IIB 
114TH CONGRESS 
2D SESSION 
H. R. 4992 
IN THE SENATE OF THE UNITED STATES 
JULY 14, 2016 
Received; read twice and referred to the Committee on Banking, Housing, and 
Urban Affairs 
AN ACT 
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, 
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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 
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 
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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’’. 
(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-
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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. 
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)). 
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(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 
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 
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