§8513 Mandatory Sanctions with Respect to Financial Institutions That Engage in Certain Transactions

Summary

Requires the Treasury Department to block or tightly limit U.S. bank accounts that foreign banks use if those banks knowingly help Iran develop weapons of mass destruction, support terrorist groups or Iran’s Revolutionary Guard, do money laundering for those purposes, help Iran’s central bank, or carry out big transactions for blocked Iranian entities. The Treasury had to write these rules within 90 days after July 1, 2010. Violations carry the same penalties that apply under the International Emergency Economic Powers Act. By 45 days after August 10, 2012, the Treasury must decide whether the National Iranian Oil Company (NIOC) or the National Iranian Tanker Company (NITC) are agents or affiliates of Iran’s Revolutionary Guard and report to Congress. If so, rules about big petroleum deals apply only when the President finds there is enough oil from countries other than Iran, and some country exceptions may apply. Also requires Treasury rules, written within 90 days after July 1, 2010, to stop companies owned or controlled by U.S. banks from doing transactions that benefit blocked Revolutionary Guard persons. U.S. banks that keep correspondent or payable-through accounts for foreign banks must do audits, report suspect transactions, certify (to the best of their knowledge) that the foreign bank is not involved in the covered activities, and use due-diligence controls. Penalties under anti-money-laundering law apply for breaking these rules. The Treasury can waive a rule if it says the waiver is needed for U.S. national interest and reports why to Congress; the waiver takes effect 30 days after that report. The Treasury may give classified evidence to a court in secret, must consult the State Department when making rules, and may further define terms (accounts, agent, financial institution, foreign/domestic, money laundering) in its regulations.