Iran Terror Finance Transparency Act

To enhance congressional oversight over the administration of sanctions against certain Iranian terrorism financiers, and for other purposes. 1. Short title This Act may be cited as the Iran Terror Finance Transparency Act 2. Certification requirement for removal of foreign financial institutions, including Iranian financial institutions, from the list of specially designated nationals and blocked persons (a) In general On or after July 19, 2015, the President may not remove a foreign financial institution, including an Iranian financial institution, described in subsection (b) from the list of specially designated nationals and blocked persons maintained by the Office of Foreign Asset Control of the Department of the Treasury unless and until the President submits to the appropriate congressional committees a certification described in subsection (c) with respect to the foreign financial institution. (b) Covered institutions A foreign financial institution, including an Iranian financial institution, described in this subsection is a foreign financial institution listed in Attachment 3 or Attachment 4 to Annex II of the Joint Comprehensive Plan of Action. (c) Certification The President may remove a foreign financial institution, including an Iranian financial institution, described in subsection (b) from the list of specially designated nationals and blocked persons maintained by the Office of Foreign Asset Control of the Department of the Treasury if the President submits to the appropriate congressional committees a certification that the foreign financial institution— (1) has not knowingly, directly or indirectly, facilitated a significant transaction or transactions or provided significant financial services for or on behalf of— (A) Iran’s Revolutionary Guard Corps or any of its agents or affiliates whose property or interests in property are blocked pursuant to the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq. (B) a foreign terrorist organization for or on behalf of a person whose property or interests in property have been blocked pursuant to Executive Order 13224 (66 Fed. Reg. 49079; relating to blocking property and prohibiting transactions with persons who commit, threaten to commit, or support terrorism); and (C) a person whose property or interests in property are blocked pursuant to the International Emergency Economic Powers Act in connection with Iran’s proliferation of weapons of mass destruction or delivery systems for weapons of mass destruction, or to further Iran’s development of ballistic missiles and destabilizing types and amounts of conventional weapons; and (2) no longer knowingly engages in illicit or deceptive financial transactions or other activities. (d) Form A certification described in subsection (c) shall be submitted in unclassified form, but may contain a classified annex. (e) Definitions In this section: (1) Foreign financial institution The term foreign financial institution (2) Foreign terrorist organization The term foreign terrorist organization 8 U.S.C. 1189(a) (3) Iranian financial institution The term Iranian financial institution 22 U.S.C. 8513b(d)(3) 3. Certification requirement for removal of certain foreign persons from the list of specially designated nationals and blocked persons (a) In general On or after July 19, 2015, the President may not remove a foreign person described in subsection (b) from the list of specially designated nationals and blocked persons maintained by the Office of Foreign Asset Control of the Department of the Treasury until the President submits to the appropriate congressional committees a certification described in subsection (c) with respect to the foreign person. (b) Covered persons and entities A foreign person described in this subsection is a foreign person listed in Attachment 3 or Attachment 4 to Annex II of the Joint Comprehensive Plan of Action. (c) Certification The President may remove a foreign person described in subsection (b) from the list of specially designated nationals and blocked persons maintained by the Office of Foreign Asset Control of the Department of the Treasury if the President submits to the appropriate congressional committees a certification that the foreign person— (1) has not knowingly assisted in, sponsored, or provided financial, material, or technological support for, or financial or other services to or in support of terrorism or a terrorist organization; and (2) has not knowingly engaged in significant activities or transactions that have materially contributed to the Government of Iran’s proliferation of weapons of mass destruction or their means of delivery (including missiles capable of delivering such weapons), including any efforts to manufacture, acquire, possess, develop, transport, transfer, or use such item. (d) Form A certification described in subsection (c) shall be submitted in unclassified form, but may contain a classified annex. (e) Definitions In this section: (1) Foreign person The term foreign person (A) means— (i) an individual who is not a United States person; (ii) a corporation, partnership, or other nongovernmental entity which is not a United States person; or (iii) any representative, agent or instrumentality of, or an individual working on behalf of a foreign government; but (B) does not include a foreign financial institution, including an Iranian financial institution, described in section 2(b). (2) United States person The term United States person (A) a United States citizen or an alien lawfully admitted for permanent residence to the United States; or (B) an entity organized under the laws of the United States or of any jurisdiction within the United States, including a foreign branch of such an entity. 4. Certification requirement for removal of designation of Iran as a jurisdiction of primary money laundering concern (a) In general The President may not remove the designation of Iran as a jurisdiction of primary money laundering concern pursuant to section 5318A of title 31, United States Code, unless the President submits to the appropriate congressional committees a certification described in subsection (b) with respect to Iran. (b) Certification The President may remove the designation of Iran as a jurisdiction of primary money laundering concern if the President submits to the appropriate congressional committees a certification that the Government of Iran is no longer engaged in support for terrorism, pursuit of weapons of mass destruction, and any illicit and deceptive financial activities. (c) Form The certification described in subsection (b) shall be submitted in unclassified form, but may contain a classified annex. (d) Definition In this section, the term appropriate congressional committees (1) the Committee on Foreign Affairs and the Committee on Financial Services of the House of Representatives; and (2) the Committee on Banking, Housing, and Urban Affairs of the Senate. 5. Applicability of congressional review of certain agency rulemaking relating to Iran (a) In general Notwithstanding any other provision of law, any rule to amend or otherwise alter a covered regulatory provision as defined in subsection (c) that is published on or after the date of the enactment of this Act shall be deemed to be a rule or major rule (as the case may be) for purposes of chapter 8 chapter 8 (b) Quarterly reports Not later than 60 days after the date of the enactment of this Act, and every 90 days thereafter, the head of the applicable department or agency of the Federal Government shall submit to the appropriate congressional committees a report on the operation of the licensing system under each covered regulatory provision as defined in subsection (c) for the preceding 2-year period, including— (1) the number and types of licenses applied for; (2) the number and types of licenses approved; (3) a summary of each license approved; (4) a summary of transactions conducted pursuant to a general license; (5) the average amount of time elapsed from the date of filing of a license application until the date of its approval; (6) the extent to which the licensing procedures were effectively implemented; and (7) a description of comments received from interested parties about the extent to which the licensing procedures were effective, after the applicable department or agency holds a public 30-day comment period. (c) Definition In this section, the term covered regulatory provision 6. Prohibitions and conditions with respect to certain accounts held by foreign financial institutions Section 104(c)(2)(A)(ii) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 ( 22 U.S.C. 8513(c)(2)(A)(ii) , including Hezbollah, Hamas, the Palestinian Islamic Jihad, and any affiliates or successors thereof 7. Definitions In this Act: (1) Appropriate congressional committees The term appropriate congressional committees Public Law 104–172 50 U.S.C. 1701 (2) Joint Comprehensive Plan of Action The term Joint Comprehensive Plan of Action Public Law 114–17 January 11, 2016 Reported from the Committee on Foreign Affairs January 11, 2016 The Committee on Financial Services

Summary: Iran Terror Finance Transparency Act (Sec. 2) This bill prohibits the President from removing certain foreign financial institutions, including an Iranian financial institution, from the list of designated nationals and blocked persons maintained by the Department of the Treasury's Office of Foreign Asset Control until the President makes two certifications to Congress, the first of which is that the institution has not knowingly facilitated a significant transaction or transactions or provided significant financial services for or on behalf of: Iran's Revolutionary Guard Corps or any of its agents or affiliates whose property or property interests are blocked pursuant to the International Emergency Economic Powers Act (IEEPA), a foreign terrorist organization for or on behalf of a person whose property or property interests have been blocked pursuant to Executive Order 13224, and a person whose property or property interests are blocked pursuant to the IEEPA in connection with Iran's proliferation of weapons of mass destruction. The second certification shall be that the institution no longer knowingly engages in illicit or deceptive financial transactions or other activities. (Sec. 3) On or after July 19, 2015,the President may not remove specified foreign persons from the list of designated nationals and blocked persons maintained by the Office of Foreign Asset Control until the President certifies to Congress that the person has not knowingly: assisted in or provided financial, material, or technological support for terrorism or a terrorist organization; and engaged in significant activities or transactions that have materially contributed to Iran's proliferation of weapons of mass destruction or their means of delivery. (Sec. 4) The President may not remove Iran's designation as a jurisdiction of primary money laundering concern unless the President certifies to Congress that Iran is no longer engaged in support for terrorism, pursuit of weapons of mass destruction, and any illicit and deceptive financial activities. (Sec. 5) Any rule to amend or otherwise alter a covered regulatory provision regarding sanctions on Iran shall be subject to congressional review requirements. Applicable federal departments or agencies shall report to Congress on the operation of the licensing system under each covered regulatory provision for the preceding two-year period, including: the number and types of licenses applied for, and the number and types approved; a summary of each license approved; a summary of transactions conducted pursuant to a general license; the average amount of time from the date of filing for a license until the date of approval; and the extent to which the licensing procedures were effectively implemented. (Sec. 6) The Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 is amended to prohibit or impose strict conditions on the opening or maintaining in the United States of a correspondent account or a payable-through account by a foreign financial institution that facilitates Iran's support for Hezbollah, Hamas, the Palestinian Islamic Jihad, and any affiliates or successors. (Sec. 7) Defines "Joint Comprehensive Plan of Action" as the Joint Comprehensive Plan of Action, signed at Vienna July 14, 2015, by Iran and by China, France, Germany, the Russian Federation, the United Kingdom and the United States, with the High Representative of the European Union for Foreign Affairs and Security Policy, and all related implementing materials and agreements, and transmitted by the President to Congress on July 19, 2015, pursuant to section 135(a) of the Atomic Energy Act of 1954, as amended by the Iran Nuclear Agreement Review Act of 2015.