,i #aacth ,,congress #b;d ,session ,h4 ,r4 #edca ,,in ,,the ,,house ,,of ,,representatives ,september #aj1 #bjad ,mr4 ,fitzpatrick introduced the following bill2 which was referred to the ,committee on ,foreign ,affairs1 and in addition to the ,committees on ,oversight and ,government ,reform and ,financial ,services1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to impose sanctions on foreign financial institutions that engage in certain transactions with the ,islamic ,state of ,iraq and ,syria1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,isolating ,,isis ,act4 #b4 ,sanctions with respect to foreign financial institutions that engage in certain transactions 7a7 ,prohibitions and conditions with respect to certain accounts held by foreign financial institutions 7#a7 ,in general ,not later than #abj days after the date of the enactment of this ,act1 the ,secretary of the ,treasury1 in consultation with the ,secretary of ,state and the heads of other applicable ,federal departments and agencies1 shall prohibit1 or impose strict conditions on1 the opening or maintaining in the ,united ,states of a correspondent account or a payable-through account by a foreign financial institution that the ,secretary of the ,treasury determines1 on or after the date of the enactment of this ,act1 engages in an activity described in paragraph 7#b74 7#b7 ,activities described ,a foreign financial institution engages in an activity described in this paragraph if the foreign financial institution-- 7,a7 knowingly facilitates a transaction or transactions for the ,islamic ,state of ,iraq and ,syria2 7,b7 knowingly facilitates a transaction or transactions of a person designated for acting on behalf of or at the direction of1 or owned or controlled by1 the ,islamic ,state of ,iraq and ,syria2 7,c7 knowingly engages in money laundering to carry out an activity described in subparagraph 7,a7 or 7,b72 7,d7 knowingly facilitates a transaction or transactions or provides financial services to carry out an activity described in subparagraph 7,a71 7,b71 or 7,c71 including-- 7i7 facilitating a transaction or transactions2 or 7ii7 providing financial services that involve a transaction of any goods2 or 7,e7 7i7 knowingly facilitates1 or participates or assists in1 an activity described in subparagraph 7,a71 7,b71 7,c71 or 7,d71 including by acting on behalf of1 at the direction of1 or as an intermediary for1 or otherwise assisting1 another person with respect to the activity described in any such subparagraph2 7ii7 knowingly attempts or conspires to facilitate or participate in an activity described in subparagraph 7,a71 7,b71 7,c71 or 7,d72 or 7iii7 is owned or controlled by a foreign financial institution that the ,secretary finds knowingly engages in an activity described in subparagraph 7,a71 7,b71 7,c71 or 7,d74 7#c7 ,penalties ,the penalties provided for in subsections 7b7 and 7c7 of section #bjf of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agje7 shall apply to a person that violates1 attempts to violate1 conspires to violate1 or causes a violation of the prohibition or strict conditions referred to in paragraph 7#a7 of this subsection to the same extent that such penalties apply to a person that commits an unlawful act described in subsection 7a7 of such section #bjf4 7#d7 ,regulations ,the ,secretary of the ,treasury shall prescribe and implement regulations to carry out this subsection4 7b7 ,waiver 7#a7 ,in general ,the ,secretary of the ,treasury1 in consultation with the ,secretary of ,state and the heads of other applicable ,federal departments and agencies1 may waive1 on a case-by-case basis1 the application of a prohibition or condition imposed with respect to a foreign financial institution pursuant to subsection 7a7 for a period of not more than #ahj days1 and may renew that waiver for additional periods of not more than #ahj days1 on and after the date that the ,secretary of the ,treasury1 in consultation with the ,secretary of ,state-- 7,a7 determines that such a waiver is in the national security interests of the ,united ,states2 and 7,b7 submits to the appropriate congressional committees a report describing the reasons for the determination4 7#b7 ,form ,the report required by subparagraph 7#a7 shall be submitted in unclassified form1 but may contain a classified annex4 7c7 ,provisions relating to foreign financial institutions 7#a7 ,report ,not later than #de days after the date of the enactment of this ,act and every #ahj days thereafter1 the ,secretary of the ,treasury shall submit to the appropriate congressional committees a report that-- 7,a7 identifies each foreign central bank that the ,secretary determines engages in one or more activities described in subsection 7a77#b77;,d72 and 7,b7 provides a detailed description of each such activity4 7#b7 ,special rule to allow for termination of sanctionable activity ,the ,secretary of the ,treasury shall not be required to apply sanctions to a foreign financial institution described in subsection 7a7 if the ,secretary of the ,treasury1 in consultation with the ,secretary of ,state and the heads of other applicable ,federal departments and agencies1 certifies in writing to the appropriate congressional committees that-- 7,a7 the foreign financial institution-- 7i7 is no longer engaging in an activity described in subsection 7a77#b72 or 7ii7 has taken and is continuing to take significant verifiable steps toward terminating the activity described in subsection 7a77#b72 and 7,b7 the ,secretary has received reliable assurances from the government with primary jurisdiction over the foreign financial institution that the foreign financial institution will not engage in any activity described in subsection 7a77#b7 in the future4 7d7 ,definitions 7#a7 ,in general ,in this section3 7,a7 ,account2 correspondent account2 payable-through account ,the terms account1 correspondent account1 and payable-through account have the meanings given those terms in section #ecah;,a of title #ca1 ,united ,states ,code4 7,b7 ,financial institution ,the term financial institution means a financial institution specified in subparagraph 7,a71 7,b71 7,c71 7,d71 7,e71 7,f71 7,g71 7,h71 7,i71 7,j71 7,k71 7,m71 7,n71 7,p71 7,r71 7,t71 7,y71 or 7,z7 of section #ecab7;a77#b7 of title #ca1 ,united ,states ,code4 7,c7 ,foreign financial institution ,the term foreign financial institution has the meaning of such term in section #ajaj4fje of title #ca1 ,code of ,federal ,regulations1 and includes a foreign central bank4 7,d7 ,money laundering ,the term money laundering means any of the activities described in paragraph 7#a71 7#b71 or 7#c7 of section #aief7;a7 of title #ah1 ,united ,states ,code1 with respect to which penalties may be imposed pursuant to such section4 7#b7 ,other definitions ,the ,secretary of the ,treasury may further define the terms used in this section in the regulations prescribed under this section4 #c4 ,imposition of sanctions with respect to ,united ,states persons that engage in transactions with certain foreign persons 7a7 ,in ,general ,the ,president shall impose sanctions in accordance with subsection 7c7 with respect to each person on the list required by subsection 7b74 7b7 ,list 7#a7 ,in general ,not later than #ij days after the date of the enactment of this ,act1 the ,president shall submit to the appropriate congressional committees a list of ,united ,states persons that the ,president determines have knowingly engaged in an activity described in paragraph 7#b7 on or after such date of enactment4 7#b7 ,activity described 7,a7 ,in general ,a person engages in an activity described in this paragraph if the person knowingly engages in a transaction or transactions with a foreign person that transfers or receives1 or facilitates the transfer or receipt of1 any goods or services to or from the ,islamic ,state of ,iraq and ,syria4 7,b7 ,applicability to contracts and other agreements ,a person engages in an activity described in subparagraph 7,a7 without regard to whether the activity is carried out pursuant to a contract or other agreement entered into before1 on1 or after the date of the enactment of this ,act4 7#c7 ,special rule to allow for termination of sanctionable activity ,the ,president shall not be required to include a person on the list required by paragraph 7#a7 if the ,president certifies in writing to the appropriate congressional committees that-- 7,a7 the person is no longer engaging in1 or has taken significant verifiable steps toward stopping1 the activity described in paragraph 7#b7 for which the ,president would otherwise have included the person on the list2 and 7,b7 the ,president has received reliable assurances that the person will not knowingly engage in any activity described in paragraph 7#b7 in the future4 7#d7 ,updates of list ,the ,president shall submit to the appropriate congressional committees an updated list under paragraph 7#a7 as new information becomes available4 7#e7 ,form of report2 public availability 7,a7 ,form ,the list required by paragraph 7#a7 shall be submitted in unclassified form but may contain a classified annex4 7,b7 ,public availability ,the unclassified portion of the list required by paragraph 7#a7 shall be made available to the public and posted on the websites of the ,department of the ,treasury and the ,department of ,state4 7c7 ,application of ,sanctions 7#a7 ,in general ,the ,president shall impose sanctions described in paragraph 7#b7 with respect to a person on the list required by subsection 7b74 7#b7 ,sanctions ,the sanctions described in this paragraph are the following3 7,a7 ,no assistance may be provided to the person under the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #baea et seq47 or the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bgea et seq474 7,b7 ,the ,united ,states ,government may not procure1 or enter into any contract for the procurement of1 any goods or services from the person4 7,c7 ,the ,president may impose additional sanctions1 as appropriate1 with respect to the person in accordance with the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq474 7d7 ,definitions ,in this section3 7#a7 ,foreign person ,the term foreign person means-- 7,a7 an individual who is not a ,united ,states person or an alien lawfully admitted for permanent residence into the ,united ,states2 or 7,b7 a corporation1 partnership1 or other nongovernmental entity which is not a ,united ,states person4 7#b7 ,person 7,a7 ,in general ,the term person means-- 7i7 a natural person2 7ii7 a corporation1 business association1 partnership1 society1 trust1 financial institution1 insurer1 underwriter1 guarantor1 and any other business organization1 any other nongovernmental entity1 organization1 or group1 and any governmental entity operating as a business enterprise2 and 7iii7 any successor to any entity described in clause 7ii74 7,b7 ,application to governmental entities ,the term person does not include a government or governmental entity that is not operating as a business enterprise4 7#c7 ,united states person ,the term ,united ,states person means-- 7,a7 a natural person who is a citizen of the ,united ,states or who owes permanent allegiance to the ,united ,states2 and 7,b7 a corporation or other legal entity which is organized under the laws of the ,united ,states1 any ,state or territory thereof1 or the ,district of ,columbia1 if natural persons described in subparagraph 7,a7 own1 directly or indirectly1 more than #ej percent of the outstanding capital stock or other beneficial interest in such legal entity4 #d4 ,regulatory authority 7a7 ,in general ,not later than #ij days after the date of the enactment of this ,act1 the ,president shall promulgate regulations as necessary for the implementation of this ,act4 7b7 ,notification to ,congress ,not later than #aj days before the promulgation of regulations under subsection 7a71 the ,president shall notify the appropriate congressional committees of such proposed regulations4 #e4 ,termination ,this ,act shall cease to be in effect beginning #cj days after the date on which the ,president certifies to ,congress that the ,islamic ,state of ,iraq and ,syria-- 7#a7 is no longer designated as a foreign terrorist organization pursuant to section #bai of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aahi72 7#b7 is no longer listed in the ,annex to ,executive ,order ,no4 #acbbd 7,september #bc1 #bjja2 relating to blocking property and prohibiting transactions with persons who commit1 threaten to commit1 or support terrorism72 and 7#c7 poses no significant threat to ,united ,states national security1 interests1 or allies4 #f4 ,rule of construction ,nothing in this ,act shall apply to the authorized intelligence activities of the ,united ,states4 #g4 ,definitions ,in this ,act3 7#a7 ,appropriate congressional committees ,the term appropriate congressional committees means-- 7,a7 the ,committee on ,foreign ,affairs and the ,committee on ,financial ,services of the ,house of ,representatives2 and 7,b7 the ,committee on ,foreign ,relations and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate4 7#b7 ,islamic ,state of ,iraq and ,syria ,the term ,islamic ,state of ,iraq and ,syria includes-- 7,a7 any person-- 7i7 the property of or interests in property of which are blocked pursuant to the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq472 and 7ii7 who is identified on the list of specially designated nationals and blocked persons maintained by the ,office of ,foreign ,asset ,control of the ,department of the ,treasury as an agent1 instrumentality1 or affiliate of the ,islamic ,state of ,iraq and ,syria2 and 7,b7 the entity designated by the ,secretary of ,state as a foreign terrorist organization pursuant to section #bai of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aahi74