROHIBITION ON DIRECT USE OF COR23 RESPONDENT ACCOUNTS.—A covered financial institution 

24 shall terminate any correspondent account that— 


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1 (1) is established, maintained, administered, or 

2 managed in the United States for, or on behalf of, 

3 an Iranian banking institution; and 

4 (2) is not blocked under any Executive order 

5 issued pursuant to the International Emergency 

6 Economic Powers Act (50 U.S.C. 1701 et seq.). 

7 (b) SPECIAL DUE DILIGENCE MEASURES FOR COR8 RESPONDENT ACCOUNTS.— 

9 (1) IN GENERAL.—A covered financial institu10 tion shall apply special due diligence measures to 

11 correspondent accounts of the financial institution 

12 that are reasonably designed to guard against the 

13 improper indirect use of such accounts by Iranian 

14 banking institutions. 

15 (2) REQUIREMENTS.—The special due diligence 

16 measures a covered financial institution is required 

17 to apply to correspondent accounts under paragraph 

18 (1) shall include, at a minimum— 

19 (A) notifying the holders of such accounts 

20 that the covered financial institution knows or 

21 has reason to know provide services to Iranian 

22 banking institutions, that such holders generally 

23 may not provide Iranian banking institutions 

24 with access to such accounts; and 


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1 (B) taking reasonable steps to identify any 

2 indirect use of such accounts by Iranian bank3 ing institutions, to the extent that such indirect 

4 use can be determined from transactional 

5 records maintained by the covered financial in6 stitution in the normal course of business. 

7 (3) RISK-BASED APPROACH.—A covered finan8 cial institution shall take a risk-based approach 

9 when deciding what, if any, other due diligence 

10 measures the financial institution should adopt to 

11 guard against the improper indirect use of its cor12 respondent accounts by Iranian banking institutions. 

13 (4) RESPONSE TO INDIRECT ACCESS BY IRA14 NIAN BANKING INSTITUTIONS.—A covered financial 

15 institution that obtains credible information that a 

16 correspondent account is being used by a foreign 

17 bank to provide indirect access to an Iranian bank18 ing institution, shall— 

19 (A) take all appropriate steps to prevent 

20 such indirect access, including notifying the 

21 holder of the account under paragraph (1)(A); 

22 and 

23 (B) where necessary, terminate the ac24 count. 

25 (c) RECORDKEEPING AND REPORTING.— 


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1 (1) IN GENERAL.—A covered financial institu2 tion shall document its compliance with the notice 

3 requirement set forth in subsection (b)(2)(A). 

4 (2) RULE OF CONSTRUCTION.—Nothing in this 

5 section shall require a covered financial institution 

6 to report any information not otherwise required to 

7 be reported by law or regulation. 

8 (d) TERMINATION.—This section shall terminate on 

9 the date that is 30 days after the date on which the Presi10 dent submits to Congress— 

11 (1) the certification described in section 401(a) 

12 of the Comprehensive Iran Sanctions, Account13 ability, and Divestment Act of 2010 (22 U.S.C. 

14 8551(a)); and 

15 (2) a certification that the Financial Action 

16 Task Force has lifted its call for countermeasures 

17 against Iran and Iran has become a member of a re18 gional body of the Financial Action Task Force. 

19 (e) DEFINITIONS.—In this section: 

20 (1) CORRESPONDENT ACCOUNT.—The term 

21 ‘‘correspondent account’’ has the meaning given that 

22 term in section 1010.605 of title 31, Code of Fed23 eral Regulations (as in effect on the day before the 

24 date of the enactment of this Act). 


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1 (2) COVERED FINANCIAL INSTITUTION.—The 

2 term ‘‘covered financial institution’’ has the meaning 

3 given that term under paragraphs (1) and (2) of 

4 section 1010.605(e) of title 31, Code of Federal 

5 Regulations (as in effect on the day before the date 

6 of the enactment of this Act). 

7 (3) FOREIGN BANK.—The term ‘‘foreign bank’’ 

8 has the meaning given that term in section 

9 1010.100(u) of title 31, Code of Federal Regulations 

10 (as in effect on the day before the date of the enact11 ment of this Act). 

12 (4) IRANIAN BANKING INSTITUTION.—The term 

13 ‘‘Iranian banking institution’’ means— 

14 (A) any foreign bank chartered by Iran, in15 cluding— 

16 (i) any branches, offices, or subsidi17 aries of such a bank operating in any juris18 diction; and 

19 (ii) any branch or office within Iran of 

20 any foreign bank licensed by Iran; 

21 (B) the Central Bank of Iran; and 

22 (C) any foreign bank of which more than 

23 50 percent of the voting stock or analogous in24 terest is owned by two or more foreign banks 

25 chartered by Iran. 


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1 Subtitle B—Prohibition on and 

2 Other Sanctions Relating to 

3 Transactions With Iran 

4 SEC. 411. PROHIBITION ON FACILITATION OF CERTAIN 

5 TRANSACTIONS INVOLVING THE GOVERN6 MENT OF IRAN OR IRANIAN PERSONS. 

7 (a) IN GENERAL.—The President shall not issue any 

8 license under the International Emergency Economic Pow9 ers Act (50 U.S.C. 1701 et seq.) that permits a person— 

10 (1) to conduct an offshore United States dollar 

11 clearing system for transactions involving the Gov12 ernment of Iran or an Iranian person; or 

13 (2) to provide United States dollars for any off14 shore United States dollar clearing system conducted 

15 or overseen by a foreign government or a foreign fi16 nancial institution for transactions involving the 

17 Government of Iran or an Iranian person. 

18 (b) FOREIGN FINANCIAL INSTITUTION DEFINED.— 

19 In this section, the term ‘‘foreign financial institution’’ has 

20 the meaning of that term as determined by the Secretary 

21 of the Treasury pursuant to section 104(i) of the Com22 prehensive Iran Sanctions, Accountability, and Divestment 

23 Act of 2010 (22 U.S.C. 8513(i)). 


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1 SEC. 412. REPORTS ON, AND AUTHORIZATION OF IMPOSI2 TION OF SANCTIONS WITH RESPECT TO, OFF3 SHORE UNITED STATES DOLLAR CLEARING 

4 FOR TRANSACTIONS INVOLVING THE GOV5 ERNMENT OF IRAN OR IRANIAN PERSONS. 

6 (a) REPORTS REQUIRED.— 

7 (1) IN GENERAL.—Not later than 60 days after 

8 the date of the enactment of this Act, and not less 

9 frequently than once every 90 days thereafter, the 

10 Secretary of the Treasury shall submit to the appro11 priate congressional committees and publish in the 

12 Federal Register a report that contains— 

13 (A) a list of any financial institutions that 

14 the Secretary has identified as— 

15 (i) operating an offshore United 

16 States dollar clearing system that conducts 

17 transactions involving the Government of 

18 Iran or an Iranian person; or 

19 (ii) participating in a transaction de20 scribed in clause (i) through a system de21 scribed in that clause; and 

22 (B) a detailed assessment of the status of 

23 efforts by the Secretary to prevent the conduct 

24 of transactions described in subparagraph 

25 (A)(i) through systems described in that sub26 paragraph. 


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1 (2) FORM OF REPORT.—Each report submitted 

2 under paragraph (1) shall be submitted in unclassi3 fied form but may contain a classified annex. 

4 (b) IMPOSITION OF SANCTIONS.— 

5 (1) IN GENERAL.—The President shall, in ac6 cordance with the International Emergency Eco7 nomic Powers Act (50 U.S.C. 1701 et seq.), block 

8 and prohibit all transactions in all property and in9 terests in property of any financial institution speci10 fied in the most recent list submitted under sub11 section (a)(1)(A) if such property and interests in 

12 property are in the United States, come within the 

13 United States, or are or come within the possession 

14 or control of a United States person. 

15 (2) ADDITIONAL SANCTIONS.—The President 

16 may impose additional sanctions under the Inter17 national Emergency Economic Powers Act (50 

18 U.S.C. 1701 et seq.) with respect to a financial in19 stitution that is subject to sanctions under para20 graph (1). 

21 (c) APPROPRIATE CONGRESSIONAL COMMITTEES DE22 FINED.—In this section, the term ‘‘appropriate congres23 sional committees’’ has the meaning given that term in 

24 section 14 of the Iran Sanctions Act of 1996 (Public Law 

25 104–172; 50 U.S.C. 1701 note). 


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1 SEC. 413. CLARIFICATION THAT FREEZING OF ASSETS OF 

2 IRANIAN FINANCIAL INSTITUTIONS IN3 CLUDES ASSETS IN POSSESSION OR CON4 TROL OF A UNITED STATES PERSON PURSU5 ANT TO A U-TURN TRANSACTION. 

6 Section 1245(c) of the National Defense Authoriza7 tion Act for Fiscal Year 2012 (22 U.S.C. 8513a(c)) is 

8 amended— 

9 (1) by striking ‘‘The President’’ and inserting 

10 ‘‘(1) IN GENERAL.—The President’’; and 

11 (2) by adding at the end the following: 

12 ‘‘(2) TREATMENT OF CERTAIN TRANS13 ACTIONS.— 

14 ‘‘(A) U-TURN TRANSACTIONS.—Property 

15 that comes within the possession or control of 

16 a United States person pursuant to a transfer 

17 of funds that arises from, and is ordinarily inci18 dent and necessary to give effect to, an under19 lying transaction shall be considered to come 

20 within the possession or control of that person 

21 for purposes of paragraph (1). 

22 ‘‘(B) BOOK TRANSFERS.—A transfer of 

23 funds or other property for the benefit of an 

24 Iranian financial institution that is made be25 tween accounts of the same financial institution 

26 shall be considered property or interests in 


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1 property of that Iranian financial institution for 

2 purposes of paragraph (1) even if that Iranian 

3 financial institution is not the direct recipient 

4 of the transfer.’’. 

5 TITLE V—MISCELLANEOUS 

6 SEC. 501. MODIFICATION OF REQUIREMENTS RELATING TO 

7 STATE SPONSORS OF TERRORISM. 

8 (a) REQUIREMENT TO COMPLY WITH ALL PROVI9 SIONS OF LAW RELATING TO STATE SPONSORS OF TER10 RORISM.—In making a determination to rescind the des11 ignation of a country as a state sponsor of terrorism, the 

12 President shall comply with all requirements under this 

13 Act, section 620A of the Foreign Assistance Act of 1961 

14 (22 U.S.C. 2371), section 40 of the Arms Export Control 

15 Act (22 U.S.C. 2780), section 6(j) of the Export Adminis16 tration Act of 1979 (50 U.S.C. 4605(j)) (as in effect pur17 suant to the International Emergency Economic Powers 

18 Act (50 U.S.C. 1701 et seq.)), and any other provision 

19 of law relating to countries the governments of which pro20 vide support for acts of international terrorism, with re21 spect to the rescission. 

22 (b) ADDITIONAL REQUIREMENTS FOR REMOVAL.— 

23 (1) IN GENERAL.—Not later than 15 days be24 fore the President submits to Congress a report 

25 under section 620A(c) of the Foreign Assistance Act 


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1 of 1961 (22 U.S.C. 2371(c)), section 40(f) of the 

2 Arms Export Control Act (22 U.S.C. 2780(f)), or 

3 section 6(j) of the Export Administration Act of 

4 1979 (50 U.S.C. 4605(j)) (as in effect pursuant to 

5 the International Emergency Economic Powers Act 

6 (50 U.S.C. 1701 et seq.)) relating to the rescission 

7 of the designation of a country as a state sponsor 

8 of terrorism, the President shall submit to the 

9 Speaker of the House of Representatives, the minor10 ity leader of the House, the majority leader of the 

11 Senate, the minority leader of the Senate, and the 

12 appropriate congressional committees a report certi13 fying that— 

14 (A) the government of the country does 

15 not provide safe haven or assistance of any kind 

16 to terrorists or other violent fugitives from 

17 other countries; 

18 (B) the Secretary of State and the Direc19 tor of National Intelligence agree that the gov20 ernment of the country has ceased all support, 

21 directly or indirectly, to any terrorist or ter22 rorist organization, including public statements 

23 of support for any such terrorist or terrorist or24 ganization during the 36-month period imme25 diately preceding the submission of the report; 


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1 (C) the government of the country has not 

2 provided direct or indirect support to another 

3 country on the state sponsor of terrorism list 

4 during that 36-month period; 

5 (D) the government of the country has not 

6 unjustly detained during that 36-month period, 

7 and is not unjustly detaining on the date of the 

8 report, United States citizens, including dual 

9 citizens; and 

10 (E) there has been a fundamental change 

11 in the leadership and policies of the government 

12 of the country. 

13 (2) FORM OF REPORT.—Each report described 

14 in paragraph (1) shall be submitted in unclassified 

15 form, but may include a classified annex if nec16 essary. 

17 (c) EXTENDED PERIOD BEFORE REMOVAL FROM

18 LIST TAKES EFFECT.— 

19 (1) FOREIGN ASSISTANCE ACT OF 1961.—Sec20 tion 620A(c)(2) of the Foreign Assistance Act of 

21 1961 (22 U.S.C. 2371(c)(2)) is amended in the mat22 ter preceding subparagraph (A) by striking ‘‘45 

23 days’’ and inserting ‘‘180 days’’. 

24 (2) ARMS EXPORT CONTROL ACT.—Section 

25 40(f)(1)(B) of the Arms Export Control Act (22 


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1 U.S.C. 2780(f)(1)(B)) is amended in the matter pre2 ceding clause (i) by striking ‘‘45 days’’ and inserting 

3 ‘‘180 days’’. 

4 (3) EXPORT ADMINISTRATION ACT OF 1979.— 

5 Section 6(j)(4)(B) of the Export Administration Act 

6 of 1979 (50 U.S.C. 4605(j)(4)(B)) (as in effect pur7 suant to the International Emergency Economic 

8 Powers Act (50 U.S.C. 1701 et seq.)) shall be ap9 plied and administered by substituting ‘‘180 days’’ 

10 for ‘‘45 days’’. 

11 (d) RESOLUTION OF DISAPPROVAL.— 

12 (1) IN GENERAL.—The rescission of the des13 ignation of a country as a state sponsor of terrorism 

14 shall not become effective if, during the 180-day pe15 riod following the submission of a report under sec16 tion 620A(c) of the Foreign Assistance Act of 1961 

17 (22 U.S.C. 2371(c)), section 40(f) of the Arms Ex18 port Control Act (22 U.S.C. 2780(f)), or section 6(j) 

19 of the Export Administration Act of 1979 (50 

20 U.S.C. 4605(j)) (as in effect pursuant to the Inter21 national Emergency Economic Powers Act (50 

22 U.S.C. 1701 et seq.)) relating to the rescission, Con23 gress enacts a joint resolution stating in substance 

24 that the Congress disapproves the rescission. 


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1 (2) PROCEDURES IN THE SENATE.—Any joint 

2 resolution described paragraph (1) shall be consid3 ered in the Senate under the procedures set forth in 

4 section 601 of the International Security Assistance 

5 and Arms Export Control Act of 1976 (Public Law 

6 94–329; 90 Stat. 765) for consideration of joint res7 olutions. 

8 (3) RULES OF SENATE.—Paragraph (2) is en9 acted by Congress— 

10 (A) as an exercise of the rulemaking power 

11 of the Senate and as such is deemed a part of 

12 the rules of the Senate, but applicable only with 

13 the respect to the procedure to be followed in 

14 the Senate in the case of a joint resolution de15 scribed in paragraph (1), and supersedes other 

16 rules only to the extent that it is inconsistent 

17 with such rules; and 

18 (B) with full recognition of the constitu19 tional right of the Senate to change the rules 

20 at any time, in the same manner and to the 

21 same extent as in the case of any other rule of 

22 the Senate. 

23 (e) RE-DESIGNATION OF COUNTRIES PREVIOUSLY

24 DESIGNATED AS STATE SPONSORS OF TERRORISM.— 

25 During the 5-year period beginning on the date on which 


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1 the designation of the country as a state sponsor of ter2 rorism is rescinded, the President shall redesignate the 

3 country as a state sponsor of terrorism upon the assess4 ment of the Director of National Intelligence that the gov5 ernment of the country has— 

6 (1) directly or indirectly supported acts of inter7 national terrorism; 

8 (2) given direct or indirect support to a ter9 rorist or terrorist organization, including providing 

10 safe haven or assistance to a terrorist or terrorist 

11 organization; 

12 (3) given direct or indirect support to another 

13 country designated as a state sponsor of terrorism; 

14 or 

15 (4) provided direct or indirect support, training, 

16 materials, or advice on nuclear, biological, or chem17 ical weapons or ballistic missile programs to another 

18 country designated as a state sponsor of terrorism. 

19 (f) REPORT.— 

20 (1) IN GENERAL.—The Director of National In21 telligence assessment referred to in subsection (e) 

22 shall be submitted in a report to the President and 

23 the appropriate congressional committees. 

24 (2) FORM OF REPORT.—The report required by 

25 paragraph (1) shall be submitted in unclassified 


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1 form, but may include a classified annex if nec2 essary. 

3 (g) DEFINITIONS.—In this section: 

4 (1) APPROPRIATE CONGRESSIONAL COMMIT5 TEES DEFINED.—The term ‘‘appropriate congres6 sional committees’’ means— 

7 (A) the committees specified in section 

8 14(2) of the Iran Sanctions Act of 1996 (Public 

9 Law 104–172; 50 U.S.C. 1701 note); 

10 (B) the Committee on Armed Services and 

11 the Select Committee on Intelligence of the 

12 Senate; and 

13 (C) the Committee on Armed Services and 

14 the Permanent Select Committee on Intelligence 

15 of the House of Representatives. 

16 (2) STATE SPONSOR OF TERRORISM.—The term 

17 ‘‘state sponsor of terrorism’’ means any foreign 

18 country if the Secretary of State has determined 

19 that the government of the country has repeatedly 

20 provided support for acts of international terrorism 

21 pursuant to— 

22 (A) section 6(j)(1)(A) of the Export Ad23 ministration Act of 1979 (50 U.S.C. 

24 4605(j)(1)(A)) (as in effect pursuant to the 


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1 International Emergency Economic Powers Act 

2 (50 U.S.C. 1701 et seq.)); 

3 (B) section 40(d) of the Arms Export Con4 trol Act (22 U.S.C. 2780(d)); 

5 (C) section 620A(a) of the Foreign Assist6 ance Act of 1961 (22 U.S.C. 2371(a)); or 

7 (D) any other provision of law. 

Æ 


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