{"identifier":"/us/usc/t22/s8513","title":22,"num":"\u00a7\u202f8513.","heading":"Mandatory sanctions with respect to financial institutions that engage in certain transactions","text":"\u00a7\u202f8513.\nMandatory sanctions with respect to financial institutions that engage in certain transactions\n(a)\nFindings\nCongress makes the following findings:\n(1) The Financial Action Task Force is an intergovernmental body whose purpose is to develop and promote national and international policies to combat money laundering and terrorist financing.\n(2) Thirty-three countries, plus the European Commission and the Cooperation Council for the Arab States of the Gulf, belong to the Financial Action Task Force. The member countries of the Financial Action Task Force include the United States, Canada, most countries in western Europe, Russia, the People\u2019s Republic of China, Japan, South Korea, Argentina, and Brazil.\n(3) In 2008 the Financial Action Task Force extended its mandate to include addressing \u201cnew and emerging threats such as proliferation financing\u201d, meaning the financing of the proliferation of weapons of mass destruction, and published \u201cguidance papers\u201d for members to assist them in implementing various United Nations Security Council resolutions dealing with weapons of mass destruction, including United Nations Security Council Resolutions 1737 (2006) and 1803 (2008), which deal specifically with proliferation by Iran.\n(4) The Financial Action Task Force has repeatedly called on members\u2014\n(A) to advise financial institutions in their jurisdictions to give special attention to business relationships and transactions with Iran, including Iranian companies and financial institutions;\n(B) to apply effective countermeasures to protect their financial sectors from risks relating to money laundering and financing of terrorism that emanate from Iran;\n(C) to protect against correspondent relationships being used by Iran and Iranian companies and financial institutions to bypass or evade countermeasures and risk-mitigation practices; and\n(D) to take into account risks relating to money laundering and financing of terrorism when considering requests by Iranian financial institutions to open branches and subsidiaries in their jurisdictions.\n(5) At a February 2010 meeting of the Financial Action Task Force, the Task Force called on members to apply countermeasures \u201cto protect the international financial system from the ongoing and substantial money laundering and terrorist financing (ML/TF) risks\u201d emanating from Iran.\n(b)\nSense of Congress regarding the imposition of sanctions on the Central Bank of Iran\nCongress\u2014\n(1) acknowledges the efforts of the United Nations Security Council to impose limitations on transactions involving Iranian financial institutions, including the Central Bank of Iran; and\n(2) urges the President, in the strongest terms, to consider immediately using the authority of the President to impose sanctions on the Central Bank of Iran and any other Iranian financial institution engaged in proliferation activities or support of terrorist groups.\n(c)\nProhibitions and conditions with respect to certain accounts held by foreign financial institutions\n(1)\nIn general\nNot later than 90 days after\nJuly 1, 2010\n(2)\nActivities described\nA foreign financial institution engages in an activity described in this paragraph if the foreign financial institution\u2014\n(A) facilitates the efforts of the Government of Iran (including efforts of Iran\u2019s Revolutionary Guard Corps or any of its agents or affiliates)\u2014\n(i) to acquire or develop weapons of mass destruction or delivery systems for weapons of mass destruction; or\n(ii) to provide support for organizations designated as foreign terrorist organizations under\nsection 1189(a) of title 8\nPublic Law 104\u2013172\n50 U.S.C. 1701\n(B) facilitates the activities of\u2014\n(i) a person subject to financial sanctions pursuant to United Nations Security Council Resolution 1737 (2006), 1747 (2007), 1803 (2008), or 1929 (2010), or any other resolution that is agreed to by the Security Council and imposes sanctions with respect to Iran; or\n(ii) a person acting on behalf of or at the direction of, or owned or controlled by, a person described in clause (i);\n(C) engages in money laundering to carry out an activity described in subparagraph (A) or (B);\n(D) facilitates efforts by the Central Bank of Iran or any other Iranian financial institution to carry out an activity described in subparagraph (A) or (B); or\n(E) facilitates a significant transaction or transactions or provides significant financial services for\u2014\n(i) Iran\u2019s 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 (\n50 U.S.C. 1701\n(ii) a person whose property or interests in property are blocked pursuant to that Act in connection with\u2014\n(I) Iran\u2019s proliferation of weapons of mass destruction or delivery systems for weapons of mass destruction; or\n(II) Iran\u2019s support for international terrorism.\n(3)\nPenalties\nThe penalties provided for in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act (\n50 U.S.C. 1705\n(4)\nDeterminations regarding NIOC and NITC\n(A)\nDeterminations\nFor purposes of paragraph (2)(E), the Secretary of the Treasury shall, not later than 45 days after\n(i) determine whether the NIOC or the NITC is an agent or affiliate of Iran\u2019s Revolutionary Guard Corps; and\n(ii) submit to the appropriate congressional committees a report on the determinations made under clause (i), together with the reasons for those determinations.\n(B)\nForm of report\nA report submitted under subparagraph (A)(ii) shall be submitted in unclassified form but may contain a classified annex.\n(C)\nApplicability with respect to petroleum transactions\n(i)\nApplication of sanctions\nExcept 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\nsection 8513a(d)(4)(B) of this title\n(ii)\nException for certain countries\nIf 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\nsection 8513a(d) of this title\n(iii)\nRule of construction\nThe 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.\n(D)\nDefinitions\nIn this paragraph:\n(i)\nNIOC\nThe term \u201cNIOC\u201d means the National Iranian Oil Company.\n(ii)\nNITC\nThe term \u201cNITC\u201d means the National Iranian Tanker Company.\n(d)\nPenalties for domestic financial institutions for actions of persons owned or controlled by such financial institutions\n(1)\nIn general\nNot later than 90 days after\nJuly 1, 2010\n50 U.S.C. 1701\n(2)\nPenalties\nThe penalties provided for in section 206(b) of the International Emergency Economic Powers Act (\n(A) a person owned or controlled by the domestic financial institution violates, attempts to violate, conspires to violate, or causes a violation of regulations prescribed under paragraph (1) of this subsection; and\n(B) the domestic financial institution knew or should have known that the person violated, attempted to violate, conspired to violate, or caused a violation of such regulations.\n(e)\nRequirements for financial institutions maintaining accounts for foreign financial institutions\n(1)\nIn general\nThe 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:\n(A) Perform an audit of activities described in subsection (c)(2) that may be carried out by the foreign financial institution.\n(B) Report to the Department of the Treasury with respect to transactions or other financial services provided with respect to any such activity.\n(C) Certify, to the best of the knowledge of the domestic financial institution, that the foreign financial institution is not knowingly engaging in any such activity.\n(D) Establish due diligence policies, procedures, and controls, such as the due diligence policies, procedures, and controls described in\nsection 5318(i) of title 31\n(2)\nPenalties\nThe 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.\n(f)\nWaiver\nThe 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\n(1) determines that such a waiver is necessary to the national interest of the United States; and\n(2) submits to the appropriate congressional committees a report describing the reasons for the determination.\n(g)\nProcedures for judicial review of classified information\n(1)\nIn general\nIf a finding under paragraph (1) or (4) of subsection (c) or\nsection 8513b of this title\n(2)\nRule of construction\nNothing 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\nsection 8513b of this title\n(h)\nConsultations in implementation of regulations\nIn implementing this section and the regulations prescribed under this section, the Secretary of the Treasury\u2014\n(1) shall consult with the Secretary of State; and\n(2) may, in the sole discretion of the Secretary of the Treasury, consult with such other agencies and departments and such other interested parties as the Secretary considers appropriate.\n(i)\nDefinitions\n(1)\nIn general\nIn this section:\n(A)\nAccount; correspondent account; payable-through account\nThe terms \u201caccount\u201d, \u201ccorrespondent account\u201d, and \u201cpayable-through account\u201d have the meanings given those terms in\nsection 5318A of title 31\n(B)\nAgent\nThe term \u201cagent\u201d 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.\n(C)\nFinancial institution\nThe term \u201cfinancial institution\u201d means a financial institution specified in subparagraph (A), (B), (C), (D), (E), (F), (G), (H), (I), (J), (M), or (Z) of\nsection 5312(a)(2) of title 31\n(D)\nForeign financial institution; domestic financial institution\nThe terms \u201cforeign financial institution\u201d and \u201cdomestic financial institution\u201d shall have the meanings of those terms as determined by the Secretary of the Treasury.\n(E)\nMoney laundering\nThe term \u201cmoney laundering\u201d 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.\n(2)\nOther definitions\nThe Secretary of the Treasury may further define the terms used in this section in the regulations prescribed under this section.","url":"https://projectusc.org/usc/t22/s8513.html","content":[{"t":"sec","id":"/us/usc/t22/s8513","children":[{"t":"num","text":"\u00a7\u202f8513."},{"t":"heading","text":"Mandatory sanctions with respect to financial institutions that engage in certain transactions"},{"t":"subsec","id":"/us/usc/t22/s8513/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Findings"},{"t":"chapeau","text":"Congress makes the following findings:"},{"t":"para","id":"/us/usc/t22/s8513/a/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" The Financial Action Task Force is an intergovernmental body whose purpose is to develop and promote national and international policies to combat money laundering and terrorist financing.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t22/s8513/a/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" Thirty-three countries, plus the European Commission and the Cooperation Council for the Arab States of the Gulf, belong to the Financial Action Task Force. The member countries of the Financial Action Task Force include the United States, Canada, most countries in western Europe, Russia, the People\u2019s Republic of China, Japan, South Korea, Argentina, and Brazil.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t22/s8513/a/3","children":[{"t":"num","text":"(3)"},{"t":"content","text":" In 2008 the Financial Action Task Force extended its mandate to include addressing \u201cnew and emerging threats such as proliferation financing\u201d, meaning the financing of the proliferation of weapons of mass destruction, and published \u201cguidance papers\u201d for members to assist them in implementing various United Nations Security Council resolutions dealing with weapons of mass destruction, including United Nations Security Council Resolutions 1737 (2006) and 1803 (2008), which deal specifically with proliferation by Iran.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t22/s8513/a/4","children":[{"t":"num","text":"(4)"},{"t":"chapeau","text":" The Financial Action Task Force has repeatedly called on members\u2014"},{"t":"subpara","id":"/us/usc/t22/s8513/a/4/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" to advise financial institutions in their jurisdictions to give special attention to business relationships and transactions with Iran, including Iranian companies and financial institutions;","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t22/s8513/a/4/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" to apply effective countermeasures to protect their financial sectors from risks relating to money laundering and financing of terrorism that emanate from Iran;","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t22/s8513/a/4/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" to protect against correspondent relationships being used by Iran and Iranian companies and financial institutions to bypass or evade countermeasures and risk-mitigation practices; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t22/s8513/a/4/D","children":[{"t":"num","text":"(D)"},{"t":"content","text":" to take into account risks relating to money laundering and financing of terrorism when considering requests by Iranian financial institutions to open branches and subsidiaries in their jurisdictions.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t22/s8513/a/5","children":[{"t":"num","text":"(5)"},{"t":"content","text":" At a February 2010 meeting of the Financial Action Task Force, the Task Force called on members to apply countermeasures \u201cto protect the international financial system from the ongoing and substantial money laundering and terrorist financing (ML/TF) risks\u201d emanating from Iran.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t22/s8513/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Sense of Congress regarding the imposition of sanctions on the Central Bank of Iran"},{"t":"chapeau","text":"Congress\u2014"},{"t":"para","id":"/us/usc/t22/s8513/b/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" acknowledges the efforts of the United Nations Security Council to impose limitations on transactions involving Iranian financial institutions, including the Central Bank of Iran; and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t22/s8513/b/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" urges the President, in the strongest terms, to consider immediately using the authority of the President to impose sanctions on the Central Bank of Iran and any other Iranian financial institution engaged in proliferation activities or support of terrorist groups.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t22/s8513/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Prohibitions and conditions with respect to certain accounts held by foreign financial institutions"},{"t":"para","id":"/us/usc/t22/s8513/c/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"Not later than 90 days after ","children":[{"t":"text","text":"July 1, 2010","tail":", 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)."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t22/s8513/c/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Activities described"},{"t":"chapeau","text":"A foreign financial institution engages in an activity described in this paragraph if the foreign financial institution\u2014"},{"t":"subpara","id":"/us/usc/t22/s8513/c/2/A","children":[{"t":"num","text":"(A)"},{"t":"chapeau","text":" facilitates the efforts of the Government of Iran (including efforts of Iran\u2019s Revolutionary Guard Corps or any of its agents or affiliates)\u2014"},{"t":"clause","id":"/us/usc/t22/s8513/c/2/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" to acquire or develop weapons of mass destruction or delivery systems for weapons of mass destruction; or","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t22/s8513/c/2/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" to provide support for organizations designated as foreign terrorist organizations under ","children":[{"t":"ref","text":"section 1189(a) of title 8","href":"/us/usc/t8/s1189/a","tail":" or support for acts of international terrorism (as defined in section 14 of the Iran Sanctions Act of 1996 ("},{"t":"ref","text":"Public Law 104\u2013172","href":"/us/pl/104/172","tail":"; "},{"t":"ref","text":"50 U.S.C. 1701","href":"/us/usc/t50/s1701","tail":" note));"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t22/s8513/c/2/B","children":[{"t":"num","text":"(B)"},{"t":"chapeau","text":" facilitates the activities of\u2014"},{"t":"clause","id":"/us/usc/t22/s8513/c/2/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" a person subject to financial sanctions pursuant to United Nations Security Council Resolution 1737 (2006), 1747 (2007), 1803 (2008), or 1929 (2010), or any other resolution that is agreed to by the Security Council and imposes sanctions with respect to Iran; or","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t22/s8513/c/2/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" a person acting on behalf of or at the direction of, or owned or controlled by, a person described in clause (i);","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t22/s8513/c/2/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" engages in money laundering to carry out an activity described in subparagraph (A) or (B);","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t22/s8513/c/2/D","children":[{"t":"num","text":"(D)"},{"t":"content","text":" facilitates efforts by the Central Bank of Iran or any other Iranian financial institution to carry out an activity described in subparagraph (A) or (B); or","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t22/s8513/c/2/E","children":[{"t":"num","text":"(E)"},{"t":"chapeau","text":" facilitates a significant transaction or transactions or provides significant financial services for\u2014"},{"t":"clause","id":"/us/usc/t22/s8513/c/2/E/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" Iran\u2019s 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 (","children":[{"t":"ref","text":"50 U.S.C. 1701","href":"/us/usc/t50/s1701","tail":" et seq.); or"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t22/s8513/c/2/E/ii","children":[{"t":"num","text":"(ii)"},{"t":"chapeau","text":" a person whose property or interests in property are blocked pursuant to that Act in connection with\u2014"},{"t":"subclause","id":"/us/usc/t22/s8513/c/2/E/ii/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" Iran\u2019s proliferation of weapons of mass destruction or delivery systems for weapons of mass destruction; or","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t22/s8513/c/2/E/ii/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" Iran\u2019s support for international terrorism.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t22/s8513/c/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Penalties"},{"t":"content","children":[{"t":"p","text":"The penalties provided for in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act (","children":[{"t":"ref","text":"50 U.S.C. 1705","href":"/us/usc/t50/s1705","tail":") 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."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t22/s8513/c/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Determinations regarding NIOC and NITC"},{"t":"subpara","id":"/us/usc/t22/s8513/c/4/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Determinations"},{"t":"chapeau","text":"For purposes of paragraph (2)(E), the Secretary of the Treasury shall, not later than 45 days after ","children":[{"t":"text","text":"August 10, 2012","tail":"\u2014"}]},{"t":"clause","id":"/us/usc/t22/s8513/c/4/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" determine whether the NIOC or the NITC is an agent or affiliate of Iran\u2019s Revolutionary Guard Corps; and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t22/s8513/c/4/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" submit to the appropriate congressional committees a report on the determinations made under clause (i), together with the reasons for those determinations.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t22/s8513/c/4/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Form of report"},{"t":"content","children":[{"t":"p","text":"A report submitted under subparagraph (A)(ii) shall be submitted in unclassified form but may contain a classified annex.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t22/s8513/c/4/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Applicability with respect to petroleum transactions"},{"t":"clause","id":"/us/usc/t22/s8513/c/4/C/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"Application of sanctions"},{"t":"content","children":[{"t":"p","text":"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 ","children":[{"t":"ref","text":"section 8513a(d)(4)(B) of this title","href":"/us/usc/t22/s8513a/d/4/B","tail":" 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."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t22/s8513/c/4/C/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Exception for certain countries"},{"t":"content","children":[{"t":"p","text":"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 ","children":[{"t":"ref","text":"section 8513a(d) of this title","href":"/us/usc/t22/s8513a/d","tail":" applies to the country with primary jurisdiction over the foreign financial institution at the time of the transaction or the provision of the service."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t22/s8513/c/4/C/iii","children":[{"t":"num","text":"(iii)"},{"t":"heading","text":"Rule of construction"},{"t":"content","children":[{"t":"p","text":"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.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t22/s8513/c/4/D","children":[{"t":"num","text":"(D)"},{"t":"heading","text":"Definitions"},{"t":"chapeau","text":"In this paragraph:"},{"t":"clause","id":"/us/usc/t22/s8513/c/4/D/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"NIOC"},{"t":"content","children":[{"t":"p","text":"The term \u201cNIOC\u201d means the National Iranian Oil Company.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t22/s8513/c/4/D/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"NITC"},{"t":"content","children":[{"t":"p","text":"The term \u201cNITC\u201d means the National Iranian Tanker Company.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t22/s8513/d","children":[{"t":"num","text":"(d)"},{"t":"heading","text":"Penalties for domestic financial institutions for actions of persons owned or controlled by such financial institutions"},{"t":"para","id":"/us/usc/t22/s8513/d/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"Not later than 90 days after ","children":[{"t":"text","text":"July 1, 2010","tail":", 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\u2019s 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 ("},{"t":"ref","text":"50 U.S.C. 1701","href":"/us/usc/t50/s1701","tail":" et seq.)."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t22/s8513/d/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Penalties"},{"t":"chapeau","text":"The penalties provided for in section 206(b) of the International Emergency Economic Powers Act (","children":[{"t":"ref","text":"50 U.S.C. 1705(b)","href":"/us/usc/t50/s1705/b","tail":") 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\u2014"}]},{"t":"subpara","id":"/us/usc/t22/s8513/d/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" a person owned or controlled by the domestic financial institution violates, attempts to violate, conspires to violate, or causes a violation of regulations prescribed under paragraph (1) of this subsection; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t22/s8513/d/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" the domestic financial institution knew or should have known that the person violated, attempted to violate, conspired to violate, or caused a violation of such regulations.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t22/s8513/e","children":[{"t":"num","text":"(e)"},{"t":"heading","text":"Requirements for financial institutions maintaining accounts for foreign financial institutions"},{"t":"para","id":"/us/usc/t22/s8513/e/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"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:"},{"t":"subpara","id":"/us/usc/t22/s8513/e/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" Perform an audit of activities described in subsection (c)(2) that may be carried out by the foreign financial institution.","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t22/s8513/e/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" Report to the Department of the Treasury with respect to transactions or other financial services provided with respect to any such activity.","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t22/s8513/e/1/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" Certify, to the best of the knowledge of the domestic financial institution, that the foreign financial institution is not knowingly engaging in any such activity.","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t22/s8513/e/1/D","children":[{"t":"num","text":"(D)"},{"t":"content","text":" Establish due diligence policies, procedures, and controls, such as the due diligence policies, procedures, and controls described in ","children":[{"t":"ref","text":"section 5318(i) of title 31","href":"/us/usc/t31/s5318/i","tail":", reasonably designed to detect whether the Secretary of the Treasury has found the foreign financial institution to knowingly engage in any such activity."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t22/s8513/e/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Penalties"},{"t":"content","children":[{"t":"p","text":"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.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t22/s8513/f","children":[{"t":"num","text":"(f)"},{"t":"heading","text":"Waiver"},{"t":"chapeau","text":"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 ","children":[{"t":"ref","text":"section 8513b of this title","href":"/us/usc/t22/s8513b","tail":" 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\u2014"}]},{"t":"para","id":"/us/usc/t22/s8513/f/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" determines that such a waiver is necessary to the national interest of the United States; and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t22/s8513/f/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" submits to the appropriate congressional committees a report describing the reasons for the determination.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t22/s8513/g","children":[{"t":"num","text":"(g)"},{"t":"heading","text":"Procedures for judicial review of classified information"},{"t":"para","id":"/us/usc/t22/s8513/g/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"If a finding under paragraph (1) or (4) of subsection (c) or ","children":[{"t":"ref","text":"section 8513b of this title","href":"/us/usc/t22/s8513b","tail":", 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."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t22/s8513/g/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Rule of construction"},{"t":"content","children":[{"t":"p","text":"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 ","children":[{"t":"ref","text":"section 8513b of this title","href":"/us/usc/t22/s8513b","tail":", any prohibition, condition, or penalty imposed as a result of any such finding, or any penalty imposed under subsection (d)."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t22/s8513/h","children":[{"t":"num","text":"(h)"},{"t":"heading","text":"Consultations in implementation of regulations"},{"t":"chapeau","text":"In implementing this section and the regulations prescribed under this section, the Secretary of the Treasury\u2014"},{"t":"para","id":"/us/usc/t22/s8513/h/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" shall consult with the Secretary of State; and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t22/s8513/h/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" may, in the sole discretion of the Secretary of the Treasury, consult with such other agencies and departments and such other interested parties as the Secretary considers appropriate.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t22/s8513/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"Definitions"},{"t":"para","id":"/us/usc/t22/s8513/i/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"In this section:"},{"t":"subpara","id":"/us/usc/t22/s8513/i/1/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Account; correspondent account; payable-through account"},{"t":"content","children":[{"t":"p","text":"The terms \u201caccount\u201d, \u201ccorrespondent account\u201d, and \u201cpayable-through account\u201d have the meanings given those terms in ","children":[{"t":"ref","text":"section 5318A of title 31","href":"/us/usc/t31/s5318A","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t22/s8513/i/1/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Agent"},{"t":"content","children":[{"t":"p","text":"The term \u201cagent\u201d 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.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t22/s8513/i/1/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Financial institution"},{"t":"content","children":[{"t":"p","text":"The term \u201cfinancial institution\u201d means a financial institution specified in subparagraph (A), (B), (C), (D), (E), (F), (G), (H), (I), (J), (M), or (Z) of ","children":[{"t":"ref","text":"section 5312(a)(2) of title 31","href":"/us/usc/t31/s5312/a/2","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t22/s8513/i/1/D","children":[{"t":"num","text":"(D)"},{"t":"heading","text":"Foreign financial institution; domestic financial institution"},{"t":"content","children":[{"t":"p","text":"The terms \u201cforeign financial institution\u201d and \u201cdomestic financial institution\u201d shall have the meanings of those terms as determined by the Secretary of the Treasury.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t22/s8513/i/1/E","children":[{"t":"num","text":"(E)"},{"t":"heading","text":"Money laundering"},{"t":"content","children":[{"t":"p","text":"The term \u201cmoney laundering\u201d 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.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t22/s8513/i/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Other definitions"},{"t":"content","children":[{"t":"p","text":"The Secretary of the Treasury may further define the terms used in this section in the regulations prescribed under this section.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}