THE DAILY WHIP: WEDNESDAY, JANUARY 13, 2016

H.R. 3662 – Iran Terror Finance Transparency Act (Rep. Royce – Foreign Affairs).  H.R. 3662 would restrict the President’s ability to lift sanctions on Iranian entities, thereby preventing the U.S. from carrying out its commitment under the Joint Comprehensive Plan of Action (JCPOA) signed in Vienna, Austria on July 14, 2015.  Specifically, the bill would require the President to certify that the de-listed entity has not knowingly facilitated a significant financial transaction or provided significant financial services to IRGC or terrorist affiliates; has not been designated by Treasury for material support to terrorism or proliferation activities; or been engaged in money laundering.  By requiring a certification that an entity has never engaged in the specified activities, the bill effectively imposes a permanent obstacle on JCPOA implementation.  It would specifically prevent delisting of 400 banks, companies, and individuals engaged in Iran’s nuclear program - particularly the Central Bank. 

Section 2 would require the President to certify to Congress that any entity from the Office of Foreign Assets Control (OFAC) sanctions list has not ever knowingly facilitated a significant financial transaction or provided significant financial services to: (1) Iran’s Revolutionary Guard Corps (IRGC) or affiliates; (2) a foreign terrorist organization or designated terrorist; or (3) a person under U.S. sanctions for Weapons of Mass Destruction (WMD), ballistic missiles, or conventional arms.  Additionally, H.R. 3662 would require the President to certify to Congress that each individual that will be de-designated has not ever knowingly: (1) provided support or services to a terrorist organization or (2) engaged in significant activities or transactions that provide material contributions to Iran’s WMD proliferation or missile development.  

H.R. 3662 further impedes the President’s ability to implement JCPOA by prohibiting him from removing Iran from the list of designated jurisdictions of money laundering concern until he certifies to Congress that Iran no longer: (1) engages in terrorism support; (2) pursues WMDs; (3) conducts any illicit and deceptive financial activities.  This provision would ensure that Iran is permanently designated a money laundering jurisdiction even if they improve their financial transaction behavior, which would give Iran no incentive for improvements.

The bill would require that any change to the OFAC’s regulations regarding Iran is subject to the 1996 Congressional Review Act.  This provision could subject any Iran regulations changes to a sixty-day Congressional review and a potential override by a Congressional Joint Resolution.

Lastly, Section 6 would amend the Comprehensive Iran Sanctions, Accountability, and Divestment Act (CISADA) to specify that U.S. banks may not maintain correspondent accounts with foreign banks that do business with Hezbollah, Hamas, Palestinian Islamic Jihad, and any affiliates, regardless of if those organizations are on the U.S. Foreign Terrorist Organizations (FTO) list.

In the Statement of Administration Policy, the President stated that he would veto this bill. 

The Rule, which was adopted yesterday, provides for one hour of general debate equally divided and controlled by the Chair and Ranking Member of the Committee on Foreign Affairs.

Bill Text for H.R. 3662:
PDF Version

Background for H.R. 3662:
House Report (HTML Version)
House Report (PDF Version)

S.J.Res. 22 – Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Corps of Engineers and the Environmental Protection Agency relating to the definition of “waters of the United States” under the Federal Water Pollution Control Act (Sen. Ernst – Transportation and Infrastructure) (One hour of debate).  This resolution would disapprove of the rule issued by the Environmental Protection Agency (EPA) and the Army Corps of Engineers (Corps) that clarifies the federal government’s authority to regulate certain waters under the Clean Water Act, commonly known as the Clean Water Rule.  The resolution invalidates the Clean Water Rule and would also prevent EPA and the Corps from revising the rule or developing a “substantially similar” rule in the future.

The Clean Water Rule was promulgated to clarify confusion and uncertainty arising from two Supreme Court decisions over the Act’s definition of the “waters of the United States” and to improve the regulatory process established by the Bush administration for obtaining a permit under the Clean Water Act. More than one in three Americans receive their drinking water from a source that is protected under the new Clean Water Act rule, so enacting S.J.Res. 22 would leave drinking water for millions of Americans susceptible to pollution.  

In the Statement of Administration Policy, the President's senior advisors stated that they would recommend he veto this bill.

The Rule, which was adopted yesterday, provides for one hour of general debate equally divided and controlled by the Chair and Ranking Member of the Committee on Transportation and Infrastructure.

Bill Text for S.J.Res. 22:
PDF Version