Section 1 Short title
This Act may be cited as the “No Funds for Iran-Backed Terror Act”.
No Funds for Iran-Backed Terror Act
A BILL
To provide for full enforcement of oil sanctions against Iran, and for other purposes.
Sec. 2 Full Enforcement of Oil Sanctions Against Iran
In general— The President shall make maximal use of sanctions authorities described in sections 1244, 1246, and 1247 of the Iran Freedom and Counter-Proliferation Act of 2012 (Public Law 112–239; 22 U.S.C. 8803, 8805, and 8806) and section 1245 of the National Defense Authorization Act for Fiscal Year 2012 (Public Law 112–81; 22 U.S.C. 8513a) with respect to the purchases of Iranian petroleum and petroleum products.
Certification required— Not later than 30 days after the date of the enactment of this Act, the President shall certify to the appropriate congressional committees that the President has used the authorities described in subsection (a) against all known target entities.
Determination required— Not later than 30 days after the enactment of this Act and every 30 days thereafter, the President shall submit to the appropriate congressional committees a determination regarding persons connected to the transfer of oil from Iran as to whether such persons constitute sanctionable entities under the authorities described in subsection (a).
Form— The certifications and determinations described in this section shall be submitted in an unclassified form but may contain a classified annex.
Termination— The requirement to submit determinations pursuant to subsection (c) shall terminate on the date on which the President certifies to the appropriate congressional committees that the Iran has ended—
its practice of funding terrorist;
its pursuit of a nuclear weapons capability; and
its military support for the Russian Federation’s war against Ukraine.
Sec. 3 Suspension of Waiver Authority on Escrow Accounts Created Pursuant to Certain Authorities
The President may not exercise the waiver authority described in section 1244(i) of the Iran Freedom and Counter-Proliferation Act of 2012 (Public Law 112–239; 22 U.S.C. 8803(i)) with respect to accounts holding funds which result from compliance with section 1244(g)(2)(B)(ii)(II) of such Act (22 U.S.C. 8803(g)(2)(B)(ii)(II)) and 1247(f) of such Act (22 U.S.C. 8806(f)) with respect to accounts holding funds which result from compliance with section 1247(d)(2)(B)(ii) of such Act (22 U.S.C. 8806g(d)(2)(B)(ii)) until the President certifies to the appropriate congressional committees that Iran has ended—
its practice of funding terrorist groups;
its pursuit of a nuclear weapons capability; and
its military support for the Russian Federation’s war against Ukraine.
Sec. 4 Reinstatement of Sanctions with Respect to Iranian Funds Formerly Held in Escrow in South Korea
In general— The waiver of sanctions, including any waiver subject to the document entitled ‘‘Waiver of Sanctions with Respect to the Transfer of Funds from the Republic of Korea to Qatar” on funds held in South Korea on August 1, 2023, pursuant or in accordance with sections 1244(g)(2)(B)(ii)(II) and 1247(d)(2)(B)(ii) of the Iran Freedom and Counter-Proliferation Act of 2012 (Public Law 112–239; 22 U.S.C. 8803(g)(2)(B)(ii)(II) and 8806(d)(2)(B)(ii)) or section 1245(d)(1) of the National Defense Authorization Act of Fiscal Year 2012 (Public Law 112–81; 22 U.S.C. 8513a(d)(1)) is hereby canceled.
Cancellation of Licenses— General or specific licenses, comfort letters, frequently asked questions, or other such exemption issued in connection with waivers issued under subsection (a) is hereby cancelled.
Reimposition of Sanctions— The President shall, pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), block and prohibit all transactions in all property and interests in property of any financial institution which process, participates in, or facilitates a transaction with respect to the funds described in subsection (a) after the date of enactment of this Act 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.
Sec. 5 Reinstatement of sanctions imposed with respect to Iranian funds formerly held in escrow in Iraq
In general— On the date of enactment of this Act, the following measures shall be terminated:
Waivers exercised on or after January 1, 2023, pursuant to section 1245(d) of the National Defense Authorization Act for Fiscal Year 2012 (Public Law 112–81; 22 U.S.C. 8513a(d)) and sections 1244(i) and 1247(f) of the Iran Freedom and Counter-Proliferation Act of 2012 (Public Law 112–239; 22 U.S.C. 8803(i) and 8806(f)) with respect to the covered funds described in subsection (c).
Any general or specific license issue by the Office of Foreign Asset Control at the Department of the Treasury directly or indirectly related to the funds cited in paragraphs (1).
Limitation— The President may not reissue any new waiver or license described in paragraph (1) or (2) of subsection (a) for the same or similar purposes.
Covered funds described— The covered funds described in this subsection are funds held in Iraq or owed to Iran or Iranian institutions by Iraq on January 1, 2023, including funds in accounts established or maintained pursuant to or in accordance with sections 1244(g)–(h) and 1247(d)–(e) of the Iran Freedom and Counter-Proliferation Act of 2012 (Public Law 112–239; 22 U.S.C. 8803(g)–(h) and 8806(d)–(e)).
Reimposition of sanctions— The President shall, pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), block and prohibit all transactions in all property and interests in property of any financial institution which process, participates in, or facilitates a transaction with respect to the funds described in subsection (c) after the date of enactment of this Act 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.
Sec. 6 Blocking Iran’s access to Special Drawing Rights
In general— Section 1621 of the International Financial Institutions Act (22 U.S.C. 262p–4q) shall be understood to cover International Monetary Fund Special Drawing Rights that are available or may be made available to Iran.
Instruction— The Secretary of the Treasury shall instruct the Executive Director of International Monetary Fund to use the voice and vote of the United States to prevent Iran from gaining access to International Monetary Fund Special Drawing Rights.
Diplomacy— The Secretary of the Treasury, in coordination with the Secretary of State shall seek to prevent Iran from trading, exchanging, or otherwise making use of International Monetary Fund Special Drawing Rights.