I 
114TH CONGRESS 
2D SESSION 
H. R. 4992 
To codify regulations relating to transfers of funds involving Iran, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 19, 2016 
Mr. ROYCE introduced the following bill; which was referred to the Committee 
on Financial Services 
A BILL 
To codify regulations relating to transfers of funds involving 
Iran, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘United States Finan-
cial System Protection Act of 2016’’. 
SEC. 2. FINDINGS, SENSE OF CONGRESS, AND STATEMENT 
OF POLICY. 
(a) FINDINGS.—Congress finds the following: 
(1) On November 8, 2011, the Department of 
the Treasury identified the Islamic Republic of Iran 
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as a jurisdiction of primary money laundering con-
cern pursuant to section 5318A of title 31, United 
States Code, including Iran’s Central Bank, private 
Iranian banks, branches, and subsidiaries of Iranian 
banks operating outside of Iran as posing illicit fi-
nance risks for the global financial system. 
(2) On November 6, 2008, the Department of 
the Treasury announced that it was revoking the 
‘‘U-turn’’ license for Iran, stating that ‘‘as a mem-
ber of the Financial Action Task Force (FATF), the 
United States today fulfilled its obligation to 
strengthen measures to protect the financial sector 
from the risks posed to the international financial 
system by Iran’’. 
(3) On February 19, 2016, the Financial Ac-
tion Task Force (FATF), the global standard set-
ting body for anti-money laundering and combating 
the financing of terrorism which has determined that 
Iran is a ‘‘non-cooperating country or territory’’ in 
the fight against money laundering and terror fi-
nancing since 2008, stated that, ‘‘the FATF re-
mains particularly and exceptionally concerned about 
Iran’s failure to address the risk of terrorist financ-
ing and the serious threat this poses to the integrity 
of the international financial system’’. 
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(4) United States and foreign businesses oper-
ating or seeking to operate in Iran run significant 
risks, as corruption in Iran is endemic, with Trans-
parency International ranking Iran 130 out of 168 
countries. 
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that the entire financial sector of Iran, including 
Iran’s Central Bank, private Iranian banks and branches, 
and subsidiaries of Iranian banks operating outside of 
Iran, poses illicit finance risks for the global financial sys-
tem due to its proliferation, support for terrorism, and 
other illicit conduct. 
(c) STATEMENT OF POLICY.—It shall be the policy 
of the United States to— 
(1) deny Iran access to funds denominated in 
United States dollars, including through any off-
shore United States dollar clearing system for trans-
actions involving the Government of Iran or an Ira-
nian person; and 
(2) deny Iran access to United States dollars 
through any offshore United States dollar clearing 
system conducted or overseen by a foreign govern-
ment or a foreign financial institution for trans-
actions involving the Government of Iran or an Ira-
nian person. 
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SEC. 3. CODIFICATION OF REGULATIONS RELATING TO 
TRANSFERS OF FUNDS INVOLVING IRAN; 
CLARIFICATION OF APPLICATION OF REGU-
LATIONS TO FOREIGN DEPOSITORY INSTITU-
TIONS AND FOREIGN REGISTERED BROKERS 
AND DEALERS. 
(a) 
CODIFICATION
OF
REGULATIONS.—Section 
560.516 of title 31, Code of Federal Regulations, as in 
effect on January 1, 2016, shall apply with respect to 
transfers of funds to or from Iran, or for the direct or 
indirect benefit of an Iranian person or the Government 
of Iran, for the period beginning on or after January 1, 
2016, and ending on the date on which the President 
makes the certification to the appropriate congressional 
committees under section 401(a) of the Comprehensive 
Iran Sanctions, Accountability, and Divestment Act of 
2010 (22 U.S.C. 8551(a)). 
(b) CLARIFICATION OF APPLICATION OF REGULA-
TIONS TO FOREIGN FINANCIAL INSTITUTIONS AND FOR-
EIGN REGISTERED BROKERS AND DEALERS.— 
(1) FOREIGN FINANCIAL INSTITUTIONS.—Sub-
section (a) of section 560.516 of title 31, Code of 
Federal Regulations, as in effect on January 1, 
2016, shall apply with respect to foreign financial 
institutions to the same extent and in the same 
manner as such subsection applies with respect to 
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United States depository institutions if the funds 
that are to be transferred as described in such sub-
section are funds that are denominated in United 
States dollars. 
(2) FOREIGN REGISTERED BROKERS AND DEAL-
ERS.—Subsection (b) of section 560.516 of title 31, 
Code of Federal Regulations, as in effect on January 
1, 2016, shall apply with respect to foreign reg-
istered brokers or dealers in securities to the same 
extent and in the same manner as such subsection 
applies with respect to United States registered bro-
kers or dealers in securities if the funds that are to 
be transferred as described in such subsection are 
funds that are denominated in United States dollars. 
(3) SUSPENSION.—The President may suspend 
the application of paragraph (1) with respect to a 
foreign financial institution or the application of 
paragraph (2) with respect to a foreign registered 
broker or dealer in securities for a period not to ex-
ceed 60 days, and the President may renew the sus-
pension of the application of paragraph (1) or para-
graph (2), respectively, for additional periods of not 
more than 60 days, on and after the date on which 
the President certifies to the appropriate congres-
sional committees that during the preceding 60-day 
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period the Government of Iran is in compliance with 
the criteria described in section 401(a)(1) of the 
Comprehensive Iran Sanctions, Accountability, and 
Divestment Act of 2010 (22 U.S.C. 8551(a)(1)). 
(c) LICENSING RESTRICTIONS.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the President may not issue any license 
under the International Emergency Economic Pow-
ers Act (50 U.S.C. 1701 et seq.) or provide other 
guidance, including executive actions, rules, regula-
tions, frequently asked questions, written commu-
nications, or any other commitments, that permits— 
(A) a United States depository institution 
or United States registered broker or dealer in 
securities— 
(i) to conduct an offshore United 
States dollar clearing system for trans-
actions involving or for the benefit of the 
Government of Iran or an Iranian person, 
including to process transfers of funds to 
or from Iran under section 560.516 of title 
31, Code of Federal Regulations, as in ef-
fect on January 1, 2016; or 
(ii) to provide United States dollars 
for any offshore United States dollar clear-
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ing system conducted or overseen by a for-
eign government or a foreign financial in-
stitution for transactions involving or for 
the benefit of the Government of Iran or 
an Iranian person, including to process 
transfers of funds to or from Iran under 
section 560.516 of title 31, Code of Fed-
eral Regulations, as in effect on January 
1, 2016; or 
(B) a foreign financial institution or for-
eign registered broker or dealer in securities— 
(i) to conduct an offshore United 
States dollar clearing system for trans-
actions involving or for the benefit of the 
Government of Iran or an Iranian person, 
including to process transfers of funds to 
or from Iran under section 560.516 of title 
31, Code of Federal Regulations, as in ef-
fect on January 1, 2016, and as applied 
under subsection (b); or 
(ii) to provide United States dollars 
for any offshore United States dollar clear-
ing system conducted or overseen by a for-
eign government or a foreign financial in-
stitution for transactions involving or for 
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(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) the Committee on Foreign Affairs and 
the Committee on Financial Services of the 
House of Representatives; and 
(B) the Committee on Foreign Relations 
and the Committee on Banking, Housing, and 
Urban Affairs of the Senate. 
(2) FOREIGN
FINANCIAL
INSTITUTION.—The 
term ‘‘foreign financial institution’’ has the meaning 
given such term in section 1010.605 of title 31, 
Code of Federal Regulations, as in effect on January 
1, 2016. 
(3) IRAN.—The term ‘‘Iran’’ has the meaning 
given the term in section 561.329 of title 31, Code 
of Federal Regulations, as in effect on January 1, 
2016. 
(4) IRANIAN PERSON.—The term ‘‘Iranian per-
son’’ means a person or entity (as such terms are 
defined in section 560.305 of title 31, Code of Fed-
eral Regulations, as in effect on January 1, 2016) 
that— 
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(A) is organized under the laws of Iran or 
any jurisdiction within Iran (including foreign 
branches); or 
(B) is a person in Iran. 
(5) TRANSFER OF FUNDS.—The term ‘‘transfer 
of funds’’— 
(A) has the meaning given the term ‘‘funds 
transfer’’ in section 1010.100 of title 31, Code 
of Federal Regulations, as in effect on January 
1, 2016; and 
(B) includes a transfer of funds or other 
property for the benefit of an Iranian financial 
institution that is made between accounts of the 
same financial institution even if that Iranian 
financial institution is not the direct recipient 
of the transfer. 
(6) UNITED
STATES
DEPOSITORY
INSTITU-
TION.—The term ‘‘United States depository institu-
tion’’ has the meaning given such term in section 
560.319 of title 31, Code of Federal Regulations, as 
in effect on January 1, 2016. 
(7) UNITED STATES REGISTERED BROKER OR 
DEALER IN SECURITIES.—The term ‘‘United States 
registered broker or dealers in securities’’ has the 
meaning given such term in section 560.321 of title 
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31, Code of Federal Regulations, as in effect on 
January 1, 2016. 
SEC. 4. CERTIFICATION REQUIREMENT FOR REMOVAL OF 
DESIGNATION OF IRAN AS A JURISDICTION 
OF PRIMARY MONEY LAUNDERING CONCERN. 
(a) IN GENERAL.—The President may not rescind a 
preliminary draft rule or final rule (as in effect on the 
day before the date of the enactment of this Act) that pro-
vides for the designation of Iran as a jurisdiction of pri-
mary money laundering concern pursuant to section 
5318A of title 31, United States Code, unless the Presi-
dent submits to the appropriate congressional committees 
a certification described in subsection (b) with respect to 
Iran. 
(b) CERTIFICATION.—The President may rescind a 
preliminary draft rule or final rule described in subsection 
(a) if the President submits to the appropriate congres-
sional 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 decep-
tive financial activities. 
(c) FORM.—The certification described in subsection 
(b) shall be submitted in unclassified form, but may con-
tain a classified annex. 
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(d) DEFINITION.—In this section, the term ‘‘appro-
priate congressional committees’’ means— 
(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. 
Æ 
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