The White House

Office of the Press Secretary

For Immediate Release July 31, 2012
Executive Order -- Authorizing Additional Sanctions With Respect To Iran
EXECUTIVE ORDER
http://www.whitehouse.gov/the-press-office/2012/07/31/executive-order-authorizing-additional-sanctions-respect-iran
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AUTHORIZING ADDITIONAL SANCTIONS WITH RESPECT TO IRAN

By the authority vested in me as President by the Constitution and the laws
of the United States of America, including the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National
Emergencies Act (50 U.S.C. 1601 et seq.), and section 301 of title 3, United
States Code,

I, BARACK OBAMA, President of the United States of America, in order to take
additional steps with respect to the national emergency declared in
Executive Order 12957 of March 15, 1995, as relied upon for additional steps
in subsequent Executive Orders, particularly in light of the Government of
Iran's use of revenues from petroleum, petroleum products, and
petrochemicals for illicit purposes, Iran's continued attempts to evade
international sanctions through deceptive practices, and the unacceptable
risk posed to the international financial system by Iran's activities,
hereby order:

Section 1. (a) The Secretary of the Treasury, in consultation with the
Secretary of State, is hereby authorized to impose on a foreign financial
institution the sanctions described in subsection (b) of this section upon
determining that the foreign financial institution has knowingly conducted
or facilitated any significant financial transaction:

(i) with the National Iranian Oil Company (NIOC) or Naftiran Intertrade
Company (NICO), except for a sale or provision to NIOC or NICO of the
products described in section 5(a)(3)(A)(i) of the Iran Sanctions Act of
1996 (Public Law 104-172), as amended, provided that the fair market value
of such products is lower than the applicable dollar threshold specified in
that provision;

(ii) for the purchase or acquisition of petroleum or petroleum products from
Iran; or

(iii) for the purchase or acquisition of petrochemical products from Iran.

(b) With respect to any foreign financial institution determined by the
Secretary of the Treasury in accordance with this section to meet the
criteria set forth in subsection (a)(i), (a)(ii), or (a)(iii) of this
section, the Secretary of the Treasury may prohibit the opening, and

prohibit or impose strict conditions on the maintaining, in the United
States of a correspondent account or a payable-through account by such
foreign financial institution.

(c) Subsections (a)(i) and (ii) of this section shall apply with respect to
a significant financial transaction conducted or facilitated by a foreign
financial institution only if:

(i) the President determines under subparagraphs (4)(B) and (C) of
subsection 1245(d) of the National Defense Authorization Act for Fiscal Year
2012 (Public Law 112-81) (NDAA) that there is a sufficient supply of
petroleum and petroleum products from countries other than Iran to permit a
significant reduction in the volume of petroleum and petroleum products
purchased from Iran by or through foreign financial institutions; and

(ii) an exception under subparagraph 4(D) of subsection 1245(d) of the NDAA
from the imposition of sanctions under paragraph (1) of that subsection does
not apply with respect to the country with primary jurisdiction over the
foreign financial institution.

(d) Subsection (a) of this section shall not apply with respect to any
person for conducting or facilitating a transaction for the sale of food,
medicine, or medical devices to Iran or when the underlying transaction has
been authorized by the Secretary of the Treasury.

(e) The prohibitions in subsection (b) of this section apply except to the
extent provided by statutes, or in regulations, orders, directives, or
licenses that may be issued pursuant to this order, and notwithstanding any
contract entered into or any license or permit granted prior to the
effective date of this order.

Sec. 2. (a) The Secretary of State, in consultation with the Secretary of
the Treasury, the Secretary of Commerce, and the United States Trade
Representative, and with the President of the Export-Import Bank, the
Chairman of the Board of Governors of the Federal Reserve System, and other
agencies and officials as appropriate, is hereby authorized to impose on a
person any of the sanctions described in section 3 or 4 of this order upon
determining that the person:

(i) knowingly, on or after the effective date of this order, engaged in a
significant transaction for the purchase or acquisition of petroleum or
petroleum products from Iran;

(ii) knowingly, on or after the effective date of this order, engaged in a
significant transaction for the purchase or acquisition of petrochemical
products from Iran;

(iii) is a successor entity to a person determined by the Secretary of State
in accordance with this subsection to meet the criteria in subsection (a)(i)
or (a)(ii) of this section;

(iv) owns or controls a person determined by the Secretary of State in
accordance with this subsection to meet the criteria in subsection (a)(i) or
(a)(ii) of this section, and had knowledge that the person engaged in the
activities referred to in that subsection; or

(v) is owned or controlled by, or under common ownership or control with, a
person determined by the Secretary of State in accordance with this
subsection to meet the criteria in subsection (a)(i) or (a)(ii) of this
section, and knowingly participated in the activities referred to in that
subsection.

(b) Subsection (a)(i) of this section shall apply with respect to a person
only if:

(i) the President determines under subparagraphs (4)(B) and (C) of
subsection 1245(d) of the NDAA that there is a sufficient supply of
petroleum and petroleum products from countries other than Iran to permit a
significant reduction in the volume of petroleum and petroleum products
purchased from Iran by or through foreign financial institutions; and

(ii) an exception under subparagraph 4(D) of subsection 1245(d) of the NDAA
from the imposition of sanctions under paragraph (1) of that subsection does
not apply with respect to the country with primary jurisdiction over the
person.

Sec. 3. When the Secretary of State, in accordance with the terms of section
2 of this order, has determined that a person meets any of the criteria
described in section 2 and has selected any of the sanctions set forth below
to impose on that person, the heads of relevant agencies, in consultation
with the Secretary of State, shall take the following actions where
necessary to implement the sanctions imposed by the Secretary of State:

(a) the Board of Directors of the Export-Import Bank shall deny approval of
the issuance of any guarantee, insurance, extension of credit, or
participation in an extension of credit in connection with the export of any
goods or services to the sanctioned person;

(b) agencies shall not issue any specific license or grant any other
specific permission or authority under any statute that requires the prior
review and approval of the United States Government as a condition for the
export or reexport of goods or technology to the sanctioned person;

(c) with respect to a sanctioned person that is a financial institution:

(i) the Chairman of the Board of Governors of the Federal Reserve System and
the President of the Federal Reserve Bank of New York shall take such
actions as they deem appropriate, including denying designation, or
terminating the continuation of any prior designation of, the sanctioned
person as a primary dealer in United States Government debt instruments; or

(ii) agencies shall prevent the sanctioned person from serving as an agent
of the United States Government or serving as a repository for United States
Government funds; or

(d) agencies shall not procure, or enter into a contract for the procurement
of, any goods or services from the sanctioned person.

(e) The prohibitions in subsections (a)-(d) of this section apply except to
the extent provided by statutes, or in regulations, orders, directives, or
licenses that may be issued pursuant to this order, and notwithstanding any
contract entered into or any license or permit granted prior to the
effective date of this order.

Sec. 4. (a) When the Secretary of State, in accordance with the terms of
section 2 of this order, has determined that a person meets any of the
criteria described in section 2 and has selected any of the sanctions set
forth below to impose on that person, the Secretary of the Treasury, in
consultation with the Secretary of State, shall take the following actions
where necessary to implement the sanctions imposed by the Secretary of
State:

(i) prohibit any United States financial institution from making loans or
providing credits to the sanctioned person totaling more than $10,000,000 in
any 12-month period, unless such person is engaged in activities to relieve
human suffering and the loans or credits are provided for such activities;

(ii) prohibit any transactions in foreign exchange that are subject to the
jurisdiction of the United States and in which the sanctioned person has any
interest;

(iii) prohibit any transfers of credit or payments between financial
institutions or by, through, or to any financial institution, to the extent
that such transfers or payments are subject to the jurisdiction of the
United States and involve any interest of the sanctioned person;

(iv) block all property and interests in property that are in the United
States, that come within the United States, or that are or come within the
possession or control of any United States person, including any foreign
branch, of the sanctioned person, and provide that such property and
interests in property may not be transferred, paid, exported, withdrawn, or
otherwise dealt in; or

(v) restrict or prohibit imports of goods, technology, or services, directly
or indirectly, into the United States from the sanctioned person.

(b) The prohibitions in subsections (a)(i)-(a)(v) of this section apply
except to the extent provided by statutes, or in regulations, orders,
directives, or licenses that may be issued pursuant to this order, and
notwithstanding any contract entered into or any license or permit granted
prior to the effective date of this order.

Sec. 5. (a) The Secretary of the Treasury, in consultation with the
Secretary of State, is hereby authorized to impose on a person the measures
described in subsection (b) of this section upon determining that the person
has materially assisted, sponsored, or provided financial, material, or
technological support for, or goods or services in support of, NIOC, NICO,
or the Central Bank of Iran, or the purchase or acquisition of U.S. bank
notes or precious metals by the Government of Iran.

(b) With respect to any person determined by the Secretary of the Treasury
in accordance with subsection (a) to meet the criteria set forth in
subsection (a) of this section, all property and interests in property that
are in the United States, that hereafter come within the United States, or
that are or hereafter come within the possession or control of any United
States person, including any foreign branch, of such person are blocked and
may not be transferred, paid, exported, withdrawn, or otherwise dealt in.

(c) The prohibitions in subsection (b) of this section apply except to the
extent provided by statutes, or in regulations, orders, directives, or
licenses that may be issued pursuant to this order, and notwithstanding any
contract entered into or any license or permit granted prior to the
effective date of this order.

Sec. 6. Subsection 1(a), section 2, and subsection 5(a) of this order shall
not apply with respect to any person for conducting or facilitating a
transaction involving a natural gas development and pipeline project
initiated prior to the effective date of this order to bring gas from
Azerbaijan to Europe and Turkey in furtherance of a production sharing
agreement or license awarded by a sovereign government other than the
Government of Iran before the effective date of this order.

Sec. 7. I hereby determine that, to the extent section 203(b)(2) of IEEPA
(50 U.S.C. 1702(b)(2)) may apply, the making of donations of the type of
articles specified in such section by, to, or for the benefit of any person
whose property and interests in property are blocked pursuant to subsection
(a)(iv) of section 4 or subsection (b) of section 5 of this order would
seriously impair my ability to deal with the national emergency declared in
Executive Order 12957, and I hereby prohibit such donations as provided by
subsection (a)(iv) of section 4 and subsection (b) of section 5 of this
order.

Sec. 8. The prohibitions in subsection (a)(iv) of section 4 and subsection
(b) of section 5 of this order include, but are not limited to:

(i) the making of any contribution or provision of funds, goods, or services
by, to, or for the benefit of any person whose property and interests in
property are blocked pursuant to this order; and

(ii) the receipt of any contribution or provision of funds, goods, or
services from any such person.

Sec. 9. (a) Any transaction that evades or avoids, has the purpose of
evading or avoiding, causes a violation of, or attempts to violate any of
the prohibitions set forth in this order is prohibited.

(b) Any conspiracy formed to violate any of the prohibitions set forth in
this order is prohibited.

Sec. 10. For the purposes of this order:

(a) the term "person" means an individual or entity;

(b) the term "entity" means a partnership, association, trust, joint
venture, corporation, group, subgroup, or other organization;

(c) the term "United States person" means any United States citizen,
permanent resident alien, entity organized under the laws of the United
States or any jurisdiction within the United States (including foreign
branches), or any person in the United States;

(d) the term "financial institution," as used in sections 3 and 4 of this
order, includes (i) a depository institution (as defined in section 3(c)(1)
of the Federal Deposit Insurance Act) (12 U.S.C. 1813(c)(1)), including a
branch or agency of a foreign bank (as defined in section 1(b)(7) of the
International Banking Act of 1978) (12 U.S.C. 3101(7)); (ii) a credit union;
(iii) a securities firm, including a broker or dealer; (iv) an insurance
company, including an agency or underwriter; and (v) any other company that
provides financial services;

(e) the term "foreign financial institution," as used in section 1 of this
order, means any foreign entity that is engaged in the business of accepting
deposits, making, granting, transferring, holding, or brokering loans or
credits, or purchasing or selling foreign exchange, securities, commodity
futures or options, or procuring purchasers and sellers thereof, as
principal or agent. It includes, but is not limited to, depository
institutions, banks, savings banks, money service businesses, trust
companies, securities brokers and dealers, commodity futures and options
brokers and dealers, forward contract and foreign exchange merchants,
securities and commodities exchanges, clearing corporations, investment
companies, employee benefit plans, and holding companies, affiliates, or
subsidiaries of any of the foregoing. The term does not include the
international financial institutions

identified in 22 U.S.C. 262r(c)(2), the International Fund for Agricultural
Development, the North American Development Bank, or any other international
financial institution so notified by the Secretary of the Treasury;

(f) the term "United States financial institution" means a financial
institution as defined in subsection (d) of this section (including its
foreign branches) organized under the laws of the United States or any
jurisdiction within the United States or located in the United States;

(g) the term "Iran" means the Government of Iran and the territory of Iran
and any other territory or marine area, including the exclusive economic
zone and continental shelf, over which the Government of Iran claims
sovereignty, sovereign rights, or jurisdiction, provided that the Government
of Iran exercises partial or total de facto control over the area or derives
a benefit from economic activity in the area pursuant to international
arrangements;

(h) the term "Government of Iran" includes the Government of Iran, any
political subdivision, agency, or instrumentality thereof, including the
Central Bank of Iran, and any person owned or controlled by, or acting for
or on behalf of, the Government of Iran;

(i) the terms "knowledge" and "knowingly," with respect to conduct, a
circumstance, or a result, mean that a person has actual knowledge, or
should have known, of the conduct, the circumstance, or the result;

(j) the term "sanctioned person" means a person on whom the Secretary of
State, in accordance with the terms of section 2 of this order, has
determined to impose sanctions pursuant to section 2;

(k) the term "petroleum" (also known as crude oil) means a mixture of
hydrocarbons that exists in liquid phase in natural underground reservoirs
and remains liquid at atmospheric pressure after passing through surface
separating facilities;

(l) the term "petroleum products" includes unfinished oils, liquefied
petroleum gases, pentanes plus, aviation gasoline, motor gasoline,
naphtha-type jet fuel, kerosene-type jet fuel, kerosene, distillate fuel
oil, residual fuel oil, petrochemical feedstocks, special naphthas,
lubricants, waxes, petroleum coke, asphalt, road oil, still gas, and
miscellaneous products obtained from the processing of: crude oil (including
lease condensate), natural gas, and other hydrocarbon compounds. The term
does not include natural gas, liquefied natural gas, biofuels, methanol, and
other non-petroleum fuels;

(m) the term "petrochemical products" includes any aromatic, olefin, and
synthesis gas, and any of their derivatives, including ethylene, propylene,
butadiene, benzene, toluene, xylene, ammonia, methanol, and urea;

(n) the terms "National Iranian Oil Company" and "NIOC" mean the National
Iranian Oil Company and any entity owned or controlled by, or operating for
or on behalf of, the National Iranian Oil Company; and

(o) the terms "Naftiran Intertrade Company" and "NICO" mean the Naftiran
Intertrade Company and any entity owned or controlled by, or operating for
or on behalf of, the Naftiran Intertrade Company.

Sec. 11. For those persons whose property and interests in property are
blocked pursuant to this order who might have a constitutional presence in
the United States, I find that because of the ability to transfer funds or
other assets instantaneously, prior notice to such persons of measures to be
taken pursuant to subsection (a)(iv) of section 4 or subsection (b) of
section 5 of this order would render those measures ineffectual. I therefore
determine that for these measures to be effective in addressing the national
emergency declared in Executive Order 12957, there need be no prior notice
of an action taken pursuant to subsection (a)(iv) of section 4 or subsection
(b) of section 5 of this order.

Sec. 12. The Secretary of the Treasury, in consultation with the Secretary
of State, is hereby authorized to take such actions, including the
promulgation of rules and regulations, and to employ all powers granted to
the President by IEEPA as may be necessary to carry out the purposes of
sections 1, 4, and 5 of this order. The Secretary of the Treasury may
redelegate any of these functions to other officers and agencies of the
United States Government consistent with applicable law. All agencies of the
United States Government are hereby directed to take all appropriate
measures within their authority to carry out the provisions of this order.

Sec. 13. This order is not intended to, and does not, create any right or
benefit, substantive or procedural, enforceable at law or in equity by any
party against the United States, its departments, agencies, or entities, its
officers, employees, or agents, or any other person.

Sec. 14. The measures taken pursuant to this order are in response to
actions of the Government of Iran occurring after the conclusion of the 1981
Algiers Accords, and are intended solely as a response to those later
actions.

Sec. 15. This order is effective at 12:01 a.m. eastern daylight time on July
31, 2012.

BARACK OBAMA