Title 22 — Foreign Relations and Intercourse
Chapter 94 — Iran Threat Reduction and Syria Human Rights
§ 8725. Liability of parent companies for violations of sanctions by foreign subsidiaries
Statutory text
Definitions
In this section:
Entity
The term “entity” means a partnership, association, trust, joint venture, corporation, or other organization.
Own or control
The term “own or control” means, with respect to an entity—
to hold more than 50 percent of the equity interest by vote or value in the entity;
to hold a majority of seats on the board of directors of the entity; or
to otherwise control the actions, policies, or personnel decisions of the entity.
Prohibition
Not later than 60 days after , the President shall prohibit an entity owned or controlled by a United States person and established or maintained outside the United States from knowingly engaging in any transaction directly or indirectly with the Government of Iran or any person subject to the jurisdiction of the Government of Iran that would be prohibited by an order or regulation issued pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) if the transaction were engaged in by a United States person or in the United States.
Civil penalty
The civil penalties provided for in section 206(b) of the International Emergency Economic Powers Act (50 U.S.C. 1705(b)) shall apply to a United States person to the same extent that such penalties apply to a person that commits an unlawful act described in section 206(a) of that Act if an entity owned or controlled by the United States person and established or maintained outside the United States violates, attempts to violate, conspires to violate, or causes a violation of any order or regulation issued to implement subsection (b).
Applicability
Subsection (c) shall not apply with respect to a transaction described in subsection (b) by an entity owned or controlled by a United States person and established or maintained outside the United States if the United States person divests or terminates its business with the entity not later than the date that is 180 days after .
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Iran Threat Reduction and Syria Human Rights Act of 2012
Pub. L. 112–158 title II § 218 · 126 Stat. 1214
Enacted · 22 U.S.C. § 8725
(Pub. L. 112–158, title II, § 218, Aug. 10, 2012, 126 Stat. 1234.)
Source evidence
Code source credit
(Pub. L. 112–158, title II, § 218, Aug. 10, 2012, 126 Stat. 1234.)Enacted provision · exact public law section
SEC. 218. LIABILITY OF PARENT COMPANIES FOR VIOLATIONS OF SANCTIONS BY FOREIGN SUBSIDIARIES. (a) Definitions.— In this section: (1) Entity.— The term “entity” means a partnership, association, trust, joint venture, corporation, or other organization. (2) Own or control.— The term “own or control” means, with respect to an entity— (A) to hold more than 50 percent of the equity interest by vote or value in the entity; (B) to hold a majority of seats on the board of directors of the entity; or (C) to otherwise control the actions, policies, or personnel decisions of the entity. (b) Prohibition.— Not later than 60 days after the date of the enactment of this Act, the President shall prohibit an entity owned or controlled by a United States person and established or maintained outside the United States from knowingly engaging in any transaction directly or indirectly with the Government of Iran or any person subject to the jurisdiction of the Government of Iran that would be prohibited by an order or regulation issued pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) if the transaction were engaged in by a United States person or in the United States. (c) Civil Penalty.— The civil penalties provided for in section 206(b) of the International Emergency Economic Powers Act (50 U.S.C. 1705(b)) shall apply to a United States person to the same extent that such penalties apply to a person that commits an unlawful act described in section 206(a) of that Act if an entity owned or controlled by the United States person and established or maintained outside the United States violates, attempts to violate, conspires to violate, or causes a violation of any order or regulation issued to implement subsection (b). (d) Applicability.— Subsection (c) shall not apply with respect to a transaction described in subsection (b) by an entity owned or controlled by a United States person and established or maintained outside the United States if the United States person divests or terminates its business with the entity not later than the date that is 180 days after the date of the enactment of this Act.
1 of 1 references resolved to an enrolled provision
Notes
Termination of Section
For termination of section, see section 8785(a) of this title.
Editorial Notes
References in Text
The International Emergency Economic Powers Act, referred to in subsec. (b), is title II of Pub. L. 95–223, , 91 Stat. 1626, which is classified generally to chapter 35 (§ 1701 et seq.) of Title 50, War and National Defense. For complete classification of this Act to the Code, see Short Title note set out under section 1701 of Title 50 and Tables.