§ 102. SANCTIONS WITH RESPECT TO FINANCIAL INSTITUTIONS THAT ENGAGE IN CERTAIN TRANSACTIONS.

1,040 words·~5 min read·/usc/title-50/section-102

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Prohibitions and Conditions With Respect to Certain Accounts Held by Foreign Financial Institutions.— In general .— Not later than 120 days after the date of the enactment of this Act [ Dec. 18, 2015 ], 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).

Activities described .— 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 Hizballah; knowingly facilitates 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 and the property and interests in property of which are blocked pursuant to the International Emergency Economic Powers Act ( 50 U.S.C. 1701 et seq.) for acting on behalf of or at the direction of, or being owned or controlled by, Hizballah; 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). Waiver.— In general .— 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 the 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 to the appropriate congressional committees a report describing the reasons for such determination. Form .— The report required by paragraph (1)(B) shall be submitted in unclassified form, but may contain a classified annex. Special Rule To Allow for Termination of Sanctionable Activity .— 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. Report on Financial Institutions Organized Under the Laws of State Sponsors of Terrorism.— In general .— Not later than 180 days after the date of the enactment of the Hizballah International Financing Prevention Amendments Act of 2018 [ Oct. 25, 2018 ], and every 2 years thereafter for a period not to exceed 4 years, the President shall submit to the appropriate congressional committees a report that— identifies each foreign financial institution described in paragraph

(2)that the President determines engages in one or more activities described in subsection (a)(2); and provides a detailed description of each such activity. Foreign financial institution described.— In general .— A foreign financial institution described in this paragraph is a foreign financial institution— that, wherever located, is— organized under the laws of a state sponsor of terrorism or any jurisdiction within a state sponsor of terrorism; owned or controlled by the government of a state sponsor of terrorism; located in the territory of a state sponsor of terrorism; or owned or controlled by a foreign financial institution described in subclause (I), (II), or (III); and the capitalization of which exceeds $10,000,000. State sponsor of terrorism defined .— In this paragraph, the term ‘state sponsor of terrorism’ means a country the government of which the Secretary of State has determined is a government that has repeatedly provided support for acts of international terrorism for purposes of— section 1754(c) of the Export Control Reform Act of 2018 [ 50 U.S.C. 4813(c) ]; section 620A of the Foreign Assistance Act of 1961 ( 22 U.S.C. 2371 ); section 40 of the Arms Export Control Act ( 22 U.S.C. 2780 ); or any other provision of law. Definitions.— In general .— In this section: Account; correspondent account; payable-through account .— The terms ‘account’, ‘correspondent account’, and ‘payable-through account’ have the meanings given those terms in section 5318A of title 31 , United States Code. Appropriate congressional committees .— 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. Financial institution .— 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. Foreign financial institution .— The term ‘foreign financial institution’ has the meaning given that term in section 1010.605 of title 31, Code of Federal Regulations. Hizballah .— The term ‘Hizballah’ means— the entity known as Hizballah and 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 ); 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 list of specially designated nationals and blocked persons maintained by the Office of Foreign Assets Control of the Department of the Treasury as an agent, instrumentality, or affiliate of Hizballah. Money laundering .— The term ‘money laundering’ includes the movement of illicit cash or cash equivalent proceeds into, out of, or through a country, or into, out of, or through a financial institution. Other definitions .— The President may further define the terms used in this section in the regulations prescribed under this section.

Connections1 cite this · traces to 5

Cited by 1 section

U.S. Code