Stop Evasion of Iran Sanctions Act of 2021
This bill allows the Department of the Treasury to subject a financial institution to operating restrictions and reporting requirements if the institution is connected with the Instrument in Support of Trade Exchanges (INSTEX). INSTEX is an entity designed to facilitate trade between Iran and non-U.S. countries and was created in response to the renewal of certain U.S. sanctions against Iran.
To authorize the Secretary of the Treasury to require special measures 
for domestic financial institutions in connection with INSTEX, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stop Evasion of Iran Sanctions Act 
of 2021''.

SEC. 2. REQUIREMENT OF SPECIAL MEASURES AT DOMESTIC FINANCIAL 
              INSTITUTIONS.

    (a) In General.--The Secretary of the Treasury may require domestic 
financial institutions and domestic financial agencies to take one or 
more of the special measures described under section 5318A(b) of title 
31, United States Code, with respect to a financial institution 
operating outside of the United States, if the Secretary determines 
that the financial institution operating outside of the United States 
knowingly conducts a significant transaction in connection with the 
Instrument in Support of Trade Exchanges (INSTEX), or any successor 
thereof, after issuing a report to the Committee on Financial Services 
of the House of Representatives and the Committee on Banking, Housing, 
and Urban Affairs of the Senate that contains--
            (1) a statement that the transaction facilitates the 
        evasion or circumvention of United States sanctions;
            (2) a statement that the Secretary has consulted, and 
        continues to consult, with European allies and partners on the 
        implications of INSTEX, or any successor thereof, with respect 
        to shared policy objectives, particularly as the objectives 
        relate to the acquisition of nuclear weapons by Iran;
            (3) a statement that the requirement of a special measure 
        is important to advance clear objectives with respect to the 
        policies or the behavior of a financial institution operating 
        outside of the United States, or of any other foreign person, 
        with an explanation of the objectives;
            (4) an assessment of any significant adverse effects of the 
        special measure, directly or indirectly, on the use of the 
        United States dollar and the United States financial system by 
        foreign persons, and a summary of efforts by the Secretary to 
        mitigate such effects; and
            (5) a statement that the requirement of the special measure 
        is in the national interest of the United States, with an 
        explanation of the reasons therefor.
    (b) Sunset.--The provision of this section shall have no force or 
effect on the earlier of--
            (1) 7 years after the date of enactment of this Act; and
            (2) the date on which the President issues a written report 
        to the Congress (and makes such report available to the public) 
        stating that the termination of the authorities under this 
        section is important to the national interest of the United 
        States, with an explanation of the reasons therefor.
    (c) Definitions.--In this section, the terms ``domestic financial 
institution'', ``domestic financial agency'', and ``financial 
institution'' have the meaning given those terms, respectively, under 
section 5312 of title 31, United States Code.
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Stop Evasion of Iran Sanctions Act of 2021
To authorize the Secretary of the Treasury to require special measures for domestic financial institutions in connection with INSTEX, and for other purposes.
Stop Evasion of Iran Sanctions Act of 2021
Rep. Steil, Bryan