September 18, 2024 | Policy Alerts

National Security Act of 2024 – Fall & Winter Oversight Guide and Calendar for Iran, Fentanyl, TikTok, and Russia

The National Security Act of 2024, the supplemental package signed into law in April, advanced a range of national security objectives. This is an oversight guide and calendar of key fall and winter deadlines for these newly enacted provisions.
September 18, 2024 Policy Alerts

National Security Act of 2024 – Fall & Winter Oversight Guide and Calendar for Iran, Fentanyl, TikTok, and Russia

The National Security Act of 2024, the supplemental package signed into law in April, advanced a range of national security objectives. This is an oversight guide and calendar of key fall and winter deadlines for these newly enacted provisions.

The National Security Act of 2024 – the national security supplemental package signed into law on April 24, 2024 – advances U.S. foreign policy and national security objectives across a range of critical areas. But for these initiatives to be successful, Congress must ensure the executive branch is meeting the new law’s requirements and deadlines. A number of deadlines implemented by this law have already passed and others are coming up this fall and winter. They represent important opportunities for Congress to continue to exercise vigorous oversight of the executive.

Below is an oversight guide and calendar of key fall and winter dates for many of these newly enacted provisions.

•  Dates in red are still upcoming.

•  Dates in gray have passed and/or could be overdue.

For a deeper dive into the topics featured below, we encourage you to review our previously published comprehensive oversight guides at the following links:

Iran Oversight Guide

Fentanyl Oversight Guide

TikTok Oversight Guide

Russia Oversight Guide

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Iran Oversight Guide – Fall & Winter Calendar


Iran Oil Sanctions

The Stop Harboring Iranian Petroleum Act (SHIP Act) imposes new sanctions on importing and facilitating the importation of petroleum products from Iran. Congress needs to closely monitor the implementation and enforcement of these new mandatory measures. Specifically, the provision:

•  Requires the President to impose sanctions on foreign port owners and operators who knowingly dock vessels transporting Iranian oil.

•  Sanctions individuals who knowingly process, refine, deal in, or engage in ship-to-ship transfers of Iranian oil.

•  Authorizes the President to prohibit covered vessels from docking at any U.S. port for two years, freeze U.S. assets owned by sanctioned entities, and deny or revoke U.S. visas.

Key Oversight Dates

•  August 22, 2024—The first annual report from the Energy Information Agency on Iran’s export of petroleum and petroleum products is due (Sec. 4(a) of Division J). This report is required until the President certifies that the Government of Iran no longer repeatedly provides support for international terrorism and has ceased and verifiably dismantled its nuclear, biological, chemical, and ballistic missile weapons programs.

•  August 22, 2024—The Secretary of State must provide and brief Congress on a strategy to address the role of the People’s Republic of China regarding sanctions evasion related to Iranian-origin petroleum products (Sec. 5(a) of Division J).

•  October 11, 2024—The administration must brief the appropriate congressional committees on the regulations to be issued on October 21, 2024 (Sec. 3(e)(3) of Division J).

•  October 21, 2024—SHIP Act sanctions take effect (Sec. 3(a) of Division J).

•  October 21, 2024—Regulations are to be issued to implement the SHIP Act sanctions (Sec. 3(e)(2) of Division J).

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China-Iran Transactions

The Iran-China Energy Sanctions Act of 2023 amends longstanding mandatory financial sanctions first introduced by the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 to target Chinese financial institutions purchasing oil from Iran. Most significantly, the new law expands the definition of a “significant financial transaction” to include transactions of any size made between Chinese and Iranian financial institutions to purchase Iranian petroleum products and for other activities.

Key Oversight Dates

•  April 24, 2024—The sanctions took effect immediately.

•  October 21, 2024—The first annual determination on Chinese banks for sanctions violations is due (22 U.S.C. 8513a(d)(5), as amended). This is required through October 21, 2029 (Sec. 2 of Division S).

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Sanctions Against Hamas and Related Organizations

The Hamas and Other Palestinian Terrorist Groups International Financing Prevention Act provision imposes sanctions for foreign support to Palestinian terrorist organizations. This includes suspending U.S. assistance, directing U.S. representatives at international financial institutions to oppose assistance, and blocking the export of weapons and other dual-use components for a year. However, the President could waive sanctions for national security interests or if they would prevent the U.S. from meeting the terms of a status of forces agreement. Specifically, this provision mandates sanctions on:

•  Foreign individuals and entities that support acts of terrorism, including through financial, material, or technological support;

•  Those who engage in a significant transaction with senior members of Hamas, Palestinian Islamic Jihad (PIJ), the Al-Aqsa Martyrs Brigade, the Lion’s Den, or their affiliates; and

•  Most significantly, on foreign states that support the above named organizations.

Key Oversight Dates

•  June 23, 2024—The administration must issue revised regulations for implementing the sanctions against individuals and entities providing material or other support to Hamas, PIJ, Al-Aqsa Martyrs Brigade, the Lion’s Den, and possibly others (Sec. 3(e)(2) of Division M). Similarly, the administration must also issue regulations for implementing sanctions against foreign governments that provide material or financial support to those organizations (Sec. 4(f)(2) of Division M). These will go into effect on October 21, 2024.

•  July 23, 2024—The first report on activities to disrupt global fundraising, financing, and money laundering activities of Hamas, PIJ, al-Aqsa Martyrs Brigade, the Lion’s Den, or any affiliate or successor is due (Sec. 5(a) of Division M). It is also due every 180 days after the initial report is submitted until April 24, 2031.

•  October 21, 2024—The mandatory sanctions against individuals and entities providing material support to Hamas, PIJ, Al-Aqsa Martyrs Brigade, the Lion’s Den, and possibly others go into effect (Sec. 3(a) of Division M). Similarly, the mandatory sanctions against foreign governments that provide those organizations with material support also go into effect (Sec. 4(a) of Division M).

•  October 21, 2024—The End Financing for Hamas and State Sponsors of Terrorism Act, also passed as part of the supplemental, requires a report containing an analysis of the major sources of financing to Hamas; a description of U.S. and multilateral efforts to disrupt illicit financial flows involving Hamas; an evaluation of U.S. efforts to undermine the ability of Hamas to finance armed hostilities against Israel; and the implementation plan for a multilateral strategy to disrupt Hamas financing (Secs. 2 and 3 of Division Q).

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Report on Bank Accounts and Assets of Iran’s Leadership

The Holding Iranian Leaders Accountable Act of 2023 mandates public reporting on the total accumulated wealth of Iranian officials such as Supreme Leader Ayatollah Ali Khamenei, top members of the Islamic Revolutionary Guard Corps, and senior leadership in Hamas and Hezbollah. It would also require U.S. financial institutions to close any accounts affiliated with those individuals. The provisions of this division expire no later than April 24, 2029.

Key Oversight Dates

•  May 24, 2024—The Secretary of the Treasury is required to report to Congress and provide an accompanying briefing on various Iranian assets and licenses (Sec. 3(d) of Division R).

•  October 21, 2024—The administration’s report on the disposition of assets and total net worth of senior Iranian officials is due (Sec. 3(a) of Division R). It is due annually until October 21, 2026.

•  January 19, 2025—The Treasury Department must require financial institutions to close accounts associated with the senior Iranian officials described in the bill (Sec. 4(a) of Division R).

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Captagon Trafficking Sanctions

The Illicit Captagon Trafficking Suppression Act of 2023 provision imposes mandatory sanctions on foreign individuals and entities involved in the illicit production or trade of Captagon, a synthetic amphetamine-type stimulant. The designation criteria are very broad and track with opioid trafficking sanctions regulations, which Congress should appropriately leverage.

Key Oversight Dates

•  April 24, 2024—The sanctions took effect immediately on the date of enactment (Sec. 4(a) of Division P).

•  August 12, 2024—The administration must brief the appropriate congressional committees on the regulations to be issued on August 22 (Sec. (4)(f)(2) of Division P).

•  August 22, 2024—Regulations are to be issued to implement the Captagon sanctions legislation (Sec. (4)(f)(1) of Division P).

•  October 21, 2024—A determination regarding whether certain individuals associated with the Syrian regime have engaged in sanctionable conduct and an accompanying report to Congress on that determination is due (Sec. 5(a) of Division P).

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Fentanyl Oversight Guide – Fall & Winter Calendar


Fentanyl Sanctions

This FEND Off Fentanyl Act significantly expands sanctions against foreign individuals and entities involved in the production and trafficking of fentanyl or related opioids, including designated transnational criminal organizations and specified drug cartels in Mexico. Specifically, the new legislation:

•  Mandates sanctions against anyone involved in the “trafficking of fentanyl, fentanyl precursors, or other related opioids” or other activities of a transnational criminal organization (TCO) that engages in such trafficking.

•  Expands and directs forfeiture authorities for any property seized for prohibited conduct. Oversight Opportunity – Congress must ensure that the administration not only issues updates to regulations on time but also engages in significant enforcement actions. This includes sanctions designations, criminal prosecution, and civil penalties for sanctions violations—particularly going after major banks that are involved in the narcotics trade.

•  Extends the statute of limitations for sanctions violations under the International Emergency Economic Powers Act (IEEPA) from five to ten years, which governs civil penalties and criminal prosecution for sanctions violations. This applies to most sanctions programs administered by the Treasury Department and other federal government programs authorized under IEEPA, including export controls and other programs administered by the Department of Justice. Oversight Opportunity – To ensure the IEEPA amendments’ effective implementation and enforcement, Congress can send the message to the private sector that banks, financial institutions, and companies will have to update their compliance programs and activities to account for the change in the law. Congress can also ensure that the executive branch enforces these changes in a manner consistent with the intent of Congress and amends regulations and guidance appropriately.

•  Authorizes the Treasury Department to require domestic financial institutions and agencies to take existing anti-money laundering special measures against foreign entities suspected of engaging in money laundering related to opioid trafficking. Oversight Opportunity – Congress should ensure this new authority’s regulatory implementation and enforcement are properly exercised.

Key Oversight Dates

•  April 24, 2024—The changes to the law and sanctions took effect immediately.

•  October 21, 2024—The first annual report from the President on actions taken by the executive branch related to this division and any national emergency declared on fentanyl trafficking and trade in other illicit drugs is due (Sec. 3102(b) of Division E).

•  October 21, 2024—The first annual report from the President on the actions taken by the executive branch on the persons that the President determined to have been involved in fentanyl trafficking by TCOs is due (Sec. 3103(c) of Division E).

•  October 21, 2024—The first report from the President on the treatment of foreign property of TCOs is due (Sec. 3105(a)(2) of Division E). It is due every 180 days thereafter.

•  October 21, 2024—The Treasury Department’s Director of the Office of Foreign Assets Control (OFAC) must provide a one-time classified report and briefing on OFAC’s staffing to the appropriate congressional committees (Sec. 3112 of Division E).

•  October 21, 2024—The Secretary of the Treasury, in conjunction with the heads of other federal agencies, must provide a one-time classified report and briefing on efforts to target drug transportation routes and modalities to the appropriate congressional committees (Sec. 3113 of Division E). This includes the use of false cargo labeling and shipment of precursor chemicals.

•  October 21, 2024—The Secretary of the Treasury, in conjunction with the heads of other federal agencies, must provide a one-time classified report and briefing on actions taken by the People’s Republic of China (PRC) on persons involved in fentanyl trafficking and its supply chain (Sec. 3114 of Division E). This includes the shipment of fentanyl, fentanyl analogues and precursors, and fentanyl manufacturing equipment.

•  March 2025—The Secretary of the Treasury must provide a report on trade-based money laundering originating in Mexico or the PRC that involves Burma (Sec. 3203 of Division E). It is to be included in the next update to the national strategy for combating the financing of terrorism and related forms of illicit finance, which is expected in March 2025.

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TikTok Oversight Guide – Fall & Winter Calendar


TikTok and Foreign Adversary Data Access Regulations

The new legislation prohibits the distribution, maintenance, updating, or internet hosting of a foreign adversary-controlled application  including those operated by ByteDance, TikTok, or subsidiaries  that provides certain services within the United States. Civil penalties will be imposed on any company that distributes or maintains TikTok unless “qualifying divestiture” takes place. Therefore, ByteDance will likely be required to sell TikTok to an entity outside of the jurisdiction of a foreign adversary for it to continue to operate within U.S. jurisdiction. Specifically, the new provisions:

•  Mandates that U.S.-approved entities, such as internet service providers and app stores, are prohibited from hosting the platform unless it spins off from ByteDance Ltd. within 270 days of the measure’s enactment (or 360 days if the president grants a one-time exception). Other applications could be subject to the same restrictions if they are controlled by a foreign adversary and the President determines they pose a national security risk. Oversight Opportunity – Congress can ensure that the executive branch enforces these changes in a manner consistent with the intent of Congress and amends regulations and regulatory guidance appropriately.

•  Bars companies from licensing, selling, or otherwise making available the sensitive data of U.S. residents to foreign adversaries, or companies controlled by foreign adversaries, such as China, Iran, North Korea, and Russia, within 60 days of the measure’s enactment. Oversight Opportunity  Congress can inquire upon enactment which companies have been identified by the administration.

Key Oversight Dates

•  June 23, 2024—Companies will be barred from licensing, selling, or otherwise making available the sensitive data of U.S. residents to foreign adversaries (Sec. 2(d) of Division I).

•  October 6, 2024—The latest date by which a challenge can be brought to the Protecting Americans from Foreign Adversary Controlled Applications Act contained in Division H (Sec. 3(c) of Division H).

Note: TikTok has already suedthe U.S. Government challenging the law as unconstitutional, and the courts have fast-tracked their lawsuit, which will be heard on September 16, 2024. The U.S. Department of Justice and TikTok have requesteda ruling by December 6, 2024.

•  January 19, 2025—The prohibition on distributing, maintaining, updating, or internet hosting of a foreign adversary-controlled application goes into effect, including TikTok (Sec. 2(a)(2) of Division H).

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Russia Oversight Guide – Fall & Winter Calendar


Russian Assets Sanctions and Recent Developments

Since the passage of the REPO for Ukrainians Act, G-7 leaders have agreed on a plan to support Ukraine using frozen Russian sovereign assets. By engineering a $50 billion loan package for Ukraine backed by profits from billions in frozen Russian assets, the G-7 can financially support Ukraine’s reconstruction without outright confiscating the assets. To help ensure the longevity and viability of this plan, European Union member states met in July to renew Russia sanctions and extend the renewal period of sanctions on Russian sovereign assets. Compared to the U.S.’s jurisdiction over $5 billion in Russian frozen assets, this plan takes advantage of partners’ combined jurisdiction over some $320 billion in Russian assets frozen by the West. Congressional leaders have also been generally supportive of these efforts.

While this news marks a significant change, there are still important oversight opportunities for Members of Congress under the new provision. Specifically, the new legislation:

•  Requires the President to direct financial institutions to provide notice of Russian state assets that they are holding within 10 days of discovering such assets.

•  Authorizes the President to confiscate Russian sovereign assets 30 days after certifying to Congress that doing so is in the national interest of the United States. The administration also must certify that it coordinated with key U.S. allies and developed a mechanism to compensate Ukraine for damages while developing appropriate oversight mechanisms to prevent abuse.

•  Provides Congress with a way to block the transfer of Russian assets by passing a joint resolution prohibiting the transfer within 15 days of receiving notice of the transfer. The President must enact this resolution.

•  Requires the President to report to Congress on the amount of Russian funds confiscated and transferred every 180 days.

•  Prevents the administration from unblocking Russian sovereign assets and returning them to Moscow unless the President certifies that Russia has terminated its invasion of Ukraine and has fully compensated Kyiv for damages. Congress can also block the release of these assets through a joint resolution.

•  Limits judicial review to claims brought within 60 days of an action that would allegedly deny constitutional rights and provides expedited consideration in the U.S. District Court for the District of Columbia.

•  Requires the administration to establish an international mechanism to assist Ukraine and provide Congress with an expedited way to block the release of funds within 30 days of receiving notice of entering any such international agreement.

Key Oversight Dates

•  April 24, 2024—Prohibitions on the release of blocked Russian sovereign assets took effect immediately (Sec. 103(a) of Division F).

•  July 23, 2024—The President shall mandate that financial institutions report on the location and disposition of all Russian sovereign assets (Sec. 104(a) of Division F). UPDATE: Treasury Press Release – “Treasury Implements REPO for Ukrainians Act Reporting Requirement” (July 23, 2024)

•  July 23, 2024—The first report from the President is due on the status of the status of the Ukraine Support Fund, which was established by the REPO for Ukrainians Act (Sec. 104(i) of Division F). It is due every 180 days after the submission of the first report.

•  July 23, 2024—The first report from the President is due on the status of the status of the implementation of the international mechanism and Ukraine Compensation Fund (Sec. 105(g) of Division F). It is due every 90 days after the submission of the first report.

•  July 23, 2024—The first report is due from the Secretary of State and Treasury Secretary on the amount and source of Russian sovereign assets seized, transferred, or confiscated; the amount and source of funds deposited into the Ukraine Support Fund; and a detailed description and accounting of how such funds were used to meet the purposes of the REPO for Ukrainians Act (Sec. 106 of Division F). It is due every 180 days after the submission of the first report.

•  October 21, 2024—The first annual report from the President on the disposition of Russian sovereign assets in U.S. financial institutions (Sec. 104(a)(2) of Division F). It is due annually after the submission of the first report for a period of three years.

•  October 21, 2024—The Secretary of State and USAID Administrator submit a report on Ukraine’s needs for reconstruction, rebuilding, and humanitarian aid (Sec. 107(a) of Division F).

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Issues:

China Iran Russia Sanctions and Illicit Finance Syria