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AMENDMENT NO.llll

Calendar No.lll

Purpose: To require the President to impose sanctions on foreign financial institutions that conduct transactions with the Central Bank of Iran.
IN THE SENATE OF THE UNITED STATES112th Cong., 1st Sess.

S. 1867 To authorize appropriations for fiscal year 2012 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe military personnel strengths for such fiscal year, and for other purposes. Referred to the Committee on llllllllll and ordered to be printed Ordered to lie on the table and to be printed AMENDMENT intended to be proposed by Mr. KIRK Viz: 1 At the end of subtitle C of title XII, add the fol-

2 lowing: 3 4 5 6
SEC. 1243. IMPOSITION OF SANCTIONS ON FOREIGN FINANCIAL INSTITUTIONS THAT CONDUCT TRANSACTIONS WITH THE CENTRAL BANK OF IRAN.

Section 104 of the Comprehensive Iran Sanctions,

7 Accountability, and Divestment Act of 2010 (22 U.S.C. 8 8513) is amended 9 10 (1) by redesignating subsections (h) and (i) as subsections (i) and (j), respectively; and

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2 1 2 3 4 (2) by inserting after subsection (g) the following new subsection: (h) IMPOSITION
NANCIAL OF

SANCTIONS

ON

FOREIGN FI-

INSTITUTIONS THAT CONDUCT TRANSACTIONS

5 WITH THE CENTRAL BANK OF IRAN. 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (1) IN

GENERAL.Subject

to paragraphs (2),

(3), and (4), not later than 30 days after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2012, the President shall (A) prohibit 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 has knowingly conducted any financial transaction with the Central Bank of Iran; and (B) freeze and prohibit all transactions in all property and interests in property of each such foreign financial institution if such property and interests in property are in the United States, come within the United States, or are or come within the possession or control of a United States person. (2) EXCEPTION
FOR SALES OF FOOD, MEDI-

CINE, AND MEDICAL DEVICES.The

President may

not impose sanctions under paragraph (1) on a for-

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3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 eign financial institution for engaging in a transaction with the Central Bank of Iran for the sale of food, medicine, or medical devices to Iran. (3) APPLICABILITY. (A) IN
GENERAL.Except

as provided in

subparagraph (B), paragraph (1) applies with respect to financial transactions commenced on or after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2012. (B) PETROLEUM
TRANSACTIONS.Para-

graph (1) applies with respect to financial transactions for the purchase of petroleum or petroleum products through the Central Bank of Iran commenced on or after the date that is 180 days after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2012. (4) WAIVER. (A) IN
GENERAL.The

President may

waive the application of paragraph (1) with respect to a foreign financial institution for a period of not more than 60 days, and may renew that waiver for additional periods of not more than 60 days, if the President determines and

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4 1 2 3 4 5 6 7 8 9 10 11 12 reports to the appropriate congressional committees every 60 days that the waiver is necessary to the national security interest of the United States. (B) FORM.A report submitted pursuant to subparagraph (A) shall be submitted in unclassified form, but may contain a classified annex. (5) FOREIGN
FINANCIAL INSTITUTION.For

purposes of this subsection, the term foreign financial institution includes a financial institution owned or controlled by a foreign government..