Section 1 Short title
This Act may be cited as the “Sanctions Evasion Prevention And Mitigation Act of 2024” or the “SEPAM Act of 2024”.
Sanctions Evasion Prevention And Mitigation Act of 2024
A BILL
To require the imposition of sanctions with respect to financial institutions of countries of concern that clear, verify, or settle transactions with other financial institutions of such countries.
Sec. 2 Imposition of sanctions with respect to certain financial institutions of countries of concern
In general— The President shall impose one or more of the sanctions described in subsection (b) with respect to each covered financial institution that uses the Cross-Border Interbank Payment System (commonly referred to as “CIPS”), the System for Transfer of Financial Messages (commonly referred to as “SPFS”), or the System for Electronic Payment Messaging (commonly referred to as “SEPAM”) to clear, verify, settle, or otherwise conduct transactions with any other covered financial institution.
Sanctions described— The sanctions described in this subsection are the following:
Property blocking— The exercise of exercise all of the powers granted 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 covered financial institution 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.
Restrictions on correspondent and payable-through accounts— A prohibition on the opening or maintaining in the United States of a correspondent account or a payable-through account by a covered financial institution subject to subsection (a).
Executive officers inadmissible for visas, admission, or parole—
Visas, admission, or parole— An executive officer of a covered financial institution subject to subsection (a) who is an alien is—
inadmissible to the United States;
ineligible to receive a visa or other documentation to enter the United States; and
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.).
Current visas revoked—
In general— The visa or other entry documentation of an alien described in subparagraph (A) shall be revoked, regardless of when such visa or other entry documentation was issued.
Immediate effect— A revocation under clause (i) shall—
take effect immediately; and
automatically cancel any other valid visa or entry documentation that is in the alien’s possession.
Exceptions—
Exception for intelligence activities— This section shall not apply with respect to activities subject to the reporting requirements under title V of the National Security Act of 1947 (50 U.S.C. 3091 et seq.) or any authorized intelligence activities of the United States.
Compliance with united nations headquarters agreement— Subsection (b)(3) shall not apply with respect to the admission of an alien to the United States if such admission 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.
Exception relating to importation of goods—
In general— The authority to block and prohibit all transactions in all property and interests in property under subsection (b)(1) shall not include the authority or a requirement to impose sanctions on the importation of goods.
Good— In this paragraph, the term good means any article, natural or manmade substance, material, supply or manufactured product, including inspection and test equipment, and excluding technical data.
Implementation; penalties—
Implementation— The President may exercise all authorities provided under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) to carry out this section.
Penalties— A person that violates, attempts to violate, conspires to violate, or causes a violation of this section or any regulation, license, or order issued to carry out this section 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.
Delegation— Not later than 90 days after the date of the enactment of this Act, the President shall—
make a determination with respect to if and how the President will delegate the requirements and authorities under this section; and
notify the appropriate congressional committees of that determination.
Regulations— Not later than 90 days after the date of the enactment of this Act, the President shall prescribe such regulations as are necessary to carry out this section.
Report required—
In general— Not later than 180 days after the date of the enactment of this Act, the President shall submit to the appropriate congressional committees a report—
describing the scope and usage of CIPS, SPFS, or SEPAM around the world, including usage rates by country;
assessing the risks that widespread adoption of CIPS, SPFS, or SEPAM poses to the national security of the United States;
assessing the ability of CIPS, SPFS, and SEPAM in helping countries of concern circumvent United States and international sanctions; and
making recommendations to further preserve and strengthen the influence of the United States in the global financial system.
Form— Each report required by paragraph (1) shall be submitted in unclassified form but may include a classified annex.
Definitions— In this section:
Account; correspondent account; payable-through account— The terms “account”, “correspondent account”, and “payable-through account” have the meanings given those terms in section 5318A of title 31, United States Code.
Admission; admitted; alien— The terms “admission”, “admitted”, and “alien” have the meanings given those terms in section 101 of the Immigration and Nationality Act (8 U.S.C. 1101).
Appropriate congressional committees— The term appropriate congressional committees means—
the Committee on Foreign Relations, the Committee on Banking, Housing, and Urban Affairs, and the Select Committee on Intelligence of the Senate; and
the Committee on Foreign Affairs, the Committee on Financial Services, and the Permanent Select Committee on Intelligence of the House of Representatives.
Covered financial institution— The term covered financial institution means a financial institution—
located in—
a country of concern; or
territory controlled by an entity holding itself out to be the government of the Republic of South Ossetia, the State of Alania, the Donetsk People’s Republic, the Luhansk People’s Republic, the Republic of Abkhazia, or the Pridnestrovian Moldavian Republic;
organized under the laws of a country of concern, any jurisdiction within a country of concern, or an entity described in subparagraph (A)(ii), including a foreign branch of such an institution;
wherever located, owned or controlled by the government of a country of concern or an entity described in subparagraph (A)(ii); or
wherever located, owned or controlled by a financial institution described in subparagraph (A), (B), or (C).
Country of concern— The term country of concern—
has the meaning given the term foreign adversary in section 8(c)(2) of the Secure and Trusted Communications Networks Act of 2019 (47 U.S.C. 1607(c)(2)); and
includes—
the People’s Republic of China (including the Special Administrative Regions of China, including Hong Kong and Macau);
the Russian Federation;
Iran;
North Korea;
Cuba; and
Venezuela under the regime of Nicolás Maduro.
Financial institution— The term financial institution means a financial institution specified in subparagraph (A), (B), (C), (D), (E), (F), (G), (H), (I), (J), (M), or (Y) of section 5312(a)(2) of title 31, United States Code.