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118th Congress } { Rept. 118-460
HOUSE OF REPRESENTATIVES
2d Session } { Part 1
======================================================================
IRAN SANCTIONS ACCOUNTABILITY ACT OF 2023
_______
April 15, 2024.--Ordered to be printed
_______
Mr. McHenry, from the Committee on Financial Services,
submitted the following
R E P O R T
[To accompany H.R. 6015]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred
the bill (H.R. 6015) to require the President to prevent the
abuse of financial sanctions exemptions by Iran, and for other
purposes, having considered the same, reports favorably thereon
with an amendment and recommends that the bill as amended do
pass.
CONTENTS
Page
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 2
Related Hearing.................................................. 3
Committee Consideration.......................................... 3
Committee Votes.................................................. 3
Committee Oversight Findings..................................... 5
Performance Goals and Objectives................................. 5
Congressional Budget Office Estimates............................ 5
New Budget Authority, Entitlement Authority, and Tax Expenditures 5
Federal Mandates Statement....................................... 5
Advisory Committee Statement..................................... 6
Applicability to Legislative Branch.............................. 6
Earmark Identification........................................... 6
Duplication of Federal Programs.................................. 6
Section-By-Section Analysis of the Legislation................... 6
Exchange of Letters.............................................. 8
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Iran Sanctions Accountability Act of
2023''.
SEC. 2. REGULATIONS REQUIRED.
(a) In General.--Not later than 180 days after the date of the
enactment of this section, the President shall issue regulations to
ensure that each transaction described under section 1244(e) or 1247(c)
of the National Defense Authorization Act for Fiscal Year 2013 (22
U.S.C. 8803(e) or 8806(c)) or section 1245(d)(2) of the National
Defense Authorization Act for Fiscal Year 2012 (22 U.S.C. 8513a(d)(2))
does not facilitate, directly or indirectly--
(1) support for acts of international terrorism; or
(2) the proliferation of weapons of mass destruction.
(b) Report.--Beginning on the date that is 1 year after the date on
which the President issues regulations pursuant to subsection (a), and
every 2 years thereafter for 6 years, the President shall submit to the
Congress a report that evaluates the efficacy of the regulations issued
by the President pursuant to subsection (a).
(c) Rule of Construction.--Nothing in section 1244(e) or 1247(c) of
the National Defense Authorization Act for Fiscal Year 2013 (22 U.S.C.
8803(e) or 8806(c)) or section 1245(d)(2) of the National Defense
Authorization Act for Fiscal Year 2012 (22 U.S.C. 8513a(d)(2)) may be
construed to prohibit the imposition of sanctions with respect to a
transaction if the President finds, consistent with the regulations
issued pursuant to subsection (a), that such transaction would
facilitate, directly or indirectly--
(1) support for acts of international terrorism; or
(2) the proliferation of weapons of mass destruction.
(d) Voice and Vote.--
(1) In general.--The Secretary of the Treasury shall instruct
the United States Executive Director at the World Bank to use
the voice and vote of the United States to oppose the provision
of financial assistance to the government of the Islamic
Republic of Iran.
(2) Sunset.--This subsection shall have no force or effect on
the date that is the earlier of--
(A) the date that is 7 years after the date of the
enactment of this section;
(B) the date that is 30 days after the date that the
Secretary of the Treasury reports to Congress that
reasonable grounds do not exist for concluding that the
Islamic Republic of Iran is a jurisdiction of primary
money laundering concern; or
(C) the date that is 30 days after the date that the
President finds and reports to the Congress that the
government of Iran has ceased to provide support for
acts of international terrorism.
PURPOSE AND SUMMARY
Introduced on October 20, 2023, by Representative Blaine
Luetkemeyer, H.R. 6015, the Iran Sanctions Accountability Act
of 2023, would require the President to prescribe regulations
to ensure that humanitarian exemptions involving Iran sanctions
do not facilitate acts of international terrorism, transactions
with sanctioned persons, or the proliferation of weapons of
mass destruction.
BACKGROUND AND NEED FOR LEGISLATION
Whether they are imposed through the International
Emergency Economic Powers Act (IEEPA) or other statutes, U.S.
sanctions typically include exceptions for the sale of
agricultural commodities, food, medicine, and medical devices.
The intent is to wield sanctions against bad actors, including
a government like Iran's, without exacerbating the suffering of
civilian populations. At the same time, Tehran is largely
indifferent to this suffering, making it essential for the U.S.
to ensure that exempted humanitarian trade does not facilitate
the government's support for terrorism or weapons
proliferation. H.R. 6015 would require the President to
promulgate formal regulations with this objective in mind. Such
rules may include enhanced know-your-customer procedures,
recordkeeping requirements, or other measures, which are
especially important given Iran's designation as a jurisdiction
of primary money laundering concern.
RELATED HEARING
Pursuant to clause 3(c)(6) of rule XIII, the following
hearing was used to develop H.R. 6015: The Subcommittee on
National Security, Illicit Finance, and International Financial
Institutions of the Committee on Financial Services held a
hearing on October 25, 2023, titled ``How America and Its
Allies Can Stop Hamas, Hezbollah, and Iran from Evading
Sanctions and Financing Terror.''
COMMITTEE CONSIDERATION
The Committee on Financial Services met in open session on
November 14, 2023, and ordered H.R. 6015 to be reported
favorably to the House as amended by a recorded vote of 50 ayes
to 0 nays (Record vote no. FC-116), a quorum being present.
Before the question was called to order the bill favorably
reported, the Committee adopted an amendment in the nature of a
substitute offered by Mr. Luetkemeyer by voice vote.
COMMITTEE VOTES
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the order to report legislation and amendments thereto. H.R.
6015 was ordered reported favorably to the House as amended by
a recorded vote of 50 ayes to 0 nays (Record vote no. FC-116),
a quorum being present.
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COMMITTEE OVERISGHT FINDINGS
Pursuant to clause 3(c) of rule XIII of the Rules of the
House of Representatives, the findings and recommendations of
the Committee, based on oversight activities under clause
2(b)(1) of rule X of the Rules of the House of Representatives,
are incorporated in the descriptive portions of this report.
PERFORMANCE GOALS AND OBJECTIVES
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the goal of H.R. 6015 is to require
the President to prescribe regulations to ensure that
humanitarian exemptions involving Iran sanctions do not
facilitate acts of international terrorism, transactions with
sanctioned persons, or the proliferation of weapons of mass
destruction.
CONGRESSIONAL BUDGET OFFICE ESTIMATES
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974:
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NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX
EXPENDITURES
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the
House of Representatives, the Committee adopts as its own the
estimate of new budget authority, entitlement authority, or tax
expenditures or revenues contained in the cost estimate
prepared by the Director of the Congressional Budget Office
pursuant to section 402 of the Congressional Budget Act of
1973.
FEDERAL MANDATES STATEMENT
Pursuant to section 423 of the Unfunded Mandates Reform
Act, the Committee adopts as its own the estimate of the
Federal mandates prepared by the Director of the Congressional
Budget Office.
ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
EARMARK IDENTIFICATION
Pursuant to clause 9 of rule XXI of the Rules of the House
of Representatives, the Committee has carefully reviewed the
provisions of the bill and states that the provisions of the
bill do not contain any congressional earmarks, limited tax
benefits, or limited tariff benefits within the meaning of the
rule.
DUPLICATION OF FEDERAL PROGRAMS
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee states that no
provision of the bill establishes or reauthorizes a program of
the Federal Government known to be duplicative of another
Federal program, including any program that was included in a
report to Congress pursuant to section 21 of the Public Law
111-139 or the most recent Catalog of Federal Domestic
Assistance.
SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION
Section 1. Short title
This Act may be cited as the ``Iran Sanctions
Accountability Act of 2023''.
Section 2. Regulations required
Within 180 days of enactment, the President shall issue
regulations to ensure that transactions do not directly or
indirectly facilitate: (1) the purchase of goods or services
involving a person designated for the imposition of sanctions
pursuant to the International Emergency Economic Powers Act;
(2) support for acts of international terrorism; or (3) the
proliferation of weapons of mass destruction.
One year after the President issues regulations, and every
two years thereafter for a period of 6 years, the President
shall submit to Congress a report that evaluates the efficacy
of the regulations issued.
The Secretary of the Department of the Treasury shall
instruct the United States Executive Director at the World Bank
to use the voice and vote of the U.S. to oppose the provision
of financial assistance to the Islamic Republic of Iran.
This legislation has a sunset of the date that is the
earlier of:
7 years after enactment;
30 days after the date that the Secretary of
the Department of the Treasury reports to Congress that
reasonable grounds do not exist for concluding that the
Islamic Republic of Iran is a jurisdiction of primary
money laundering concern; or
the date that is 30 days after the date that
the President finds and reports to Congress that the
government of Iran has ceased to provide support for
the acts of international terrorism.
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