Senators Kirsten Gillibrand (D-NY) and Mark Kirk (R-IL) have introduced the Iran Transparency and Accountability Act today, according to a joint press release.
The legislation would “require companies to disclose any sanctionable investments in Iran in their quarterly and annual reports to the Securities and Exchange Commission (SEC), and require U.S. banks to report sanctionable activities by their foreign correspondent banks.”
How it works:
The Iran Transparency and Accountability Act closes banking and securities law loopholes by extending the SEC’s explicit authority to require the disclosure of business dealings in Iran by reporting companies, and requiring new Treasury regulations calling for banks’ reports. Studies indicate that at least eight companies with listed affiliates on the NYSE or NASDAQ support Iran’s energy sector, in addition to18 U.S. banks that do business with foreign banks that also service Iranian institutions. Iran then uses these banking and securities law loopholes to gain access to U.S. markets, enabling them to circumvent sanctions, fund their nuclear ambitions, and continue supporting terrorist networks.
According to the release, this bill would also:
- Require the SEC to publicly post the list of reporting companies investing in Iran on its website, and provide that information directly to the President, the General Services Administration, and the appropriate Congressional committees.
- Require the President to investigate and determine within 180 days of receiving the SEC report any self-disclosures by companies that could lead to sanctions.
- The bill also requires the Treasury Secretary to promulgate rules within 90 days of passage to implement a CISADA requirement that U.S. financial institutions report on any correspondent accounts with foreign banks that violate Iran sanctions.