On April 24, 2024, President Biden signed into law H.R. 815, enacting numerous measures relating to United States foreign policy and national security. This statute received widespread news coverage because it provides tens of billions of dollars for assistance to Ukraine, Israel, and Taiwan, and prohibits social media video sharing app TikTok from being distributed, hosted, or maintained in the United States beginning in nine months, unless certain divestiture conditions are met.

Under the provision of H.R. 815 entitled the “21^st Century Peace through Strength Act,” the law also contains a number of less-reported measures that will affect sanctions enforcement and designation authorities, as well as significantly increase potential exposure for sanctions violations. Specifically, the law extends the statute of limitations for sanctions violations from five to ten years and directs the President to impose sanctions on a host of new targets. It also provides for the seizure of blocked Russian sovereign assets. We summarize the key provisions here.

A new 10-year statute of limitations for sanctions violations (Sec. 3111 of Division E)

One of the most significant – but less reported on – components of H.R. 815 would double the amount of time in which the US can bring an enforcement action for an apparent sanctions violation. The law amends the International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA) to specify a ten year statute of limitations for civil and criminal enforcement actions brought under those statutes. Previously, civil and criminal sanctions enforcement actions had been subject to the catch-all five year statute of limitations in 28 USC 2462. IEEPA and TWEA are statutory authorities underlying all current sanctions programs. Accordingly, the US authorities will now have ten years, instead of five years, within which to pursue enforcement actions in connection with apparent violations of US sanctions programs. The change is effective immediately.

Authority to harmonize US and allied sanctions (Sec. 1 of Division G)

As part of an effort to further align US sanctions with those of major US allies, by July 23, 2024, the President must report to Congress the names of foreign persons designated for sanctions by the EU and the UK under EU Regulation No. 269/2014 or the UK Russia (Sanctions) (EU Exit) Regulations 2019, as amended, and who meet sanctions designation criteria under the Global Magnitsky Human Rights Accountability Act of 2016 or certain Executive Orders underlying the Russian Harmful Foreign Activities Sanctions (specifically, Executive Orders 14024, 14068, and 14071). H.R. 815 authorizes – but does not require – the President to impose blocking sanctions on such persons.

Iranian petroleum exports (Sec. 3 of Division J)

H.R. 815 includes the Stop Harboring Iranian Petroleum or “SHIP” Act. Under this provision, beginning October 21, 2024, the law requires imposition of blocking sanctions, docking restrictions, and visa bans on foreign persons determined to be knowingly engaging in certain activities relating to ports, ships, and refineries supporting Iranian petroleum exports. The bases for sanctions are:

1. owning or operating a foreign port at which, on or after April 24, 2024, a foreign person knowingly permits to dock a vessel (a) blocked for transporting Iranian crude oil or petroleum products; or (b) whose operator or owner otherwise knowingly engages in a significant transaction involving such vessel to transport, offload, or deal in significant transactions in certain petroleum or petrochemical products from Iran;

2. owning or operating a vessel through which such owner knowingly conducts a ship to ship transfer involving a significant transaction of any petroleum product from Iran;

3. owning or operating a refinery through which such owner knowingly engages in a significant transaction to process, refine, or otherwise deal in any petroleum product from Iran;

4. being certain covered family members of such foreign persons; or

5. being owned or controlled by such foreign persons and knowingly engaging in an activity described above.

The statute requires that regulations to implement this provision be issued no later than October 21, 2024.

Sanctions to combat the proliferation of Iranian missiles (Sec 5. of Division K)

The Fight and Combat Rampant Iranian Missile Exports Act or “Fight CRIME Act” of H.R. 815 generally expands US sanctions relating to Iran’s missile program. Beginning April 24, 2024, the law requires imposition of blocking sanctions and visa bans on foreign persons determined to:

1. engage in activities involving supply and transfer of certain “covered technology” (needed for missile development, production, and operation) or related goods, technology, parts, or components to, from, or involving the Government of Iran or Iran-aligned entities;

2. knowingly participate in joint missile or drone development with the Government of Iran or such entities;

3. knowingly import, export, or re-export to, into, or from Iran, whether directly or indirectly, any significant arms or related materiel prohibited by the UN Security Council under Resolution 2231 (2015) (Annex B, paras. (5) and (6));

4. knowingly provide significant financial, material, or technological support to, or knowingly engage in a significant transaction with, a foreign person subject to sanctions for conduct described above; or

5. are certain family members of a person subject to sanctions for conduct described above.

Regulations to implement these measures must be issued no later than August 22, 2024.

Mahsa Amini Human rights and Security Accountability Act (Sec. 2 of Division L)

One of the higher profile provisions, named after an Iranian woman who died after being arrested by Iran’s “morality police,” requires the President to determine whether Iran’s supreme leader’s office, its appointees, the President of Iran, any official in the Office of the President, and specified entities and individuals complicit in financing or resourcing of human rights abuses or support for terrorism meet the criteria for the imposition of sanctions under existing authorities.

Hamas-related measures (Secs. 3-4 of Division M)

No later than October 21, 2024, the law requires imposition of blocking sanctions with respect to foreign persons determined to have knowingly supported acts of terrorism or engaged in significant transactions with certain members of Hamas, Palestinian Islamic Jihad, and other Palestinian terrorist organizations (subject to a limited humanitarian exception). The law requires implementing regulations to be issued no later than June 23, 2024.

In addition, the law requires imposition, no later than October 21, 2024, of sanctions measures on foreign states if they are determined to have knowingly provided significant material or financial support for acts of international terrorism, provided significant material support to Hamas, Palestinian Islamic Jihad, and certain other organizations, or engaged in significant transactions materially contributing to their terrorist activities. The sanctions to be imposed on any such foreign states are, for a period of at least one year: US aid suspension, restrictions on international financing and technological assistance, and an embargo on arms and certain dual-use items. Regulations to implement this provision are to be issued no later than June 23, 2024.

Application of Foreign Direct Product (FDP) rule to Iran (Sec. 2 of Division N)

The law expands the scope of controlled US-origin technology or software that could render foreign-produced products subject to the US Export Administration Regulations (the EAR). It also appears intended to expand the types of foreign-produced end products that could be subject to the EAR as to Iran, and to also extend the rules to apply to certain transactions involving the Government of Iran. The statute prescribes an effective date of 90 days, and we therefore expect that the US Commerce Department’s Bureau of Industry and Security will amend Part 734.9 of the EAR to implement this provision by July 23, 2024.

Fentanyl and captagon (Sec. 3103 of Division E and Sec. 4 of Division P)

The law requires the President to impose blocking sanctions with respect to foreign persons determined to be (a) associated with transnational criminal organizations that traffic fentanyl (a synthetic opioid) and its precursors, or (b) involved in the trafficking of illicit captagon (an amphetamine-type stimulant). With respect to captagon-related sanctions, implementing regulations are to be issued by August 22, 2024.

Sanctions on foreign financial institutions (FFIs) relating to petroleum products and unmanned aerial vehicles from Iran (Sec. 2 of Division S)

Currently, US law prohibits opening, and prohibits or restricts maintaining, a correspondent account or a payable-through account in the US for FFIs determined to have knowingly conducted or facilitated any significant transaction with the Iranian Central Bank or another Iranian blocked financial institution. Now, under the title “Iran China Energy Sanctions Act,” H.R. 815 makes these existing sanctions with respect to the financial sector of Iran applicable to transactions by (a) Chinese financial institutions involving the purchase of petroleum products from Iran and (b) FFIs involving the purchase of unmanned aerial vehicles from Iran. The law requires issuance of a determination regarding such Chinese or foreign financial institutions no later than October 21, 2024.

Repurposing of Russian sovereign assets (Sec. 103-104 of Division F)

H.R. 815 authorizes seizure of Russian (and, subject to a determination by the President, Belarusian) sovereign assets subject to US jurisdiction for the purpose of transferring them to the Ukraine Support Fund, which the statute requires to be established for compensation and assistance to, and reconstruction and rebuilding of, Ukraine. The law sets forth a method to seize, transfer, confiscate, or vest the assets, subject to specified certifications by the President concerning, among other matters, national interest determinations and multilateral coordination.

In addition, the law prohibits release of blocked Russian sovereign assets unless authorized by the President, also subject to certain certification requirements.

Other provisions

In addition to the several provisions noted above, the law authorizes the President to impose sanctions with respect to persons in connection with significant cyber-enabled activities threatening the US national security, foreign policy, or economic health and stability; expands the authority of the President to impose sanctions on certain foreign persons using civilians as human shields; and requires imposition of sanctions on foreign persons determined to have been involved in an act of violence against any current or former official of the US government.