124 STAT. 1333 PUBLIC LAW 111–195—JULY 1, 2010 (I) Iran’s proliferation of weapons of mass destruction or delivery systems for weapons of mass destruction; or (II) Iran’s support for international terrorism. (3) PENALTIES.—The penalties provided for in subsections (b) and (c) of section 206 of the International Emergency Eco- nomic Powers Act (50 U.S.C. 1705) shall apply to a person that violates, attempts to violate, conspires to violate, or causes a violation of regulations prescribed under paragraph (1) of this subsection to the same extent that such penalties apply to a person that commits an unlawful act described in section 206(a) of that Act. (d) PENALTIES FOR DOMESTIC FINANCIAL INSTITUTIONS FOR ACTIONS OF PERSONS OWNED OR CONTROLLED BY SUCH FINANCIAL INSTITUTIONS.— (1) IN GENERAL.—Not later than 90 days after the date of the enactment of this Act, the Secretary of the Treasury shall prescribe regulations to prohibit any person owned or controlled by a domestic financial institution from knowingly engaging in a transaction or transactions with or benefitting Iran’s Revolutionary Guard Corps or any of its agents or affili- ates whose property or interests in property are blocked pursu- ant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.). (2) PENALTIES.—The penalties provided for in section 206(b) of the International Emergency Economic Powers Act (50 U.S.C. 1705(b)) shall apply to a domestic financial institution 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— (A) a person owned or controlled by the domestic finan- cial institution violates, attempts to violate, conspires to violate, or causes a violation of regulations prescribed under paragraph (1) of this subsection; and (B) the domestic financial institution knew or should have known that the person violated, attempted to violate, conspired to violate, or caused a violation of such regula- tions. (e) REQUIREMENTS FOR FINANCIAL INSTITUTIONS MAINTAINING ACCOUNTS FOR FOREIGN FINANCIAL INSTITUTIONS.— (1) IN GENERAL.—The Secretary of the Treasury shall pre- scribe regulations to require a domestic financial institution maintaining a correspondent account or payable-through account in the United States for a foreign financial institution to do one or more of the following: (A) Perform an audit of activities described in sub- section (c)(2) that may be carried out by the foreign finan- cial institution. (B) Report to the Department of the Treasury with respect to transactions or other financial services provided with respect to any such activity. (C) Certify, to the best of the knowledge of the domestic financial institution, that the foreign financial institution is not knowingly engaging in any such activity. (D) Establish due diligence policies, procedures, and controls, such as the due diligence policies, procedures, and controls described in section 5318(i) of title 31, United States Code, reasonably designed to detect whether the Regulations. Applicability. Deadline. Regulations. Applicability.
