Title: Strengthening Oversight of Iran's Access to Finance Act
Policy area: Foreign Trade and International Finance

Summary:
Strengthening Oversight of Iran's Access to Finance Act
This bill directs the Department of the Treasury, not later than 30 days after authorizing a U. S. or foreign financial institution to export or re-export a commercial passenger aircraft to Iran (or, for an authorization made after January 16, 2016, but before the enactment of this bill, not later than 60 days after such enactment) and every 180 days thereafter for the duration of the authorization, to submit to Congress a report containing:
The President may waive the requirements of this bill for up to one year at a time upon certifying to Congress that:

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4324 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 4324

 To require the Secretary of the Treasury to make certifications with 
 respect to United States and foreign financial institutions' aircraft-
      related transactions involving Iran, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 9, 2017

 Mr. Williams introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
 To require the Secretary of the Treasury to make certifications with 
 respect to United States and foreign financial institutions' aircraft-
      related transactions involving Iran, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Strengthening Oversight of Iran's 
Access to Finance Act''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) Under the Joint Comprehensive Plan of Action (JCPOA), 
        informally known as the Iran nuclear deal, the Obama 
        administration agreed to license the sale of commercial 
        passenger aircraft to Iran, the world's foremost state sponsor 
        of terrorism and a jurisdiction of primary money laundering 
        concern.
            (2) In April 2015, prior to the adoption of the JCPOA, 
        Secretary of the Treasury Jacob Lew, in publicly advocating for 
        its provisions, stated: ``Make no mistake: deal or no deal, we 
        will continue to use all our available tools, including 
        sanctions, to counter Iran's menacing behavior. Iran knows that 
        our host of sanctions focused on its support for terrorism and 
        its violations of human rights are not, and have never been, up 
        for discussion.''.
            (3) In March 2016 remarks to the Carnegie Endowment for 
        International Peace, Secretary Lew, in reference to U.S. 
        commitments under the JCPOA, stated: ``While we have lifted the 
        nuclear sanctions, we continue to enforce sanctions directed at 
        support for terrorism and regional destabilization, and missile 
        and human rights violations.''.
            (4) In an April 2016 forum at the Council on Foreign 
        Relations, Secretary Lew stated that, under the JCPOA, the U.S. 
        committed to lifting its nuclear sanctions, ``but the U.S. 
        financial system is not open to Iran, and that is not something 
        that is going to change''.
            (5) In September 2016, the Department of the Treasury's 
        Office of Foreign Assets Control (OFAC) issued licenses 
        permitting the export of up to 97 aircraft for use by Iran Air, 
        the Islamic Republic of Iran's flagship state-owned carrier. 
        These licenses included authorization for U.S. financial 
        institutions ``to engage in all transactions necessary to 
        provide financing or other financial services'' in order to 
        effectuate the sales. In November 2016, OFAC licensed an 
        additional 106 aircraft for purchase by Iran Air, which are 
        also eligible for financing authorized by OFAC.
            (6) The Department of the Treasury had sanctioned Iran Air 
        in 2011 for its use of commercial passenger aircraft to 
        transport rockets, missiles, and other military cargo on behalf 
        of the Islamic Revolutionary Guard Corps (IRGC) and Iran's 
        Ministry of Defense and Armed Forces Logistics, both of which 
        had been designated under Executive Order 13382 for weapons 
        proliferation-related activities. In October 2017, the IRGC 
        went on to be designated under Executive Order 13224 for its 
        support of the IRGC-Qods Force, which has provided support to 
        terrorist groups such as Hizballah, Hamas, and the Taliban.
            (7) Among Iran Air's sanctionable activities, the airline 
        delivered missile or rocket components to the Assad government 
        in Syria, which like Iran is classified as a state sponsor 
        terrorism.
            (8) The Assad regime is responsible for a civil conflict 
        that has claimed an estimated 400,000 lives, including through 
        the government's deployment of chemical weapons and barrel 
        bombs against unarmed civilians and children.
            (9) Despite being delisted in 2016, Iran Air has continued 
        to fly known weapons resupply routes to government-controlled 
        areas of Syria. According to research by the Foundation for 
        Defense of Democracies, between Implementation Day of the JCPOA 
        on January 16, 2016 and May 4, 2017, Iran Air operated at least 
        134 flights to Syria, which included stops in Abadan, Iran, a 
        suspected IRGC logistical hub for airlifts to the Assad regime.
            (10) In November 2016 correspondence to the Chairman of the 
        House Committee on Financial Services, the Department of the 
        Treasury noted that the commitment to delist Iran Air under the 
        JCPOA ``does not affect our ability to designate, or re-
        designate, any Iranian airline that engages in sanctionable 
        activity. The United States retains the ability to designate 
        any individual or entity that engages in sanctionable 
        activities under our authorities targeting conduct outside the 
        scope of the JCPOA, including Iran's support for terrorism, 
        human rights abuses, ballistic missile program, and other 
        destabilizing activities in the region.''.
            (11) In April 2017, Iran announced a deal for Aseman 
        Airlines to purchase up to 60 commercial aircraft, a 
        transaction that would require authorization by OFAC. Aseman 
        Airlines' chief executive officer, Hossein Alaei, has for 
        decades served as a senior member of the IRGC.

SEC. 3. CERTIFICATIONS FOR AIRCRAFT-RELATED TRANSACTIONS BY UNITED 
              STATES AND FOREIGN FINANCIAL INSTITUTIONS.

    (a) In General.--Not later than 30 days after authorizing a 
transaction by a United States or foreign financial institution in 
connection with the export or re-export of a commercial passenger 
aircraft to Iran (or, for an authorization made after January 16, 2016 
but before the date of the enactment of this Act, not later than 60 
days after such date of enactment), and every 180 days thereafter for 
the duration of the authorization, the Secretary of the Treasury shall 
submit the report described under subsection (b) to the appropriate 
congressional committees.
    (b) Report With Respect to Financial Institutions' Iran-Related 
Transactions and Due Diligence.--With respect to a financial 
institution and a transaction described under subsection (a), a report 
is described under this subsection if it contains--
            (1) a list of financial institutions that, since January 
        16, 2016, have conducted transactions authorized by the 
        Secretary in connection with the export or re-export of 
        commercial passenger aircraft to Iran;
            (2) either--
                    (A) a certification that--
                            (i) the transaction does not pose a 
                        significant money laundering or terrorism 
                        financing risk to the United States financial 
                        system;
                            (ii) the transaction will not benefit an 
                        Iranian person that, since the date that is one 
                        year preceding the date of the certification--
                                    (I) has knowingly transported items 
                                used for the proliferation of weapons 
                                of mass destruction, including systems 
                                designed in whole or in part for the 
                                delivery of such weapons; or
                                    (II) has knowingly provided 
                                transportation services or material 
                                support for, or on behalf of, any 
                                person designated under Executive 
                                Orders 13224, 13382, or 13572; and
                            (iii) any financial institution described 
                        under subsection (b)(1) has had since the date 
                        such authorization was made, or, if the 
                        authorization is no longer in effect, had for 
                        the duration of such authorization, appropriate 
                        policies, procedures, and processes in place to 
                        avoid engaging in sanctionable activities that 
                        may result from the financial institutions' 
                        exposure to Iran; or
                    (B) a statement that the Secretary is unable to 
                make the certification described under subparagraph (A) 
                and a notice that the Secretary will, not later than 60 
                days after the date the determination is submitted to 
                the appropriate congressional committees, issue a 
                report on non-certification described under subsection 
                (c) to the appropriate congressional committees.
    (c) Report on Non-Certification.--With respect to a financial 
institution and a transaction described under subsection (a), a report 
on non-certification is described under this subsection if it 
contains--
            (1) a detailed explanation for why the Secretary is unable 
        to make the certification described under subsection (b)(2);
            (2) a notification of whether the Secretary will--
                    (A) not amend the authorization of the transaction 
                with respect to a financial institution, 
                notwithstanding such non-certification;
                    (B) suspend the authorization until the Secretary 
                is able to make such certification;
                    (C) revoke the authorization; or
                    (D) otherwise amend the authorization; and
            (3) an explanation of the reasons for any action to be 
        taken described under paragraph (2).
    (d) Waiver.--The President may waive, on a case-by-case basis, the 
provisions of this Act for up to one year at a time upon certifying to 
the appropriate congressional committees that--
            (1) the Government of Iran has--
                    (A) made substantial progress towards combating 
                money laundering and terrorism financing risk emanating 
                from Iran; or
                    (B) has significantly reduced Iran's--
                            (i) destabilizing activities in the region; 
                        or
                            (ii) material support for terrorist groups; 
                        or
            (2) such waiver is important to the national security 
        interests of the United States, with an explanation of the 
        reasons therefor.
    (e) Termination.--This section shall cease to be effective on the 
date that is 30 days after the date on which the President certifies to 
the appropriate congressional committees that--
            (1)(A) the Secretary does not find, under section 5318A of 
        title 31, United States Code, that reasonable grounds exist for 
        concluding that Iran is a jurisdiction of primary money 
        laundering concern; and
            (B) Iran has ceased providing support for acts of 
        international terrorism; or
            (2) terminating the provisions of this section is vital to 
        the national security interests of the United States, with an 
        explanation of the reasons therefor.
    (f) Definitions.--For purposes of this section:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the committees 
        on Financial Services and Foreign Affairs of the House of 
        Representatives and the committees on Banking, Housing, and 
        Urban Affairs and Foreign Relations of the Senate.
            (2) Financial institution.--The term ``financial 
        institution'' means a United States financial institution or a 
        foreign financial institution.
            (3) Foreign financial institution.--The term ``foreign 
        financial institution'' has the meaning given that term under 
        section 561.308 of title 31, Code of Federal Regulations.
            (4) Knowingly.--The term ``knowingly'' with respect to 
        conduct, a circumstance, or a result, means that a person has 
        actual knowledge, or should have known, of the conduct, the 
        circumstance, or the result.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
            (6) United states financial institution.--The term ``United 
        States financial institution'' has the meaning given the term 
        ``U.S. financial institution'' under section 561.309 of title 
        31, Code of Federal Regulations.
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