I 
113TH CONGRESS 
2D SESSION 
H. R. 5431 
To impose sanctions on foreign financial institutions that engage in certain 
transactions with the Islamic State of Iraq and Syria, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 10, 2014 
Mr. FITZPATRICK introduced the following bill; which was referred to the 
Committee on Foreign Affairs, and in addition to the Committees on 
Oversight and Government Reform and Financial Services, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To impose sanctions on foreign financial institutions that 
engage in certain transactions with the Islamic State 
of Iraq and Syria, 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 ‘‘Isolating ISIS Act’’. 
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SEC. 2. SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL 
INSTITUTIONS THAT ENGAGE IN CERTAIN 
TRANSACTIONS. 
(a) PROHIBITIONS AND CONDITIONS WITH RESPECT 
TO CERTAIN ACCOUNTS HELD BY FOREIGN FINANCIAL 
INSTITUTIONS.— 
(1) IN
GENERAL.—Not later than 120 days 
after the date of the enactment of this Act, the Sec-
retary of the Treasury, in consultation with the Sec-
retary of State and the heads of other applicable 
Federal departments and agencies, shall prohibit, or 
impose strict conditions on, the opening or maintain-
ing in the United States of a correspondent account 
or a payable-through account by a foreign financial 
institution that the Secretary of the Treasury deter-
mines, on or after the date of the enactment of this 
Act, engages in an activity described in paragraph 
(2). 
(2) ACTIVITIES DESCRIBED.—A foreign finan-
cial institution engages in an activity described in 
this paragraph if the foreign financial institution— 
(A) knowingly facilitates a transaction or 
transactions for the Islamic State of Iraq and 
Syria; 
(B) knowingly facilitates a transaction or 
transactions of a person designated for acting 
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on behalf of or at the direction of, or owned or 
controlled by, the Islamic State of Iraq and 
Syria; 
(C) knowingly engages in money laun-
dering to carry out an activity described in sub-
paragraph (A) or (B); 
(D) knowingly facilitates a transaction or 
transactions or provides financial services to 
carry out an activity described in subparagraph 
(A), (B), or (C), including— 
(i) facilitating a transaction or trans-
actions; or 
(ii) providing financial services that 
involve a transaction of any goods; or 
(E)(i) knowingly facilitates, or participates 
or assists in, an activity described in subpara-
graph (A), (B), (C), or (D), including by acting 
on behalf of, at the direction of, or as an inter-
mediary for, or otherwise assisting, another per-
son with respect to the activity described in any 
such subparagraph; 
(ii) knowingly attempts or conspires to fa-
cilitate or participate in an activity described in 
subparagraph (A), (B), (C), or (D); or 
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(iii) is owned or controlled by a foreign fi-
nancial institution that the Secretary finds 
knowingly engages in an activity described in 
subparagraph (A), (B), (C), or (D). 
(3) PENALTIES.—The penalties provided for in 
subsections (b) and (c) of section 206 of the Inter-
national Emergency Economic Powers Act (50 
U.S.C. 1705) shall apply to a person that violates, 
attempts to violate, conspires to violate, or causes a 
violation of the prohibition or strict conditions re-
ferred to in paragraph (1) of this subsection to the 
same extent that such penalties apply to a person 
that commits an unlawful act described in subsection 
(a) of such section 206. 
(4) REGULATIONS.—The Secretary of the 
Treasury shall prescribe and implement regulations 
to carry out this subsection. 
(b) WAIVER.— 
(1) IN GENERAL.—The Secretary of the Treas-
ury, in consultation with the Secretary of State and 
the heads of other applicable Federal departments 
and agencies, may waive, on a case-by-case basis, 
the application of a prohibition or condition imposed 
with respect to a foreign financial institution pursu-
ant to subsection (a) for a period of not more than 
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180 days, and may renew that waiver for additional 
periods of not more than 180 days, on and after the 
date that the Secretary of the Treasury, in consulta-
tion with the Secretary of State— 
(A) determines that such a waiver is in the 
national security interests of the United States; 
and 
(B) submits to the appropriate congres-
sional committees a report describing the rea-
sons for the determination. 
(2) FORM.—The report required by subpara-
graph (1) shall be submitted in unclassified form, 
but may contain a classified annex. 
(c) PROVISIONS RELATING TO FOREIGN FINANCIAL 
INSTITUTIONS.— 
(1) REPORT.—Not later than 45 days after the 
date of the enactment of this Act and every 180 
days thereafter, the Secretary of the Treasury shall 
submit to the appropriate congressional committees 
a report that— 
(A) identifies each foreign central bank 
that the Secretary determines engages in one or 
more 
activities 
described 
in 
subsection 
(a)(2)(D); and 
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(B) provides a detailed description of each 
such activity. 
(2) SPECIAL
RULE
TO
ALLOW
FOR
TERMI-
NATION
OF
SANCTIONABLE
ACTIVITY.—The Sec-
retary of the Treasury shall not be required to apply 
sanctions to a foreign financial institution described 
in subsection (a) if the Secretary of the Treasury, in 
consultation with the Secretary of State and the 
heads of other applicable Federal departments and 
agencies, certifies in writing to the appropriate con-
gressional committees that— 
(A) the foreign financial institution— 
(i) is no longer engaging in an activity 
described in subsection (a)(2); or 
(ii) has taken and is continuing to 
take significant verifiable steps toward ter-
minating the activity described in sub-
section (a)(2); and 
(B) the Secretary has received reliable as-
surances from the government with primary ju-
risdiction over the foreign financial institution 
that the foreign financial institution will not en-
gage in any activity described in subsection 
(a)(2) in the future. 
(d) DEFINITIONS.— 
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(1) IN GENERAL.—In this section: 
(A) ACCOUNT; CORRESPONDENT ACCOUNT; 
PAYABLE-THROUGH ACCOUNT.—The terms ‘‘ac-
count’’, ‘‘correspondent account’’, and ‘‘payable- 
through account’’ have the meanings given 
those terms in section 5318A of title 31, United 
States Code. 
(B) FINANCIAL
INSTITUTION.—The term 
‘‘financial institution’’ means a financial insti-
tution specified in subparagraph (A), (B), (C), 
(D), (E), (F), (G), (H), (I), (J), (K), (M), (N), 
(P), (R), (T), (Y), or (Z) of section 5312(a)(2) 
of title 31, United States Code. 
(C) FOREIGN FINANCIAL INSTITUTION.— 
The term ‘‘foreign financial institution’’ has the 
meaning of such term in section 1010.605 of 
title 31, Code of Federal Regulations, and in-
cludes a foreign central bank. 
(D) 
MONEY
LAUNDERING.—The 
term 
‘‘money laundering’’ means any of the activities 
described in paragraph (1), (2), or (3) of sec-
tion 1956(a) of title 18, United States Code, 
with respect to which penalties may be imposed 
pursuant to such section. 
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(2) OTHER
DEFINITIONS.—The Secretary of 
the Treasury may further define the terms used in 
this section in the regulations prescribed under this 
section. 
SEC. 3. IMPOSITION OF SANCTIONS WITH RESPECT TO 
UNITED STATES PERSONS THAT ENGAGE IN 
TRANSACTIONS 
WITH 
CERTAIN 
FOREIGN 
PERSONS. 
(a) IN GENERAL.—The President shall impose sanc-
tions in accordance with subsection (c) with respect to 
each person on the list required by subsection (b). 
(b) LIST.— 
(1) IN GENERAL.—Not later than 90 days after 
the date of the enactment of this Act, the President 
shall submit to the appropriate congressional com-
mittees a list of United States persons that the 
President determines have knowingly engaged in an 
activity described in paragraph (2) on or after such 
date of enactment. 
(2) ACTIVITY DESCRIBED.— 
(A) IN GENERAL.—A person engages in an 
activity described in this paragraph if the per-
son knowingly engages in a transaction or 
transactions with a foreign person that trans-
fers or receives, or facilitates the transfer or re-
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