Holding Iranian Leaders Accountable Act of 2023

Bill: 118-hr-6245
Sponsor: full_name: Rep. Hill, J. French [R-AR-2]
Introduced: 2023-11-06
Policy area: International Affairs
Subjects: Bank accounts, deposits, capital

Congressional oversight

Diplomacy, foreign officials, Americans abroad

Foreign and international banking

Fraud offenses and financial crimes

Government ethics and transparency, public corruption

Government information and archives

Iran

Middle East

Sanctions

Terrorism
Latest action: action_date: 2024-04-17
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2023-11-06
action_desc: Introduced in House
text: <p class="MsoNormal" style="line-height: normal;"><b>Holding Iranian Leaders Accountable Act of 2023</b></p> <p class="MsoNormal" style="line-height: normal;">This bill requires the President to report on the estimated total funds held in domestic and international financial institutions by certain Iranian leaders. The bill also requires U.S. financial institutions to close reported accounts and the Department of the Treasury to seek the closure of such accounts in foreign financial institutions. Activities related to authorized U.S. intelligence activities, U.S. obligations in hosting the United Nations, or humanitarian assistance are exempt.</p> <p class="MsoNormal" style="line-height: normal;"> </p>

action_date: 2023-12-19
action_desc: Reported to House
text: <p class="MsoNormal" style="line-height: normal;"><b>Holding Iranian Leaders Accountable Act of 2023</b></p> <p class="MsoNormal" style="line-height: normal;">This bill requires the President to report on the estimated total funds held in domestic and international financial institutions by certain Iranian leaders. The bill also requires U.S. financial institutions to close reported accounts and the Department of the Treasury to seek the closure of such accounts in foreign financial institutions. Activities related to authorized U.S. intelligence activities, U.S. obligations in hosting the United Nations, or humanitarian assistance are exempt.</p> <p class="MsoNormal" style="line-height: normal;"> </p>

tv_txt: IIB 118th CONGRESS 2d Session H. R. 6245 IN THE SENATE OF THE UNITED STATES April 17, 2024 Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs AN ACT To require the Secretary of the Treasury to report on financial institutions’ involvement with officials of the Iranian Government, and for other purposes.

1. Short title This Act may be cited as the Holding Iranian Leaders Accountable Act of 2023 . 2. Findings The Congress finds the following: (1) Iran is characterized by high levels of official and institutional corruption, and substantial involvement by Iran’s security forces, particularly the Islamic Revolutionary Guard Corps (IRGC), in the economy. (2) The Department of Treasury in 2019 designated the Islamic Republic of Iran’s financial sector as a jurisdiction of primary money laundering concern, concluding, Iran has developed covert methods for accessing the international financial system and pursuing its malign activities, including misusing banks and exchange houses, operating procurement networks that utilize front or shell companies, exploiting commercial shipping, and masking illicit transactions using senior officials, including those at the Central Bank of Iran (CBI). . (3) In June 2019, the Financial Action Task Force (FATF) urged all jurisdictions to require increased supervisory examination for branches and subsidiaries of financial institutions based in Iran. The FATF later called upon its members to introduce enhanced relevant reporting mechanisms or systematic reporting of financial transactions, and require increased external audit requirements, for financial groups with respect to any of their branches and subsidiaries located in Iran. (4) According to the State Department’s Country Reports on Terrorism in 2021, Iran continued to be the leading state sponsor of terrorism, facilitating a wide range of terrorist and other illicit activities around the world. Regionally, Iran supported acts of terrorism in Bahrain, Iraq, Lebanon, Syria, and Yemen through proxies and partner groups such as Hizballah and Hamas. . 3. Report on financial institutions and assets connected to certain Iranian officials (a) Financial institutions and assets report (1) In general Not later than 180 days after the date of the enactment of this Act, and every 2 years thereafter, the President shall submit a report to the appropriate Members of Congress containing— (A) the estimated total funds or assets that are under direct or indirect control by each of the natural persons described under subsection (b), and a description of such funds or assets, except that the President may limit coverage of the report to not fewer than 5 of such natural persons in order to meet the submission deadline described under this paragraph; (B) a description of how such funds or assets were acquired, and how they have been used or employed; (C) a list of any non-Iranian financial institutions that— (i) maintain an account in connection with funds or assets described in subparagraph (A); or (ii) knowingly provide significant financial services to a natural person covered by the report; and (D) a description of any illicit or corrupt means employed to acquire or use such funds or assets. (2) Exemptions The requirements described under paragraph (1) may not be applied with respect to a natural person or a financial institution, as the case may be, if the President determines: (A) The funds or assets described under subparagraph (A) of paragraph (1) were acquired through legal or noncorrupt means. (B) The natural person has agreed to provide significant cooperation to the United States for an important national security or law enforcement purpose with respect to Iran. (C) A financial institution that would otherwise be listed in the report required by paragraph (1) has agreed to— (i) no longer maintain an account described under subparagraph (C)(i) of paragraph (1); (ii) no longer provide significant financial services to a natural person covered by the report; or (iii) provide significant cooperation to the United States for an important national security or law enforcement purpose with respect to Iran. (3) Waiver The President may waive for up to 1 year at a time any requirement under paragraph (1) with respect to a natural person or a financial institution after reporting in writing to the appropriate Members of Congress that the waiver is in the national interest of the United States, with a detailed explanation of the reasons therefor. (b) Persons described The natural persons described in this subsection are the following: (1) The Supreme Leader of Iran. (2) The President of Iran. (3) The members of the Council of Guardians. (4) The members of the Expediency Council. (5) The Minister of Intelligence and Security. (6) The Commander and the Deputy Commander of the IRGC. (7) The Commander and the Deputy Commander of the IRGC Ground Forces. (8) The Commander and the Deputy Commander of the IRGC Aerospace Force. (9) The Commander and the Deputy Commander of the IRGC Navy. (10) The Commander of the Basij-e-Mostaz’afin. (11) The Commander of the Qods Force. (12) The Commander in Chief of the Police Force. (13) The head of the IRGC Joint Staff. (14) The Commander of the IRGC Intelligence. (15) The head of the IRGC Imam Hussein University. (16) The Supreme Leader’s Representative at the IRGC. (17) The Chief Executive Officer and the Chairman of the IRGC Cooperative Foundation. (18) The Commander of the Khatam-al-Anbia Construction Head Quarter. (19) The Chief Executive Officer of the Basij Cooperative Foundation. (20) The head of the Political Bureau of the IRGC. (21) The senior leadership as determined by the President of the following groups: (A) Hizballah. (B) Hamas. (C) Palestinian Islamic Jihad. (D) Kata’ib Hizballah. (c) Form of report; public availability (1) Form The report required under subsection (a) and any waiver under subsection (a)(3) shall be submitted in unclassified form but may contain a classified annex. (2) Public availability The Secretary shall make the unclassified portion of such report public if the Secretary notifies the appropriate Members of Congress that the publication is in the national interest of the United States and would substantially promote— (A) deterring or sanctioning official corruption in Iran; (B) holding natural persons or financial institutions listed in the report accountable to the people of Iran; (C) combating money laundering or the financing of terrorism; or (D) achieving any other strategic objective with respect to the Government of Iran. (3) Format of publicly available reports If the Secretary makes the unclassified portion of a report public pursuant to paragraph (2), the Secretary shall make it available to the public on the website of the Department of the Treasury— (A) in English, Farsi, Arabic, and Azeri; and (B) in precompressed, easily downloadable versions that are made available in all appropriate formats. 4. Restrictions on certain financial institutions (a) In general Not later than the date that is 90 days after submitting a report described under section 3(a)(1), the Secretary shall undertake the following with respect to a financial institution that is described under section 3(a)(1)(C) and listed in the report: (1) If the financial institution is a United States financial institution, require the closure of any account described in section 3(a)(1)(C)(i), and prohibit the provision of significant financial services, directly or indirectly, to a natural person covered by the report. (2) If the financial institution is a foreign financial institution, actively seek the closure of any account described in section 3(a)(1)(C)(i), and the cessation of significant financial services to a natural person covered by the report, using any existing authorities of the Secretary, as appropriate. (b) Suspension The Secretary may suspend the application of subsection (a) with respect to a financial institution upon reporting to the appropriate Members of Congress that the suspension is in the national interest of the United States, with a detailed explanation of the reasons therefor. 5. Exceptions for national security; implementation authority The following activities shall be exempt from requirements under sections 3 and 4: (1) Any activity subject to the reporting requirements under title V of the National Security Act of 1947 ( 50 U.S.C. 3091 et seq. ), or to any authorized intelligence activities of the United States. (2) The admission of an alien to the United States if such admission is necessary to comply with United States obligations under the Agreement between the United Nations and the United States of America regarding the Headquarters of the United Nations, signed at Lake Success June 26, 1947, and entered into force November 21, 1947, or under the Convention on Consular Relations, done at Vienna April 24, 1963, and entered into force March 19, 1967, or other applicable international obligations of the United States. (3) The conduct or facilitation of a transaction for the sale of agricultural commodities, food, medicine, or medical devices to Iran or for the provision of humanitarian assistance to the people of Iran, including engaging in a financial transaction relating to humanitarian assistance or for humanitarian purposes or transporting goods or services that are necessary to carry out operations relating to humanitarian assistance or humanitarian purposes. 6. Sunset The provisions of this Act shall have no force or effect on the earlier of— (1) the date that is 5 years after the date of enactment of this Act; or (2) 30 days after the Secretary reports in writing to the appropriate Members of Congress that— (A) Iran is not a jurisdiction of primary money laundering concern; or (B) the Government of Iran is providing significant cooperation to the United States for the purpose of preventing acts of international terrorism, or for the promotion of any other strategic objective that is important to the national interest of the United States, as specified in the report by the Secretary. 7. Definitions For purposes of this Act: (1) Appropriate Members of congress The term appropriate Members of Congress means the Speaker and Minority Leader of the House of Representatives, the Majority Leader and Minority Leader of the Senate, the Chairman and Ranking Member of the Committee on Financial Services of the House of Representatives, and the Chairman and Ranking Member of the Committee on Banking, Housing, and Urban Affairs 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 in section 561.308 of title 31, Code of Federal Regulations. (4) Funds The term funds means— (A) cash; (B) equity; (C) any other asset whose value is derived from a contractual claim, including bank deposits, bonds, stocks, a security as defined in section 2(a) of the Securities Act of 1933 ( 15 U.S.C. 77b(a) ), or a security or an equity security as defined in section 3(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) ); and (D) anything else that the Secretary determines appropriate. (5) 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. (6) Secretary The term Secretary means the Secretary of the Treasury. (7) 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.

Passed the House of Representatives April 16, 2024. Kevin F. McCumber, Clerk.

tv_txt: IB 118th CONGRESS 2d Session H. R. 6245 IN THE HOUSE OF REPRESENTATIVES AN ACT To require the Secretary of the Treasury to report on financial institutions’ involvement with officials of the Iranian Government, and for other purposes.

1. Short title This Act may be cited as the Holding Iranian Leaders Accountable Act of 2023 . 2. Findings The Congress finds the following: (1) Iran is characterized by high levels of official and institutional corruption, and substantial involvement by Iran’s security forces, particularly the Islamic Revolutionary Guard Corps (IRGC), in the economy. (2) The Department of Treasury in 2019 designated the Islamic Republic of Iran’s financial sector as a jurisdiction of primary money laundering concern, concluding, Iran has developed covert methods for accessing the international financial system and pursuing its malign activities, including misusing banks and exchange houses, operating procurement networks that utilize front or shell companies, exploiting commercial shipping, and masking illicit transactions using senior officials, including those at the Central Bank of Iran (CBI). . (3) In June 2019, the Financial Action Task Force (FATF) urged all jurisdictions to require increased supervisory examination for branches and subsidiaries of financial institutions based in Iran. The FATF later called upon its members to introduce enhanced relevant reporting mechanisms or systematic reporting of financial transactions, and require increased external audit requirements, for financial groups with respect to any of their branches and subsidiaries located in Iran. (4) According to the State Department’s Country Reports on Terrorism in 2021, Iran continued to be the leading state sponsor of terrorism, facilitating a wide range of terrorist and other illicit activities around the world. Regionally, Iran supported acts of terrorism in Bahrain, Iraq, Lebanon, Syria, and Yemen through proxies and partner groups such as Hizballah and Hamas. . 3. Report on financial institutions and assets connected to certain Iranian officials (a) Financial institutions and assets report (1) In general Not later than 180 days after the date of the enactment of this Act, and every 2 years thereafter, the President shall submit a report to the appropriate Members of Congress containing— (A) the estimated total funds or assets that are under direct or indirect control by each of the natural persons described under subsection (b), and a description of such funds or assets, except that the President may limit coverage of the report to not fewer than 5 of such natural persons in order to meet the submission deadline described under this paragraph; (B) a description of how such funds or assets were acquired, and how they have been used or employed; (C) a list of any non-Iranian financial institutions that— (i) maintain an account in connection with funds or assets described in subparagraph (A); or (ii) knowingly provide significant financial services to a natural person covered by the report; and (D) a description of any illicit or corrupt means employed to acquire or use such funds or assets. (2) Exemptions The requirements described under paragraph (1) may not be applied with respect to a natural person or a financial institution, as the case may be, if the President determines: (A) The funds or assets described under subparagraph (A) of paragraph (1) were acquired through legal or noncorrupt means. (B) The natural person has agreed to provide significant cooperation to the United States for an important national security or law enforcement purpose with respect to Iran. (C) A financial institution that would otherwise be listed in the report required by paragraph (1) has agreed to— (i) no longer maintain an account described under subparagraph (C)(i) of paragraph (1); (ii) no longer provide significant financial services to a natural person covered by the report; or (iii) provide significant cooperation to the United States for an important national security or law enforcement purpose with respect to Iran. (3) Waiver The President may waive for up to 1 year at a time any requirement under paragraph (1) with respect to a natural person or a financial institution after reporting in writing to the appropriate Members of Congress that the waiver is in the national interest of the United States, with a detailed explanation of the reasons therefor. (b) Persons described The natural persons described in this subsection are the following: (1) The Supreme Leader of Iran. (2) The President of Iran. (3) The members of the Council of Guardians. (4) The members of the Expediency Council. (5) The Minister of Intelligence and Security. (6) The Commander and the Deputy Commander of the IRGC. (7) The Commander and the Deputy Commander of the IRGC Ground Forces. (8) The Commander and the Deputy Commander of the IRGC Aerospace Force. (9) The Commander and the Deputy Commander of the IRGC Navy. (10) The Commander of the Basij-e-Mostaz’afin. (11) The Commander of the Qods Force. (12) The Commander in Chief of the Police Force. (13) The head of the IRGC Joint Staff. (14) The Commander of the IRGC Intelligence. (15) The head of the IRGC Imam Hussein University. (16) The Supreme Leader’s Representative at the IRGC. (17) The Chief Executive Officer and the Chairman of the IRGC Cooperative Foundation. (18) The Commander of the Khatam-al-Anbia Construction Head Quarter. (19) The Chief Executive Officer of the Basij Cooperative Foundation. (20) The head of the Political Bureau of the IRGC. (21) The senior leadership as determined by the President of the following groups: (A) Hizballah. (B) Hamas. (C) Palestinian Islamic Jihad. (D) Kata’ib Hizballah. (c) Form of report; public availability (1) Form The report required under subsection (a) and any waiver under subsection (a)(3) shall be submitted in unclassified form but may contain a classified annex. (2) Public availability The Secretary shall make the unclassified portion of such report public if the Secretary notifies the appropriate Members of Congress that the publication is in the national interest of the United States and would substantially promote— (A) deterring or sanctioning official corruption in Iran; (B) holding natural persons or financial institutions listed in the report accountable to the people of Iran; (C) combating money laundering or the financing of terrorism; or (D) achieving any other strategic objective with respect to the Government of Iran. (3) Format of publicly available reports If the Secretary makes the unclassified portion of a report public pursuant to paragraph (2), the Secretary shall make it available to the public on the website of the Department of the Treasury— (A) in English, Farsi, Arabic, and Azeri; and (B) in precompressed, easily downloadable versions that are made available in all appropriate formats. 4. Restrictions on certain financial institutions (a) In general Not later than the date that is 90 days after submitting a report described under section 3(a)(1), the Secretary shall undertake the following with respect to a financial institution that is described under section 3(a)(1)(C) and listed in the report: (1) If the financial institution is a United States financial institution, require the closure of any account described in section 3(a)(1)(C)(i), and prohibit the provision of significant financial services, directly or indirectly, to a natural person covered by the report. (2) If the financial institution is a foreign financial institution, actively seek the closure of any account described in section 3(a)(1)(C)(i), and the cessation of significant financial services to a natural person covered by the report, using any existing authorities of the Secretary, as appropriate. (b) Suspension The Secretary may suspend the application of subsection (a) with respect to a financial institution upon reporting to the appropriate Members of Congress that the suspension is in the national interest of the United States, with a detailed explanation of the reasons therefor. 5. Exceptions for national security; implementation authority The following activities shall be exempt from requirements under sections 3 and 4: (1) Any activity subject to the reporting requirements under title V of the National Security Act of 1947 ( 50 U.S.C. 3091 et seq. ), or to any authorized intelligence activities of the United States. (2) The admission of an alien to the United States if such admission is necessary to comply with United States obligations under the Agreement between the United Nations and the United States of America regarding the Headquarters of the United Nations, signed at Lake Success June 26, 1947, and entered into force November 21, 1947, or under the Convention on Consular Relations, done at Vienna April 24, 1963, and entered into force March 19, 1967, or other applicable international obligations of the United States. (3) The conduct or facilitation of a transaction for the sale of agricultural commodities, food, medicine, or medical devices to Iran or for the provision of humanitarian assistance to the people of Iran, including engaging in a financial transaction relating to humanitarian assistance or for humanitarian purposes or transporting goods or services that are necessary to carry out operations relating to humanitarian assistance or humanitarian purposes. 6. Sunset The provisions of this Act shall have no force or effect on the earlier of— (1) the date that is 5 years after the date of enactment of this Act; or (2) 30 days after the Secretary reports in writing to the appropriate Members of Congress that— (A) Iran is not a jurisdiction of primary money laundering concern; or (B) the Government of Iran is providing significant cooperation to the United States for the purpose of preventing acts of international terrorism, or for the promotion of any other strategic objective that is important to the national interest of the United States, as specified in the report by the Secretary. 7. Definitions For purposes of this Act: (1) Appropriate Members of congress The term appropriate Members of Congress means the Speaker and Minority Leader of the House of Representatives, the Majority Leader and Minority Leader of the Senate, the Chairman and Ranking Member of the Committee on Financial Services of the House of Representatives, and the Chairman and Ranking Member of the Committee on Banking, Housing, and Urban Affairs 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 in section 561.308 of title 31, Code of Federal Regulations. (4) Funds The term funds means— (A) cash; (B) equity; (C) any other asset whose value is derived from a contractual claim, including bank deposits, bonds, stocks, a security as defined in section 2(a) of the Securities Act of 1933 ( 15 U.S.C. 77b(a) ), or a security or an equity security as defined in section 3(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) ); and (D) anything else that the Secretary determines appropriate. (5) 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. (6) Secretary The term Secretary means the Secretary of the Treasury. (7) 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.

Passed the House of Representatives April 16, 2024. Cheryl L. Johnson, Clerk.

tv_txt: IB Union Calendar No. 273 118th CONGRESS 1st Session H. R. 6245 [Report No. 118–334] IN THE HOUSE OF REPRESENTATIVES November 6, 2023 Mr. Hill (for himself and Mr. Vargas ) introduced the following bill; which was referred to the Committee on Financial Services December 19, 2023 Additional sponsors: Ms. De La Cruz and Mr. Sessions December 19, 2023 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in italic For text of introduced bill, see copy of bill as introduced on November 6, 2023 A BILL To require the Secretary of the Treasury to report on financial institutions’ involvement with officials of the Iranian Government, and for other purposes.

1. Short title This Act may be cited as the Holding Iranian Leaders Accountable Act of 2023 . 2. Findings The Congress finds the following: (1) Iran is characterized by high levels of official and institutional corruption, and substantial involvement by Iran’s security forces, particularly the Islamic Revolutionary Guard Corps (IRGC), in the economy. (2) The Department of Treasury in 2019 designated the Islamic Republic of Iran’s financial sector as a jurisdiction of primary money laundering concern, concluding, Iran has developed covert methods for accessing the international financial system and pursuing its malign activities, including misusing banks and exchange houses, operating procurement networks that utilize front or shell companies, exploiting commercial shipping, and masking illicit transactions using senior officials, including those at the Central Bank of Iran (CBI). . (3) In June 2019, the Financial Action Task Force (FATF) urged all jurisdictions to require increased supervisory examination for branches and subsidiaries of financial institutions based in Iran. The FATF later called upon its members to introduce enhanced relevant reporting mechanisms or systematic reporting of financial transactions, and require increased external audit requirements, for financial groups with respect to any of their branches and subsidiaries located in Iran. (4) According to the State Department’s Country Reports on Terrorism in 2021, Iran continued to be the leading state sponsor of terrorism, facilitating a wide range of terrorist and other illicit activities around the world. Regionally, Iran supported acts of terrorism in Bahrain, Iraq, Lebanon, Syria, and Yemen through proxies and partner groups such as Hizballah and Hamas. . 3. Report on financial institutions and assets connected to certain Iranian officials (a) Financial institutions and assets report (1) In general Not later than 180 days after the date of the enactment of this Act, and every 2 years thereafter, the President shall submit a report to the appropriate Members of Congress containing— (A) the estimated total funds or assets that are under direct or indirect control by each of the natural persons described under subsection (b), and a description of such funds or assets, except that the President may limit coverage of the report to not fewer than 5 of such natural persons in order to meet the submission deadline described under this paragraph; (B) a description of how such funds or assets were acquired, and how they have been used or employed; (C) a list of any non-Iranian financial institutions that— (i) maintain an account in connection with funds or assets described in subparagraph (A); or (ii) knowingly provide significant financial services to a natural person covered by the report; and (D) a description of any illicit or corrupt means employed to acquire or use such funds or assets. (2) Exemptions The requirements described under paragraph (1) may not be applied with respect to a natural person or a financial institution, as the case may be, if the President determines: (A) The funds or assets described under subparagraph (A) of paragraph (1) were acquired through legal or noncorrupt means. (B) The natural person has agreed to provide significant cooperation to the United States for an important national security or law enforcement purpose with respect to Iran. (C) A financial institution that would otherwise be listed in the report required by paragraph (1) has agreed to— (i) no longer maintain an account described under subparagraph (C)(i) of paragraph (1); (ii) no longer provide significant financial services to a natural person covered by the report; or (iii) provide significant cooperation to the United States for an important national security or law enforcement purpose with respect to Iran. (3) Waiver The President may waive for up to 1 year at a time any requirement under paragraph (1) with respect to a natural person or a financial institution after reporting in writing to the appropriate Members of Congress that the waiver is in the national interest of the United States, with a detailed explanation of the reasons therefor. (b) Persons described The natural persons described in this subsection are the following: (1) The Supreme Leader of Iran. (2) The President of Iran. (3) The members of the Council of Guardians. (4) The members of the Expediency Council. (5) The Minister of Intelligence and Security. (6) The Commander and the Deputy Commander of the IRGC. (7) The Commander and the Deputy Commander of the IRGC Ground Forces. (8) The Commander and the Deputy Commander of the IRGC Aerospace Force. (9) The Commander and the Deputy Commander of the IRGC Navy. (10) The Commander of the Basij-e-Mostaz’afin. (11) The Commander of the Qods Force. (12) The Commander in Chief of the Police Force. (13) The head of the IRGC Joint Staff. (14) The Commander of the IRGC Intelligence. (15) The head of the IRGC Imam Hussein University. (16) The Supreme Leader’s Representative at the IRGC. (17) The Chief Executive Officer and the Chairman of the IRGC Cooperative Foundation. (18) The Commander of the Khatam-al-Anbia Construction Head Quarter. (19) The Chief Executive Officer of the Basij Cooperative Foundation. (20) The head of the Political Bureau of the IRGC. (21) The senior leadership as determined by the President of the following groups: (A) Hizballah. (B) Hamas. (C) Palestinian Islamic Jihad. (D) Kata’ib Hizballah. (c) Form of report; public availability (1) Form The report required under subsection (a) and any waiver under subsection (a)(3) shall be submitted in unclassified form but may contain a classified annex. (2) Public availability The Secretary shall make the unclassified portion of such report public if the Secretary notifies the appropriate Members of Congress that the publication is in the national interest of the United States and would substantially promote— (A) deterring or sanctioning official corruption in Iran; (B) holding natural persons or financial institutions listed in the report accountable to the people of Iran; (C) combating money laundering or the financing of terrorism; or (D) achieving any other strategic objective with respect to the Government of Iran. (3) Format of publicly available reports If the Secretary makes the unclassified portion of a report public pursuant to paragraph (2), the Secretary shall make it available to the public on the website of the Department of the Treasury— (A) in English, Farsi, Arabic, and Azeri; and (B) in precompressed, easily downloadable versions that are made available in all appropriate formats. 4. Restrictions on certain financial institutions (a) In general Not later than the date that is 90 days after submitting a report described under section 3(a)(1), the Secretary shall undertake the following with respect to a financial institution that is described under section 3(a)(1)(C) and listed in the report: (1) If the financial institution is a United States financial institution, require the closure of any account described in section 3(a)(1)(C)(i), and prohibit the provision of significant financial services, directly or indirectly, to a natural person covered by the report. (2) If the financial institution is a foreign financial institution, actively seek the closure of any account described in section 3(a)(1)(C)(i), and the cessation of significant financial services to a natural person covered by the report, using any existing authorities of the Secretary, as appropriate. (b) Suspension The Secretary may suspend the application of subsection (a) with respect to a financial institution upon reporting to the appropriate Members of Congress that the suspension is in the national interest of the United States, with a detailed explanation of the reasons therefor. 5. Exceptions for national security; implementation authority The following activities shall be exempt from requirements under sections 3 and 4: (1) Any activity subject to the reporting requirements under title V of the National Security Act of 1947 ( 50 U.S.C. 3091 et seq. ), or to any authorized intelligence activities of the United States. (2) The admission of an alien to the United States if such admission is necessary to comply with United States obligations under the Agreement between the United Nations and the United States of America regarding the Headquarters of the United Nations, signed at Lake Success June 26, 1947, and entered into force November 21, 1947, or under the Convention on Consular Relations, done at Vienna April 24, 1963, and entered into force March 19, 1967, or other applicable international obligations of the United States. (3) The conduct or facilitation of a transaction for the sale of agricultural commodities, food, medicine, or medical devices to Iran or for the provision of humanitarian assistance to the people of Iran, including engaging in a financial transaction relating to humanitarian assistance or for humanitarian purposes or transporting goods or services that are necessary to carry out operations relating to humanitarian assistance or humanitarian purposes. 6. Sunset The provisions of this Act shall have no force or effect on the earlier of— (1) the date that is 5 years after the date of enactment of this Act; or (2) 30 days after the Secretary reports in writing to the appropriate Members of Congress that— (A) Iran is not a jurisdiction of primary money laundering concern; or (B) the Government of Iran is providing significant cooperation to the United States for the purpose of preventing acts of international terrorism, or for the promotion of any other strategic objective that is important to the national interest of the United States, as specified in the report by the Secretary. 7. Definitions For purposes of this Act: (1) Appropriate Members of congress The term appropriate Members of Congress means the Speaker and Minority Leader of the House of Representatives, the Majority Leader and Minority Leader of the Senate, the Chairman and Ranking Member of the Committee on Financial Services of the House of Representatives, and the Chairman and Ranking Member of the Committee on Banking, Housing, and Urban Affairs 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 in section 561.308 of title 31, Code of Federal Regulations. (4) Funds The term funds means— (A) cash; (B) equity; (C) any other asset whose value is derived from a contractual claim, including bank deposits, bonds, stocks, a security as defined in section 2(a) of the Securities Act of 1933 ( 15 U.S.C. 77b(a) ), or a security or an equity security as defined in section 3(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) ); and (D) anything else that the Secretary determines appropriate. (5) 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. (6) Secretary The term Secretary means the Secretary of the Treasury. (7) 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.

December 19, 2023 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

tv_txt: I 118th CONGRESS 1st Session H. R. 6245 IN THE HOUSE OF REPRESENTATIVES November 6, 2023 Mr. Hill (for himself and Mr. Vargas ) introduced the following bill; which was referred to the Committee on Financial Services A BILL To require the Secretary of the Treasury to report on financial institutions’ involvement with officials of the Iranian Government, and for other purposes.

1. Short title This Act may be cited as the Holding Iranian Leaders Accountable Act of 2023 . 2. Findings The Congress finds the following: (1) Iran is characterized by high levels of official and institutional corruption, and substantial involvement by Iran’s security forces, particularly the Islamic Revolutionary Guard Corps (IRGC), in the economy. (2) The Department of Treasury in 2019 designated the Islamic Republic of Iran’s financial sector as a jurisdiction of primary money laundering concern, concluding, Iran has developed covert methods for accessing the international financial system and pursuing its malign activities, including misusing banks and exchange houses, operating procurement networks that utilize front or shell companies, exploiting commercial shipping, and masking illicit transactions using senior officials, including those at the Central Bank of Iran (CBI). (3) In June 2019, the Financial Action Task Force (FATF) urged all jurisdictions to require increased supervisory examination for branches and subsidiaries of financial institutions based in Iran. The FATF later called upon its members to introduce enhanced relevant reporting mechanisms or systematic reporting of financial transactions, and require increased external audit requirements, for financial groups with respect to any of their branches and subsidiaries located in Iran. (4) According to the State Department’s Country Reports on Terrorism in 2021, Iran continued to be the leading state sponsor of terrorism, facilitating a wide range of terrorist and other illicit activities around the world. Regionally, Iran supported acts of terrorism in Bahrain, Iraq, Lebanon, Syria, and Yemen through proxies and partner groups such as Hizballah and Hamas. 3. Report on financial institutions and assets connected to certain Iranian officials (a) Financial institutions and assets report (1) In general Not later than 180 days after the date of the enactment of this Act, and every 2 years thereafter, the President shall submit a report to the appropriate Members of Congress containing— (A) the estimated total funds or assets that are under direct or indirect control by each of the natural persons described under subsection (b), and a description of such funds or assets, except that the President may limit coverage of the report to not fewer than 5 of such natural persons in order to meet the submission deadline described under this paragraph; (B) a description of how such funds or assets were acquired, and how they have been used or employed; (C) a list of any non-Iranian financial institutions that— (i) maintain an account in connection with funds or assets described in subparagraph (A); or (ii) knowingly provide significant financial services to a natural person covered by the report; and (D) a description of any illicit or corrupt means employed to acquire or use such funds or assets. (2) Exemptions The requirements described under paragraph (1) may not be applied with respect to a natural person or a financial institution, as the case may be, if the President determines: (A) The funds or assets described under subparagraph (A) of paragraph (1) were acquired through legal or noncorrupt means. (B) The natural person has agreed to provide significant cooperation to the United States for an important national security or law enforcement purpose with respect to Iran. (C) A financial institution that would otherwise be listed in the report required by paragraph (1) has agreed to— (i) no longer maintain an account described under subparagraph (C)(i) of paragraph (1); (ii) no longer provide significant financial services to a natural person covered by the report; or (iii) provide significant cooperation to the United States for an important national security or law enforcement purpose with respect to Iran. (3) Waiver The President may waive for up to 1 year at a time any requirement under paragraph (1) with respect to a natural person or a financial institution after reporting in writing to the appropriate Members of Congress that the waiver is in the national interest of the United States, with a detailed explanation of the reasons therefor. (b) Persons described The natural persons described in this subsection are the following: (1) The Supreme Leader of Iran. (2) The President of Iran. (3) Members of the Council of Guardians. (4) Members of the Expediency Council. (5) The Minister of Intelligence and Security. (6) The Commander and the Deputy Commander of the IRGC. (7) The Commander and the Deputy Commander of the IRGC Ground Forces. (8) The Commander and the Deputy Commander of the IRGC Aerospace Force. (9) The Commander and the Deputy Commander of the IRGC Navy. (10) The Commander of the Basij-e-Mostaz’afin. (11) The Commander of the Qods Force. (12) The Commander in Chief of the Police Force. (13) The head of the IRGC Joint Staff. (14) The Commander of the IRGC Intelligence. (15) The head of the IRGC Imam Hussein University. (16) The Supreme Leader’s Representative at the IRGC. (17) The Chief Executive Officer and the Chairman of the IRGC Cooperative Foundation. (18) The Commander of the Khatam-al-Anbia Construction Head Quarter. (19) The Chief Executive Officer of the Basij Cooperative Foundation. (20) The head of the Political Bureau of the IRGC. (21) The senior leadership as determined by the President of the following groups: (A) Hizballah. (B) Hamas. (C) Palestinian Islamic Jihad. (D) Kata’ib Hizballah. (c) Form of report; public availability (1) Form The report required under subsection (a) and any waiver under subsection (a)(3) shall be submitted in unclassified form but may contain a classified annex. (2) Public availability The Secretary of the Treasury shall make the unclassified portion of such report public if the Secretary notifies the appropriate Members of Congress that the publication is in the national interest of the United States and would substantially promote— (A) deterring or sanctioning official corruption in Iran; (B) holding natural persons or financial institutions listed in the report accountable to the people of Iran; (C) combating money laundering or the financing of terrorism; or (D) achieving any other strategic objective with respect to the Government of Iran. (3) Format of publicly available re- ports If the Secretary makes the unclassified portion of a report public pursuant to paragraph (2), the Secretary shall make it available to the public on the website of the Department of the Treasury— (A) in English, Farsi, Arabic, and Azeri; and (B) in precompressed, easily downloadable versions that are made available in all appropriate formats. 4. Restrictions on certain financial institutions (a) In general Not later than the date that is 90 days after submitting a report described under section 3(a)(1), the Secretary of the Treasury shall undertake the following with respect to a financial institution that is described under section 3(a)(1)(C) and listed in the report: (1) If the financial institution is a United States financial institution, require the closure of any account described in section 3(a)(1)(C)(i), and prohibit the provision of significant financial services, directly or indirectly, to a natural person covered by the report. (2) If the financial institution is a foreign financial institution, actively seek the closure of any account described in section 3(a)(1)(C)(i), and the cessation of significant financial services to a natural person covered by the report, using any existing authorities of the Secretary of the Treasury, as appropriate. (b) Suspension The Secretary of the Treasury may suspend the application of subsection (a) with respect to a financial institution upon reporting to the appropriate Members of Congress that the suspension is in the national interest of the United States, with a detailed explanation of the reasons therefor. 5. Exceptions for national security; implementation authority The following activities shall be exempt from requirements under sections 3 and 4: (1) Any activity subject to the reporting requirements under title V of the National Security Act of 1947 ( 50 U.S.C. 3091 et seq. ), or to any authorized intelligence activities of the United States. (2) The admission of an alien to the United States if such admission is necessary to comply with United States obligations under the Agreement between the United Nations and the United States of America regarding the Headquarters of the United Nations, signed at Lake Success June 26, 1947, and entered into force November 21, 1947, or under the Convention on Consular Relations, done at Vienna April 24, 1963, and entered into force March 19, 1967, or other applicable international obligations of the United States. (3) The conduct or facilitation of a transaction for the sale of agricultural commodities, food, medicine, or medical devices to Iran or for the provision of humanitarian assistance to the people of Iran, including engaging in a financial transaction relating to humanitarian assistance or for humanitarian purposes or transporting goods or services that are necessary to carry out operations relating to humanitarian assistance or humanitarian purposes. 6. Sunset The provisions of this Act shall have no force or effect on the earlier of— (1) the date that is 5 years after the date of enactment of this Act; or (2) 30 days after the Secretary of the Treasury reports in writing to the appropriate Members of Congress that— (A) Iran is not a jurisdiction of primary money laundering concern; or (B) the Government of Iran is providing significant cooperation to the United States for the purpose of preventing acts of international terrorism, or for the promotion of any other strategic objective that is important to the national interest of the United States, as specified in the report by the Secretary. 7. Definitions For purposes of this Act: (1) Appropriate members of congress The term appropriate Members of Congress means the Speaker and Minority Leader of the House of Representatives, the Majority Leader and Minority Leader of the Senate, the Chairman and Ranking Member of the Committee on Financial Services of the House of Representatives, and the Chairman and Ranking Member of the Committee on Banking, Housing, and Urban Affairs 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 in section 561.308 of title 31, Code of Federal Regulations. (4) Funds The term funds means— (A) cash; (B) equity; (C) any other asset whose value is derived from a contractual claim, including bank deposits, bonds, stocks, a security as defined in section 2(a) of the Securities Act of 1933 ( 15 U.S.C. 77b(a) ), or a security or an equity security as defined in section 3(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) ); and (D) anything else that the Secretary determines appropriate. (5) 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. (6) Secretary The term Secretary means the Secretary of the Treasury. (7) 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.