Tough New Iran Sanctions Pending in the House and Senate

November 16, 2009

Recently, the House Foreign Affairs and Senate Banking Committees approved separate bills designed to toughen unilateral sanctions on Iran. Both bills would expand the scope of firms subject to sanctions to more than just those who supply Iran with refined petroleum.

The Senate bill would add new dual-use export controls for sales to countries suspected of transshipping goods to Iran and contains different U.S. procurement prohibitions against firms doing business with Iran. By contrast, the House bill is more limited to firms supplying refined petroleum to Iran or helping to expand its refining capacity.

The new bills would also make it more difficult for the Administration to ignore the sanctions law by requiring it to “immediately initiate” investigations of possible violations after receiving credible information that a violation has occurred. It further requires the Administration to determine no later than 180 days after launching such an investigation if a company should be sanctioned.  

The House bill would also prohibit new nuclear agreements that permit exports of U.S. nuclear material, and would deny export licenses for nuclear materials under existing civil nuclear agreements to any country that houses a firm found to have aided Iran’s nuclear weapons program.

Both bills have thus far received strong support. The House bill alone has over 300 co-sponsors. The House bill could clear Congress this year, however it still needs to be reviewed the Committee on Ways and Means, Committee on Oversight and Government Reform, and the Committee on Financial Services.

Since the original Iran Sanctions Act became law in 1996, only one U.S. administration has found a sanctionable activity. No administration has actually applied sanctions under the law.

To view the House bill, H.R. 2194, click here. For the Senate Bill, S. 908, click here.