Prohibition on assisting nuclear proliferation through provision of financing

Source Credit

(a) "Prohibited activity" defined
For purposes of this section, the term "prohibited activity" means the act of knowingly, materially, and directly contributing or attempting to contribute, through the provision of financing, to—
(1) the acquisition of unsafeguarded special nuclear material; or
(2) the use, development, production, stockpiling, or other acquisition of any nuclear explosive device,
by any individual, group, or non-nuclear-weapon state.
(b) Prohibition
To the extent that the United States has jurisdiction to prohibit such activity by such person, no United States person and no foreign person may engage in any prohibited activity.
(c) Presidential determination and order with respect to United States and foreign persons
If the President determines,,1 that a United States person or a foreign person has engaged in a prohibited activity (without regard to whether subsection (b) applies), the President shall, by order, impose the sanctions described in subsection (d) on such person.
(d) Sanctions
The following sanctions shall be imposed pursuant to any order issued under subsection (c) with respect to any United States person or any foreign person:
(1) Ban on dealings in Government finance
(A) Designation as primary dealer
Neither the Board of Governors of the Federal Reserve System nor the Federal Reserve Bank of New York may designate, or permit the continuation of any prior designation of, the person as a primary dealer in United States Government debt instruments.
(B) Service as depositary
The person may not serve as a depositary for United States Government funds.
(2) Restrictions on operations
The person may not, directly or indirectly—
(A) commence any line of business in the United States in which the person was not engaged as of the date of the order; or
(B) conduct business from any location in the United States at which the person did not conduct business as of the date of the order.
(e) Consultation with and actions by foreign government of jurisdiction
(1) Consultations
If the President makes a determination under subsection (c) with respect to a foreign person, the Congress urges the President to initiate consultations immediately with any appropriate foreign government with respect to the imposition of any sanction pursuant to this section.
(2) Actions by government of jurisdiction
(A) Suspension of period for imposing sanctions
In order to pursue consultations described in paragraph (1) with any government referred to in such paragraph, the President may delay, for up to 90 days, the effective date of an order under subsection (c) imposing any sanction.
(B) Coordination with activities of foreign government
Following consultations described in paragraph (1), the order issued by the President under subsection (c) imposing any sanction on a foreign person shall take effect unless the President determines, and certifies in writing to the Congress, that the government referred to in paragraph (1) has taken specific and effective actions, including the imposition of appropriate penalties, to terminate the involvement of the foreign person in any prohibited activity.
(C) Extension of period
After the end of the period described in subparagraph (A), the President may delay, for up to an additional 90 days, the effective date of an order issued under subsection (b) imposing any sanction on a foreign person if the President determines, and certifies in writing to the Congress, that the appropriate foreign government is in the process of taking actions described in subparagraph (B).
(3) Report to Congress
Before the end of the 90-day period beginning on the date on which an order is issued under subsection (c), the President shall submit to the Congress a report on—
(A) the status of consultations under this subsection with the government referred to in paragraph (1); and
(B) the basis for any determination under paragraph (2) that such government has taken specific corrective actions.
(f) Termination of sanctions
Any sanction imposed on any person pursuant to an order issued under subsection (c) shall—
(1) remain in effect for a period of not less than 12 months; and
(2) cease to apply after the end of such 12-month period only if the President determines, and certifies in writing to the Congress, that—
(A) the person has ceased to engage in any prohibited activity; and
(B) the President has received reliable assurances from such person that the person will not, in the future, engage in any prohibited activity.
(g) Waiver
The President may waive the continued application of any sanction imposed on any person pursuant to an order issued under subsection (c) if the President determines, and certifies in writing to the Congress, that the continued imposition of the sanction would have a serious adverse effect on the safety and soundness of the domestic or international financial system or on domestic or international payments systems.
(h) Enforcement action
The Attorney General may bring an action in an appropriate district court of the United States for injunctive and other appropriate relief with respect to—
(1) any violation of subsection (b); or
(2) any order issued pursuant to subsection (c).
(i) "Knowingly" defined
(1) In general
For purposes of this section, the term "knowingly" means the state of mind of a person with respect to conduct, a circumstance, or a result in which—
(A) such person is aware that such person is engaging in such conduct, that such circumstance exists, or that such result is substantially certain to occur; or
(B) such person has a firm belief that such circumstance exists or that such result is substantially certain to occur.
(2) Knowledge of the existence of a particular circumstance
If knowledge of the existence of a particular circumstance is required for an offense, such knowledge is established if a person is aware of a high probability of the existence of such circumstance, unless the person actually believes that such circumstance does not exist.
(j) Scope of application
This section shall apply with respect to prohibited activities which occur on or after the date this subchapter takes effect.

History

(Pub. L. 103–236, title VIII, §824, Apr. 30, 1994, 108 Stat. 512; Pub. L. 104–164, title I, §157(b), July 21, 1996, 110 Stat. 1440.)

Editorial Notes

Editorial Notes

References in Text
For the date this subchapter takes effect, referred to in subsec. (j), as 60 days after Apr. 30, 1994, see section 831 of Pub. L. 103–236, set out as an Effective Date note under section 6301 of this title.

Amendments
1996—Subsec. (c). Pub. L. 104–164, §157(b)(1), struck out "in writing after opportunity for a hearing on the record" after "If the President determines,".
Subsec. (e). Pub. L. 104–164, §157(b)(2), (3), redesignated subsec. (f) as (e) and struck out heading and text of former subsec. (e). Text read as follows: "Any determination of the President under subsection (c) of this section shall be subject to judicial review in accordance with chapter 7 of part I of title 5."
Subsecs. (f) to (k). Pub. L. 104–164, §157(b)(3), redesignated subsecs. (g) to (k) as (f) to (j), respectively. Former subsec. (f) redesignated (e).

Statutory Notes and Related Subsidiaries

Effective Date
Section effective 60 days after Apr. 30, 1994, see section 831 of Pub. L. 103–236, set out as a note under section 6301 of this title.