Preventing Iran's Access to United States Dollars Act of 2016

Bill: 114-hr-4995
Sponsor: full_name: Rep. Roskam, Peter J. [R-IL-6]
Introduced: 2016-04-19
Policy area: International Affairs
Subjects: Bank accounts, deposits, capital

Congressional oversight

Currency

Foreign and international banking

Foreign property

Iran

Licensing and registrations

Middle East

Presidents and presidential powers, Vice Presidents

Sanctions

War and emergency powers
Latest action: action_date: 2016-04-19
text: Referred to the Committee on Foreign Affairs, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Summaries:
action_date: 2016-04-19
action_desc: Introduced in House
text: <p><strong>Preventing Iran's Access to United States Dollars Act of 2016</strong></p> <p>This bill prohibits the President from issuing a license that permits a person to: </p> <ul> <li>conduct an offshore U.S. dollar clearing system for transactions involving the government of Iran or an Iranian person, or </li> <li>provide U.S. dollars for any offshore U.S. dollar clearing system conducted by a foreign government or a foreign financial institution for transactions involving the government of Iran or an Iranian person.</li> </ul> <p>The Department of the Treasury shall report to Congress:</p> <ul> <li>a list of financial institutions operating or participating in an offshore U.S. dollar clearing system that conducts transactions involving the government of Iran or an Iranian person, and </li> <li>an assessment of Treasury efforts to prevent such transactions. </li> </ul> <p>The President shall block and prohibit all transactions in property and property interests of any listed institution if the property and interests: (1) are in the United States, (2) come within the United States, or (3) are or come within the possession or control of a U.S. person. The President may impose additional sanctions pursuant to the International Emergency Economic Powers Act.</p> <p>The National Defense Authorization Act for Fiscal Year 2012 is amended to subject to sanctions: (1) u-turn transactions (fund transfers from a foreign bank that pass through a U.S. financial institution and are then transferred to a second foreign bank), and (2) book transfers (fund transfers for the benefit of an Iranian financial institution made between accounts of the same financial institution).</p>

tv_txt: I 114th CONGRESS 2d Session H. R. 4995 IN THE HOUSE OF REPRESENTATIVES April 19, 2016 Mr. Roskam (for himself, Mr. Pompeo , and Mr. Zeldin ) introduced the following bill; which was referred to the Committee on Foreign Affairs , and in addition to the Committee on Financial Services , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To prohibit the facilitation of certain financial transactions involving the Government of Iran or Iranian persons and to impose sanctions with respect to the facilitation of those transactions, and for other purposes.

1. Short title This Act may be cited as the Preventing Iran’s Access to United States Dollars Act of 2016 . 2. Prohibition on facilitation of certain transactions involving the Government of Iran or Iranian persons (a) In general The President shall not issue any license under the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq. ) that permits a person— (1) to conduct an offshore United States dollar clearing system for transactions involving the Government of Iran or an Iranian person; or (2) to provide United States dollars for any offshore United States dollar clearing system conducted or overseen by a foreign government or a foreign financial institution for transactions involving the Government of Iran or an Iranian person. (b) Definitions In this section: (1) Entity The term entity means a corporation, business association, partnership, trust, society, or any other entity. (2) 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) ). (3) Person The term person means an individual or entity. 3. Reports on, and authorization of imposition of sanctions with respect to, offshore United States dollar clearing for transactions involving the Government of Iran or Iranian persons (a) Reports required (1) In general Not later than 60 days after the date of the enactment of this Act, and not less frequently than once every 90 days thereafter, the Secretary of the Treasury shall submit to the appropriate congressional committees and publish in the Federal Register a report that contains— (A) a list of any financial institutions that the Secretary has identified as— (i) operating an offshore United States dollar clearing system that conducts transactions involving the Government of Iran or an Iranian person; or (ii) participating in a transaction described in clause (i) through a system described in that clause; and (B) a detailed assessment of the status of efforts by the Secretary to prevent the conduct of transactions described in subparagraph (A)(i) through systems described in that subparagraph. (2) Form of report Each report submitted under paragraph (1) shall be submitted in unclassified form but may contain a classified annex. (b) Imposition of sanctions (1) In general 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 financial institution specified in the most recent list submitted under subsection (a)(1)(A) 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. (2) Additional sanctions The President may impose additional sanctions under the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq. ) with respect to a financial institution that is subject to sanctions under paragraph (1). (c) Appropriate congressional committees defined In this section, the term appropriate congressional committees has the meaning given that term in section 14 of the Iran Sanctions Act of 1996 ( Public Law 104–172 ; 50 U.S.C. 1701 note). 4. Clarification that freezing of assets of Iranian financial institutions includes assets in possession or control of a United States person pursuant to a U-turn transaction Section 1245(c) of the National Defense Authorization Act for Fiscal Year 2012 ( 22 U.S.C. 8513a ) is amended— (1) by striking The President and inserting (1) In general .—The President ; and (2) by adding at the end the following: (2) Treatment of certain transactions (A) U-Turn transactions Property that comes within the possession or control of a United States person pursuant to a transfer of funds that arises from, and is ordinarily incident and necessary to give effect to, an underlying transaction shall be considered to come within the possession or control of that person for purposes of paragraph (1). (B) Book transfers A transfer of funds or other property for the benefit of an Iranian financial institution that is made between accounts of the same financial institution shall be considered property or interests in property of that Iranian financial institution for purposes of paragraph (1) even if that Iranian financial institution is not the direct recipient of the transfer. .