Updated August 2 2017 Countering America’s Adversaries Through Sanctions Act On August 2 2017 President Trump signed into law H R 3364 P L 115-44 the Countering America’s Adversaries Through Sanctions Act The act establishes requirements and discretionary authorities for the President to impose sanctions on Iran Russia and North Korea In signing the act the President stated that several provisions overstep Congress’s responsibilities established in the Constitution The President identified as problematic the sections that could affect his authority to determine who gains entry into the United States §§104 107 222 224 227 228 234 to recognize foreign governments §§253 257 or to conduct foreign policy §§254 257 He also noted that the congressional review procedure for Russia sanctions established in §216 does not meet Constitutional requirements for each branch’s full participation in enacting and implementing legislation https www whitehouse gov the-press-office 2017 08 02 statement-president-donald-jtrump-signing-hr-3364 Countering Iran’s Destabilizing Activities Act of 2017 Title I of the act addresses Iran’s missile proliferation human rights violations international terrorism and activities that destabilize the Middle East A key question is how the provisions of the act comport with U S sanctions relief requirements of the July 2015 multilateral nuclear agreement the Joint Comprehensive Plan of Action JCPOA According to that agreement sanctions lifted to implement the JCPOA—affecting Iran’s civilian economy such as its energy banking shipping manufacturing and other sectors—are not to be reimposed The act’s Iranrelated provisions mandate sanctions already established in executive orders EOs that address proliferation terrorism and human rights issues and do not appear to reimpose U S sanctions that were suspended to implement the JCPOA The main operative provisions  require imposition of penalties similar to those in EO 13382 weapons proliferation on entities determined by the Administration to be assisting Iran’s ballistic missile program §104  require imposition of sanctions contained in EO 13224 terrorism on the Iranian Revolutionary Guard Corps IRGC its officials agents and affiliates Currently the IRGC as a whole is sanctioned under several other EOs including EO 13382 proliferation but not under EO 13224 The IRGC’s Qods Force which supports pro-Iranian governments and factions throughout the Middle East is designated under EO 13224 §105  authorize but do not require sanctions such as those in EO 13553 on human rights abusers on persons responsible for extrajudicial killings torture or other gross violations of internationally recognized human rights in Iran The section has the effect of expanding the authority of EO 13553 which generally refers to human rights abuses against Iranians in connection specifically with the 2009 uprising in Iran §106  require sanctions those in EO 13382 on entities that sell weapons to Iran The weapons systems specified are the same as those that U N Security Council Resolution 2231 generally prohibits for sale to Iran The provision appears to expand the definition of prohibited weapons sales to Iran beyond those in current law such as the Iran-Iraq Arms Nonproliferation Act which imposes sanctions on those who trade in “destabilizing numbers and types” of conventional weapons §107  require review of designated entities to assess if such entities contribute to Iran’s ballistic missile program or to Iranian support for international terrorism No entities to be delisted by the United States in October 2023 under the JCPOA appear to fall into these categories thus the requirement would not appear to preclude delisting any entities as required to implement the JCPOA by October 2023 §108 Countering Russian Influence in Europe and Eurasia Act of 2017 Title II strengthens Ukraine- and cyber-related sanctions on Russia currently established in executive orders It requires the President to impose sanctions in areas that are currently left to his discretion for activities discussed below and establishes a mechanism for Congress to review any action the President takes to ease or lift sanctions Codifying and Tightening Existing Sanctions The act makes permanent Ukraine-related sanctions provided for in four EOs from 2014 EOs 13660 13661 13662 13685 unless certain conditions are met and Congress reviews any proposed changes §222 The act also makes permanent cyber-related sanctions provided for in EO 13694 related to malicious cyber-enabled activities as amended by EO 13757 which expands the scope of the original order to include election-related activities §222 The act strengthens sectoral sanctions provided for in EO 13662 to prohibit persons under U S jurisdiction from providing goods services and technology in support of exploration or production for deepwater Arctic offshore and shale oil projects in Russian territory to such projects worldwide that involve any designated persons that have an ownership interest of not less than 33 percent §223 The act restricts new lending to designated financial institutions to a maturity of up to 14 days down from 30 days and to designated energy companies to a maturity of no more than 60 days down from 90 days §223 https crsreports congress gov Countering America’s Adversaries Through Sanctions Act The act enlarges the scope of prohibited cyber-related activities to include a range of activities conducted on behalf of the Russian government that undermine the cybersecurity of any U S or foreign person §224 Mandating Existing Discretionary Sanctions The act §225 §226 requires sanctions—currently discretionary under the Ukraine Freedom Support Act of 2014 P L 113-272 —on foreign persons who make “a significant investment” in special oil projects in Russia and on foreign financial institutions that fund such projects foreign financial institutions that engage in transactions related to defense articles that end up in Syria or in Ukraine Georgia or Moldova or other countries as designated by the President without the consent of their governments and foreign financial institutions that engage in transactions for any person subject to Ukraine-related sanctions The act makes mandatory sanctions that are currently discretionary under the Support for the Sovereignty Integrity Democracy and Economic Stability of Ukraine Act of 2014 P L 113-95 These sanctions target Russian government officials associates family members and others responsible for committing or facilitating acts of corruption §227 Requiring New Sanctions The act requires sanctions on foreign persons who violate sanctions facilitate transactions for designated persons and their relatives §228 are responsible for or support serious human rights abuses in territory Russia occupies or controls §228 or provide support to Syria §234 The act also requires restrictions on U S or foreign persons who engage in significant transactions with persons related to Russia’s defense or intelligence sectors §231 or make or facilitate investments of $10 million or more that contribute to Russia’s privatization of state-owned assets where the privatization is a factor in corruption §233 Authorizing New Discretionary Sanctions The act authorizes but does not require sanctions on U S or foreign persons who trade or make investments of a certain value that enhance Russia’s ability to construct energy export pipelines §232 Congressional Review The act adds to each existing legislative and executive branch action referred to in Title II—including the blocking of Russian access to diplomatic compounds in Maryland and New York—specific conditions that the President would certify have been met when he takes steps to waive or terminate a restriction at which point Congress could adopt a Joint Resolution of Disapproval to block the President’s decision Congress however is not required to approve the President’s actions If Congress agrees with the President he could ease or lift sanctions without Congress weighing in Each existing sanction and modifications or additional requirements to impose new sanctions stated in the act would be subject to congressional review under Section 216 before they could be waived or terminated Korean Interdiction and Modernization of Sanctions Act Title III strengthens the use of sanctions—in part by amending the North Korea Sanctions and Policy Enhancement Act of 2016 P L 114-122 —on those who facilitate North Korea’s nuclear weapons and missile programs It both requires and authorizes sanctions on those who evade U N sanctions use DPRK exported labor provide correspondent banking or trade in DPRK’s exports in fuel textiles food and agricultural products Possible Designation as a State Sponsor of Terrorism The act requires the Secretary of State to determine within 90 days whether DPRK “meets the criteria for designation as a state sponsor of terrorism” §324 Mandatory Sanctions The act expands the categories of activities of those whom the President must designate as subject to sanctions to include those who purchase various precious metals and rare earth elements from DPRK provide to DPRK fuel and related services vessel registration or insurance or maintain a correspondent bank account with any DPRK financial institution §311 a In addition the act names specific entities for which Congress requires a determination as to whether each should be subject to sanctions under the 2016 Act §311 d denies access to the U S financial systems to any foreign financial institution that is indirectly providing banking services to a North Korean entity or person subject to sanctions §312 and restricts U S foreign aid to any foreign government found not to be in compliance with UNSC sanctions requirements §313 The act requires the President to identify foreign seaports and airports that fail to adequately inspect and interdict vessels authorizing seizure of such vessels names a number of ports in China Iran Russia and Syria in which Congress is particularly interested §314 and blocks U S importation of goods made by slave labor §321 Discretionary Sanctions The act authorizes the President to impose sanctions on those who violate UN Security Council sanctions requirements related to DPRK acquire coal iron or iron ore from DPRK in excess of UNSC limits acquire textiles fishing rights food agricultural products hire exported labor trade in property or bulk cash precious metals or gemstones sell fuel to DPRK engage in online commercial activities run by the North Korean government engage in DPRK’s transportation mining energy or financial services sectors or facilitate the opening and operation of a DPRK financial institution §311 b Dianne E Rennack Specialist in Foreign Policy Legislation Kenneth Katzman Specialist in Middle Eastern Affairs Cory Welt Analyst in European Affairs https crsreports congress gov IF10694 Countering America’s Adversaries Through Sanctions Act Disclaimer This document was prepared by the Congressional Research Service CRS CRS serves as nonpartisan shared staff to congressional committees and Members of Congress It operates solely at the behest of and under the direction of Congress Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has been provided by CRS to Members of Congress in connection with CRS’s institutional role CRS Reports as a work of the United States Government are not subject to copyright protection in the United States Any CRS Report may be reproduced and distributed in its entirety without permission from CRS However as a CRS Report may include copyrighted images or material from a third party you may need to obtain the permission of the copyright holder if you wish to copy or otherwise use copyrighted material https crsreports congress gov IF10694 · VERSION 6 · UPDATED