To require the President to impose sanctions on foreign financial institutions that conduct transactions with the Central Bank of Iran.

1. Adds SEC. 1243. IMPOSITION OF SANCTIONS ON FOREIGN FINANCIAL INSTITUTIONS THAT CONDUCT TRANSACTIONS WITH THE CENTRAL BANK OF IRAN at the end of subtitle C of title XII

   Adds a section

   In S. 1867 · Placed on Calendar Senate

   (6) An assessment by the Comptroller General of the United States of the effectiveness of the activities under the State Partnership Program in meeting the objectives of the program.

   Inserted: SEC. 1243. IMPOSITION OF SANCTIONS ON FOREIGN FINANCIAL INSTITUTIONS THAT CONDUCT TRANSACTIONS WITH THE CENTRAL BANK OF IRAN.

   Inserted: Section 104 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8513) is amended--

   Inserted: (1) by redesignating subsections (h) and (i) as subsections (i) and (j), respectively; and

   Inserted: (2) by inserting after subsection (g) the following new subsection:

   Inserted: "(h) Imposition of Sanctions on Foreign Financial Institutions That Conduct Transactions With the Central Bank of Iran.--

   Inserted: "(1) In general.--Subject to paragraphs (2), (3), and (4), not later than 30 days after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2012, the President shall--

   Inserted: "(A) prohibit the opening or maintaining in the United States of a correspondent account or a payable-through account by a foreign financial institution that the President determines has knowingly conducted any financial transaction with the Central Bank of Iran; and

   Inserted: "(B) freeze and prohibit all transactions in all property and interests in property of each such foreign financial institution 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.

   Inserted: "(2) Exception for sales of food, medicine, and medical devices.--The President may not impose sanctions under paragraph (1) on a foreign financial institution for engaging in a transaction with the Central Bank of Iran for the sale of food, medicine, or medical devices to Iran.

   Inserted: "(3) Applicability.--

   Inserted: "(A) In general.--Except as provided in subparagraph (B), paragraph (1) applies with respect to financial transactions commenced on or after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2012.

   Inserted: "(B) Petroleum transactions.--Paragraph (1) applies with respect to financial transactions for the purchase of petroleum or petroleum products through the Central Bank of Iran commenced on or after the date that is 180 days after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2012.

   Show 4 more inserted paragraphsShow less

   Inserted: "(4) Waiver.--

   Inserted: "(A) In general.--The President may waive the application of paragraph (1) with respect to a foreign financial institution for a period of not more than 60 days, and may renew that waiver for additional periods of not more than 60 days, if the President determines and reports to the appropriate congressional committees every 60 days that the waiver is necessary to the national security interest of the United States.

   Inserted: "(B) Form.--A report submitted pursuant to subparagraph (A) shall be submitted in unclassified form, but may contain a classified annex.

   Inserted: "(5) Foreign financial institution.--For purposes of this subsection, the term 'foreign financial institution' includes a financial institution owned or controlled by a foreign government.".

   Original wording

   At the end of subtitle C of title XII, add the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed