Sec. 6. Secondary sanctions on financial institutions
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Not later than 120 days after the date of the enactment of this Act, the President shall prescribe regulations to 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 President determines, on or after such date of enactment, engages in an activity described in paragraph (2). A foreign financial institution engages in an activity described in this paragraph by— knowingly facilitating a significant transaction or transactions for ISIL or its affiliates; knowingly facilitating a significant transaction or transactions of a person identified on the list of specially designated nationals and blocked persons maintained by the Office of Foreign Assets Control of the Department of the Treasury if the property and interests in property of such person are blocked pursuant to the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq.) for acting on behalf of, acting at the direction of, or being owned or controlled by, ISIL or its affiliates; knowingly engaging in money laundering to carry out an activity described in subparagraph
(A)or (B); or knowingly facilitating a significant transaction or transactions or providing significant financial services to carry out an activity described in subparagraph (A), (B), or (C). The penalties under subsections
(b)and
(c)of section 206 of the International Emergency Economic Powers Act ( 50 U.S.C. 1705 ) shall apply to a person who violates, attempts to violate, conspires to violate, or causes a violation of regulations prescribed under this subsection to the same extent that such penalties apply to a person who commits an unlawful act described in subsection
(a)of such section 206. The President may submit classified information to a court ex parte and in camera if— a finding under this subsection, or a prohibition, condition, or penalty imposed as a result of any such finding, is based on such information; and the court reviews the finding or the imposition of the prohibition, condition, or penalty. Nothing in this paragraph may 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 President 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 such waiver for additional periods of not more than 180 days, on and after the date on which the President— determines that such a waiver is in the national security interests of the United States; and submits a report to the appropriate congressional committees that describes the reasons for such determination. The report required under paragraph (1)(B) shall be submitted in unclassified form, but may contain a classified annex. The President shall not be required to apply sanctions to a foreign financial institution described in subsection
(a)if the President 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 that subsection; and the President 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 such terms in section 5318A(e) of title 31, United States Code. The term financial institution means a financial institution described 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 given such term in section 1010.605 of title 31, Code of Federal Regulations. The term ISIL means— the entity known as the Islamic State of Iraq and the Levant and designated by the Secretary of State as a foreign terrorist organization pursuant to section 219(a) of the Immigration and Nationality Act ( 8 U.S.C. 1189(a) ); or any person— 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.); and who is identified on the specially designated nationals list as an agent, instrumentality, or affiliate of the entity described in subparagraph (A). The term money laundering includes the movement of illicit cash or cash equivalent proceeds into, out of, or through a country or a financial institution. The term specially designated nationals list means the list of specially designated nationals and blocked persons maintained by the Office of Foreign Assets Control of the Department of the Treasury.
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