Iran-China Energy Sanctions Act of 2023 (H.R.5923)

H.R. 5923, known as the Iran-China Energy Sanctions Act of 2023, is a bill that requires the President to periodically determine whether any Chinese financial institution has engaged in the purchase of petroleum or petroleum products from Iran. U.S. financial institutions are not allowed to open or maintain certain accounts with such Chinese financial institutions. The bill was introduced in the House on October 11, 2023. It was passed in the House with 383 votes in favor and 11 against on April 15, 2024.

118th CONGRESS
2d Session
H. R. 5923
IN THE SENATE OF THE UNITED STATES
April 16, 2024
Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs

AN ACT
To impose restrictions on correspondent and payable-through accounts in the United States with respect to Chinese financial institutions that conduct transactions involving the purchase of petroleum or petroleum products from Iran.

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 “Iran-China Energy Sanctions Act of 2023”.

SEC. 2. SANCTIONS ON FOREIGN FINANCIAL INSTITUTIONS WITH RESPECT TO THE PURCHASE OF PETROLEUM PRODUCTS AND UNMANNED AERIAL VEHICLES FROM IRAN.

Section 1245(d) of the National Defense Authorization Act for Fiscal Year 2012 (22 U.S.C. 8513a(d)) is amended—

(1) by redesignating paragraph (5) as paragraph (6); and

(2) by inserting after paragraph (4) the following new paragraph:

“(5) APPLICABILITY OF SANCTIONS WITH RESPECT TO CHINESE FINANCIAL INSTITUTIONS.—

“(A) IN GENERAL.—For the purpose of paragraph (1)(A), a ‘significant financial transaction’ includes any transaction—

“(i) by a Chinese financial institution (without regard to the size, number, frequency, or nature of the transaction) involving the purchase of petroleum or petroleum products from Iran; and

“(ii) by a foreign financial institution (without regard to the size, number, frequency, or nature of the transaction) involving the purchase of Iranian unmanned aerial vehicles (UAVs), UAV parts, or related systems.

“(B) DETERMINATION REQUIRED.—Not later than 180 days after the date of the enactment of this paragraph and every year thereafter for 5 years, the President shall—

“(i) determine whether any—

“(I) Chinese financial institution has engaged in a significant financial transaction as described in paragraph (1)(A)(i); and

“(II) financial institution has engaged in a significant financial transaction as described in paragraph (1)(A)(ii); and

“(ii) transmit the determination under clause (i) to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate.”.

Passed the House of Representatives April 15, 2024.

Attest:    kevin f. mccumber,   
Clerk.