Sec. 102. Sanctions with respect to financial institutions that engage in certain transactions
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Not later than 120 days after the date of the enactment of this Act, the Secretary of the Treasury, with the concurrence of the Secretary of State and in consultation with the heads of other applicable 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 determines, on or after the date of the enactment of this Act, engages in an activity described in paragraph (2).
A foreign financial institution engages in an activity described in this paragraph if the foreign financial institution— knowingly facilitates a significant transaction or transactions for Hezbollah; knowingly facilitates a significant transaction or transactions of a person designated for acting on behalf of or at the direction of, or owned or controlled by, Hezbollah; knowingly engages in money laundering to carry out an activity described in subparagraph
(A)or (B); knowingly facilitates a significant transaction or transactions or provides significant financial services to carry out an activity described in subparagraph (A), (B), or (C), including— facilitating a significant transaction or transactions; or providing significant financial services that involve a transaction of covered goods; or 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; knowingly attempts or conspires to facilitate or participate in an activity described in subparagraph (A), (B), (C), or (D); or 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). 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 regulations prescribed under paragraph
(1)of this subsection to the same extent that such penalties apply to a person that commits an unlawful act described in section 206(a) of that Act. The Secretary of the Treasury shall prescribe and implement regulations to carry out this subsection. The Secretary of the Treasury, with the concurrence of the Secretary of State and in consultation with the heads of other applicable 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, with the concurrence of the Secretary of State— determines that such a waiver is vital to the national security interests of the United States; and submits to the appropriate congressional committees a report describing the reasons for the determination. The report required by subparagraph
(1)shall be submitted in unclassified form, but may contain a classified annex. 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— identifies each foreign central bank that the Secretary determines engages in one or more activities described in subsection (a)(2)(D); and provides a detailed description of each such 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, with the concurrence of the Secretary of State and in consultation with the heads of other applicable departments and agencies, certifies in writing to the appropriate congressional committees that— the foreign financial institution— is no longer engaging in the activity described in subsection (a)(2); or has taken and is continuing to take significant verifiable steps toward terminating the activity described in subsection (a)(2); and 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. In this section: The terms account , correspondent account , and payable-through account have the meanings given those terms in section 5318A of title 31, United States Code. The term agent includes an entity established by a person for purposes of conducting transactions on behalf of the person in order to conceal the identity of the person. The term appropriate congressional committees means— the Committee on Foreign Affairs and the Committee on Financial Services of the House of Representatives; and the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate. The term covered goods has the meaning given the term in section 1027.100 of title 31, Code of Federal Regulations. 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. 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. The term domestic financial institution has the meaning of such term as determined by the Secretary of the Treasury. The term Hezbollah means— any person— 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 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 Hezbollah; and 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 ). 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. The Secretary of the Treasury may further define the terms used in this section in the regulations prescribed under this section.
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Sec. 102
Sanctions with respect to financial institutions that engage in certain transactions
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