Title II — H.R. 4278 (Engrossed in House)

Sec. 201 Continuation in effect of sanctions with respect to the blocking of certain persons contributing to the situation in Ukraine

(a)

In general— United States sanctions described in subsection (b), as in effect on the day before the date of the enactment of this Act, shall remain in effect until the earlier of—

(1)

the date that is 90 days after the date on which the President submits to the appropriate congressional committees the certification described in subsection (a) of section 206 in accordance with subsection (b) of such section; or

(2)

the date that is 30 days after any date subsequent to January 1, 2020, on which the President submits to the appropriate congressional committees in writing a determination that the termination of such sanctions imposed is in the vital national security interests of the United States.

(b)

Sanctions described— United States sanctions described in this subsection are sanctions imposed under the following executive orders:

(1)

Executive Order 13660 (March 6, 2014; relating to blocking property of certain persons contributing to the situation in Ukraine).

(2)

Executive Order 13661 (March 16, 2014; relating to blocking property of additional persons contributing to the situation in Ukraine).

(3)

Executive Order 13662 (March 20, 2014; relating to blocking property of additional persons contributing to the situation in Ukraine).

Sec. 202 Imposition of additional sanctions on persons responsible for violence or who undermine the independence, sovereignty, or territorial or economic integrity of Ukraine

(a)

Statement of policy— It shall be the policy of the United States to impose sanctions with respect to those individuals within and outside of the Government of the Russian Federation whom the President determines wields significant influence over the formation and implementation of Russian foreign policy, in particular with respect to the violation of Ukraine’s sovereignty, democracy, and territorial integrity.

(b)

Criteria for imposition of sanctions— A foreign person or an alien is subject to sanctions under subsection (c) in accordance with the provisions of such subsection if the foreign person or alien, on or after November 21, 2013—

(1)

is knowingly responsible for or complicit in, or engaged in, directly or indirectly—

(A)

actions that significantly undermine democratic processes or institutions in Ukraine;

(B)

actions that significantly threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine;

(C)

acts of significant corruption in Ukraine, or the seizure or expropriation of significant economic assets from Ukraine, including the expropriation of private or state assets for personal gain, or the facilitation or transfer of the proceeds of such expropriation to foreign jurisdictions; or

(D)

the commission of serious human rights abuses against citizens of Ukraine or citizens of the Russian Federation;

(2)

is a current or former senior foreign political figure of the Government of the Russian Federation who has engaged in any activity described in paragraph (1);

(3)

operates in the arms or related materiel sector in the Russian Federation that has engaged in any activity described in paragraph (1);

(4)

is a current or former senior foreign political figure of an entity that has, or whose members have, knowingly engaged in any activity described in paragraph (1), (2), or (3) or of an entity whose property and interests in property are blocked pursuant to this section;

(5)

has knowingly materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, any activity described in paragraph (1), (2), or (3) or of any person whose property and interests in property are blocked pursuant to this section; or

(6)

is owned or controlled by, or has acted or purported to act for or on behalf of, directly or indirectly, any person whose property and interests in property are blocked pursuant to this section.

(c)

Sanctions described—

(1)

In general— The sanctions described in this subsection are the following:

(A)

Asset blocking— With respect to a foreign person who the President, acting through the Secretary of the Treasury and in consultation with the Secretary of State (or their designees), determines meets the requirements described in subsection (b) (and, if the President determines such foreign person is a senior foreign political figure, such foreign person is not included in the classified annex of a report submitted to the appropriate congressional committees under subsection (e)(1)), the President, acting through the Secretary of the Treasury and in consultation with the Secretary of State (or their designees), shall to the extent necessary investigate, block during the pendency of an investigation, regulate, direct and compel, nullify, void, prevent or prohibit, any acquisition, holding, withholding, use, transfer, withdrawal, transportation, or exportation of, or dealing in, or exercising any right, power, or privilege with respect to, or transactions involving, any property or interests in property of such person to the extent such property or interests in property are subject to the jurisdiction of the United States, pursuant to the applicable provisions of the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).

(B)

Aliens ineligible for visas, admission, or parole—

(i)

Visas, admission, or parole— An alien who the Secretary of State or the Secretary of Homeland Security (or a designee of one of such Secretaries) knows, or has reason to believe, meets any of the criteria described in subsection (b) is—

(I)

inadmissible to the United States;

(II)

ineligible to receive a visa or other documentation to enter the United States; and

(III)

otherwise ineligible to be admitted or paroled into the United States or to receive any other benefit under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.).

(ii)

Current visas revoked—

(I)

In general— The issuing consular officer, the Secretary of State, or the Secretary of Homeland Security (or a designee of one of such Secretaries) shall revoke any visa or other entry documentation issued to an alien who meets any of the criteria described in subsection (b), regardless of when issued.

(II)

Effect of revocation— A revocation under subclause (I)—

(aa)

shall take effect immediately; and

(bb)

shall automatically cancel any other valid visa or entry documentation that is in the alien’s possession.

(2)

Penalties— A person that violates, attempts to violate, conspires to violate, or causes a violation of paragraph (1)(A) or any regulation, license, or order issued to carry out paragraph (1)(A) shall be subject to the penalties set forth in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) to the same extent as a person that commits an unlawful act described in subsection (a) of that section.

(3)

Regulatory authority— The President shall, not later than 90 days after the date of the enactment of this Act, promulgate regulations as necessary for the implementation of this section.

(4)

Exception to comply with united nations headquarters agreement— Sanctions under paragraph (1)(B) shall not apply to an alien if admitting the alien into the United States is necessary to permit the United States to comply with the Agreement regarding the Headquarters of the United Nations, signed at Lake Success June 26, 1947, and entered into force November 21, 1947, between the United Nations and the United States, or other applicable international obligations.

(5)

Rule of construction— Nothing in this section shall be construed to limit the authority of the President to impose additional sanctions pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), relevant executive orders, regulations, or other provisions of law.

(d)

Waiver— The President may waive the application of sanctions under subsection (c) with respect to a foreign person or alien if the President—

(1)

determines that such a waiver is vital to the national interest of the United States; and

(2)

not less than 15 days after the waiver takes effect, submits to the appropriate congressional committees a notice of the waiver and a justification for such waiver.

(e)

Report—

(1)

Report required—

(A)

In general— Not later than 30 days after the date of the enactment of this Act, and at least once every 180 days thereafter for a period not to exceed 2 years, the Secretary of State, in consultation with the Secretary of the Treasury, shall submit to the appropriate congressional committees a detailed report with respect to senior foreign political figures of the Russian Federation that have been determined to have engaged in activities described in subsection (b).

(B)

Form— The report required by subparagraph (A) shall be submitted in unclassified form but may contain a classified annex.

(2)

Requests by chairperson and ranking member of appropriate congressional committees—

(A)

In general— Not later than 120 days after receiving a written request from the chairperson and ranking member of one of the appropriate congressional committees with respect to whether a senior foreign political figure of the Russian Federation is responsible for engaging in activities described in subsection (b), the President shall submit a response to the chairperson and ranking member of the committee which made the request with respect to the status of the person.

(B)

Form— The President may submit a response required by subparagraph (A) in classified form if the President determines that it is necessary for the national security interests of the United States to do so.

(f)

Definitions— In this section:

(1)

Admitted— The term admitted has the meaning given such term in section 101(a)(13)(A) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(13)(A)).

(2)

Alien— The term alien has the meaning given such term in section 101(a)(3) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(3)).

(3)

Financial institution— The term financial institution has the meaning given that term in section 5312 of title 31, United States Code.

(4)

Foreign person— The term foreign person means—

(A)

an individual who is not a United States person;

(B)

a corporation, partnership, or other nongovernmental entity which is not a United States person; or

(C)

any representative, agent or instrumentality of, or an individual working on behalf of a foreign government.

(5)

Paroled— The term paroled means paroled into the United States under section 212(d)(5) of the Immigration and Nationality Act (8 U.S.C. 1182(d)(5)).

(6)

United states person— The term United States person means—

(A)

a United States citizen or an alien lawfully admitted for permanent residence to the United States; or

(B)

an entity organized under the laws of the United States or of any jurisdiction within the United States, including a foreign branch of such an entity.

(g)

Termination— This section and any sanction imposed by this section shall remain in effect until the earlier of—

(1)

the date that is 90 days after the date on which the President submits to the appropriate congressional committees the certification described in subsection (a) of section 206 in accordance with subsection (b) of such section; or

(2)

the date that is 30 days after any date subsequent to January 1, 2020, on which the President submits to the appropriate congressional committees in writing a determination that the termination of this section and the sanctions imposed by this section is in the vital national security interests of the United States.

Sec. 203 Imposition of additional sanctions on persons complicit in or responsible for significant corruption in the Russian Federation

(a)

Findings— Congress finds the following:

(1)

On March 20, 2014, the Department of the Treasury designated four individuals and one financial institution for acting for or on behalf of or materially assisting, sponsoring, or providing financial, material, or technological support for, or goods or services to or in support of, a senior official of the Government of the Russian Federation.

(2)

Widespread corruption at senior levels of the Government of the Russian Federation, in combination with the suppression of political freedoms and the concentration of enormous wealth in the hands of individuals exercising extensive influence over government policy, has contributed to the establishment of an authoritarian system that does not respect the rights of the Russian people.

(b)

Authority for imposition of sanctions—

(1)

Asset blocking— The President, acting through the Secretary of the Treasury and in consultation with the Secretary of State (or their designees), is authorized to impose sanctions described in paragraph (1)(A) of section 202(c) in accordance with the provisions of such section against a foreign person if the foreign person is a senior foreign political figure or a close associate of such senior foreign political figure with respect to whom the President, acting through the Secretary of the Treasury and in consultation with the Secretary of State (or their designees), determines meets one or more of the criteria described in subsection (c).

(2)

Aliens ineligible for visas, admission, or parole— The Secretary of State or the Secretary of Homeland Security (or a designee of one of such Secretaries) is authorized to impose sanctions described in paragraph (1)(B) of section 202(c) in accordance with the provisions of such section against an alien if the alien is a senior foreign political figure or a close associate of such senior foreign political figure with respect to whom the Secretary of State or the Secretary of Homeland Security (or a designee of one of such Secretaries) knows, or has reason to believe, meets one or more of the criteria described in subsection (c).

(c)

Criteria for imposition of sanctions— The criteria described in this subsection are the following:

(1)

The foreign person or alien is responsible for, or complicit in, or responsible for ordering, controlling, or otherwise directing, acts of significant corruption in the Russian Federation, including the expropriation of private or public assets for personal gain, corruption related to government contracts or the extraction of natural resources, bribery, or the facilitation or transfer of the proceeds of corruption to foreign jurisdictions.

(2)

The foreign person or alien has materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services in support of, an act described in paragraph (1).

(d)

Waiver— The waiver provisions of subsection (d) of section 202 shall apply with respect to this section and any sanction imposed by this section to the same extent and in the same manner as such waiver provisions apply to section 202 and any sanction imposed by such section.

(e)

Definitions— In this section, the terms “foreign person” and “alien” have the meanings given such terms in section 202(f).

Sec. 204 Report on certain foreign financial institutions

(a)

Findings— Congress finds the following:

(1)

On February 26, 2014, the Department of the Treasury’s Financial Crimes Enforcement Network advised United States financial institutions of their responsibility to take reasonable, risk-based steps regarding the potential suspicious movement of assets related to Viktor Yanukovych departing Kyiv and abdicating his responsibilities and other senior officials resigning from their positions or departing Kyiv.

(2)

United States financial institutions are required to apply enhanced scrutiny to private banking accounts held by or on behalf of senior foreign political figures and to monitor transactions that could potentially represent misappropriated or diverted state assets, the proceeds of bribery or other illegal payments, or other public corruption proceeds.

(3)

On March 3, 2014, the Government of Ukraine announced that it had initiated criminal proceedings against a number of former Ukrainian officials or close associates of former Ukrainian officials.

(4)

On March 5, 2014, the European Union, based on information from Ukraine’s Prosecutor General, issued a Council Regulation requiring the European Union to freeze the funds and economic resources of various former Ukrainian officials and their close associates.

(5)

The Government of Canada has taken similar action against the same individuals.

(6)

The measures being taken against these former Ukrainian officials and their close associates increase the risk that they will seek to move their assets in a deceptive fashion.

(7)

Foreign financial institutions should apply similar, enhanced due-diligence and reporting requirements.

(8)

The United States has a strong interest in seeing the international financial system protected from illicit financial activity, including money laundering, terrorism and proliferation financing, transnational organized crime, and the misappropriation of state assets, and international sanctions evasion, among others.

(9)

The Department of the Treasury possesses a range of authorities to insulate the United States financial system from entities or jurisdictions that pose an illicit financing risk.

(b)

Statement of policy— It shall be the policy of the United States to use all of its regulatory and statutory authorities to closely scrutinize all foreign financial institutions, including those in the Russian Federation, that may be complicit in enabling foreign persons and transnational criminal enterprises to evade or otherwise circumvent United States and international sanctions, launder the proceeds of criminal activity, finance acts of terrorism and the proliferation of weapons of mass destruction, or any other illicit activity that presents risks and vulnerabilities to the United States financial system.

(c)

Report—

(1)

In general— Not later than 30 days after the date of the enactment of this Act, and every 180 days thereafter for a period not to exceed 2 years, the Secretary of State and the Secretary of the Treasury shall jointly submit to the appropriate congressional committees a report on—

(A)

foreign financial institutions that are in direct control of Government of Ukraine state-owned or controlled assets in a manner determined by the Secretary of State and the Secretary of the Treasury to be contrary to the interests of the Government of Ukraine;

(B)

foreign financial institutions determined by the Secretary of State and the Secretary of the Treasury to be complicit in illicit financial activity, including money laundering, terrorism and proliferation financing, transnational organized crime, or misappropriation of state assets, that are—

(i)

organized under the laws of the Russian Federation; or

(ii)

owned or controlled by a foreign person described in section 202(b); and

(C)

foreign financial institutions that are directly or indirectly assisting or otherwise aiding the violation of Ukrainian sovereignty, independence, and territorial integrity, including the Crimea.

(2)

Form— The report required to be submitted under this subsection shall be submitted in an unclassified form, to the extent appropriate, but may include a classified annex.

Sec. 205 Sense of Congress on human rights in the Russian Federation

It is the sense of Congress that the President should greatly expand the list of 18 Russian officials and others published on April 12, 2013, who were engaged in actions described in section 404 of the Sergei Magnitsky Rule of Law Accountability Act of 2012 (title IV of Public Law 112–208; 22 U.S.C. 5811) regarding the death of Sergei Magnitsky, illegal activity by officials of the Government of the Russian Federation, or violations of human rights and other offenses in Russia.

Sec. 206 Certification described and submission to Congress

(a)

In general— A certification described in this section is a certification of the President to Congress that Ukrainian sovereignty, independence, and territorial integrity is not being violated by the Russian Federation or any other state actor.

(b)

Submission to congress—

(1)

In general— The President shall submit the certification described in subsection (a) to the appropriate congressional committees in writing and shall include a justification for the certification.

(2)

Form of certification— The certification described in subsection (a) shall be submitted in unclassified form but may contain a classified annex.

Sec. 207 Sense of Congress on suspension of all activities and meetings of the NATO-Russia Council

It is the sense of Congress that the United States should work to temporarily suspend all activities and meetings of the NATO-Russia Council.

Sec. 208 Definitions

In this title:

(1)

Appropriate congressional committees— Except as otherwise provided, the term appropriate congressional committees means—

(A)

the Committee on Foreign Affairs, the Committee on Financial Services, the Committee on Ways and Means, and the Committee on the Judiciary of the House of Representatives; and

(B)

Committee on Foreign Relations, the Committee on Banking, Housing, and Urban Affairs, and the Committee on the Judiciary of the Senate.

(2)

Senior foreign political figure— The term senior foreign political figure has the meaning given the term in section 1010.605 of title 31, Code of Federal Regulations.

Title II — Sanctions provisions

II Sanctions provisions