Iran Financial System Access Limitation Act of 2016

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Iran Financial System Access 
Limitation Act of 2016''.

SEC. 2. PROHIBITION ON CERTAIN TRANSACTIONS WITH IRAN AND BLOCKING OF 
              PROPERTY WITH RESPECT TO FOREIGN FINANCIAL INSTITUTIONS 
              THAT FACILITATE CERTAIN TRANSACTIONS WITH IRAN.

    (a) Findings; Sense of Congress.--
            (1) Findings.--Congress finds the following:
                    (A) A nuclear capable Iran poses a direct threat to 
                the United States and its allies around the world.
                    (B) Nothing in the Joint Comprehensive Plan of 
                Action obligates the United States to lift financial 
                sanctions with respect to Iran, and in fact, unilateral 
                sanctions have proven effective in achieving foreign 
                policy aims of the United States.
                    (C) Iran has violated United Nations Security 
                Council Resolutions 1929 (2010) and 2231 (2015), which 
                form the basis of the Joint Comprehensive Plan of 
                Action.
                    (D) The goal of imposing economic sanctions with 
                respect to Iran was to penalize Iran for its pursuit of 
                nuclear weapons for illicit purposes.
                    (E) In spite of the fact that Iran has violated the 
                resolutions specified in paragraph (3) and destroyed 
                the intent of the Joint Comprehensive Plan of Action, 
                President Barack Obama has voluntarily paid the 
                Government of Iran $1,700,000,000 in a settlement of a 
                claim before the Iran-United States Claims Tribunal.
                    (F) After giving the Government of Iran further 
                access to global assets, President Obama has now 
                indicated that he is prepared to give Iran access to 
                United States dollars.
                    (G) Continuing his governance by executive fiat, 
                President Obama is giving Iran access to United States 
                dollars in a manner that evades review by Congress.
                    (H) President Obama continues to let Iran dictate 
                the interpretation of the Joint Comprehensive Plan of 
                Action to the people of the United States.
                    (I) Secretary of the Treasury Jack Lew said to the 
                Senate last year that, ``Iranian banks will not be able 
                to clear U.S. dollars through New York'' and that 
                Iranian banks will not ``hold correspondent account 
                relationships with U.S. financial institutions, or 
                enter into financing arrangements with U.S. banks''.
                    (J) Granting access to the United States dollar 
                will strengthen the access of Iran to the global 
                financial system, increase the ability of Iran to 
                conduct illicit transactions in weapons trade, and 
                decrease the minor amount of leverage retained by the 
                United States Government to contain the nuclear 
                ambitions of Iran.
                    (K) The Government of Iran continues to funnel 
                large amounts of money and arms to terrorist 
                organizations that target citizens of the United States 
                and even limited access to United States dollars will 
                strengthen the ability of Iran to support those 
                organizations.
            (2) Sense of congress.--It is the sense of Congress that--
                    (A) because Secretary of State John Kerry and 
                President Obama have made inconsistent, conflicting 
                statements about allowing the Government of Iran to 
                access the United States dollar, Congress must act to 
                preempt any move to grant licenses resulting in access 
                to the United States dollar; and
                    (B) Congress must act in the interest of the people 
                of the United States to correct the unconstitutional 
                actions taken by President Obama with respect to Iran.
    (b) Prohibition of Certain Transactions.--
            (1) Issuance of licenses to conduct offshore dollar 
        clearing.--The President may not issue any license under the 
        International Emergency Economic Powers Act (50 U.S.C. 1701 et 
        seq.) to an offshore dollar clearing entity to conduct a 
        transaction with an Iranian financial institution in United 
        States dollars.
            (2) U-turn transactions.--Notwithstanding section 560.516 
        of title 31, Code of Federal Regulations (as in effect on the 
        day before the date of the enactment of this Act), a United 
        States person may not process any transfer of funds to or from 
        Iran, or for the direct or indirect benefit of persons in Iran 
        or the Government of Iran, even if the transfer arises from, 
        and is ordinarily incident and necessary to give effect to, an 
        underlying transaction.
    (c) Blocking of Property of Foreign Financial Institutions.--The 
President shall, in accordance with the International Emergency 
Economic Powers Act (50 U.S.C. 1701 et seq.), block and prohibit all 
transactions in all property and interests in property of any foreign 
financial institution that serves as an offshore dollar clearing entity 
to conduct a transaction with an Iranian financial institution in 
United States dollars if such property and interests in property 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) Report Before Providing Iran Access to the United States 
Dollar.--Not later than 30 days before the President implements any 
measure that would provide access to the United States dollar to the 
Government of Iran or an Iranian person, the President shall submit to 
Congress a report that describes the measure.
    (e) Termination.--This section shall terminate only on the date on 
which the President certifies to Congress that Iran is no longer a 
state sponsor of terrorism (as defined in section 301 of the 
Comprehensive Iran Sanctions, Accountability, and Divestment Act of 
2010 (22 U.S.C. 8541)).
    (f) Definitions.--In this section:
            (1) Foreign financial institution.--The term ``foreign 
        financial institution'' has the meaning of that term as 
        determined by the Secretary of the Treasury pursuant to section 
        104(i) of the Comprehensive Iran Sanctions, Accountability, and 
        Divestment Act of 2010 (22 U.S.C. 8513(i)).
            (2) Iranian financial institution.--The term ``Iranian 
        financial institution'' has the meaning given that term in 
        section 104A(d) of the Comprehensive Iran Sanctions, 
        Accountability, and Divestment Act of 2010 (22 U.S.C. 
        8513b(d)).

Summary: Iran Financial System Access Limitation Act of 2016 This bill expresses the sense of Congress that Congress must act to preempt any move to grant licenses resulting in Iran's access to the U.S. dollar.  The President may not issue a license to an offshore dollar-clearing entity to conduct a transaction in U.S. dollars with an Iranian financial institution.  A U.S. person may not process (in a U-turn transaction) any transfer of funds to or from Iran, or for the benefit of persons in Iran or the government of Iran, even if the transfer arises from, and is ordinarily incident and necessary to give effect to, an underlying transaction. The President shall block and prohibit transactions in all property and property interests of any foreign financial institution that serves as an offshore dollar clearing entity to conduct a transaction with an Iranian financial institution in U.S. dollars if such property and property interests are in the United States, come within the United States, or are or come within the possession or control of a U.S. person.