text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Preventing Iran's Access to United 
  States Dollars Act of 2016''.
  
  SEC. 2. PROHIBITION ON FACILITATION OF CERTAIN TRANSACTIONS INVOLVING 
                THE GOVERNMENT OF IRAN OR IRANIAN PERSONS.
  
      (a) In General.--The President shall not issue any license under 
  the International Emergency Economic Powers Act (50 U.S.C. 1701 et 
  seq.) that permits a person--
              (1) to conduct an offshore United States dollar clearing 
          system for transactions involving the Government of Iran or an 
          Iranian person; or
              (2) to provide United States dollars for any offshore 
          United States dollar clearing system conducted or overseen by a 
          foreign government or a foreign financial institution for 
          transactions involving the Government of Iran or an Iranian 
          person.
      (b) Definitions.--In this section:
              (1) Entity.--The term ``entity'' means a corporation, 
          business association, partnership, trust, society, or any other 
          entity.
              (2) Foreign financial institution.--The term ``foreign 
          financial institution'' has the meaning of that term as 
          determined by the Secretary of the Treasury pursuant to section 
          104(i) of the Comprehensive Iran Sanctions, Accountability, and 
          Divestment Act of 2010 (22 U.S.C. 8513(i)).
              (3) Person.--The term ``person'' means an individual or 
          entity.
  
  SEC. 3. REPORTS ON, AND AUTHORIZATION OF IMPOSITION OF SANCTIONS WITH 
                RESPECT TO, OFFSHORE UNITED STATES DOLLAR CLEARING FOR 
                TRANSACTIONS INVOLVING THE GOVERNMENT OF IRAN OR IRANIAN 
                PERSONS.
  
      (a) Reports Required.--
              (1) In general.--Not later than 60 days after the date of 
          the enactment of this Act, and not less frequently than once 
          every 90 days thereafter, the Secretary of the Treasury shall 
          submit to the appropriate congressional committees and publish 
          in the Federal Register a report that contains--
                      (A) a list of any financial institutions that the 
                  Secretary has identified as--
                              (i) operating an offshore United States 
                          dollar clearing system that conducts 
                          transactions involving the Government of Iran 
                          or an Iranian person; or
                              (ii) participating in a transaction 
                          described in clause (i) through a system 
                          described in that clause; and
                      (B) a detailed assessment of the status of efforts 
                  by the Secretary to prevent the conduct of transactions 
                  described in subparagraph (A)(i) through systems 
                  described in that subparagraph.
              (2) Form of report.--Each report submitted under paragraph 
          (1) shall be submitted in unclassified form but may contain a 
          classified annex.
      (b) Imposition of Sanctions.--
              (1) In general.--The President shall, in accordance with 
          the International Emergency Economic Powers Act (50 U.S.C. 1701 
          et seq.), block and prohibit all transactions in all property 
          and interests in property of any financial institution 
          specified in the most recent list submitted under subsection 
          (a)(1)(A) if such property and interests in property are in the 
          United States, come within the United States, or are or come 
          within the possession or control of a United States person.
              (2) Additional sanctions.--The President may impose 
          additional sanctions under the International Emergency Economic 
          Powers Act (50 U.S.C. 1701 et seq.) with respect to a financial 
          institution that is subject to sanctions under paragraph (1).
      (c) Appropriate Congressional Committees Defined.--In this section, 
  the term ``appropriate congressional committees'' has the meaning given 
  that term in section 14 of the Iran Sanctions Act of 1996 (Public Law 
  104-172; 50 U.S.C. 1701 note).
  
  SEC. 4. CLARIFICATION THAT FREEZING OF ASSETS OF IRANIAN FINANCIAL 
                INSTITUTIONS INCLUDES ASSETS IN POSSESSION OR CONTROL OF 
                A UNITED STATES PERSON PURSUANT TO A U-TURN TRANSACTION.
  
      Section 1245(c) of the National Defense Authorization Act for 
  Fiscal Year 2012 (22 U.S.C. 8513a) is amended--
              (1) by striking ``The President'' and inserting ``(1) In 
          general.--The President''; and
              (2) by adding at the end the following:
              ``(2) Treatment of certain transactions.--
                      ``(A) U-turn transactions.--Property that comes 
                  within the possession or control of a United States 
                  person pursuant to a transfer of funds that arises 
                  from, and is ordinarily incident and necessary to give 
                  effect to, an underlying transaction shall be 
                  considered to come within the possession or control of 
                  that person for purposes of paragraph (1).
                      ``(B) Book transfers.--A transfer of funds or other 
                  property for the benefit of an Iranian financial 
                  institution that is made between accounts of the same 
                  financial institution shall be considered property or 
                  interests in property of that Iranian financial 
                  institution for purposes of paragraph (1) even if that 
                  Iranian financial institution is not the direct 
                  recipient of the transfer.''.
target: Preventing Iran's Access to United States Dollars Act of 2016 This bill prohibits the President from issuing a license that permits a person to:   conduct an offshore U.S. dollar clearing system for transactions involving the government of Iran or an Iranian person, or  provide U.S. dollars for any offshore U.S. dollar clearing system conducted by a foreign government or a foreign financial institution for transactions involving the government of Iran or an Iranian person.  The Department of the Treasury shall report to Congress:  a list of financial institutions operating or participating in an offshore U.S. dollar clearing system that conducts transactions involving the government of Iran or an Iranian person, and  an assessment of Treasury efforts to prevent such transactions.   The President shall block and prohibit all transactions in property and property interests of any listed institution if the property and interests: (1) are in the United States, (2) come within the United States, or (3) are or come within the possession or control of a U.S. person. The President may impose additional sanctions pursuant to the International Emergency Economic Powers Act. The National Defense Authorization Act for Fiscal Year 2012 is amended to subject to sanctions: (1) u-turn transactions (fund transfers from a foreign bank that pass through a U.S. financial institution and are then transferred to a second foreign bank), and (2) book transfers (fund transfers for the benefit of an Iranian financial institution made between accounts of the same financial institution).
feat_title: Preventing Iran's Access to United States Dollars Act of 2016