Iran Sanctions - Foreign Press Centers

Mandate and Time Frame to Investigate Violations
Iran Sanctions
In the original version of ISA, there was no firm requirement, and no time limit, for the
Administration to investigate potential violations and determine that a firm has violated ISA’s
provisions. Some might argue that the CISADA amendments still do not set a binding
determination deadline, although the parameters are narrowed significantly.
In restricting the Administration’s ability to choose not to act on information about potential
violations, CISADA, Section 102(g)(5), makes mandatory that the Administration begin an
investigation of potential ISA violations when there is “credible information” about a potential
violation. The same section of CISADA makes mandatory the 180-day time limit for a
determination of violation (with the exception that the mandatory investigations and time limit go
into effect one year after enactment (as of July 1, 2011), with respect to gasoline related sales to
Iran). Under Section 102(h)(5), the mandate to investigate gasoline related sales can be delayed
an additional 180 days if an Administration report, submitted to Congress by June 1, 2011, asserts
that its policies have produced a significant result in sales of gasoline to Iran. No such report was
submitted. However, there is still lack of precision over what constitutes “credible information”
that an investment or sanctionable sale has been undertaken.
Earlier, P.L. 109-293, the “Iran Freedom Support Act” (signed September 30, 2006) amended ISA
by calling for, but not requiring, a 180-day time limit for a violation determination (there is no
time limit in the original law). 5 Early versions of that legislation (H.R. 282, S. 333) contained ISA
amendment proposals that were viewed by the Bush Administration as too restrictive and
potentially harmful to U.S. relations with its allies. These provisions included setting a mandatory
90-day time limit for the Administration to determine whether an investment is a violation;
cutting U.S. foreign assistance to countries whose companies violate ISA; and applying the U.S.-
Iran trade ban to foreign subsidiaries of U.S. firms.
Available Sanctions Under ISA
Once a firm is determined to be a violator, the original version of ISA required the imposition of
two of a menu of six sanctions on that firm. CISADA added three new possible sanctions and
requires the imposition of at least three out of the nine against violators. Executive Order 13590,
discussed above, provides for exactly the same penalties as those in ISA. The nine available
sanctions against the sanctioned entity that the Secretary of State or the Treasury can select from
(§6) include
1. denial of Export-Import Bank loans, credits, or credit guarantees for U.S. exports
to the sanctioned entity;
2. denial of licenses for the U.S. export of military or militarily useful technology to
the entity;
3. denial of U.S. bank loans exceeding $10 million in one year to the entity;
5 Other ISA amendments under that law included recommending against U.S. nuclear agreements with countries that
supply nuclear technology to Iran and expanding provisions of the USA Patriot Act (P.L. 107-56) to curb moneylaundering
for use to further WMD programs.
Congressional Research Service 5