Sec. 102. Sanctions with respect to financial institutions that engage in certain transactions
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Not later than 90 days after the date of the enactment of this Act, the Secretary of the Treasury, in consultation with the Secretary of State, 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 finds 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 the activities of Hezbollah or any of its agents or affiliates the property or interests in property of which are blocked pursuant to the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq. ); knowingly facilitates the activities of a person acting on behalf of or at the direction of, or owned or controlled by, a person described in subparagraph (A); knowingly engages in money laundering to carry out an activity described in subparagraph
(A)or (B); or knowingly facilitates a significant transaction or transactions or provides significant financial services to carry out an activity described in subparagraph (A), (B), or (C). 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 this subsection, or an order or regulation prescribed under 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. If a finding under this subsection or a prohibition, condition, or penalty imposed as a result of any such finding, is based on classified information (as defined in section 1(a) of the Classified Information Procedures Act (18 U.S.C. App.)) and a court reviews the finding or the imposition of the prohibition, condition, or penalty, the Secretary of the Treasury may submit such information to the court ex parte and in camera. Nothing in this paragraph shall be construed to confer or imply any right to judicial review of any finding under this subsection or any prohibition, condition, or penalty imposed as a result of any such finding. The Secretary of the Treasury shall prescribe and implement regulations to carry out this subsection. Not later than 180 days after the date of the enactment of this Act, the Secretary of the Treasury shall prescribe regulations to require a domestic financial institution maintaining a correspondent account or payable-through account in the United States for a foreign financial institution to do one or more of the following: Report to the Department of the Treasury with respect to financial transactions or other financial services provided with respect to any activity described in subsection (a)(2). Provide timely and accurate information to domestic financial institutions maintaining a correspondent account or payable-through account in the United States for a foreign financial institution with respect to any activity described in subsection (a)(2). Establish due diligence policies, procedures, and controls, such as the due diligence policies, procedures, and controls described in section 5318(i) of title 31, United States Code, reasonably designed to detect whether the Secretary of the Treasury has found the foreign financial institution to knowingly engage in any activity described in subsection (a)(2). The penalties provided for in sections 5321(a) and 5322 of title 31, United States Code, shall apply to a person that violates a regulation prescribed under paragraph
(1)of this subsection, in the same manner and to the same extent as such penalties would apply to any person that is otherwise subject to such section 5321(a) or 5322. The Secretary of the Treasury, in consultation with the Secretary of State, may waive the application of a prohibition or condition imposed with respect to a foreign financial institution pursuant to subsection
(a)on and after the date that is 30 days after 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. Not later than 90 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 finds 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 under subsection
(a)to a foreign central bank described in the report required under paragraph
(1)if the Secretary of the Treasury, in consultation with the Secretary of State, certifies in writing to the appropriate congressional committees that— the foreign central bank— is no longer engaging in the activity described in subsection (a)(2)(D) for which the bank was identified in the report; or has taken significant verifiable steps toward terminating the activity not later than 90 days after the date on which the Secretary makes such certification; and the Secretary has received reliable assurances from the government with primary jurisdiction over the foreign central bank that the foreign central bank will not engage in any activity described in subsection (a)(2)(D) in the future. The President may exercise all authorities provided under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) to carry out this section. 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 financial institution means a financial institution specified in subparagraph (A), (B), (C), (D), (E), (F), (G), (H), (I), (J), (K), (M), (N), (R), or
(Y)of section 5312(a)(2) of title 31, United States Code. The term foreign financial institution — has the meaning of that term as determined by the Secretary of the Treasury; and includes a foreign central bank. The term domestic financial institution has the meaning of that term as determined by the Secretary of the Treasury. 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 that 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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