§8805 Imposition of Sanctions with Respect to the Provision of Underwriting Services or Insurance or Reinsurance for Activities or Persons with Respect to Which Sanctions Have Been Imposed

Summary

The President must apply 5 or more of the penalties listed in section 6(a) of the Iran Sanctions Act of 1996 to anyone who knowingly, on or after the day 180 days after January 2, 2013, provides underwriting, insurance, or reinsurance for certain Iran-related activities or people. That rule covers activities already under U.S. Iran sanctions under various laws, services that help Iran’s energy, shipping, or shipbuilding sectors, sales or transfers of certain materials, people or entities designated for weapons proliferation or support of terrorism, and Iranian persons on the Treasury Department’s blocked list — except for certain Iranian financial institutions that are not designated for proliferation, terrorism, or human rights abuses. Sanctions tied to importing goods may not be imposed under this rule and do not count toward the 5-or-more requirement. The President cannot apply these sanctions for insurance or underwriting linked to sales of agricultural goods, food, medicine, medical devices, or humanitarian aid to Iran. The President also must not apply some of these sanctions if a company shows it used due diligence and had real policies and controls to avoid underwriting or contracting for the banned activities or people. The President can waive the sanctions for up to 180 days and renew that waiver in 180-day increments if it is vital to U.S. national security, but must send an unclassified report (with a classified annex if needed) to the relevant congressional committees explaining the waiver.