H. R. 1540—347 
(B) the Committee on Foreign Affairs of the House 
of Representatives and the Committee on Foreign Relations 
of the Senate; and 
(C) the Permanent Select Committee on Intelligence 
of the House of Representatives and the Select Committee 
on Intelligence of the Senate. 
(2) NEW START TREATY.—The term ‘‘New START Treaty’’ 
means the Treaty between the United States of America and 
the Russian Federation on Measures for the Further Reduction 
and Limitation of Strategic Offensive Arms, signed on April 
8, 2010. 
SEC. 1241. REPORT ON PROGRESS OF THE AFRICAN UNION IN 
OPERATIONALIZING THE AFRICAN STANDBY FORCE. 
(a) REPORT REQUIRED.—Not later than 180 days after the date 
of the enactment of this Act, the Under Secretary of Defense for 
Policy shall submit to the Committees on Armed Services of the 
Senate and the House of Representatives a report on the progress 
of the African Union in operationalizing the African Standby Force. 
(b) ELEMENTS.—The report required by subsection (a) shall 
include the following: 
(1) An assessment of the existing personnel strengths and 
capabilities of each of the five regional brigades of the African 
Standby Force and their brigade-level headquarters. 
(2) An assessment of the specific capacity-building needs 
of the African Standby Force, including with respect to supply 
management, information management, strategic planning, and 
other critical components. 
(3) A description of the functionality of the supply depots 
of each brigade referred to in paragraph (1), and current 
information on existing stocks of each such brigade. 
(4) An assessment of the capacity of the African Union 
to manage the African Standby Force. 
(5) An assessment of inter-organizational coordination on 
assistance to the African Union and the African Standby Force 
between multilateral donors, including the United Nations, the 
European Union, and the North Atlantic Treaty Organization. 
(6) An assessment of the capacity of the African Union 
to absorb additional international assistance toward the 
development of a fully functional African Standby Force. 
SEC. 1242. DEFENSE COOPERATION WITH REPUBLIC OF GEORGIA. 
(a) PLAN FOR NORMALIZATION.—Not later than 90 days after 
the date of the enactment of this Act, the Secretary of Defense 
shall, with the concurrence of the Secretary of State, develop and 
submit to the congressional defense committees and the Committee 
on Foreign Relations of the Senate and the Committee on Foreign 
Affairs of the House of Representatives a plan for the normalization 
of United States defense cooperation with the Republic of Georgia, 
including the sale of defensive arms. 
(b) OBJECTIVES.—The plan required under subsection (a) shall 
address the following objectives: 
(1) To establish a normalized defense cooperation relation-
ship between the United States and the Republic of Georgia, 
taking into consideration the progress of the Government of 
the Republic of Georgia on democratic and economic reforms 
and the capacity of the Georgian armed forces.
H. R. 1540—348 
(2) To support the Government of the Republic of Georgia 
in providing for the defense of its government, people, and 
sovereign territory, consistent with the continuing commitment 
of the Government of the Republic of Georgia to its non-use- 
of-force pledge and consistent with Article 51 of the Charter 
of the United Nations. 
(3) To provide for the sale by the United States of defense 
articles and services in support of the efforts of the Government 
of the Republic of Georgia to provide for its own self-defense 
consistent with paragraphs (1) and (2). 
(4) To continue to enhance the ability of the Government 
of the Republic of Georgia to participate in coalition operations 
and meet NATO partnership goals. 
(5) To encourage NATO member and candidate countries 
to restore and enhance their sales of defensive articles and 
services to the Republic of Georgia as part of a broader NATO 
effort to deepen its defense relationship and cooperation with 
the Republic of Georgia. 
(6) To ensure maximum transparency in the United States- 
Georgia defense relationship. 
(c) INCLUDED INFORMATION.—The plan required under sub-
section (a) shall include the following information: 
(1) A needs-based assessment, or an update to an existing 
needs-based assessment, of the defense requirements of the 
Republic of Georgia, which shall be prepared by the Department 
of Defense. 
(2) A description of each of the letters of offer and accept-
ance by the Government of the Republic of Georgia for purchase 
of defense articles and services during the two-year period 
ending on the date of the report. 
(3) A summary of the defense needs asserted by the Govern-
ment of the Republic of Georgia as justification for its requests 
for defensive arms purchases. 
(4) A description of the action taken on any defensive 
arms sale request by the Government of the Republic of Georgia 
and an explanation for such action. 
(d) FORM.—The plan required under subsection (a) shall be 
submitted in unclassified form, but may contain a classified annex. 
SEC. 1243. PROHIBITION ON PROCUREMENTS FROM COMMUNIST CHI-
NESE MILITARY COMPANIES. 
(a) WAIVER AUTHORIZED.—Subsection (c) of section 1211 of the 
National Defense Authorization Act for Fiscal Year 2006 (Public 
Law 109–163; 119 Stat. 3461; 10 U.S.C. 2302 note) is amended 
to read as follows: 
‘‘(c) WAIVER AUTHORIZED.—The Secretary of Defense may waive 
the prohibition in subsection (a) if the Secretary determines that 
such a waiver is necessary for national security purposes and the 
Secretary submits to the congressional defense committees a report 
described in subsection (d) not less than 15 days before issuing 
the waiver under this subsection.’’. 
(b) REPORT.—Such section is amended— 
(1) by redesignating subsection (d) as subsection (e); and 
(2) by inserting after subsection (c) the following: 
‘‘(d) REPORT.—The report referred to in subsection (c) is a 
report that identifies the specific reasons for the waiver issued 
under subsection (c) and includes recommendations as to what
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actions may be taken to develop alternative sourcing capabilities 
in the future.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
take effect on the date of the enactment of this Act and apply 
with respect to contracts and subcontracts of the Department of 
Defense entered into on or after the date of the enactment of 
this Act. 
SEC. 1244. SHARING OF CLASSIFIED UNITED STATES BALLISTIC MIS-
SILE DEFENSE INFORMATION WITH THE RUSSIAN FED-
ERATION. 
(a) NOTIFICATION.—No classified United States ballistic missile 
defense information may be made available to the Russian Federa-
tion unless, 60 days prior to any instance in which the United 
States Government plans to provide such information to the Russian 
Federation, the President provides notification thereof to the appro-
priate congressional committees. 
(b) ELEMENTS
OF NOTIFICATION.—Each notification provided 
pursuant to subsection (a) shall include the following: 
(1) A detailed description of the classified United States 
ballistic missile defense information to be provided. 
(2) An explanation of the national security interest in pro-
viding the information to the Russian Federation and any provi-
sions for reciprocal sharing by the Russian Federation with 
the United States on its defensive systems. 
(3) A certification that providing the information is con-
sistent with United States national disclosure policy as of the 
date of enactment of this Act and that the decision to provide 
the information was made pursuant to a national disclosure 
policy review. 
(4) If applicable, a detailed explanation of whether any 
exceptions to national disclosure policy were required in order 
to provide the information to the Russian Federation and why 
such exceptions were required. 
(5) A certification that adequate measures are in place 
to protect the information from unauthorized disclosure. The 
certification shall include a description of the manner in which 
the information will be protected from unauthorized sharing 
or transfer to third parties as well as an analysis of the risks 
to the capabilities of the United States ballistic missile defense 
system if the information is shared or transferred to an 
unauthorized third party. 
(c) FORM.—Each notification provided pursuant to subsection 
(a) shall be submitted in unclassified form, but may include a 
classified annex. 
(d) APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.—For 
the purposes of this section, the term ‘‘appropriate congressional 
committees’’ means— 
(1) the Committee on Armed Services and the Committee 
on Foreign Relations of the Senate; and 
(2) the Committee on Armed Services and the Committee 
on Foreign Affairs of the House of Representatives. 
(e) CLASSIFIED UNITED STATES BALLISTIC MISSILE DEFENSE 
INFORMATION DEFINED.—For the purposes of this section, the term 
‘‘classified United States ballistic missile defense information’’ 
means information related to United States ballistic missile
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defenses that is classified as of, or after, the date of enactment 
of this Act. 
SEC. 1245. IMPOSITION OF SANCTIONS WITH RESPECT TO THE FINAN-
CIAL SECTOR OF IRAN. 
(a) FINDINGS.—Congress makes the following findings: 
(1) On November 21, 2011, the Secretary of the Treasury 
issued a finding under section 5318A of title 31, United States 
Code, that identified Iran as a jurisdiction of primary money 
laundering concern. 
(2) In that finding, the Financial Crimes Enforcement Net-
work of the Department of the Treasury wrote, ‘‘The Central 
Bank of Iran, which regulates Iranian banks, has assisted 
designated Iranian banks by transferring billions of dollars 
to these banks in 2011. In mid-2011, the CBI transferred sev-
eral billion dollars to designated banks, including Saderat, 
Mellat, EDBI and Melli, through a variety of payment schemes. 
In making these transfers, the CBI attempted to evade sanc-
tions by minimizing the direct involvement of large inter-
national banks with both CBI and designated Iranian banks.’’. 
(3) On November 22, 2011, the Under Secretary of the 
Treasury for Terrorism and Financial Intelligence, David 
Cohen, wrote, ‘‘Treasury is calling out the entire Iranian 
banking sector, including the Central Bank of Iran, as posing 
terrorist financing, proliferation financing, and money laun-
dering risks for the global financial system.’’. 
(b) DESIGNATION OF FINANCIAL SECTOR OF IRAN AS OF PRIMARY 
MONEY
LAUNDERING
CONCERN.—The financial sector of Iran, 
including the Central Bank of Iran, is designated as a primary 
money laundering concern for purposes of section 5318A of title 
31, United States Code, because of the threat to government and 
financial institutions resulting from the illicit activities of the 
Government of Iran, including its pursuit of nuclear weapons, sup-
port for international terrorism, and efforts to deceive responsible 
financial institutions and evade sanctions. 
(c) FREEZING OF ASSETS OF IRANIAN FINANCIAL INSTITUTIONS.— 
The President shall, pursuant to the International Emergency Eco-
nomic Powers Act (50 U.S.C. 1701 et seq.), block and prohibit 
all transactions in all property and interests in property of an 
Iranian financial institution if such property and interests in prop-
erty are in the United States, come within the United States, 
or are or come within the possession or control of a United States 
person. 
(d) IMPOSITION OF SANCTIONS WITH RESPECT TO THE CENTRAL 
BANK OF IRAN AND OTHER IRANIAN FINANCIAL INSTITUTIONS.— 
(1) IN GENERAL.—Except as specifically provided in this 
subsection, beginning on the date that is 60 days after the 
date of the enactment of this Act, the President— 
(A) shall prohibit the opening, and prohibit or impose 
strict conditions on the maintaining, in the United States 
of a correspondent account or a payable-through account 
by a foreign financial institution that the President deter-
mines has knowingly conducted or facilitated any signifi-
cant financial transaction with the Central Bank of Iran 
or another Iranian financial institution designated by the 
Secretary of the Treasury for the imposition of sanctions