[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4858 Introduced in Senate (IS)]
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118th CONGRESS
2d Session
S. 4858
To require the imposition of sanctions with respect to financial
institutions of countries of concern that clear, verify, or settle
transactions with other financial institutions of such countries.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 30, 2024
Mr. Rubio introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To require the imposition of sanctions with respect to financial
institutions of countries of concern that clear, verify, or settle
transactions with other financial institutions of such countries.
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 ``Sanctions Evasion Prevention And
Mitigation Act of 2024'' or the ``SEPAM Act of 2024''.
SEC. 2. IMPOSITION OF SANCTIONS WITH RESPECT TO CERTAIN FINANCIAL
INSTITUTIONS OF COUNTRIES OF CONCERN.
(a) In General.--The President shall impose one or more of the
sanctions described in subsection (b) with respect to each covered
financial institution that uses the Cross-Border Interbank Payment
System (commonly referred to as ``CIPS''), the System for Transfer of
Financial Messages (commonly referred to as ``SPFS''), or the System
for Electronic Payment Messaging (commonly referred to as ``SEPAM'') to
clear, verify, settle, or otherwise conduct transactions with any other
covered financial institution.
(b) Sanctions Described.--The sanctions described in this
subsection are the following:
(1) Property blocking.--The exercise of exercise all of the
powers granted by the International Emergency Economic Powers
Act (50 U.S.C. 1701 et seq.) to the extent necessary to block
and prohibit all transactions in all property and interests in
property of a covered financial institution subject to
subsection (a) if such property and interests in property are
in the United States, come within the United States, or are or
come within the possession or control of a United States
person.
(2) Restrictions on correspondent and payable-through
accounts.--A prohibition on the opening or maintaining in the
United States of a correspondent account or a payable-through
account by a covered financial institution subject to
subsection (a).
(3) Executive officers inadmissible for visas, admission,
or parole.--
(A) Visas, admission, or parole.--An executive
officer of a covered financial institution subject to
subsection (a) who is an alien is--
(i) inadmissible to the United States;
(ii) ineligible to receive a visa or other
documentation to enter the United States; and
(iii) otherwise ineligible to be admitted
or paroled into the United States or to receive
any other benefit under the Immigration and
Nationality Act (8 U.S.C. 1101 et seq.).
(B) Current visas revoked.--
(i) In general.--The visa or other entry
documentation of an alien described in
subparagraph (A) shall be revoked, regardless
of when such visa or other entry documentation
was issued.
(ii) Immediate effect.--A revocation under
clause (i) shall--
(I) take effect immediately; and
(II) automatically cancel any other
valid visa or entry documentation that
is in the alien's possession.
(c) Exceptions.--
(1) Exception for intelligence activities.--This section
shall not apply with respect to activities subject to the
reporting requirements under title V of the National Security
Act of 1947 (50 U.S.C. 3091 et seq.) or any authorized
intelligence activities of the United States.
(2) Compliance with united nations headquarters
agreement.--Subsection (b)(3) shall not apply with respect to
the admission of an alien to the United States if such
admission is necessary to permit the United States to comply
with the Agreement regarding the Headquarters of the United
Nations, signed at Lake Success, June 26, 1947, and entered
into force, November 21, 1947, between the United Nations and
the United States.
(3) Exception relating to importation of goods.--
(A) In general.--The authority to block and
prohibit all transactions in all property and interests
in property under subsection (b)(1) shall not include
the authority or a requirement to impose sanctions on
the importation of goods.
(B) Good.--In this paragraph, the term ``good''
means any article, natural or manmade substance,
material, supply or manufactured product, including
inspection and test equipment, and excluding technical
data.
(d) Implementation; Penalties.--
(1) Implementation.--The President may exercise all
authorities provided under sections 203 and 205 of the
International Emergency Economic Powers Act (50 U.S.C. 1702 and
1704) to carry out this section.
(2) Penalties.--A person that violates, attempts to
violate, conspires to violate, or causes a violation of this
section or any regulation, license, or order issued to carry
out this section shall be subject to the penalties set forth in
subsections (b) and (c) of section 206 of the International
Emergency Economic Powers Act (50 U.S.C. 1705) to the same
extent as a person that commits an unlawful act described in
subsection (a) of that section.
(e) Delegation.--Not later than 90 days after the date of the
enactment of this Act, the President shall--
(1) make a determination with respect to if and how the
President will delegate the requirements and authorities under
this section; and
(2) notify the appropriate congressional committees of that
determination.
(f) Regulations.--Not later than 90 days after the date of the
enactment of this Act, the President shall prescribe such regulations
as are necessary to carry out this section.
(g) Report Required.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, the President shall submit to the
appropriate congressional committees a report--
(A) describing the scope and usage of CIPS, SPFS,
or SEPAM around the world, including usage rates by
country;
(B) assessing the risks that widespread adoption of
CIPS, SPFS, or SEPAM poses to the national security of
the United States;
(C) assessing the ability of CIPS, SPFS, and SEPAM
in helping countries of concern circumvent United
States and international sanctions; and
(D) making recommendations to further preserve and
strengthen the influence of the United States in the
global financial system.
(2) Form.--Each report required by paragraph (1) shall be
submitted in unclassified form but may include a classified
annex.
(h) Definitions.--In this section:
(1) Account; correspondent account; payable-through
account.--The terms ``account'', ``correspondent account'', and
``payable-through account'' have the meanings given those terms
in section 5318A of title 31, United States Code.
(2) Admission; admitted; alien.--The terms ``admission'',
``admitted'', and ``alien'' have the meanings given those terms
in section 101 of the Immigration and Nationality Act (8 U.S.C.
1101).
(3) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Relations, the
Committee on Banking, Housing, and Urban Affairs, and
the Select Committee on Intelligence of the Senate; and
(B) the Committee on Foreign Affairs, the Committee
on Financial Services, and the Permanent Select
Committee on Intelligence of the House of
Representatives.
(4) Covered financial institution.--The term ``covered
financial institution'' means a financial institution--
(A) located in--
(i) a country of concern; or
(ii) territory controlled by an entity
holding itself out to be the government of the
Republic of South Ossetia, the State of Alania,
the Donetsk People's Republic, the Luhansk
People's Republic, the Republic of Abkhazia, or
the Pridnestrovian Moldavian Republic;
(B) organized under the laws of a country of
concern, any jurisdiction within a country of concern,
or an entity described in subparagraph (A)(ii),
including a foreign branch of such an institution;
(C) wherever located, owned or controlled by the
government of a country of concern or an entity
described in subparagraph (A)(ii); or
(D) wherever located, owned or controlled by a
financial institution described in subparagraph (A),
(B), or (C).
(5) Country of concern.--The term ``country of concern''--
(A) has the meaning given the term ``foreign
adversary'' in section 8(c)(2) of the Secure and
Trusted Communications Networks Act of 2019 (47 U.S.C.
1607(c)(2)); and
(B) includes--
(i) the People's Republic of China
(including the Special Administrative Regions
of China, including Hong Kong and Macau);
(ii) the Russian Federation;
(iii) Iran;
(iv) North Korea;
(v) Cuba; and
(vi) Venezuela under the regime of Nicolas
Maduro.
(6) Financial institution.--The term ``financial
institution'' means a financial institution specified in
subparagraph (A), (B), (C), (D), (E), (F), (G), (H), (I), (J),
(M), or (Y) of section 5312(a)(2) of title 31, United States
Code.
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