§ 6303. — Prohibition on assisting nuclear proliferation through provision of financing.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 22USC6303]
TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
CHAPTER 72--NUCLEAR PROLIFERATION PREVENTION
SUBCHAPTER I--SANCTIONS FOR NUCLEAR PROLIFERATION
Sec. 6303. Prohibition on assisting nuclear proliferation
through provision of financing
(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) of this section applies), the President shall, by
order, impose the sanctions described in subsection (d) of this section
on such person.
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\1\ So in original.
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(d) Sanctions
The following sanctions shall be imposed pursuant to any order
issued under subsection (c) of this section 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) of
this section 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) of this section 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) of this
section 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) of this
section 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) of this section, 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) of this section 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)
of this section 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) of this section; or
(2) any order issued pursuant to subsection (c) of this section.
(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.
(Pub. L. 103-236, title VIII, Sec. 824, Apr. 30, 1994, 108 Stat. 512;
Pub. L. 104-164, title I, Sec. 157(b), July 21, 1996, 110 Stat. 1440.)
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, Sec. 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, Sec. 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, Sec. 157(b)(3), redesignated
subsecs. (g) to (k) as (f) to (j), respectively. Former subsec. (f)
redesignated (e).
Section Referred to in Other Sections
This section is referred to in section 3281 of this title.
