Financial measures

The Act mandates that the President sanction private foreign financial institutions that are found to knowingly conduct or facilitate significant non-petroleum transactions (except transactions for the sale of food, medicine, or medical devices to Iran) with the CBI or with a U.S.-designated Iranian financial institution. This provision takes effect 60 days after the enactment of the Act. Non-petroleum banking sanctions do not apply to foreign central banks or state-owned or controlled foreign financial institutions, although these financial institutions remain subject to section 104 of CISADA, which provides authority for sanctions on foreign financial institutions that are found to have knowingly engaged in facilitating significant transactions for specific Iranian-linked individuals and entities.

US

Section 1245 of the National Defense Authorization Act for Fiscal Year 2012, P.L. 112-81, As Amended Through Public Law 115-91, Enacted December 12, 2017

OFAC country specific

Iran

On December 31, 2011, the President signed into law the National Defense Authorization Act (NDAA). Section 1245 of the NDAA requires the President to block the property and interests in property subject to U.S. jurisdiction of all Iranian financial institutions, including the Central Bank of Iran (CBI). It also aims to reduce Iranian oil revenues and discourage transactions with the CBI by providing for sanctions on foreign financial institutions that knowingly conduct or facilitate certain significant financial transactions with the CBI. (Sec. 1245) Designates the financial sector of Iran, including the Central Bank of Iran (CBI), as of primary money laundering concern for purposes of the implementation of U.S. international counter-money laundering procedures. Directs the President to block and prohibit all transactions in property and interests of Iranian financial institutions if such property and interests are in the United States, come within the United States, or come within the possession or control of a U.S. person. Requires the President to prohibit the opening, and prohibit or impose strict conditions on the maintaining in the United States of an account by a foreign financial institution that the President determines has knowingly conducted or facilitated any significant financial transaction with the CBI or another Iranian financial institution designated for the imposition of sanctions pursuant to the International Emergency Economic Powers Act. Authorizes the President to impose other sanctions pursuant to such Act. Provides sanction exceptions with respect to the sale of food, medicine, and medical devices. Provides for the applicability of sanctions with respect to other foreign central banks, and with respect to petroleum transactions. Provides sanction exceptions. Authorizes the President to waive such sanctions for up to two 120-day periods for national security purposes, with a required justification to Congress for each waiver. Directs the President to carry out an initiative of multilateral diplomacy to persuade countries purchasing oil from Iran to take certain actions to hamper Iran's ability to use such proceeds for the purchase of certain military or dual-use technology. Requires semiannual reports from the President to Congress on the initiative. Authorizes the President to implement and enforce penalties associated with the authority provided under this section.

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