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MRW12536 S.L.C.
AMENDMENT NO.llll Calendar No.lll
Purpose: To enhance sanctions imposed with respect to Iran.
IN THE SENATE OF THE UNITED STATES—112th Cong., 2d Sess.
S. 3254
To authorize appropriations for fiscal year 2013 for military
activities of the Department of Defense, for military
construction, and for defense activities of the Depart-
ment of Energy, to prescribe military personnel
strengths for such fiscal year, and for other purposes.
Referred to the Committee on llllllllll and
ordered to be printed
Ordered to lie on the table and to be printed
AMENDMENT intended to be proposed by Mr. MENENDEZ
(for himself and Mr. KIRK)
Viz:
At the end of title XII, add the following: 1
Subtitle E—Iran Sanctions 2
SEC. 1251. SHORT TITLE. 3
This subtitle may be cited as the ‘‘Iran Freedom and 4
Counter-Proliferation Act of 2012’’. 5
SEC. 1252. DEFINITIONS. 6
(a) IN GENERAL.—In this subtitle: 7
(1) AGRICULTURAL COMMODITY.—The term 8
‘‘agricultural commodity’’ has the meaning given 9
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that term in section 102 of the Agricultural Trade 1
Act of 1978 (7 U.S.C. 5602). 2
(2) APPROPRIATE CONGRESSIONAL COMMIT-3
TEES.—The term ‘‘appropriate congressional com-4
mittees’’ has the meaning given that term in section 5
14 of the Iran Sanctions Act of 1996 (Public Law 6
104–172; 50 U.S.C. 1701 note). 7
(3) COAL.—The term ‘‘coal’’ means metallur-8
gical coal, coking coal, or fuel coke. 9
(4) CORRESPONDENT ACCOUNT; PAYABLE- 10
THROUGH ACCOUNT.—The terms ‘‘correspondent ac-11
count’’ and ‘‘payable-through account’’ have the 12
meanings given those terms in section 5318A of title 13
31, United States Code. 14
(5) FOREIGN FINANCIAL INSTITUTION.—The 15
term ‘‘foreign financial institution’’ has the meaning 16
of that term as determined by the Secretary of the 17
Treasury pursuant to section 104(i) of the Com-18
prehensive Iran Sanctions, Accountability, and Di-19
vestment Act of 2010 (22 U.S.C. 8513(i)). 20
(6) IRANIAN FINANCIAL INSTITUTION.—The 21
term ‘‘Iranian financial institution’’ has the meaning 22
given that term in section 104A(d) of the Com-23
prehensive Iran Sanctions, Accountability, and Di-24
vestment Act of 2010 (22 U.S.C. 8513b(d)). 25
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(7) IRANIAN PERSON.—The term ‘‘Iranian per-1
son’’ means— 2
(A) an individual who is a citizen or na-3
tional of Iran; and 4
(B) an entity organized under the laws of 5
Iran or otherwise subject to the jurisdiction of 6
the Government of Iran. 7
(8) KNOWINGLY.—The term ‘‘knowingly’’, with 8
respect to conduct, a circumstance, or a result, 9
means that a person has actual knowledge, or should 10
have known, of the conduct, the circumstance, or the 11
result. 12
(9) MEDICAL DEVICE.—The term ‘‘medical de-13
vice’’ has the meaning given the term ‘‘device’’ in 14
section 201 of the Federal Food, Drug, and Cos-15
metic Act (21 U.S.C. 321). 16
(10) MEDICINE.—The term ‘‘medicine’’ has the 17
meaning given the term ‘‘drug’’ in section 201 of the 18
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 19
321). 20
(11) SHIPPING.—The term ‘‘shipping’’ refers to 21
the transportation of goods by a vessel and related 22
activities. 23
(12) UNITED STATES PERSON.—The term 24
‘‘United States person’’ has the meaning given that 25
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term in section 101 of the Comprehensive Iran 1
Sanctions, Accountability, and Divestment Act of 2
2010 (22 U.S.C. 8511). 3
(13) VESSEL.—The term ‘‘vessel’’ has the 4
meaning given that term in section 3 of title 1, 5
United States Code. 6
(b) DETERMINATIONS OF SIGNIFICANCE.—For pur-7
poses of this subtitle, in determining if financial trans-8
actions or financial services are significant, the President 9
may consider the totality of the facts and circumstances, 10
including factors similar to the factors set forth in section 11
561.404 of title 31, Code of Federal Regulations (or any 12
corresponding similar regulation or ruling). 13
SEC. 1253. DECLARATION OF POLICY ON HUMAN RIGHTS. 14
(a) FINDING.—Congress finds that the interests of 15
the United States and international peace are threatened 16
by the ongoing and destabilizing actions of the Govern-17
ment of Iran, including its massive, systematic, and ex-18
traordinary violations of the human rights of its own citi-19
zens. 20
(b) DECLARATION OF POLICY.—It shall be the policy 21
of the United States— 22
(1) to deny the Government of Iran the ability 23
to continue to oppress the people of Iran and to use 24
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violence and executions against pro-democracy 1
protestors and regime opponents; 2
(2) to fully and publicly support efforts made 3
by the people of Iran to promote the establishment 4
of basic freedoms that build the foundation for the 5
emergence of a freely elected, open, and democratic 6
political system; 7
(3) to help the people of Iran produce, access, 8
and share information freely and safely via the 9
Internet and through other media; and 10
(4) to defeat all attempts by the Government of 11
Iran to jam or otherwise obstruct international sat-12
ellite broadcast signals. 13
SEC. 1254. IMPOSITION OF SANCTIONS WITH RESPECT TO 14
THE ENERGY, SHIPPING, AND SHIPBUILDING 15
SECTORS OF IRAN. 16
(a) FINDINGS.—Congress makes the following find-17
ings: 18
(1) Iran’s energy, shipping, and shipbuilding 19
sectors and Iran’s ports are facilitating the Govern-20
ment of Iran’s nuclear proliferation activities by pro-21
viding revenue to support proliferation activities. 22
(2) The United Nations Security Council and 23
the United States Government have expressed con-24
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cern about the proliferation risks presented by the 1
Iranian nuclear program. 2
(3) The Director General of the International 3
Atomic Energy Agency (in this section referred to as 4
the ‘‘IAEA’’) has in successive reports (GOV/2012/ 5
37 and GOV/2011/65) identified possible military di-6
mensions of Iran’s nuclear program. 7
(4) The Government of Iran continues to defy 8
the requirements and obligations contained in rel-9
evant IAEA Board of Governors and United Nations 10
Security Council resolutions, including by continuing 11
and expanding uranium enrichment activities in 12
Iran, as reported in IAEA Report GOV/2012/37. 13
(5) United Nations Security Council Resolution 14
1929 (2010) recognizes the ‘‘potential connection be-15
tween Iran’s revenues derived from its energy sector 16
and the funding of Iran’s proliferation sensitive nu-17
clear activities’’. 18
(6) The National Iranian Tanker Company is 19
the main carrier for the Iranian Revolutionary 20
Guard Corps-designated National Iranian Oil Com-21
pany and a key element in the petroleum supply 22
chain responsible for generating energy revenues 23
that support the illicit nuclear proliferation activities 24
of the Government of Iran. 25
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(b) DESIGNATION OF PORTS AND ENTITIES IN THE 1
ENERGY, SHIPPING, AND SHIPBUILDING SECTORS OF 2
IRAN AS ENTITIES OF PROLIFERATION CONCERN.—Enti-3
ties that operate ports in Iran and entities in the energy, 4
shipping, and shipbuilding sectors of Iran, including the 5
National Iranian Oil Company, the National Iranian 6
Tanker Company, the Islamic Republic of Iran Shipping 7
Lines, and their affiliates, play an important role in Iran’s 8
nuclear proliferation efforts and all such entities are here-9
by designated as entities of proliferation concern. 10
(c) BLOCKING OF PROPERTY OF ENTITIES IN EN-11
ERGY, SHIPPING, AND SHIPBUILDING SECTORS.— 12
(1) IN GENERAL.—On and after the date that 13
is 90 days after the date of the enactment of this 14
Act, the President shall block and prohibit all trans-15
actions in all property and interests in property of 16
any person described in paragraph (2) if such prop-17
erty and interests in property are in the United 18
States, come within the United States, or are or 19
come within the possession or control of a United 20
States person. 21
(2) PERSONS DESCRIBED.—A person is de-22
scribed in this paragraph if the President determines 23
that the person, on or after the date that is 90 days 24
after the date of the enactment of this Act— 25
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(A) is part of the energy, shipping, or ship-1
building sectors of Iran; 2
(B) operates a port in Iran; or 3
(C) knowingly provides significant finan-4
cial, material, technological, or other support to, 5
or goods or services in support of any activity 6
or transaction on behalf of or for the benefit 7
of— 8
(i) a person determined under sub-9
paragraph (A) to be a part of the energy, 10
shipping, or shipbuilding sectors of Iran; 11
(ii) a person determined under sub-12
paragraph (B) to operate a port in Iran; or 13
(iii) an Iranian person included on the 14
list of specially designated nationals and 15
blocked persons maintained by the Office 16
of Foreign Assets Control of the Depart-17
ment of the Treasury (other than an Ira-18
nian financial institution described in para-19
graph (3)). 20
(3) IRANIAN FINANCIAL INSTITUTIONS DE-21
SCRIBED.—An Iranian financial institution described 22
in this paragraph is an Iranian financial institution 23
that has not been designated for the imposition of 24
sanctions in connection with— 25
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(A) Iran’s proliferation of weapons of mass 1
destruction or delivery systems for weapons of 2
mass destruction; 3
(B) Iran’s support for international ter-4
rorism; or 5
(C) Iran’s abuses of human rights. 6
(d) ADDITIONAL SANCTIONS WITH RESPECT TO THE 7
ENERGY, SHIPPING, AND SHIPBUILDING SECTORS OF 8
IRAN.— 9
(1) SALE, SUPPLY, OR TRANSFER OF CERTAIN 10
GOODS AND SERVICES.—Except as provided in this 11
section, the President shall impose 5 or more of the 12
sanctions described in section 6(a) of the Iran Sanc-13
tions Act of 1996 (Public Law 104–172; 50 U.S.C. 14
1701 note) with respect to a person if the President 15
determines that the person knowingly, on or after 16
the date that is 90 days after the date of the enact-17
ment of this Act, sells, supplies, or transfers to or 18
from Iran significant goods or services described in 19
paragraph (3). 20
(2) FACILITATION OF CERTAIN TRANS-21
ACTIONS.—Except as provided in this section, the 22
President shall prohibit the opening, and prohibit or 23
impose strict conditions on the maintaining, in the 24
United States of a correspondent account or a pay-25
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able-through account by a foreign financial institu-1
tion that the President determines knowingly, on or 2
after the date that is 90 days after the date of the 3
enactment of this Act, conducts or facilitates a sig-4
nificant financial transaction for the sale, supply, or 5
transfer to or from Iran of goods or services de-6
scribed in paragraph (3). 7
(3) GOODS AND SERVICES DESCRIBED.—Goods 8
or services described in this paragraph are goods or 9
services used in connection with the energy, ship-10
ping, or shipbuilding sectors of Iran, including the 11
National Iranian Oil Company, the National Iranian 12
Tanker Company, and the Islamic Republic of Iran 13
Shipping Lines. 14
(4) APPLICATION OF CERTAIN PROVISIONS OF 15
IRAN SANCTIONS ACT OF 1996.—The following provi-16
sions of the Iran Sanctions Act of 1996 (Public Law 17
104–172; 50 U.S.C. 1701 note) shall apply with re-18
spect to the imposition of sanctions under paragraph 19
(1) to the same extent that such provisions apply 20
with respect to the imposition of sanctions under 21
section 5(a) of that Act: 22
(A) Subsections (c), (d), and (f) of section 23
5 (except for paragraphs (3) and (4)(C) of such 24
subsection (f)). 25
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(B) Sections 8, 11, and 12. 1
(e) HUMANITARIAN EXCEPTION.—The President 2
may not impose sanctions under this section with respect 3
to any person for conducting or facilitating a transaction 4
for the sale of agricultural commodities, food, medicine, 5
or medical devices to Iran or for the provision of humani-6
tarian assistance to the people of Iran. 7
(f) APPLICABILITY OF SANCTIONS TO PETROLEUM 8
AND PETROLEUM PRODUCTS.— 9
(1) IN GENERAL.—Except as provided in para-10
graph (2), this section shall apply with respect to 11
the purchase of petroleum or petroleum products 12
from Iran only if, at the time of the purchase, a de-13
termination of the President under section 14
1245(d)(4)(B) of the National Defense Authoriza-15
tion Act for Fiscal Year 2012 (22 U.S.C. 16
8513a(d)(4)(B)) that the price and supply of petro-17
leum and petroleum products produced in countries 18
other than Iran is sufficient to permit purchasers of 19
petroleum and petroleum products from Iran to re-20
duce significantly their purchases from Iran is in ef-21
fect. 22
(2) EXCEPTION FOR CERTAIN COUNTRIES.— 23
(A) EXPORTATION.—This section shall not 24
apply with respect to the exportation of petro-25
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leum or petroleum products from Iran to a 1
country to which the exception under section 2
1245(d)(4)(D)(i) of the National Defense Au-3
thorization Act for Fiscal Year 2012 (22 U.S.C. 4
8513a(d)(4)(D)(i)) applies at the time of the 5
exportation of the petroleum or petroleum prod-6
ucts. 7
(B) FINANCIAL TRANSACTIONS.— 8
(i) IN GENERAL.—This section shall 9
not apply with respect to a financial trans-10
action described in clause (ii) conducted or 11
facilitated by a foreign financial institution 12
if, at the time of the transaction, the ex-13
ception under section 1245(d)(4)(D)(i) of 14
the National Defense Authorization Act for 15
Fiscal Year 2012 (22 U.S.C. 16
8513a(d)(4)(D)(i)) applies to the country 17
with primary jurisdiction over the foreign 18
financial institution. 19
(ii) FINANCIAL TRANSACTIONS DE-20
SCRIBED.—A financial transaction con-21
ducted or facilitated by a foreign financial 22
institution is described in this clause if— 23
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(I) the financial transaction is for 1
the purchase of purchase of petroleum 2
or petroleum products from Iran; 3
(II) the financial transaction is 4
only for trade in goods or services— 5
(aa) not otherwise subject to 6
sanctions under the law of the 7
United States; and 8
(bb) between the country 9
with primary jurisdiction over the 10
foreign financial institution and 11
Iran; and 12
(III) any funds owed to Iran as 13
a result of such trade are credited to 14
an account located in the country with 15
primary jurisdiction over the foreign 16
financial institution. 17
(g) APPLICABILITY OF SANCTIONS TO NATURAL 18
GAS.— 19
(1) SALE, SUPPLY, OR TRANSFER.—Except as 20
provided in paragraph (2), this section shall not 21
apply to the sale, supply, or transfer to or from Iran 22
of natural gas. 23
(2) FINANCIAL TRANSACTIONS.—This section 24
shall apply to a foreign financial institution that 25
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conducts or facilitates a financial transaction for the 1
sale, supply, or transfer to or from Iran of natural 2
gas unless— 3
(A) the financial transaction is only for 4
trade in goods or services— 5
(i) not otherwise subject to sanctions 6
under the law of the United States; and 7
(ii) between the country with primary 8
jurisdiction over the foreign financial insti-9
tution and Iran; and 10
(B) any funds owed to Iran as a result of 11
such trade are credited to an account located in 12
the country with primary jurisdiction over the 13
foreign financial institution. 14
(h) WAIVER.— 15
(1) IN GENERAL.—The President may waive 16
the imposition of sanctions under this section for a 17
period of not more than 120 days, and may renew 18
that waiver for additional periods of not more than 19
120 days, if the President— 20
(A) determines that such a waiver is vital 21
to the national security of the United States; 22
and 23
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(B) submits to the appropriate congres-1
sional committees a report providing a justifica-2
tion for the waiver. 3
(2) FORM OF REPORT.—Each report submitted 4
under paragraph (1)(B) shall be submitted in un-5
classified form, but may include a classified annex. 6
SEC. 1255. IMPOSITION OF SANCTIONS WITH RESPECT TO 7
THE SALE, SUPPLY, OR TRANSFER OF CER-8
TAIN MATERIALS TO OR FROM IRAN. 9
(a) SALE, SUPPLY, OR TRANSFER OF CERTAIN MA-10
TERIALS.—The President shall impose 5 or more of the 11
sanctions described in section 6(a) of the Iran Sanctions 12
Act of 1996 (Public Law 104–172; 50 U.S.C. 1701 note) 13
with respect to a person if the President determines that 14
the person knowingly, on or after the date that is 90 days 15
after the date of the enactment of this Act, sells, supplies, 16
or transfers, directly or indirectly, to or from Iran— 17
(1) a precious metal; 18
(2) a material described in subsection (c) deter-19
mined pursuant to subsection (d)(1) to be used by 20
Iran as described in that subsection; 21
(3) any other material described in subsection 22
(c) if— 23
(A) the material is— 24
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(i) to be used in connection with the 1
energy, shipping, or shipbuilding sectors of 2
Iran or any sector of the economy of Iran 3
controlled directly or indirectly by Iran’s 4
Revolutionary Guard Corps; 5
(ii) sold, supplied, or transferred to or 6
from an Iranian person included on the list 7
of specially designated nationals and 8
blocked persons maintained by the Office 9
of Foreign Assets Control of the Depart-10
ment of the Treasury; or 11
(iii) relevant to the nuclear, military, 12
or ballistic missile programs of Iran; or 13
(B) the material is resold, retransferred, or 14
otherwise supplied— 15
(i) to an end-user in a sector de-16
scribed in clause (i) of subparagraph (A); 17
(ii) to a person described in clause (ii) 18
of that subparagraph; or 19
(iii) for a program described in clause 20
(iii) of that subparagraph. 21
(b) FACILITATION OF CERTAIN TRANSACTIONS.— 22
The President shall prohibit the opening, and prohibit or 23
impose strict conditions on the maintaining, in the United 24
States of a correspondent account or a payable-through 25
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account by a foreign financial institution that the Presi-1
dent determines knowingly, on or after the date that is 2
90 days after the date of the enactment of this Act, con-3
ducts or facilitates a significant financial transaction for 4
the sale, supply, or transfer to or from Iran of materials 5
the sale, supply, or transfer of which would subject a per-6
son to sanctions under subsection (a). 7
(c) MATERIALS DESCRIBED.—Materials described in 8
this subsection are graphite, raw or semi-finished metals 9
such as aluminum and steel, coal, and software for inte-10
grating industrial processes. 11
(d) DETERMINATION WITH RESPECT TO USE OF MA-12
TERIALS.—Not later than 90 days after the date of the 13
enactment of this Act, and every 90 days thereafter, the 14
President shall submit to the appropriate congressional 15
committees and publish in the Federal Register a report 16
that contains the determination of the President with re-17
spect to— 18
(1) whether Iran is— 19
(A) using any of the materials described in 20
subsection (c) as a medium for barter, swap, or 21
any other exchange or transaction; or 22
(B) listing any of such materials as assets 23
of the Government of Iran for purposes of the 24
national balance sheet of Iran; 25
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(2) which sectors of the economy of Iran are 1
controlled directly or indirectly by Iran’s Revolu-2
tionary Guard Corps; and 3
(3) which of the materials described in sub-4
section (c) are relevant to the nuclear, military, or 5
ballistic missile programs of Iran. 6
(e) EXCEPTION FOR PERSONS EXERCISING DUE 7
DILIGENCE.—The President may not impose sanctions 8
under subsection (a) or (b) with respect to a person if 9
the President determines that the person has exercised 10
due diligence in establishing and enforcing official policies, 11
procedures, and controls to ensure that the person does 12
not sell, supply, or transfer to or from Iran materials the 13
sale, supply, or transfer of which would subject a person 14
to sanctions under subsection (a) or conduct or facilitate 15
a financial transaction for such a sale, supply, or transfer. 16
(f) WAIVER.— 17
(1) IN GENERAL.—The President may waive 18
the imposition of sanctions under this section for a 19
period of not more than 120 days, and may renew 20
that waiver for additional periods of not more than 21
120 days, if the President— 22
(A) determines that such a waiver is vital 23
to the national security of the United States; 24
and 25
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(B) submits to the appropriate congres-1
sional committees a report providing a justifica-2
tion for the waiver. 3
(2) FORM OF REPORT.—Each report submitted 4
under paragraph (1)(B) shall be submitted in un-5
classified form, but may include a classified annex. 6
(g) NATIONAL BALANCE SHEET OF IRAN DE-7
FINED.—For purposes of this section, the term ‘‘national 8
balance sheet of Iran’’ refers to the ratio of the assets 9
of the Government of Iran to the liabilities of that Govern-10
ment. 11
SEC. 1256. IMPOSITION OF SANCTIONS WITH RESPECT TO 12
THE PROVISION OF UNDERWRITING SERV-13
ICES OR INSURANCE OR REINSURANCE FOR 14
ACTIVITIES OR PERSONS WITH RESPECT TO 15
WHICH SANCTIONS HAVE BEEN IMPOSED. 16
(a) IN GENERAL.—Except as provided in subsection 17
(b), the President shall impose 5 or more of the sanctions 18
described in section 6(a) of the Iran Sanctions Act of 1996 19
(Public Law 104–172; 50 U.S.C. 1701 note) with respect 20
to a person if the President determines that the person 21
knowingly, on or after the date that is 90 days after the 22
date of the enactment of this Act, provides underwriting 23
services or insurance or reinsurance— 24
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(1) for any activity with respect to Iran for 1
which sanctions have been imposed under this sub-2
title, the International Emergency Economic Powers 3
Act (50 U.S.C. 1701 et seq.), the Iran Sanctions Act 4
of 1996, the Comprehensive Iran Sanctions, Ac-5
countability, and Divestment Act of 2010 (22 U.S.C. 6
8501 et seq.), the Iran Threat Reduction and Syria 7
Human Rights Act of 2012 (22 U.S.C. 8701 et 8
seq.), the Iran, North Korea, and Syria Non-9
proliferation Act (Public Law 106–178; 50 U.S.C. 10
1701 note), or any other provision of law relating to 11
the imposition of sanctions with respect to Iran; 12
(2) to or for any person— 13
(A) with respect to, or for the benefit of 14
any activity in the energy, shipping, or ship-15
building sectors of Iran for which sanctions are 16
imposed under this subtitle; 17
(B) for the sale, supply, or transfer to or 18
from Iran of materials described in section 19
1255(c); or 20
(C) designated for the imposition of sanc-21
tions pursuant to the International Emergency 22
Economic Powers Act (50 U.S.C. 1701 et seq.) 23
in connection with— 24
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(i) Iran’s proliferation of weapons of 1
mass destruction or delivery systems for 2
weapons of mass destruction; or 3
(ii) Iran’s support for international 4
terrorism; or 5
(3) to or for any Iranian person included on the 6
list of specially designated nationals and blocked 7
persons maintained by the Office of Foreign Assets 8
Control of the Department of the Treasury (other 9
than an Iranian financial institution described in 10
subsection (b)). 11
(b) IRANIAN FINANCIAL INSTITUTIONS DE-12
SCRIBED.—An Iranian financial institution described in 13
this subsection is an Iranian financial institution that has 14
not been designated for the imposition of sanctions in con-15
nection with— 16
(1) Iran’s proliferation of weapons of mass de-17
struction or delivery systems for weapons of mass 18
destruction; 19
(2) Iran’s support for international terrorism; 20
or 21
(3) Iran’s abuses of human rights. 22
(c) HUMANITARIAN EXCEPTION.—The President 23
may not impose sanctions under subsection (a) for the 24
provision of underwriting services or insurance or reinsur-25
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ance for a transaction for the sale of agricultural commod-1
ities, food, medicine, or medical devices to Iran or for the 2
provision of humanitarian assistance to the people of Iran. 3
(d) EXCEPTION FOR UNDERWRITERS AND INSUR-4
ANCE PROVIDERS EXERCISING DUE DILIGENCE.—The 5
President may not impose sanctions under paragraph (1) 6
or (3) or subparagraph (A) or (B) of paragraph (2) of 7
subsection (a) with respect to a person that provides un-8
derwriting services or insurance or reinsurance if the 9
President determines that the person has exercised due 10
diligence in establishing and enforcing official policies, 11
procedures, and controls to ensure that the person does 12
not underwrite or enter into a contract to provide insur-13
ance or reinsurance for an activity described in paragraph 14
(1) of that subsection or to or for any person described 15
in paragraph (3) or subparagraph (A) or (B) of paragraph 16
(2) of that subsection. 17
(e) WAIVER.— 18
(1) IN GENERAL.—The President may waive 19
the imposition of sanctions under subsection (a) for 20
a period of not more than 120 days, and may renew 21
that waiver for additional periods of not more than 22
120 days, if the President— 23
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(A) determines that such a waiver is vital 1
to the national security of the United States; 2
and 3
(B) submits to the appropriate congres-4
sional committees a report providing a justifica-5
tion for the waiver. 6
(2) FORM OF REPORT.—Each report submitted 7
under paragraph (1)(B) shall be submitted in un-8
classified form, but may include a classified annex. 9
(f) APPLICATION OF CERTAIN PROVISIONS OF IRAN 10
SANCTIONS ACT OF 1996.—The following provisions of 11
the Iran Sanctions Act of 1996 (Public Law 104–172; 50 12
U.S.C. 1701 note) shall apply with respect to the imposi-13
tion of sanctions under subsection (a) to the same extent 14
that such provisions apply with respect to the imposition 15
of sanctions under section 5(a) of that Act: 16
(1) Subsections (c), (d), and (f) of section 5 17
(except for paragraphs (3) and (4)(C) of such sub-18
section (f)). 19
(2) Sections 8, 11, and 12. 20
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SEC. 1257. IMPOSITION OF SANCTIONS WITH RESPECT TO 1
FOREIGN FINANCIAL INSTITUTIONS THAT FA-2
CILITATE FINANCIAL TRANSACTIONS ON BE-3
HALF OF SPECIALLY DESIGNATED NATION-4
ALS. 5
(a) IN GENERAL.—Except as provided in this section, 6
the President shall prohibit the opening, and prohibit or 7
impose strict conditions on the maintaining, in the United 8
States of a correspondent account or a payable-through 9
account by a foreign financial institution that the Presi-10
dent determines has, on or after the date that is 90 days 11
after the date of the enactment of this Act, knowingly fa-12
cilitated a significant financial transaction on behalf of 13
any Iranian person included on the list of specially des-14
ignated nationals and blocked persons maintained by the 15
Office of Foreign Assets Control of the Department of the 16
Treasury (other than an Iranian financial institution de-17
scribed in subsection (b)). 18
(b) IRANIAN FINANCIAL INSTITUTIONS DE-19
SCRIBED.—An Iranian financial institution described in 20
this subsection is an Iranian financial institution that has 21
not been designated for the imposition of sanctions in con-22
nection with— 23
(1) Iran’s proliferation of weapons of mass de-24
struction or delivery systems for weapons of mass 25
destruction; 26
25
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(2) Iran’s support for international terrorism; 1
or 2
(3) Iran’s abuses of human rights. 3
(c) HUMANITARIAN EXCEPTION.—The President 4
may not impose sanctions under subsection (a) with re-5
spect to any person for conducting or facilitating a trans-6
action for the sale of agricultural commodities, food, medi-7
cine, or medical devices to Iran or for the provision of hu-8
manitarian assistance to the people of Iran. 9
(d) APPLICABILITY OF SANCTIONS TO PETROLEUM 10
AND PETROLEUM PRODUCTS.— 11
(1) IN GENERAL.—Except as provided in para-12
graph (2), subsection (a) shall apply with respect to 13
a financial transaction for the purchase of petroleum 14
or petroleum products from Iran only if, at the time 15
of the transaction, a determination of the President 16
under section 1245(d)(4)(B) of the National Defense 17
Authorization Act for Fiscal Year 2012 (22 U.S.C. 18
8513a(d)(4)(B)) that the price and supply of petro-19
leum and petroleum products produced in countries 20
other than Iran is sufficient to permit purchasers of 21
petroleum and petroleum products from Iran to re-22
duce significantly their purchases from Iran is in ef-23
fect. 24
(2) EXCEPTION FOR CERTAIN COUNTRIES.— 25
26
MRW12536 S.L.C.
(A) IN GENERAL.—Subsection (a) shall not 1
apply with respect to a financial transaction de-2
scribed in subparagraph (B) conducted or facili-3
tated by a foreign financial institution for if, at 4
the time of the transaction, the exception under 5
section 1245(d)(4)(D)(i) of the National De-6
fense Authorization Act for Fiscal Year 2012 7
(22 U.S.C. 8513a(d)(4)(D)(i)) applies to the 8
country with primary jurisdiction over the for-9
eign financial institution. 10
(B) FINANCIAL TRANSACTIONS DE-11
SCRIBED.—A financial transaction conducted or 12
facilitated by a foreign financial institution is 13
described in this subparagraph if— 14
(i) the financial transaction is for the 15
purchase of purchase of petroleum or pe-16
troleum products from Iran; 17
(ii) the financial transaction is only 18
for trade in goods or services— 19
(I) not otherwise subject to sanc-20
tions under the law of the United 21
States; and 22
(II) between the country with 23
primary jurisdiction over the foreign 24
financial institution and Iran; and 25
27
MRW12536 S.L.C.
(iii) any funds owed to Iran as a re-1
sult of such trade are credited to an ac-2
count located in the country with primary 3
jurisdiction over the foreign financial insti-4
tution. 5
(e) APPLICABILITY OF SANCTIONS TO NATURAL 6
GAS.—Subsection (a) shall apply to a foreign financial in-7
stitution that conducts or facilitates a financial trans-8
action for the sale, supply, or transfer to or from Iran 9
of natural gas unless— 10
(1) the financial transaction is only for trade in 11
goods or services— 12
(A) not otherwise subject to sanctions 13
under the law of the United States; and 14
(B) between the country with primary ju-15
risdiction over the foreign financial institution 16
and Iran; and 17
(2) any funds owed to Iran as a result of such 18
trade are credited to an account located in the coun-19
try with primary jurisdiction over the foreign finan-20
cial institution. 21
(f) WAIVER.— 22
(1) IN GENERAL.—The President may waive 23
the imposition of sanctions under subsection (a) for 24
a period of not more than 120 days, and may renew 25
28
MRW12536 S.L.C.
that waiver for additional periods of not more than 1
120 days, if the President— 2
(A) determines that such a waiver is vital 3
to the national security of the United States; 4
and 5
(B) submits to the appropriate congres-6
sional committees a report providing a justifica-7
tion for the waiver. 8
(2) FORM OF REPORT.—Each report submitted 9
under paragraph (1)(B) shall be submitted in un-10
classified form, but may include a classified annex. 11
SEC. 1258. INCLUSION OF THE ISLAMIC REPUBLIC OF IRAN 12
BROADCASTING ON THE LIST OF HUMAN 13
RIGHTS ABUSERS. 14
(a) FINDINGS.—Congress makes the following find-15
ings: 16
(1) The Islamic Republic of Iran Broadcasting 17
has contributed to the infringement of individuals’ 18
human rights by broadcasting forced televised con-19
fession and show trials. 20
(2) In March 2012, the European Council im-21
posed sanctions on the President of the Islamic Re-22
public of Iran Broadcasting, Ezzatollah Zargami, for 23
broadcasting forced confessions of detainees and a 24
series of ‘‘show trials’’ in August 2009 and Decem-25
29
MRW12536 S.L.C.
ber 2011 that constituted a clear violation of inter-1
national law with respect to the right to a fair trial 2
and due process. 3
(b) INCLUSION OF THE ISLAMIC REPUBLIC OF IRAN 4
BROADCASTING ON THE LIST OF HUMAN RIGHTS ABUS-5
ERS.—The President shall include the Islamic Republic of 6
Iran Broadcasting and the President of the Islamic Re-7
public of Iran Broadcasting, Ezzatollah Zargami, in the 8
first update to the list of persons complicit in, or respon-9
sible for ordering, controlling, or otherwise directing, the 10
commission of serious human rights abuses against citi-11
zens of Iran or their family members submitted under sec-12
tion 105 of the Comprehensive Iran Sanctions, Account-13
ability, and Divestment Act of 2010 (22 U.S.C. 8514) 14
after the date of the enactment of this Act. 15
SEC. 1259. IMPOSITION OF SANCTIONS WITH RESPECT TO 16
PERSONS ENGAGED IN THE DIVERSION OF 17
GOODS INTENDED FOR THE PEOPLE OF IRAN. 18
(a) IN GENERAL.—Title I of the Comprehensive Iran 19
Sanctions, Accountability, and Divestment Act of 2010 20
(22 U.S.C. 8511 et seq.) is amended by inserting after 21
section 105B the following: 22
30
MRW12536 S.L.C.
‘‘SEC. 105C. IMPOSITION OF SANCTIONS WITH RESPECT TO 1
PERSONS ENGAGED IN THE DIVERSION OF 2
GOODS INTENDED FOR THE PEOPLE OF IRAN. 3
‘‘(a) IN GENERAL.—The President shall impose sanc-4
tions described in section 105(c) with respect to each per-5
son on the list required by subsection (b). 6
‘‘(b) LIST OF PERSONS WHO ENGAGE IN DIVER-7
SION.— 8
‘‘(1) IN GENERAL.—As relevant information be-9
comes available, the President shall submit to the 10
appropriate congressional committees a list of per-11
sons that the President determines have, on or after 12
such date of enactment, engaged in corruption or 13
other activities relating to— 14
‘‘(A) the diversion of goods, including agri-15
cultural commodities, food, medicine, and med-16
ical devices, intended for the people of Iran; or 17
‘‘(B) the misappropriation of proceeds 18
from the sale or resale of such goods. 19
‘‘(2) FORM OF REPORT; PUBLIC AVAIL-20
ABILITY.— 21
‘‘(A) FORM.—The list required by para-22
graph (1) shall be submitted in unclassified 23
form but may contain a classified annex. 24
‘‘(B) PUBLIC AVAILABILITY.—The unclas-25
sified portion of the list required by paragraph 26
31
MRW12536 S.L.C.
(1) shall be made available to the public and 1
posted on the websites of the Department of the 2
Treasury and the Department of State.’’. 3
(b) WAIVER.—Section 401(b)(1) of the Comprehen-4
sive Iran Sanctions, Accountability, and Divestment Act 5
of 2010 (22 U.S.C. 8551(b)(1)) is amended— 6
(1) by striking ‘‘or 105B(a)’’ and inserting 7
‘‘105B(a), or 105C(a)’’; and 8
(2) by striking ‘‘or 105B(b)’’ and inserting 9
‘‘105B(b), or 105C(b)’’. 10
(c) CLERICAL AMENDMENT.—The table of contents 11
for the Comprehensive Iran Sanctions, Accountability, and 12
Divestment Act of 2010 is amended by inserting after the 13
item relating to section 105B the following: 14
‘‘Sec. 105C. Imposition of sanctions with respect to persons engaged in the di-
version of goods intended for the people of Iran.’’.
SEC. 1260. WAIVER REQUIREMENT RELATED TO EXCEP-15
TIONAL CIRCUMSTANCES PREVENTING SIG-16
NIFICANT REDUCTIONS IN CRUDE OIL PUR-17
CHASES. 18
Section 1245(d)(5)(B) of the National Defense Au-19
thorization Act for Fiscal Year 2012 (22 U.S.C. 20
8513a(d)(5)(B)) is amended— 21
(1) in clause (i), by striking ‘‘; and’’ and insert-22
ing a semicolon; 23
32
MRW12536 S.L.C.
(2) by redesignating clause (ii) as clause (iii); 1
and 2
(3) by inserting after clause (i) the following 3
new clause: 4
‘‘(ii) certifying that the country with 5
primary jurisdiction over the foreign finan-6
cial institution otherwise subject to the 7
sanctions faced exceptional circumstances 8
that prevented the country from being able 9
to significantly reduce its volume of crude 10
oil purchases; and’’. 11
SEC. 1261. STATUTE OF LIMITATIONS FOR CIVIL ACTIONS 12
REGARDING TERRORIST ACTS. 13
(a) IN GENERAL.—Section 2335 of title 18, United 14
States Code, is amended— 15
(1) in subsection (a), by striking ‘‘4 years’’ and 16
inserting ‘‘10 years’’; and 17
(2) in subsection (b), by striking ‘‘4-year pe-18
riod’’ and inserting ‘‘10-year period’’. 19
(b) EFFECTIVE DATE.—The amendments made by 20
this section shall apply to— 21
(1) proceedings under section 2333 of title 18, 22
United States Code, pending in any form on the 23
date of the enactment of this Act; 24
33
MRW12536 S.L.C.
(2) proceedings under such section commenced 1
on or after the date of the enactment of this Act; 2
and 3
(3) any civil action brought for recovery of 4
damages under such section resulting from acts of 5
international terrorism that occurred more than 10 6
years before the date of the enactment of this Act, 7
provided that the action is filed not later than 6 8
years after the date of the enactment of this Act. 9
SEC. 1262. REPORT ON USE OF CERTAIN IRANIAN SEA-10
PORTS BY FOREIGN VESSELS AND USE OF 11
FOREIGN AIRPORTS BY SANCTIONED IRA-12
NIAN AIR CARRIERS. 13
(a) IN GENERAL.—Not later than 180 days after the 14
date of the enactment of this Act, and annually thereafter, 15
the President shall submit to the appropriate congres-16
sional committees a report that contains— 17
(1) a list of vessels that have entered seaports 18
in Iran controlled by the Tidewater Middle East 19
Company during the period specified in subsection 20
(b) and the owners and operators of those vessels; 21
and 22
(2) a list of all airports at which aircraft owned 23
or controlled by an Iranian air carrier on which 24
sanctions have been imposed by the United States 25
34
MRW12536 S.L.C.
have landed during the period specified in subsection 1
(b). 2
(b) PERIOD SPECIFIED.—The period specified in this 3
subsection is— 4
(1) in the case of the first report submitted 5
under subsection (a), the 180-day period preceding 6
the submission of the report; and 7
(2) in the case of any subsequent report sub-8
mitted under that subsection, the year preceding the 9
submission of the report. 10
(c) FORM OF REPORT.—Each report required by sub-11
section (a) shall be submitted in unclassified form, but 12
may include a classified annex. 13
SEC. 1263. IMPLEMENTATION; PENALTIES. 14
(a) IMPLEMENTATION.—The President may exercise 15
all authorities provided under sections 203 and 205 of the 16
International Emergency Economic Powers Act (50 17
U.S.C. 1702 and 1704) to carry out this subtitle. 18
(b) PENALTIES.—The penalties provided for in sub-19
sections (b) and (c) of section 206 of the International 20
Emergency Economic Powers Act (50 U.S. C. 1705) shall 21
apply to a person that violates, attempts to violate, con-22
spires to violate, or causes a violation of this subtitle or 23
regulations prescribed under this subtitle to the same ex-24
35
MRW12536 S.L.C.
tent that such penalties apply to a person that commits 1
an unlawful act described in section 206(a) of that Act. 2
SEC. 1264. APPLICABILITY TO CERTAIN NATURAL GAS 3
PROJECTS. 4
Nothing in this subtitle or the amendments made by 5
this subtitle shall apply with respect to any activity relat-6
ing to a project described in subsection (a) of section 603 7
of the Iran Threat Reduction and Syria Human Rights 8
Act of 2012 (22 U.S.C. 8783) to which the exception 9
under that section applies at the time of the activity. 10
SEC. 1265. RULE OF CONSTRUCTION. 11
Nothing in this subtitle or the amendments made by 12
this subtitle shall be construed to limit sanctions imposed 13
with respect to Iran under any other provision of law or 14
to limit the authority of the President to impose additional 15
sanctions with respect to Iran. 16