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Title II — Sanctions provisions

H.R. 830 · 115th Congress · Feb 2, 2017 · Lineage

II Sanctions provisions

Sec. 201 Prohibiting certain transactions with foreign sanctions evaders and serious human rights abusers with respect to the Russian Federation

The Support for the Sovereignty, Integrity, Democracy, and Economic Stability of Ukraine Act of 2014 (Public Law 113–95; 22 U.S.C. 8901 et seq.) is amended by adding at the end the following new sections:

“10. Prohibiting certain transactions with foreign sanctions evaders with respect to the Russian Federation

“(a) In general—The President is authorized to impose with respect to a foreign person the sanctions described in subsection (b) if the President determines that the foreign person knowingly—

“(1) has materially violated, attempted to violate, conspired to violate, or caused a violation of any license, order, regulation, or prohibition contained in, or issued pursuant to any covered Executive order; or

“(2) has facilitated significant deceptive or structured transactions for or on behalf of any person subject to United States sanctions concerning the Russian Federation.

“(b) Sanctions described

“(1) In general—The sanctions described in this subsection are the exercise of all powers granted to the President by the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to the extent necessary to block and prohibit all transactions in all property and interests in property of a person determined by the President to be subject to subsection (a) 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) Penalties—A person that is subject to sanctions described in paragraph (1) 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.

“(c) Waiver—The President may waive the application of sanctions under subsection (b) on a case-by-case for a period of not more than 120 days, and may renew that waiver for additional periods of not more than 120 days with respect to a person if the President determines that such a waiver is in the national interests of the United States and on or before the date on which the waiver takes effect, submits to the appropriate congressional committees a notice of and justification for the waiver.

“(d) Implementation authority—The President may exercise all authorities provided to the President under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) for purposes of carrying out this section.

“(e) Regulatory authority—The President shall issue such regulations, licenses, and orders as are necessary to carry out this section.

“(f) Definitions—In this section:

“(1) Appropriate congressional committees—The term appropriate congressional committees means—

“(A) the Committee on Foreign Affairs, the Committee on Financial Services, and the Committee on Ways and Means of the House of Representatives; and

“(B) the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate.

“(2) Covered executive order—The term covered Executive order means any of the following:

“(A) Executive Order No. 13660 (March 6, 2014; 79 Fed. Reg. 13493; relating to blocking property of certain persons contributing to the situation in Ukraine).

“(B) Executive Order No. 13661 (March 16, 2014; 79 Fed. Reg. 15535; relating to blocking property of additional persons contributing to the situation in Ukraine).

“(C) Executive Order No. 13685 (December 19, 2014; 79 Fed. Reg. 77357; relating to blocking property of certain persons and prohibiting certain transactions with respect to the Crimea region of Ukraine).

“(3) Foreign person—The term foreign person has the meaning given such term in section 595.304 of title 31, Code of Federal Regulations, as in effect on the date of the enactment of this Act.

“(4) Structured—The term “structured”, with respect to a transaction, has the meaning given the term “structure” in paragraph (xx) of section 1010.100 of title 31, Code of Federal Regulations.

“(5) United states person—The term United States person has the meaning given such term in section 589.312 of title 31, Code of Federal Regulations, as in effect on the date of the enactment of this Act.

“11. Prohibiting certain transactions in areas controlled by the Russian Federation

“(a) In general—The President is authorized to impose with respect to a foreign person the sanctions described in subsection (b) if the President determines that the foreign person, based on credible information—

“(1) is responsible for, complicit in, or responsible for ordering, controlling, or otherwise directing, the commission of serious human rights abuses in any territory forcibly occupied or otherwise controlled by the Government of the Russian Federation;

“(2) has materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to, a foreign person that is responsible for, complicit in, or responsible for ordering, controlling, or otherwise directing, the commission of serious human rights abuses in any territory forcibly occupied or otherwise controlled by the Government of the Russian Federation; or

“(3) is owned or controlled by a foreign person, or has acted or purported to act for or on behalf of, directly or indirectly, a foreign person, that is responsible for, complicit in, or responsible for ordering, controlling, or otherwise directing, the commission of serious human rights abuses in any territory forcibly occupied or otherwise controlled by the Government of the Russian Federation.

“(b) Sanctions described

“(1) In general—The sanctions described in this subsection are the exercise of all powers granted to the President by the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), without regard to section 202 of such Act, to the extent necessary to block and prohibit all transactions in all property and interests in property of a person determined by the President to be subject to subsection (a) 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) Penalties—A person that is subject to sanctions described in paragraph (1) 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.

“(c) Waiver—The President may waive the application of sanctions under subsection (b) on a case-by-case for a period of not more than 120 days, and may renew that waiver for additional periods of not more than 120 days with respect to a person if the President determines that such a waiver is in the national interests of the United States and on or before the date on which the waiver takes effect, submits to the appropriate congressional committees a notice of and justification for the waiver.

“(d) Implementation authority—The President may exercise all authorities provided to the President under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) for purposes of carrying out this section.

“(e) Regulatory authority—The President shall issue such regulations, licenses, and orders as are necessary to carry out this section.

“(f) Definitions—In this section:

“(1) Appropriate congressional committees—The term appropriate congressional committees means—

“(A) the Committee on Foreign Affairs, the Committee on Financial Services, and the Committee on Ways and Means of the House of Representatives; and

“(B) the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate.

“(2) Foreign person—The term foreign person has the meaning given such term in section 595.304 of title 31, Code of Federal Regulations, as in effect on the date of enactment of this section.

“(3) United states person—The term United States person has the meaning given such term in section 589.312 of title 31, Code of Federal Regulations, as in effect on the date of enactment of this section.”

Sec. 202 Report on certain foreign financial institutions

The Support for the Sovereignty, Integrity, Democracy, and Economic Stability of Ukraine Act of 2014 (Public Law 113–95; 22 U.S.C. 8901 et seq.) is amended by inserting after section 11 (as added by section 201 of this Act) the following new section:

“12. Report on certain foreign financial institutions

“(a) In general—Not later than 90 days after the date of the enactment of this section, the Secretary of State and the Secretary of the Treasury shall jointly submit to the appropriate congressional committees a report on—

“(1) foreign financial institutions that are in direct control of assets owned or controlled by the Government of Ukraine in a manner determined by the Secretary of State and the Secretary of the Treasury to be in violation of the sovereignty, independence, or territorial integrity of Ukraine;

“(2) foreign financial institutions that are directly or indirectly assisting or otherwise aiding the violation of sovereignty, independence, and territorial integrity of Ukraine; and

“(3) 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, financing of terrorism, transnational organized crime, or misappropriation of state assets, that are—

“(A) organized under the laws of the Russian Federation; or

“(B) owned or controlled by a foreign person whose property or interests in property have been blocked pursuant to any covered Executive order.

“(b) Form—The report required to be submitted under this subsection shall be submitted in unclassified form but may include a classified annex.

“(c) Definitions—In this section:

“(1) Appropriate congressional committees—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) the Committee on Foreign Relations, the Committee on Banking, Housing, and Urban Affairs, and the Committee on the Judiciary of the Senate.

“(2) Covered executive order—The term covered Executive order has the meaning given the term in section 10(f) of this Act.”

Sec. 203 Requirements relating to transfers of defense articles and defense services to the Russian Federation

(a)
Statement of policy— It is the policy of the United States to oppose the transfer of defense articles and defense services from any country that is a member of the North Atlantic Treaty Organization (NATO) to, or on behalf of, the Russian Federation, during any period in which the Russian Federation forcibly occupies the territory of Ukraine or of a NATO member country.
(b)
Adoption of NATO policy— The President shall use the voice, vote, and influence of the United States in NATO to seek the adoption of a policy by NATO that is consistent with the policy of the United States specified in subsection (a).
(c)
Monitoring and identification of transfers—
(1)
In general— The President shall direct the heads of the appropriate departments and agencies of the United States to identify those transfers of defense articles and defense services described in subsection (a) that are contrary to the policy of the United States specified in subsection (a).
(2)
Report—
(A)
In general— The President shall submit a written report to the chairmen and ranking members of the appropriate committees of Congress within 5 days of the receipt of information indicating that a transfer described in paragraph (1) has occurred.
(B)
Form— The report required under subparagraph (A) shall be submitted in unclassified form but may include a classified annex.
(d)
Definitions— In this section:
(1)
Appropriate committees of congress— The term appropriate committees of Congress means—
(A)
the Committee on Armed Services, the Committee on Foreign Affairs, and the Permanent Select Committee on Intelligence of the House of Representatives; and
(B)
the Committee on Armed Services, the Committee on Foreign Relations, and the Select Committee on Intelligence of the Senate.
(2)
Defense articles and defense services— The terms defense article and defense service have the meanings given such terms in section 47 of the Arms Export Control Act (22 U.S.C. 2794 note).