[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6245 Engrossed in House (EH)]
<DOC>
118th CONGRESS
2d Session
H. R. 6245
_______________________________________________________________________
AN ACT
To require the Secretary of the Treasury to report on financial
institutions' involvement with officials of the Iranian Government, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Holding Iranian Leaders Accountable
Act of 2023''.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) Iran is characterized by high levels of official and
institutional corruption, and substantial involvement by Iran's
security forces, particularly the Islamic Revolutionary Guard
Corps (IRGC), in the economy.
(2) The Department of Treasury in 2019 designated the
Islamic Republic of Iran's financial sector as a jurisdiction
of primary money laundering concern, concluding, ``Iran has
developed covert methods for accessing the international
financial system and pursuing its malign activities, including
misusing banks and exchange houses, operating procurement
networks that utilize front or shell companies, exploiting
commercial shipping, and masking illicit transactions using
senior officials, including those at the Central Bank of Iran
(CBI).''.
(3) In June 2019, the Financial Action Task Force (FATF)
urged all jurisdictions to require increased supervisory
examination for branches and subsidiaries of financial
institutions based in Iran. The FATF later called upon its
members to introduce enhanced relevant reporting mechanisms or
systematic reporting of financial transactions, and require
increased external audit requirements, for financial groups
with respect to any of their branches and subsidiaries located
in Iran.
(4) According to the State Department's ``Country Reports
on Terrorism'' in 2021, ``Iran continued to be the leading
state sponsor of terrorism, facilitating a wide range of
terrorist and other illicit activities around the world.
Regionally, Iran supported acts of terrorism in Bahrain, Iraq,
Lebanon, Syria, and Yemen through proxies and partner groups
such as Hizballah and Hamas.''.
SEC. 3. REPORT ON FINANCIAL INSTITUTIONS AND ASSETS CONNECTED TO
CERTAIN IRANIAN OFFICIALS.
(a) Financial Institutions and Assets Report.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, and every 2 years thereafter, the
President shall submit a report to the appropriate Members of
Congress containing--
(A) the estimated total funds or assets that are
under direct or indirect control by each of the natural
persons described under subsection (b), and a
description of such funds or assets, except that the
President may limit coverage of the report to not fewer
than 5 of such natural persons in order to meet the
submission deadline described under this paragraph;
(B) a description of how such funds or assets were
acquired, and how they have been used or employed;
(C) a list of any non-Iranian financial
institutions that--
(i) maintain an account in connection with
funds or assets described in subparagraph (A);
or
(ii) knowingly provide significant
financial services to a natural person covered
by the report; and
(D) a description of any illicit or corrupt means
employed to acquire or use such funds or assets.
(2) Exemptions.--The requirements described under paragraph
(1) may not be applied with respect to a natural person or a
financial institution, as the case may be, if the President
determines:
(A) The funds or assets described under
subparagraph (A) of paragraph (1) were acquired through
legal or noncorrupt means.
(B) The natural person has agreed to provide
significant cooperation to the United States for an
important national security or law enforcement purpose
with respect to Iran.
(C) A financial institution that would otherwise be
listed in the report required by paragraph (1) has
agreed to--
(i) no longer maintain an account described
under subparagraph (C)(i) of paragraph (1);
(ii) no longer provide significant
financial services to a natural person covered
by the report; or
(iii) provide significant cooperation to
the United States for an important national
security or law enforcement purpose with
respect to Iran.
(3) Waiver.--The President may waive for up to 1 year at a
time any requirement under paragraph (1) with respect to a
natural person or a financial institution after reporting in
writing to the appropriate Members of Congress that the waiver
is in the national interest of the United States, with a
detailed explanation of the reasons therefor.
(b) Persons Described.--The natural persons described in this
subsection are the following:
(1) The Supreme Leader of Iran.
(2) The President of Iran.
(3) The members of the Council of Guardians.
(4) The members of the Expediency Council.
(5) The Minister of Intelligence and Security.
(6) The Commander and the Deputy Commander of the IRGC.
(7) The Commander and the Deputy Commander of the IRGC
Ground Forces.
(8) The Commander and the Deputy Commander of the IRGC
Aerospace Force.
(9) The Commander and the Deputy Commander of the IRGC
Navy.
(10) The Commander of the Basij-e-Mostaz'afin.
(11) The Commander of the Qods Force.
(12) The Commander in Chief of the Police Force.
(13) The head of the IRGC Joint Staff.
(14) The Commander of the IRGC Intelligence.
(15) The head of the IRGC Imam Hussein University.
(16) The Supreme Leader's Representative at the IRGC.
(17) The Chief Executive Officer and the Chairman of the
IRGC Cooperative Foundation.
(18) The Commander of the Khatam-al-Anbia Construction Head
Quarter.
(19) The Chief Executive Officer of the Basij Cooperative
Foundation.
(20) The head of the Political Bureau of the IRGC.
(21) The senior leadership as determined by the President
of the following groups:
(A) Hizballah.
(B) Hamas.
(C) Palestinian Islamic Jihad.
(D) Kata'ib Hizballah.
(c) Form of Report; Public Availability.--
(1) Form.--The report required under subsection (a) and any
waiver under subsection (a)(3) shall be submitted in
unclassified form but may contain a classified annex.
(2) Public availability.--The Secretary shall make the
unclassified portion of such report public if the Secretary
notifies the appropriate Members of Congress that the
publication is in the national interest of the United States
and would substantially promote--
(A) deterring or sanctioning official corruption in
Iran;
(B) holding natural persons or financial
institutions listed in the report accountable to the
people of Iran;
(C) combating money laundering or the financing of
terrorism; or
(D) achieving any other strategic objective with
respect to the Government of Iran.
(3) Format of publicly available reports.--If the Secretary
makes the unclassified portion of a report public pursuant to
paragraph (2), the Secretary shall make it available to the
public on the website of the Department of the Treasury--
(A) in English, Farsi, Arabic, and Azeri; and
(B) in precompressed, easily downloadable versions
that are made available in all appropriate formats.
SEC. 4. RESTRICTIONS ON CERTAIN FINANCIAL INSTITUTIONS.
(a) In General.--Not later than the date that is 90 days after
submitting a report described under section 3(a)(1), the Secretary
shall undertake the following with respect to a financial institution
that is described under section 3(a)(1)(C) and listed in the report:
(1) If the financial institution is a United States
financial institution, require the closure of any account
described in section 3(a)(1)(C)(i), and prohibit the provision
of significant financial services, directly or indirectly, to a
natural person covered by the report.
(2) If the financial institution is a foreign financial
institution, actively seek the closure of any account described
in section 3(a)(1)(C)(i), and the cessation of significant
financial services to a natural person covered by the report,
using any existing authorities of the Secretary, as
appropriate.
(b) Suspension.--The Secretary may suspend the application of
subsection (a) with respect to a financial institution upon reporting
to the appropriate Members of Congress that the suspension is in the
national interest of the United States, with a detailed explanation of
the reasons therefor.
SEC. 5. EXCEPTIONS FOR NATIONAL SECURITY; IMPLEMENTATION AUTHORITY.
The following activities shall be exempt from requirements under
sections 3 and 4:
(1) Any activity subject to the reporting requirements
under title V of the National Security Act of 1947 (50 U.S.C.
3091 et seq.), or to any authorized intelligence activities of
the United States.
(2) The admission of an alien to the United States if such
admission is necessary to comply with United States obligations
under the Agreement between the United Nations and the United
States of America regarding the Headquarters of the United
Nations, signed at Lake Success June 26, 1947, and entered into
force November 21, 1947, or under the Convention on Consular
Relations, done at Vienna April 24, 1963, and entered into
force March 19, 1967, or other applicable international
obligations of the United States.
(3) The conduct or facilitation of a transaction for the
sale of agricultural commodities, food, medicine, or medical
devices to Iran or for the provision of humanitarian assistance
to the people of Iran, including engaging in a financial
transaction relating to humanitarian assistance or for
humanitarian purposes or transporting goods or services that
are necessary to carry out operations relating to humanitarian
assistance or humanitarian purposes.
SEC. 6. SUNSET.
The provisions of this Act shall have no force or effect on the
earlier of--
(1) the date that is 5 years after the date of enactment of
this Act; or
(2) 30 days after the Secretary reports in writing to the
appropriate Members of Congress that--
(A) Iran is not a jurisdiction of primary money
laundering concern; or
(B) the Government of Iran is providing significant
cooperation to the United States for the purpose of
preventing acts of international terrorism, or for the
promotion of any other strategic objective that is
important to the national interest of the United
States, as specified in the report by the Secretary.
SEC. 7. DEFINITIONS.
For purposes of this Act:
(1) Appropriate members of congress.--The term
``appropriate Members of Congress'' means the Speaker and
Minority Leader of the House of Representatives, the Majority
Leader and Minority Leader of the Senate, the Chairman and
Ranking Member of the Committee on Financial Services of the
House of Representatives, and the Chairman and Ranking Member
of the Committee on Banking, Housing, and Urban Affairs of the
Senate.
(2) Financial institution.--The term ``financial
institution'' means a United States financial institution or a
foreign financial institution.
(3) Foreign financial institution.--The term ``foreign
financial institution'' has the meaning given that term in
section 561.308 of title 31, Code of Federal Regulations.
(4) Funds.--The term ``funds'' means--
(A) cash;
(B) equity;
(C) any other asset whose value is derived from a
contractual claim, including bank deposits, bonds,
stocks, a security as defined in section 2(a) of the
Securities Act of 1933 (15 U.S.C. 77b(a)), or a
security or an equity security as defined in section
3(a) of the Securities Exchange Act of 1934 (15 U.S.C.
78c(a)); and
(D) anything else that the Secretary determines
appropriate.
(5) Knowingly.--The term ``knowingly'' with respect to
conduct, a circumstance, or a result, means that a person has
actual knowledge, or should have known, of the conduct, the
circumstance, or the result.
(6) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(7) United states financial institution.--The term ``United
States financial institution'' has the meaning given the term
``U.S. financial institution'' under section 561.309 of title
31, Code of Federal Regulations.
Passed the House of Representatives April 16, 2024.
Attest:
Clerk.
118th CONGRESS
2d Session
H. R. 6245
_______________________________________________________________________
AN ACT
To require the Secretary of the Treasury to report on financial
institutions' involvement with officials of the Iranian Government, and
for other purposes.