Congress makes the following findings:
Congress-
Not later than 90 days after July 1, 2010, the Secretary of the Treasury shall prescribe regulations to prohibit, or impose strict conditions on, the opening or maintaining in the United States of a correspondent account or a payable-through account by a foreign financial institution that the Secretary finds knowingly engages in an activity described in paragraph (2).
A foreign financial institution engages in an activity described in this paragraph if the foreign financial institution-
The penalties provided for in subsections (b) and (c) of section 206 of the International 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 regulations prescribed under paragraph (1) of this subsection to the same extent that such penalties apply to a person that commits an unlawful act described in section 206(a) of that Act.
For purposes of paragraph (2)(E), the Secretary of the Treasury shall, not later than 45 days after August 10, 2012-
A report submitted under subparagraph (A)(ii) shall be submitted in unclassified form but may contain a classified annex.
Except as provided in clause (ii), if the Secretary of the Treasury determines that the NIOC or the NITC is a person described in clause (i) or (ii) of paragraph (2)(E), the regulations prescribed under paragraph (1) shall apply with respect to a significant transaction or transactions or significant financial services knowingly facilitated or provided by a foreign financial institution for the NIOC or the NITC, as applicable, for the purchase of petroleum or petroleum products from Iran, only if a determination of the President under section 8513a(d)(4)(B) of this title that there is a sufficient supply of petroleum and petroleum products produced in countries other than Iran to permit purchasers of petroleum and petroleum products from Iran to reduce significantly their purchases from Iran is in effect at the time of the transaction or the provision of the service.
If the Secretary of the Treasury determines that the NIOC or the NITC is a person described in clause (i) or (ii) of paragraph (2)(E), the regulations prescribed under paragraph (1) shall not apply to a significant transaction or transactions or significant financial services knowingly facilitated or provided by a foreign financial institution for the NIOC or the NITC, as applicable, for the purchase of petroleum or petroleum products from Iran if an exception under paragraph (4)(D) of section 8513a(d) of this title applies to the country with primary jurisdiction over the foreign financial institution at the time of the transaction or the provision of the service.
The exceptions in clauses (i) and (ii) shall not be construed to limit the authority of the Secretary of the Treasury to impose sanctions pursuant to the regulations prescribed under paragraph (1) for an activity described in paragraph (2) to the extent the activity would meet the criteria described in that paragraph in the absence of the involvement of the NIOC or the NITC.
In this paragraph:
The term "NIOC" means the National Iranian Oil Company.
The term "NITC" means the National Iranian Tanker Company.
Not later than 90 days after July 1, 2010, the Secretary of the Treasury shall prescribe regulations to prohibit any person owned or controlled by a domestic financial institution from knowingly engaging in a transaction or transactions with or benefitting Iran's Revolutionary Guard Corps or any of its agents or affiliates whose property or interests in property are blocked pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).
The penalties provided for in section 206(b) of the International Emergency Economic Powers Act (50 U.S.C. 1705(b)) shall apply to a domestic financial institution to the same extent that such penalties apply to a person that commits an unlawful act described in section 206(a) of that Act if-
The Secretary of the Treasury shall prescribe regulations to require a domestic financial institution maintaining a correspondent account or payable-through account in the United States for a foreign financial institution to do one or more of the following:
The penalties provided for in sections 5321(a) and 5322 of title 31 shall apply to a person that violates a regulation prescribed under paragraph (1) of this subsection, in the same manner and to the same extent as such penalties would apply to any person that is otherwise subject to such section 5321(a) or 5322.
The Secretary of the Treasury may waive the application of a prohibition or condition imposed with respect to a foreign financial institution pursuant to subsection (c) or section 8513b of this title or the imposition of a penalty under subsection (d) with respect to a domestic financial institution on and after the date that is 30 days after the Secretary-
If a finding under paragraph (1) or (4) of subsection (c) or section 8513b of this title, a prohibition, condition, or penalty imposed as a result of any such finding, or a penalty imposed under subsection (d), is based on classified information (as defined in section 1(a) of the Classified Information Procedures Act (18 U.S.C. App.)) and a court reviews the finding or the imposition of the prohibition, condition, or penalty, the Secretary of the Treasury may submit such information to the court ex parte and in camera.
Nothing in this subsection shall be construed to confer or imply any right to judicial review of any finding under paragraph (1) or (4) of subsection (c) or section 8513b of this title, any prohibition, condition, or penalty imposed as a result of any such finding, or any penalty imposed under subsection (d).
In implementing this section and the regulations prescribed under this section, the Secretary of the Treasury-
In this section:
The terms "account", "correspondent account", and "payable-through account" have the meanings given those terms in section 5318A of title 31.
The term "agent" includes an entity established by a person for purposes of conducting transactions on behalf of the person in order to conceal the identity of the person.
The term "financial institution" means a financial institution specified in subparagraph (A), (B), (C), (D), (E), (F), (G), (H), (I), (J), (M), or (Z) of section 5312(a)(2) of title 31.
The terms "foreign financial institution" and "domestic financial institution" shall have the meanings of those terms as determined by the Secretary of the Treasury.
The term "money laundering" means the movement of illicit cash or cash equivalent proceeds into, out of, or through a country, or into, out of, or through a financial institution.
The Secretary of the Treasury may further define the terms used in this section in the regulations prescribed under this section.
22 U.S.C. § 8513
Termination of Section For termination of section, see section 8551(a) of this title.
EDITORIAL NOTES
REFERENCES IN TEXTThe International Emergency Economic Powers Act, referred to in subsecs. (c)(2)(E) and (d)(1), is title II of Pub. L. 95-223, Dec. 28, 1977, 91 Stat. 1626, which is classified generally to chapter 35 (§1701 et seq.) of Title 50, War and National Defense. For complete classification of this Act to the Code, see Short Title note set out under section 1701 of Title 50 and Tables. The Classified Information Procedures Act, referred to in subsec. (g)(1), is Pub. L. 96-456, Oct. 15, 1980, 94 Stat. 2025, which is set out in the Appendix to Title 18, Crimes and Criminal Procedure.
AMENDMENTS2021-Subsec. (i)(1)(C). Pub. L. 116-283 substituted "(Z)" for "(Y)". 2012-Subsec. (c)(2)(B). Pub. L. 112-158, §214(a), substituted "of-" for "of", inserted cl. (i) designation before "a person subject", and added cl. (ii).Subsec. (c)(2)(E)(ii). Pub. L. 112-158, §215(a), substituted "person" for "financial institution" in introductory provisions.Subsec. (c)(4). Pub. L. 112-158, §312(b), added par. (4).Subsec. (f). Pub. L. 112-158, §312(c)(1), inserted "or section 8513b of this title" after "subsection (c)" in introductory provisions.Subsec. (g). Pub. L. 112-158, §312(c)(2), substituted "paragraph (1) or (4) of subsection (c) or section 8513b of this title" for "subsection (c)(1)" in pars. (1) and (2).
STATUTORY NOTES AND RELATED SUBSIDIARIES
REGULATIONS Pub. L. 112-158, title II, §214(b), Aug. 10, 2012, 126 Stat. 1231, provided that: "Not later than 90 days after the date of the enactment of this Act [Aug. 10, 2012], the Secretary of the Treasury shall make such revisions to the regulations prescribed under section 104 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8513) as are necessary to carry out the amendments made by subsection (a) [amending this section]." Pub. L. 112-158, title II, §215(b), Aug. 10, 2012, 126 Stat. 1231, provided that: "Not later than 90 days after the date of the enactment of this Act [Aug. 10, 2012], the Secretary of the Treasury shall make such revisions to the regulations prescribed under section 104 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8513) as are necessary to carry out the amendment made by subsection (a) [amending this section]."
EXCEPTION TO SANCTIONS REGARDING NATIONAL IRANIAN OIL COMPANY AND NATIONAL IRANIAN TANKER COMPANY Pub. L. 112-158, title III, §312(d), Aug. 10, 2012, 126 Stat. 1250, provided that:"(1) IN GENERAL.-If an exception to sanctions described in clause (i) or (ii) of paragraph (4)(C) of section 104(c) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 [22 U.S.C. 8513(c)], as added by subsection (b), applies to a person that engages in a transaction described in paragraph (2) at the time of the transaction, the President is authorized not to impose sanctions with respect to the transaction under-"(A) section 302(b)(1) [22 U.S.C. 8742(b)(1)] ;"(B) section 104A of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 [22 U.S.C. 8513b], as added by section 216; or"(C) any other applicable provision of law authorizing the imposition of sanctions with respect to Iran. "(2) TRANSACTION DESCRIBED.-A transaction described in this paragraph is a transaction-"(A) solely for the purchase of petroleum or petroleum products from Iran; and"(B) for which sanctions may be imposed solely as a result of the involvement of the National Iranian Oil Company or the National Iranian Tanker Company in the transaction under-"(i) section 302(b)(1);"(ii) section 104A of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010, as added by section 216; or"(iii) any other applicable provision of law authorizing the imposition of sanctions with respect to Iran."