Stop Corrupt Iranian Oligarchs and Entities Act

Bill Number

H.R. 348

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

International Affairs

Status

Introduced

Latest Action

2025-01-13: Referred to the Committee on Foreign Affairs, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Last Updated

2025-05-22T19:20:02Z

AI-Generated Summary

Purpose of the Legislation

The "Stop Corrupt Iranian Oligarchs and Entities Act" (H.R. 348) aims to increase transparency on influential individuals and state-linked organizations in Iran by requiring a comprehensive government report. This report focuses on potential corruption, economic ties, and risks to the U.S. economy, laying the groundwork for informed decisions on future sanctions or restrictions.

Key Provisions

• Report Requirement: Within 180 days of enactment, the Secretary of the Treasury, in consultation with the Director of National Intelligence and the Secretary of State, must submit a detailed report to specified congressional committees.
• Content of the Report:
• Identification of key Iranian senior political figures (high-ranking officials) and oligarchs (wealthy individuals with significant influence), based on their closeness to the Iranian government, estimated net worth, ties to President Masoud Pezeshkian or other elites, corruption indicators, income sources (including family members), and non-Iranian business links.
• Assessment of Iranian parastatal entities (organizations with at least 25% Iranian state ownership and revenues of about $2 billion or more in 2016), covering their economic role, leadership, ownership, and international business affiliations.
• Analysis of U.S. economic sector exposure (e.g., banking, securities, insurance, real estate) to Iranian politically connected persons, parastatal entities, or state-owned enterprises.
• Evaluation of effects from imposing debt/equity restrictions or adding these entities to the U.S. Treasury's list of Specially Designated Nationals (a sanctions list blocking U.S. dealings with listed parties).
• Broader impact assessment of additional sanctions or restrictions on Iranian oligarchs, parastatal entities, or state-owned enterprises, including effects on Iran's economy, the U.S. economy, and U.S. allies.
• Format: The report must be unclassified but can include a classified (restricted-access) annex.
• Definitions:
• "Appropriate congressional committees" include key House and Senate panels on foreign affairs, financial services, banking, and trade.
• "Senior foreign political figure" refers to a term from U.S. financial regulations defining high-level foreign officials.
• Short Title: The act is named the "Stop Corrupt Iranian Oligarchs and Entities Act."

Significant Changes to Existing Law

This bill introduces a new, standalone reporting mandate without directly amending prior laws. It builds on existing U.S. sanctions frameworks (e.g., the Specially Designated Nationals list under the Office of Foreign Assets Control) by requiring analysis that could inform expansions, but it does not impose immediate new sanctions or restrictions.

Potential Impacts

• On Government Agencies: Places workload on the Treasury, intelligence community, and State Department to compile sensitive data, potentially straining resources for interagency coordination and classified analysis.
• On Citizens and Economy: Highlights risks to U.S. financial sectors from Iranian-linked dealings, which could lead to enhanced oversight or restrictions, indirectly protecting U.S. businesses and consumers from corruption-related exposures.
• On International Relations: May heighten U.S. scrutiny of Iran, signaling tougher policy toward its leadership and economy. It could affect alliances by assessing impacts on U.S. partners, potentially influencing diplomatic or economic ties with Iran and its global business partners.

Main Stakeholders Affected

• U.S. Government: Treasury Department (lead), intelligence agencies, State Department, and congressional committees overseeing foreign policy and finance.
• Iranian Entities and Individuals: Senior officials, oligarchs, parastatal organizations, and state-owned enterprises, whose activities and wealth could face increased U.S. monitoring.
• U.S. Businesses and Sectors: Financial institutions (banking, securities, insurance, real estate) exposed to Iranian ties, which may need to adjust compliance practices.
• International Actors: U.S. allies potentially impacted by sanctions ripple effects; non-U.S. businesses affiliated with Iranian figures or entities.

Notable Legal, Constitutional, or Political Implications

• Legal: Reinforces U.S. authority under existing anti-corruption and sanctions laws (e.g., financial regulations on foreign officials) without raising constitutional challenges, as it involves executive reporting to Congress—a standard oversight mechanism.
• Constitutional: Aligns with Congress's powers over foreign affairs and appropriations, promoting checks and balances by informing potential future legislation.
• Political: Could escalate U.S.-Iran tensions by spotlighting corruption among Iranian elites, supporting bipartisan efforts (introduced by Reps. Kustoff and Gottheimer) to counter Iranian influence. It may influence broader policy debates on sanctions without immediate enforcement, allowing for strategic flexibility.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Kustoff, David [R-TN-8]

Cosponsors (4)

Rep. Gottheimer, Josh [D-NJ-5], Rep. Baumgartner, Michael [R-WA-5], Rep. Hamadeh, Abraham [R-AZ-8], Rep. Suozzi, Thomas R. [D-NY-3]

Recent Actions

• 2025-01-13: Referred to the Committee on Foreign Affairs, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-01-13: Referred to the Committee on Foreign Affairs, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-01-13: Introduced in House
• 2025-01-13: Introduced in House

Bill Versions

• Stop Corrupt Iranian Oligarchs and Entities Act — issued 2025-01-13 — PDF (5 pages)