iran ndaa (as filed).pdf

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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MRW12536 S.L.C.

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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MRW12536 S.L.C.

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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MRW12536 S.L.C.

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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MRW12536 S.L.C.

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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MRW12536 S.L.C.

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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MRW12536 S.L.C.

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


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

16

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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

17

MRW12536 S.L.C.

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


the imposition of sanctions under this section for a 19

period of not more than 120 days, and may renew 20





and 25

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(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


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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MRW12536 S.L.C.

(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

22

MRW12536 S.L.C.

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


the imposition of sanctions under subsection (a) for 20

a period of not more than 120 days, and may renew 21



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and 3







(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

24

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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

MRW12536 S.L.C.

(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


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.





and 5







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


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

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