No Funds for Iranian Terrorism Act

To freeze certain Iranian funds involved in the 2023 hostage deal between the United States and Iran, and for other purposes. 1. Short title This Act may be cited as the No Funds for Iranian Terrorism Act 2. Findings Congress makes the following findings: (1) On October 7, 2023, Iran-backed Hamas terrorists launched a massive, unprovoked war on Israel by air, land, and sea, in which they engaged in the brutal murder of over 1,300 people and kidnapped 130 people who are now being held hostage. (2) Hamas, Palestinian Islamic Jihad, and Hezbollah have all been designated by the United States as Foreign Terrorist Organizations pursuant to section 219 of the Immigration and Nationality Act ( 8 U.S.C. 1189 (3) According to an unclassified United States government assessment, Iran has historically provided up to $100 million annually in combined support to Palestinian terrorist groups, including Hamas, Palestinian Islamic Jihad (PIJ), and the Popular Front for the Liberation of Palestine-General Command. (4) As National Security Advisor Jake Sullivan stated on October 10, 2023, Iran is complicit in this attack in a broad sense because they have provided the lion’s share of the funding for the military wing of Hamas, they have provided training, they have provided capabilities, they have provided support, and they have provided engagement and contact with Hamas over years and years. (5) President Biden reached an agreement with the Iranian regime to bring home Siamak Namazi, Morad Tahbaz, Emad Shargi, and two additional American hostages all of whom were wrongfully detained in Iran. 3. Imposition of sanctions with respect to covered Iranian assets (a) In general On and after the date of the enactment of this Act, the President shall impose the sanction described in subsection (c) with respect to each foreign financial institution and each international financial institution that the President determines engages in an activity described in subsection (b). (b) Activities described A foreign financial institution or international financial institution engages in an activity described in this subsection if the institution processes, participates in, or facilitates a transaction using or involving covered Iranian funds. (c) Blocking of property The sanction described in this subsection is the exercise of all of the powers granted to the President under the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq. (d) Penalties The penalties provided for in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act ( 50 U.S.C. 1705 (e) Termination of sanctions The President shall not be required to impose sanctions under this section with respect to a foreign financial institution or international financial institution described in subsection (a) if the President certifies in writing to the appropriate congressional committees that the Government of Iran— (1) no longer repeatedly provides support for international terrorism as determined by the Secretary of State pursuant to— (A) section 1754(c)(1)(A) of the Export Control Reform Act of 2018 ( 50 U.S.C. 4318(c)(1)(A) (B) section 620A of the Foreign Assistance Act of 1961 ( 22 U.S.C. 2371 (C) section 40 of the Arms Export Control Act ( 22 U.S.C. 2780 (D) any other provision of law; and (2) has ceased the pursuit, acquisition, and development of, and verifiably dismantled its, nuclear, biological, and chemical weapons and ballistic missiles and ballistic missile launch technology. 4. Definitions In this Act: (1) Appropriate congressional committees The term appropriate congressional committees (A) the Committee on Foreign Affairs and the Committee on Financial Services of the House of Representatives; and (B) the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate. (2) Covered Iranian funds The term covered Iranian funds 22 U.S.C. 8803(i) 22 U.S.C. 8806(f) 22 U.S.C. 8513a(d)(5) Waiver of Sanctions with Respect to the Transfer of Funds from the Republic of Korea to Qatar (3) Foreign financial institution The term foreign financial institution (4) International financial institution The term international financial institution 22 U.S.C. 262r(c) November 9, 2023 Reported with an amendment and referred to the Committee on Financial Services November 9, 2023 Committee on Financial Services

Summary: No Funds for Iranian Terrorism Act This bill requires the President to impose property-blocking sanctions on foreign financial institutions and international financial institutions that process, participate in, or facilitate a transaction involving certain Iranian funds (namely, the approximately $6 billion of Iranian funds that the Biden administration permitted to be transferred from restricted accounts in South Korea to restricted accounts in Qatar to facilitate the release of five U.S. citizens detained in Iran).