To require the President to impose sanctions with respect to the Central Bank of Iran if the President determines that the Central Bank of Iran has engaged in conduct that threatens the national security of the United States or allies of the United States.

1. Adds SEC. 1243. IMPOSITION OF SANCTIONS WITH RESPECT TO 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 WITH RESPECT TO 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 With Respect to the Central Bank of Iran.--

   Inserted: "(1) Determination required.--

   Inserted: "(A) In general.--Not later than 30 days after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2012, the President shall determine whether the Central Bank of Iran has engaged in conduct that threatens the national security of the United States or allies of the United States, taking into consideration whether the Bank has--

   Inserted: "(i) facilitated activities of the Government of Iran that threaten global or regional peace and security;

   Inserted: "(ii) sought to evade multilateral sanctions directed against the Government of Iran on behalf of that Government;

   Inserted: "(iii) engaged in deceptive financial practices or mechanisms to facilitate illicit transactions with non-Iranian financial institutions;

   Inserted: "(iv) conducted transactions prohibited by binding resolutions of the United Nations Security Council or allowed itself to be used to permit conduct prohibited by such resolutions;

   Inserted: "(v) conducted transactions on behalf of persons designated by the United States for the imposition of sanctions pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.);

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   Inserted: "(vi) provided financial services in support of, or otherwise facilitated, the ability of Iran to--

   Inserted: "(I) acquire or develop chemical, biological, or nuclear weapons, or related technologies;

   Inserted: "(II) construct, equip, operate, or maintain nuclear enrichment facilities; or

   Inserted: "(III) acquire or develop ballistic missiles, cruise missiles, or destabilizing types and amounts of conventional weapons; or

   Inserted: "(vii) facilitated a transaction or provided financial services for--

   Inserted: "(I) Iran's Revolutionary Guard Corps; or

   Inserted: "(II) a financial institution whose property or interests in property are blocked pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) in connection with--

   Inserted: "(aa) Iran's proliferation of weapons of mass destruction or delivery systems for weapons of mass destruction; or

   Inserted: "(bb) Iran's support for acts of international terrorism.

   Inserted: "(B) Submission to congress.--The President shall submit in writing to the appropriate congressional committees the determination made under subparagraph (A) and the reasons for the determination.

   Inserted: "(2) Imposition of sanctions.--Subject to paragraphs (4), (5), and (6), if the President determines under paragraph (1)(A) that the Central Bank of Iran has engaged in conduct described in that paragraph, the President shall--

   Inserted: "(A) 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 President determines has knowingly conducted any significant financial transaction with the Central Bank of Iran; and

   Inserted: "(B) impose sanctions pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) with respect to the Central Bank of Iran.

   Inserted: "(3) Additional sanctions.--In addition to the sanctions required to be imposed under paragraph (2), and subject to paragraph (4), the President may impose such other targeted sanctions with respect to the Central Bank of Iran as the President determines appropriate to terminate the engagement of the Central Bank of Iran in conduct described in paragraph (1)(A) and activities described in subsection (c)(2).

   Inserted: "(4) Exception for sales of food, medicine, and medical devices.--The President may not impose sanctions under this subsection on a person for engaging in a transaction with the Central Bank of Iran for the sale of food, medicine, or medical devices to Iran.

   Inserted: "(5) Applicability of prohibitions and conditions on accounts.--

   Inserted: "(A) In general.--Except as provided in subparagraph (B), paragraph (2)(A) applies with respect to financial transactions commenced on or after the date that is 60 days after the date on which the President makes the determination required by paragraph (1)(A).

   Inserted: "(B) Petroleum transactions.--Paragraph (2)(A) 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 on which the President makes the determination required by paragraph (1)(A).

   Inserted: "(6) Waiver.--The President may waive the application of paragraph (2) for a period of 180 days, and renew such a waiver for additional periods of 180 days, if the President--

   Inserted: "(A) determines that such a waiver is necessary to the national security interest of the United States; and

   Inserted: "(B) submits to the appropriate congressional committees a report--

   Inserted: "(i) providing the justification for the waiver; and

   Inserted: "(ii) describing--

   Inserted: "(I) any concrete cooperation the President has received or expects to receive as a result of the waiver; and

   Inserted: "(II) any assurances the President has received or expects to receive as a result of the waiver from foreign financial institutions that such institutions have ceased engaging in financial transactions with the Central Bank of Iran related to terrorism or the facilitation, acquisition, or financing of weapons of mass destruction.".

   Original wording

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

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As printed