Sec. 3. Codification of regulations relating to transfers of funds involving Iran; clarification of application of regulations to foreign depository institutions and foreign registered brokers and dealers
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Section 560.516 of title 31, Code of Federal Regulations, as in effect on January 1, 2016, shall apply with respect to transfers of funds to or from Iran, or for the direct or indirect benefit of an Iranian person or the Government of Iran, for the period beginning on or after January 1, 2016, and ending on the date on which the President makes the certification to the appropriate congressional committees under section 401(a) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 ( 22 U.S.C. 8551(a) ). Subsection
(a)of section 560.516 of title 31, Code of Federal Regulations, as in effect on January 1, 2016, shall apply with respect to foreign financial institutions to the same extent and in the same manner as such subsection applies with respect to United States depository institutions if the funds that are to be transferred as described in such subsection are funds that are denominated in United States dollars. Subsection
(b)of section 560.516 of title 31, Code of Federal Regulations, as in effect on January 1, 2016, shall apply with respect to foreign registered brokers or dealers in securities to the same extent and in the same manner as such subsection applies with respect to United States registered brokers or dealers in securities if the funds that are to be transferred as described in such subsection are funds that are denominated in United States dollars. The President may suspend the application of paragraph
(1)with respect to a foreign financial institution or the application of paragraph
(2)with respect to a foreign registered broker or dealer in securities for a period not to exceed 60 days, and the President may renew the suspension of the application of paragraph
(1)or paragraph (2), respectively, for additional periods of not more than 60 days, on and after the date on which the President certifies to the appropriate congressional committees that during the preceding 60-day period the Government of Iran is in compliance with the criteria described in section 401(a)(1) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 ( 22 U.S.C. 8551(a)(1) ). Except as provided in paragraph (2), the President may not issue any license under the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq. ) or provide other guidance, including executive actions, rules, regulations, frequently asked questions, written communications, or any other commitments, that permits— a United States depository institution or United States registered broker or dealer in securities— to conduct an offshore United States dollar clearing system for transactions involving or for the benefit of the Government of Iran or an Iranian person, including to process transfers of funds to or from Iran under section 560.516 of title 31, Code of Federal Regulations, as in effect on January 1, 2016; or to provide United States dollars for any offshore United States dollar clearing system conducted or overseen by a foreign government or a foreign financial institution for transactions involving or for the benefit of the Government of Iran or an Iranian person, including to process transfers of funds to or from Iran under section 560.516 of title 31, Code of Federal Regulations, as in effect on January 1, 2016; or a foreign financial institution or foreign registered broker or dealer in securities— to conduct an offshore United States dollar clearing system for transactions involving or for the benefit of the Government of Iran or an Iranian person, including to process transfers of funds to or from Iran under section 560.516 of title 31, Code of Federal Regulations, as in effect on January 1, 2016, and as applied under subsection (b); or to provide United States dollars for any offshore United States dollar clearing system conducted or overseen by a foreign government or a foreign financial institution for transactions involving or for the benefit of the Government of Iran or an Iranian person, including to process transfers of funds to or from Iran under section 560.516 of title 31, Code of Federal Regulations, as in effect on January 1, 2016, and as applied under subsection (b). The President may, on a case-by-case basis, issue a license described in paragraph
(1)to authorize the activities described in clause
(i)or
(ii)of paragraph (1)(A) or the activities described in clause
(i)or
(ii)of paragraph (1)(B) if— such activities relate solely to— the provision of agricultural commodities, food, medicine, or medical devices to Iran; or the provision of humanitarian assistance to the people of Iran; and the President submits to the appropriate congressional committees a copy of the license. In this section: 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 foreign financial institution has the meaning given such term in section 1010.605 of title 31, Code of Federal Regulations, as in effect on January 1, 2016. The term Iran has the meaning given the term in section 561.329 of title 31, Code of Federal Regulations, as in effect on January 1, 2016. The term Iranian person means a person or entity (as such terms are defined in section 560.305 of title 31, Code of Federal Regulations, as in effect on January 1, 2016) that— is organized under the laws of Iran or any jurisdiction within Iran (including foreign branches); or is a person in Iran. The term transfer of funds — has the meaning given the term funds transfer in section 1010.100 of title 31, Code of Federal Regulations, as in effect on January 1, 2016; and includes a transfer of funds or other property for the benefit of an Iranian financial institution that is made between accounts of the same financial institution even if that Iranian financial institution is not the direct recipient of the transfer. The term United States depository institution has the meaning given such term in section 560.319 of title 31, Code of Federal Regulations, as in effect on January 1, 2016. The term United States registered broker or dealers in securities has the meaning given such term in section 560.321 of title 31, Code of Federal Regulations, as in effect on January 1, 2016.
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Sec. 3
Codification of regulations relating to transfers of funds involving Iran; clarification of application of regulations to foreign depository institutions and foreign registered brokers and dealers
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