Iranian Revolutionary Guard Corps Economic Exclusion Act

II 116TH CONGRESS 1ST SESSION S. 925 To impose additional sanctions with respect to Iran’s Revolutionary Guard Corps, and for other purposes. IN THE SENATE OF THE UNITED STATES MARCH 28, 2019 Mr. CORNYN (for himself, Ms. SINEMA, Mr. TILLIS, Ms. COLLINS, Mrs. FISCHER, and Mr. RUBIO) introduced the following bill; which was read twice and referred to the Committee on Foreign Relations A BILL To impose additional sanctions with respect to Iran’s Revolutionary Guard Corps, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Iranian Revolutionary 4 Guard Corps Economic Exclusion Act’’. 5 VerDate Sep 11 2014 23:46 Apr 04, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S925.IS S925 kjohnson on DSK79L0C42 with BILLS 2 •S 925 IS SEC. 2. ADDITIONAL SANCTIONS WITH RESPECT TO FOR- 1 EIGN PERSONS THAT ARE OFFICIALS, 2 AGENTS, OR AFFILIATES OF, OR OWNED OR 3 CONTROLLED BY, IRAN’S REVOLUTIONARY 4 GUARD CORPS. 5 (a) IN GENERAL.—Section 301(a) of the Iran Threat 6 Reduction and Syria Human Rights Act of 2012 (22 7 U.S.C. 8741(a)) is amended— 8 (1) in the matter preceding paragraph (1), by 9 striking ‘‘Not later than 90 days after the date of 10 the enactment of this Act, and as appropriate there- 11 after,’’ and inserting ‘‘Not later than 180 days after 12 the date of the enactment of the Iranian Revolu- 13 tionary Guard Corps Economic Exclusion Act, and 14 every 180 days thereafter,’’; 15 (2) in paragraph (1)— 16 (A) by inserting ‘‘, or owned or controlled 17 by,’’ after ‘‘affiliates of’’; and 18 (B) by striking ‘‘and’’ at the end; 19 (3) in paragraph (2)(B), by striking the period 20 at the end and inserting ‘‘; and’’; and 21 (4) by adding at the end the following: 22 ‘‘(3) identify foreign persons with respect to 23 which there is a reasonable basis to determine that 24 the foreign persons have, directly or indirectly, con- 25 ducted one or more sensitive transactions or activi- 26 VerDate Sep 11 2014 23:46 Apr 04, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S925.IS S925 kjohnson on DSK79L0C42 with BILLS 3 •S 925 IS ties described in subsection (c) for or on behalf of 1 a foreign person described in paragraph (1).’’. 2 (b) AUTHORIZATION; PRIORITY FOR INVESTIGATION; 3 REPORTS.—Section 301(b) of the Iran Threat Reduction 4 and Syria Human Rights Act of 2012 (22 U.S.C. 8741(b)) 5 is amended to read as follows: 6 ‘‘(b) AUTHORIZATION; PRIORITY FOR INVESTIGA- 7 TION; REPORTS.— 8 ‘‘(1) AUTHORIZATION.—In identifying foreign 9 persons pursuant to subsection (a)(1) as owned or 10 controlled by Iran’s Revolutionary Guard Corps, the 11 President is authorized to identify foreign persons in 12 which Iran’s Revolutionary Guard Corps has an 13 ownership interest of less than 50 percent. 14 ‘‘(2) PRIORITY FOR INVESTIGATION.—In identi- 15 fying foreign persons pursuant to subsection (a)(1) 16 as officials, agents, or affiliates of, or owned or con- 17 trolled by, Iran’s Revolutionary Guard Corps, the 18 President shall investigate— 19 ‘‘(A) foreign persons identified under sec- 20 tion 560.304 of title 31, Code of Federal Regu- 21 lations (relating to the definition of the Govern- 22 ment of Iran); and 23 ‘‘(B) foreign persons for which there is a 24 reasonable basis to find that the person has 25 VerDate Sep 11 2014 23:46 Apr 04, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S925.IS S925 kjohnson on DSK79L0C42 with BILLS 4 •S 925 IS conducted or attempted to conduct one or more 1 sensitive transactions or activities described in 2 subsection (c). 3 ‘‘(3) REPORT.— 4 ‘‘(A) DETERMINATION.— 5 ‘‘(i) IN GENERAL.—The President 6 shall determine whether each foreign per- 7 son described in clause (ii) is owned or 8 controlled by Iran’s Revolutionary Guard 9 Corps. 10 ‘‘(ii) FOREIGN PERSONS DE- 11 SCRIBED.—The foreign persons described 12 in this clause are the following: 13 ‘‘(I) The Telecommunication 14 Company of Iran. 15 ‘‘(II) The Mobile Telecommuni- 16 cation Company of Iran (MTCI). 17 ‘‘(III) The Calcimin Public Com- 18 pany. 19 ‘‘(IV) The Iran Tractor Manufac- 20 turing Company. 21 ‘‘(V) The Iran Tractor Motors 22 Manufacturing Company. 23 ‘‘(VI) The Iran Zinc Mines De- 24 velopment Company. 25 VerDate Sep 11 2014 23:46 Apr 04, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S925.IS S925 kjohnson on DSK79L0C42 with BILLS 5 •S 925 IS ‘‘(VII) The National Iranian 1 Lead and Zinc Company. 2 ‘‘(VIII) The Iran Mineral Prod- 3 ucts Company. 4 ‘‘(IX) Tosee Energy Paivaran 5 Company. 6 ‘‘(B) REPORT.— 7 ‘‘(i) IN GENERAL.—Not later than 90 8 days after the date of the enactment of the 9 Iranian Revolutionary Guard Corps Eco- 10 nomic Exclusion Act, the President shall 11 submit to the appropriate congressional 12 committees a report on the determinations 13 made under subparagraph (A) together 14 with the reasons for those determinations. 15 ‘‘(ii) FORM.—A report submitted 16 under clause (i) shall be submitted in un- 17 classified form but may contain a classified 18 annex. 19 ‘‘(4) ADDITIONAL REPORT.— 20 ‘‘(A) IN GENERAL.—Not later than 180 21 days after the date of the enactment of the Ira- 22 nian Revolutionary Guard Corps Economic Ex- 23 clusion Act, the President shall submit to the 24 appropriate congressional committees a report 25 VerDate Sep 11 2014 23:46 Apr 04, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S925.IS S925 kjohnson on DSK79L0C42 with BILLS 6 •S 925 IS that includes a detailed list of foreign persons 1 in which there is a reasonable basis to deter- 2 mine that Iran’s Revolutionary Guard Corps 3 has an ownership interest of not less than 33 4 percent. 5 ‘‘(B) FORM.—The report required under 6 subparagraph (A) shall be submitted in unclas- 7 sified form but may contain a classified 8 annex.’’. 9 (c) SENSITIVE TRANSACTIONS AND ACTIVITIES DE- 10 SCRIBED.—Section 301(c) of the Iran Threat Reduction 11 and Syria Human Rights Act of 2012 (22 U.S.C. 8741(c)) 12 is amended— 13 (1) in paragraph (1)— 14 (A) by striking ‘‘$1,000,000’’ and inserting 15 ‘‘$500,000’’; and 16 (B) by inserting ‘‘Iranian financial institu- 17 tion or’’ after ‘‘involving a’’; 18 (2) by redesignating paragraphs (3), (4), and 19 (5) as paragraphs (6), (7), and (8), respectively; and 20 (3) by inserting after paragraph (2) the fol- 21 lowing new paragraphs: 22 ‘‘(3) a transaction to provide material support 23 for an organization designated as a foreign terrorist 24 organization under section 219(a) of the Immigra- 25 VerDate Sep 11 2014 23:46 Apr 04, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S925.IS S925 kjohnson on DSK79L0C42 with BILLS 7 •S 925 IS tion and Nationality Act (8 U.S.C. 1189(a)) or sup- 1 port for an act of international terrorism (as defined 2 in section 14 of the Iran Sanctions Act of 1996 3 (Public Law 104–172; 50 U.S.C. 1701 note)); 4 ‘‘(4) a transaction to provide material support 5 to a foreign person whose property and interests in 6 property have been blocked pursuant to Executive 7 Order 13224 (50 U.S.C. 1701 note; relating to 8 blocking property and prohibiting transactions with 9 persons who commit, threaten to commit, or support 10 terrorism); 11 ‘‘(5) a transaction to provide material support 12 for— 13 ‘‘(A) the Government of Syria or any agen- 14 cy or instrumentality thereof; or 15 ‘‘(B) any entity owned or controlled by the 16 Government of Syria, including for purposes of 17 post-conflict reconstruction;’’. 18 (d) WAIVER OF IMPOSITION OF SANCTIONS.—Section 19 301(e) of the Iran Threat Reduction and Syria Human 20 Rights Act of 2012 (22 U.S.C. 8741(e)) is amended— 21 (1) in paragraph (1)— 22 (A) by striking ‘‘(A) determines’’ and in- 23 serting ‘‘(A)(i) determines’’; 24 VerDate Sep 11 2014 23:46 Apr 04, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S925.IS S925 kjohnson on DSK79L0C42 with BILLS 8 •S 925 IS (B) by striking ‘‘(B) submits’’ and insert- 1 ing ‘‘(ii) submits’’; 2 (C) by striking ‘‘(i) identifies’’ and insert- 3 ing ‘‘(I) identifies’’; 4 (D) by striking ‘‘(ii) sets’’ and inserting 5 ‘‘(II) sets’’; 6 (E) by striking the period at the end and 7 inserting ‘‘; and’’; and 8 (F) by adding at the end the following: 9 ‘‘(B) with respect to a foreign person iden- 10 tified under subsection (a)(3) by reason of hav- 11 ing conducted or attempted to conduct one or 12 more sensitive transactions or activities de- 13 scribed in subsection (c)(5), also certifies to the 14 appropriate congressional committees that 15 Iran’s Revolutionary Guard Corps is signifi- 16 cantly decreasing provision of direct or indirect 17 material support to the Government of Syria or 18 Hezbollah’s operations in Syria.’’; and 19 (2) in paragraph (2), by striking ‘‘paragraph 20 (1)(B)’’ and inserting ‘‘paragraph (1)(A)(ii)’’. 21 (e) REGULATIONS, IMPLEMENTATION, PENALTIES, 22 AND DEFINITIONS.—Section 301 of the Iran Threat Re- 23 duction and Syria Human Rights Act of 2012 (22 U.S.C. 24 8741) is amended— 25 VerDate Sep 11 2014 23:46 Apr 04, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S925.IS S925 kjohnson on DSK79L0C42 with BILLS 9 •S 925 IS (1) by redesignating subsection (f) as sub- 1 section (h); and 2 (2) by inserting after subsection (e) the fol- 3 lowing new subsection: 4 ‘‘(f) DEFINITIONS.—In this section: 5 ‘‘(1) FOREIGN PERSON.—The term ‘foreign per- 6 son’ means— 7 ‘‘(A) an individual who is not a United 8 States person; 9 ‘‘(B) a corporation, partnership, or other 10 nongovernmental entity that is not a United 11 States person; or 12 ‘‘(C) any representative, agent, or instru- 13 mentality of, or an individual working on behalf 14 of, a foreign government. 15 ‘‘(2) IRAN’S REVOLUTIONARY GUARD CORPS.— 16 The term ‘Iran’s Revolutionary Guard Corps’ in- 17 cludes any senior foreign political figure (as defined 18 in section 1010.605 of title 31, Code of Federal 19 Regulations) of Iran’s Revolutionary Guard Corps.’’. 20 (f) CONFORMING AND CLERICAL AMENDMENTS.— 21 The Iran Threat Reduction and Syria Human Rights Act 22 of 2012 (22 U.S.C. 8701 et seq.) is amended— 23 (1) by striking the heading of section 301 and 24 inserting the following: 25 VerDate Sep 11 2014 23:46 Apr 04, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S925.IS S925 kjohnson on DSK79L0C42 with BILLS 10 •S 925 IS ‘‘SEC. 301. IDENTIFICATION OF, AND IMPOSITION OF SANC- 1 TIONS WITH RESPECT TO, FOREIGN PERSONS 2 THAT ARE OFFICIALS, AGENTS, OR AFFILI- 3 ATES OF, OR OWNED OR CONTROLLED BY, 4 IRAN’S REVOLUTIONARY GUARD CORPS.’’; 5 and 6 (2) in the table of contents, by striking the item 7 relating to section 301 and inserting the following: 8 ‘‘Sec. 301. Identification of, and imposition of sanctions with respect to, foreign persons that are officials, agents, or affiliates of, or owned or controlled by, Iran’s Revolutionary Guard Corps.’’. (g) EFFECTIVE DATE.—The amendments made by 9 this section take effect on the date of the enactment of 10 this Act and apply with respect to conduct described in 11 section 301(a) of the Iran Threat Reduction and Syria 12 Human Rights Act of 2012, as amended by this section, 13 engaged in on or after such date of enactment. 14 SEC. 3. ADDITIONAL SANCTIONS WITH RESPECT TO FOR- 15 EIGN PERSONS THAT SUPPORT OR CONDUCT 16 CERTAIN TRANSACTIONS WITH IRAN’S REVO- 17 LUTIONARY GUARD CORPS OR OTHER SANC- 18 TIONED PERSONS. 19 (a) IDENTIFICATION.—Section 302(a)(1) of the Iran 20 Threat Reduction and Syria Human Rights Act of 2012 21 (22 U.S.C. 8742(a)(1))— 22 (1) in subparagraph (B)— 23 VerDate Sep 11 2014 23:46 Apr 04, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S925.IS S925 kjohnson on DSK79L0C42 with BILLS 11 •S 925 IS (A) by inserting ‘‘, or provide significant 1 financial services to,’’ after ‘‘transactions with’’; 2 and 3 (B) in clause (ii), by striking ‘‘or’’ at the 4 end; and 5 (2) in subparagraph (C)— 6 (A) in the matter preceding clause (i), by 7 inserting ‘‘, provide significant financial services 8 to, or provide material support to’’ after ‘‘trans- 9 actions with’’; 10 (B) in clause (i), by striking ‘‘or’’ at the 11 end; and 12 (C) by striking clause (ii) and inserting the 13 following: 14 ‘‘(ii) an Iranian person— 15 ‘‘(I) designated as foreign ter- 16 rorist organizations under section 17 219(a) of the Immigration and Na- 18 tionality Act (8 U.S.C. 1189(a)); or 19 ‘‘(II) that has provided support 20 for an act of international terrorism 21 (as defined in section 14 of the Iran 22 Sanctions Act of 1996 (Public Law 23 104–172; 50 U.S.C. 1701 note)); 24 VerDate Sep 11 2014 23:46 Apr 04, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S925.IS S925 kjohnson on DSK79L0C42 with BILLS 12 •S 925 IS ‘‘(iii) an Iranian person whose prop- 1 erty and interests in property have been 2 blocked pursuant to Executive Order 3 13224 (50 U.S.C. 1701 note; relating to 4 blocking property and prohibiting trans- 5 actions with persons who commit, threaten 6 to commit, or support terrorism); 7 ‘‘(iv) an Iranian person whose prop- 8 erty and interests in property have been 9 blocked pursuant to— 10 ‘‘(I) Executive Order 13608 (50 11 U.S.C. 1701 note; relating to prohib- 12 iting certain transactions with and 13 suspending entry into the United 14 States of foreign sanctions evaders 15 with respect to Iran and Syria); 16 ‘‘(II) Executive Order 13606 (50 17 U.S.C. 1701 note; relating to blocking 18 the property and suspending entry 19 into the United States of certain per- 20 sons with respect to grave human 21 rights abuses by the Governments of 22 Iran and Syria via information tech- 23 nology); 24 VerDate Sep 11 2014 23:46 Apr 04, 2019 Jkt 089200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S925.IS S925 kjohnson on DSK79L0C42 with BILLS 13 •S 925 IS ‘‘(III) Executive Order 13582 1 (50 U.S.C. 1701 note; relating to 2 blocking property of the Government 3 of Syria and prohibiting certain trans- 4 actions with respect to Syria); 5 ‘‘(IV) Executive Order 13573 (50 6 U.S.C. 1701 note; relating to blocking 7 property of senior officials of the Gov- 8 ernment of Syria); 9 ‘‘(V) Executive Order 13572 (50 10 U.S.C. 1701 note; relating to blocking 11 property of certain persons with re- 12 spect to human rights abuses in 13 Syria); 14 ‘‘(VI) Executive Order 13460 (50 15 U.S.C. 1701 note; relating to blocking 16 property of additional persons in con- 17 nection with the national emergency 18 with respect to Syria); 19 ‘‘(VII) Executive Order 13399 20 (50 U.S.C. 1701 note; relating to 21 blocking property of additional per- 22 sons in connection with the national 23 emergenc [Text truncated for display. 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