Bills
| 3.23.22

Keeping Sanctions on Iran — Unless the President Can Ensure the Financial Gains Won't Go to Terrorists (H.R. 3662)

Do you support or oppose this bill?

What is H.R. 3662?

(Updated April 19, 2018)

This bill would call for more Congressional oversight of U.S. economic and trade sanctions — specifically with Iran. 

It focuses on sanctions covering Iran's financial institutions. Travel restrictions on Iranian nationals involved with the country’s nuclear weapons program or U.S. designated terrorist organizations are also covered in this bill.

Iranian financial institutions could not be removed from the Office of Foreign Asset Control’s sanctions list —  the President can certify that institution hasn’t knowingly processed a transaction, or no longer knowingly processes transactions for:

The President would be kept from removing specific foreign people from the list of designated nationals and blocked persons —  the President can certify that the person has not knowingly:

  • Assisted or offered financial, material, or technological support for terrorism or a terrorist organization;

  • Been involved in activities or transactions that have materially contributed to Iran's proliferation of weapons of mass destruction or their means of delivery.

Additionally, the President can't remove Iran’s designation as primary money laundering concern —  he or she certifies that Iran no longer supports terrorism, pursues weapons of mass destruction, and illegal or deceptive financial activities. Rulemaking by federal agencies related to Iran would be subject to congressional review requirements.

Argument in favor

The President should be able to certify that lifting sanctions on Iranian banks and individuals won’t undermine counterterrorism or anti-proliferation efforts.

Argument opposed

This legislation is an attempt to undermine the international agreement on Iran’s nuclear program by forcing the president's administration to make promises they can't keep.

Impact

The American public, U.S. Iran diplomatic relations, Iranian banks and individuals that have been sanctioned, federal entities that enforce sanctions, Congress, and the President.

Cost of H.R. 3662

The CBO estimates that this bill could affect spending and tax revenues, but wouldn’t increase direct spending by more than $5 billion and or increase deficits in any of the four 10-year periods beginning in 2026.

Additional Info

In-Depth: Sponsoring Rep. Steve Russell (R-OK) introduced this legislation to increase the President’s accountability to Congress and regarding sanctions against Iranian financial institutions and certain individuals:

“We believe the President needs to provide Congress and the American people justification on why a select, identified group of terrorists and human rights violators no longer qualify to be on those lists.”

Chairman of the House Foreign Affairs Committee Ed Royce (R-CA) noted that the sanctions relief agreed to in the Iran nuclear agreement has become more aggressive in non-nuclear areas that undermine anti-terrorism efforts:

“Since the Obama Administration sealed the Iran nuclear deal, Tehran has been on a roll. It has accelerated its missile program, taken more Americans hostage, and stepped up its slaughter in Syria. And in a few weeks, it will cash-in with tens of billions in sanctions relief. All of this comes with no pushback from the Administration. And now we understand that some entities set for sanctions relief - like Iran’s Bank Meli and Bank Sepah - will be given a pass for backing ballistic missile development and terrorism.”

The Obama administration has said that it “strongly opposes” this legislation because it would “interfere with the implementation of the [Joint Comprehensive Plan of Action].” Those concerns have been echoed by others who note that the relevant Iranian banks and individuals were originally sanctioned because of their involvement with Iran’s nuclear program or the financing of terrorism. Coupled with the difficulty of certifying that the sanctioned parties aren’t continuing in those activities, that history would essentially prevent any financial institution or individual from being granted sanctions relief.

This bill passed the House Foreign Affairs Committee unanimously, and has 62 Republican cosponsors in the House.


Media:

Summary by Eric Revell
(Photo Credit: Flickr user froderik)