Applies specified penalties under the International Emergency Economic Powers Act for violations of this Act.
Authorizes the Secretary to waive the application of a prohibition for up to 180 days (with renewable 180-day waivers) if in U.S. national security interests, and with congressional notification.
Directs the Secretary to identify to Congress every 180 days each foreign central bank that carries out a prohibited activity.
Directs the President to transmit to Congress a list of, and impose specified sanctions against, any person who knowingly engages in a transaction with a foreign person that transfers or receives, or facilitates the transfer or receipt of, any goods or services to or from ISIS.
States that the President shall not be required to include a person on this list if: (1) that person is no longer engaging in or has taken significant steps toward stopping sanctioned activities, and (2) the President has received reliable assurances that such person will not knowingly engage in any new sanctioned activity.
States that nothing in this Act shall apply to authorized U.S. intelligence activities.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5431 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 5431
To impose sanctions on foreign financial institutions that engage in
certain transactions with the Islamic State of Iraq and Syria, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 10, 2014
Mr. Fitzpatrick introduced the following bill; which was referred to
the Committee on Foreign Affairs, and in addition to the Committees on
Oversight and Government Reform and Financial Services, for a period to
be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To impose sanctions on foreign financial institutions that engage in
certain transactions with the Islamic State of Iraq and Syria, 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 ``Isolating ISIS Act''.
SEC. 2. SANCTIONS WITH RESPECT TO FOREIGN FINANCIAL INSTITUTIONS THAT
ENGAGE IN CERTAIN TRANSACTIONS.
(a) Prohibitions and Conditions With Respect to Certain Accounts
Held by Foreign Financial Institutions.--
(1) In general.--Not later than 120 days after the date of
the enactment of this Act, the Secretary of the Treasury, in
consultation with the Secretary of State and the heads of other
applicable Federal departments and agencies, shall 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
of the Treasury determines, on or after the date of the
enactment of this Act, engages in an activity described in
paragraph (2).
(2) Activities described.--A foreign financial institution
engages in an activity described in this paragraph if the
foreign financial institution--
(A) knowingly facilitates a transaction or
transactions for the Islamic State of Iraq and Syria;
(B) knowingly facilitates a transaction or
transactions of a person designated for acting on
behalf of or at the direction of, or owned or
controlled by, the Islamic State of Iraq and Syria;
(C) knowingly engages in money laundering to carry
out an activity described in subparagraph (A) or (B);
(D) knowingly facilitates a transaction or
transactions or provides financial services to carry
out an activity described in subparagraph (A), (B), or
(C), including--
(i) facilitating a transaction or
transactions; or
(ii) providing financial services that
involve a transaction of any goods; or
(E)(i) knowingly facilitates, or participates or
assists in, an activity described in subparagraph (A),
(B), (C), or (D), including by acting on behalf of, at
the direction of, or as an intermediary for, or
otherwise assisting, another person with respect to the
activity described in any such subparagraph;
(ii) knowingly attempts or conspires to facilitate
or participate in an activity described in subparagraph
(A), (B), (C), or (D); or
(iii) is owned or controlled by a foreign financial
institution that the Secretary finds knowingly engages
in an activity described in subparagraph (A), (B), (C),
or (D).
(3) Penalties.--The penalties provided for in subsections
(b) and (c) of section 206 of the International Emergency
Economic Powers Act (50 U.S.C. 1705) shall apply to a person
that violates, attempts to violate, conspires to violate, or
causes a violation of the prohibition or strict conditions
referred to in paragraph (1) of this subsection to the same
extent that such penalties apply to a person that commits an
unlawful act described in subsection (a) of such section 206.
(4) Regulations.--The Secretary of the Treasury shall
prescribe and implement regulations to carry out this
subsection.
(b) Waiver.--
(1) In general.--The Secretary of the Treasury, in
consultation with the Secretary of State and the heads of other
applicable Federal departments and agencies, may waive, on a
case-by-case basis, the application of a prohibition or
condition imposed with respect to a foreign financial
institution pursuant to subsection (a) for a period of not more
than 180 days, and may renew that waiver for additional periods
of not more than 180 days, on and after the date that the
Secretary of the Treasury, in consultation with the Secretary
of State--
(A) determines that such a waiver is in the
national security interests of the United States; and
(B) submits to the appropriate congressional
committees a report describing the reasons for the
determination.
(2) Form.--The report required by subparagraph (1) shall be
submitted in unclassified form, but may contain a classified
annex.
(c) Provisions Relating to Foreign Financial Institutions.--
(1) Report.--Not later than 45 days after the date of the
enactment of this Act and every 180 days thereafter, the
Secretary of the Treasury shall submit to the appropriate
congressional committees a report that--
(A) identifies each foreign central bank that the
Secretary determines engages in one or more activities
described in subsection (a)(2)(D); and
(B) provides a detailed description of each such
activity.
(2) Special rule to allow for termination of sanctionable
activity.--The Secretary of the Treasury shall not be required
to apply sanctions to a foreign financial institution described
in subsection (a) if the Secretary of the Treasury, in
consultation with the Secretary of State and the heads of other
applicable Federal departments and agencies, certifies in
writing to the appropriate congressional committees that--
(A) the foreign financial institution--
(i) is no longer engaging in an activity
described in subsection (a)(2); or
(ii) has taken and is continuing to take
significant verifiable steps toward terminating
the activity described in subsection (a)(2);
and
(B) the Secretary has received reliable assurances
from the government with primary jurisdiction over the
foreign financial institution that the foreign
financial institution will not engage in any activity
described in subsection (a)(2) in the future.
(d) Definitions.--
(1) In general.--In this section:
(A) 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.
(B) Financial institution.--The term ``financial
institution'' means a financial institution specified
in subparagraph (A), (B), (C), (D), (E), (F), (G), (H),
(I), (J), (K), (M), (N), (P), (R), (T), (Y), or (Z) of
section 5312(a)(2) of title 31, United States Code.
(C) Foreign financial institution.--The term
``foreign financial institution'' has the meaning of
such term in section 1010.605 of title 31, Code of
Federal Regulations, and includes a foreign central
bank.
(D) Money laundering.--The term ``money
laundering'' means any of the activities described in
paragraph (1), (2), or (3) of section 1956(a) of title
18, United States Code, with respect to which penalties
may be imposed pursuant to such section.
(2) Other definitions.--The Secretary of the Treasury may
further define the terms used in this section in the
regulations prescribed under this section.
SEC. 3. IMPOSITION OF SANCTIONS WITH RESPECT TO UNITED STATES PERSONS
THAT ENGAGE IN TRANSACTIONS WITH CERTAIN FOREIGN PERSONS.
(a) In General.--The President shall impose sanctions in accordance
with subsection (c) with respect to each person on the list required by
subsection (b).
(b) List.--
(1) In general.--Not later than 90 days after the date of
the enactment of this Act, the President shall submit to the
appropriate congressional committees a list of United States
persons that the President determines have knowingly engaged in
an activity described in paragraph (2) on or after such date of
enactment.
(2) Activity described.--
(A) In general.--A person engages in an activity
described in this paragraph if the person knowingly
engages in a transaction or transactions with a foreign
person that transfers or receives, or facilitates the
transfer or receipt of, any goods or services to or
from the Islamic State of Iraq and Syria.
(B) Applicability to contracts and other
agreements.--A person engages in an activity described
in subparagraph (A) without regard to whether the
activity is carried out pursuant to a contract or other
agreement entered into before, on, or after the date of
the enactment of this Act.
(3) Special rule to allow for termination of sanctionable
activity.--The President shall not be required to include a
person on the list required by paragraph (1) if the President
certifies in writing to the appropriate congressional
committees that--
(A) the person is no longer engaging in, or has
taken significant verifiable steps toward stopping, the
activity described in paragraph (2) for which the
President would otherwise have included the person on
the list; and
(B) the President has received reliable assurances
that the person will not knowingly engage in any
activity described in paragraph (2) in the future.
(4) Updates of list.--The President shall submit to the
appropriate congressional committees an updated list under
paragraph (1) as new information becomes available.
(5) Form of report; public availability.--
(A) Form.--The list required by paragraph (1) shall
be submitted in unclassified form but may contain a
classified annex.
(B) Public availability.--The unclassified portion
of the list required by paragraph (1) shall be made
available to the public and posted on the websites of
the Department of the Treasury and the Department of
State.
(c) Application of Sanctions.--
(1) In general.--The President shall impose sanctions
described in paragraph (2) with respect to a person on the list
required by subsection (b).
(2) Sanctions.--The sanctions described in this paragraph
are the following:
(A) No assistance may be provided to the person
under the Foreign Assistance Act of 1961 (22 U.S.C.
2151 et seq.) or the Arms Export Control Act (22 U.S.C.
2751 et seq.).
(B) The United States Government may not procure,
or enter into any contract for the procurement of, any
goods or services from the person.
(C) The President may impose additional sanctions,
as appropriate, with respect to the person in
accordance with the International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.).
(d) Definitions.--In this section:
(1) Foreign person.--The term ``foreign person'' means--
(A) an individual who is not a United States person
or an alien lawfully admitted for permanent residence
into the United States; or
(B) a corporation, partnership, or other
nongovernmental entity which is not a United States
person.
(2) Person.--
(A) In general.--The term ``person'' means--
(i) a natural person;
(ii) a corporation, business association,
partnership, society, trust, financial
institution, insurer, underwriter, guarantor,
and any other business organization, any other
nongovernmental entity, organization, or group,
and any governmental entity operating as a
business enterprise; and
(iii) any successor to any entity described
in clause (ii).
(B) Application to governmental entities.--The term
``person'' does not include a government or
governmental entity that is not operating as a business
enterprise.
(3) United states person.--The term ``United States
person'' means--
(A) a natural person who is a citizen of the United
States or who owes permanent allegiance to the United
States; and
(B) a corporation or other legal entity which is
organized under the laws of the United States, any
State or territory thereof, or the District of
Columbia, if natural persons described in subparagraph
(A) own, directly or indirectly, more than 50 percent
of the outstanding capital stock or other beneficial
interest in such legal entity.
SEC. 4. REGULATORY AUTHORITY.
(a) In General.--Not later than 90 days after the date of the
enactment of this Act, the President shall promulgate regulations as
necessary for the implementation of this Act.
(b) Notification to Congress.--Not later than 10 days before the
promulgation of regulations under subsection (a), the President shall
notify the appropriate congressional committees of such proposed
regulations.
SEC. 5. TERMINATION.
This Act shall cease to be in effect beginning 30 days after the
date on which the President certifies to Congress that the Islamic
State of Iraq and Syria--
(1) is no longer designated as a foreign terrorist
organization pursuant to section 219 of the Immigration and
Nationality Act (8 U.S.C. 1189);
(2) is no longer listed in the Annex to Executive Order No.
13224 (September 23, 2001; relating to blocking property and
prohibiting transactions with persons who commit, threaten to
commit, or support terrorism); and
(3) poses no significant threat to United States national
security, interests, or allies.
SEC. 6. RULE OF CONSTRUCTION.
Nothing in this Act shall apply to the authorized intelligence
activities of the United States.
SEC. 7. DEFINITIONS.
In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Affairs and the
Committee on Financial Services of the House of
Representatives; and
(B) the Committee on Foreign Relations and the
Committee on Banking, Housing, and Urban Affairs of the
Senate.
(2) Islamic state of iraq and syria.--The term ``Islamic
State of Iraq and Syria'' includes--
(A) any person--
(i) the property of or interests in
property of which are blocked pursuant to the
International Emergency Economic Powers Act (50
U.S.C. 1701 et seq.); and
(ii) who is identified on the list of
specially designated nationals and blocked
persons maintained by the Office of Foreign
Asset Control of the Department of the Treasury
as an agent, instrumentality, or affiliate of
the Islamic State of Iraq and Syria; and
(B) the entity designated by the Secretary of State
as a foreign terrorist organization pursuant to section
219 of the Immigration and Nationality Act (8 U.S.C.
1189).
<all>
Introduced in House
Introduced in House
Referred to the Committee on Foreign Affairs, and in addition to the Committees on Oversight and Government Reform, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Foreign Affairs, and in addition to the Committees on Oversight and Government Reform, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Foreign Affairs, and in addition to the Committees on Oversight and Government Reform, and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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