---
kind: "section"
citation: "22 U.S.C. § 8806"
title: "22"
title_heading: "Foreign Relations and Intercourse"
number: "8806"
heading: "Imposition of sanctions with respect to foreign financial institutions that facilitate financial transactions on behalf of specially designated nationals"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/22/8806"
units:
  - "Chapter 95 — Iran Freedom and Counterproliferation"
---

# §8806. Imposition of sanctions with respect to foreign financial institutions that facilitate financial transactions on behalf of specially designated nationals

- (a) **In general—** Except as provided in this section, the President shall prohibit the opening, and prohibit or impose strict conditions on the maintaining, in the United States of a [correspondent account](/usc/22/8801.md?p=a-4) or a [payable-through account](/usc/22/8801.md?p=a-4) by a [foreign financial institution](/usc/22/8801.md?p=a-5) that the President determines has, on or after the date that is 180 days after January 2, 2013, [knowingly](/usc/22/8801.md?p=a-9) facilitated a significant financial transaction on behalf of any [Iranian person](/usc/22/8801.md?p=a-8) included on the list of specially designated nationals and blocked persons maintained by the Office of Foreign Assets Control of the Department of the Treasury (other than an [Iranian financial institution](/usc/22/8801.md?p=a-7) described in [subsection (b)](#b)).
- (b) **Iranian financial institutions described—** An [Iranian financial institution](/usc/22/8801.md?p=a-7) described in this subsection is an [Iranian financial institution](/usc/22/8801.md?p=a-7) that has not been designated for the imposition of sanctions in connection with—
  - (1) Iran’s proliferation of weapons of mass destruction or delivery systems for weapons of mass destruction;
  - (2) Iran’s [support](/usc/22/7432.md?p=12) for international terrorism; or
  - (3) Iran’s abuses of human rights.
- (c) **Humanitarian exception—** The President may not impose sanctions under [subsection (a)](#a) with respect to any person for conducting or facilitating a transaction for the sale of [agricultural commodities](/usc/22/8801.md?p=a-1), food, [medicine](/usc/22/8801.md?p=a-11), or [medical devices](/usc/22/8801.md?p=a-10) to Iran or for the provision of humanitarian assistance to the people of Iran.
- (d) **Applicability of sanctions to petroleum and petroleum products—**
  - (1) **In general—** Except as provided in [paragraph (2)](#d-2), [subsection (a)](#a) shall apply with respect to a financial transaction for the purchase of petroleum or petroleum products from Iran only if, at the time of the transaction, a determination of the President under [section 8513a(d)(4)(B) of this title](/usc/22/8513a.md?p=d-4-B) that the price and supply of petroleum and petroleum products produced in countries other than Iran is sufficient to permit purchasers of petroleum and petroleum products from Iran to reduce significantly their purchases from Iran is in effect.
  - (2) **Exception for certain countries—**
    - (A) **In general—** [Subsection (a)](#a) shall not apply with respect to a financial transaction described in [subparagraph (B)](#d-2-B) conducted or facilitated by a [foreign financial institution](/usc/22/8801.md?p=a-5) if, at the time of the transaction, the exception under [section 8513a(d)(4)(D)(i) of this title](/usc/22/8513a.md?p=d-4-D-i) applies to the country with primary jurisdiction over the [foreign financial institution](/usc/22/8801.md?p=a-5).
    - (B) **Financial transactions described—** A financial transaction conducted or facilitated by a [foreign financial institution](/usc/22/8801.md?p=a-5) is described in this subparagraph if—
      - (i) the financial transaction is only for trade in goods or services—
        - (I) not otherwise subject to sanctions under the law of the United States; and
        - (II) between the country with primary jurisdiction over the [foreign financial institution](/usc/22/8801.md?p=a-5) and Iran; and
      - (ii) any funds owed to Iran as a result of such trade are credited to an account located in the country with primary jurisdiction over the [foreign financial institution](/usc/22/8801.md?p=a-5).
- (e) **Applicability of sanctions to natural gas—** [Subsection (a)](#a) shall apply to a [foreign financial institution](/usc/22/8801.md?p=a-5) that conducts or facilitates a financial transaction for the sale, supply, or transfer to or from Iran of natural gas unless—
  - (1) the financial transaction is only for trade in goods or services—
    - (A) not otherwise subject to sanctions under the law of the United States; and
    - (B) between the country with primary jurisdiction over the [foreign financial institution](/usc/22/8801.md?p=a-5) and Iran; and
  - (2) any funds owed to Iran as a result of such trade are credited to an account located in the country with primary jurisdiction over the [foreign financial institution](/usc/22/8801.md?p=a-5).
- (f) **Waiver—**
  - (1) **In general—** The President may waive the imposition of sanctions under [subsection (a)](#a) for a period of not more than 180 days, and may renew that waiver for additional periods of not more than 180 days, if the President—
    - (A) determines that such a waiver is vital to the national security of the United States; and
    - (B) submits to the [appropriate congressional committees](/usc/22/8801.md?p=a-2) a report providing a justification for the waiver.
  - (2) **Form of report—** Each report submitted under [paragraph (1)(B)](#f-1-B) shall be submitted in unclassified form, but may include a classified annex.

## Source credit

(Pub. L. 112–239, div. A, title XII, § 1247, Jan. 2, 2013, 126 Stat. 2013.)

## Notes

### Executive Documents

### Delegation of Functions

For delegation of certain functions and authorities vested in the President by this section, see Memorandum of President of the United States, June 3, 2013, 78 F.R. 35545, set out as a note under section 8801 of this title.