22 U.S.C. § 8725 — Liability of parent companies for violations of sanctions by foreign subsidiaries

(a) Definitions. This section defines two terms. (1) "Entity" means a partnership, association, trust, joint venture, corporation, or other organization. (2) "Own or control" means, for an entity: (A) holding more than 50 percent of its equity, by vote or by value; (B) holding a majority of seats on its board of directors; or (C) otherwise controlling its actions, policies, or personnel decisions. (b) Prohibition. Within 60 days of August 10, 2012, the President must prohibit a foreign-based entity that a U.S. person owns or controls from knowingly doing business, directly or indirectly, with the Government of Iran or anyone under Iran's jurisdiction. This applies only to transactions that would be illegal under an order or regulation of the International Emergency Economic Powers Act (50 U.S.C. 1701 and following) if a U.S. person did the same thing inside the United States. (c) Civil penalty. If a U.S. person's owned or controlled foreign entity violates, tries to violate, conspires to violate, or causes a violation of a rule made to carry out subsection (b), the U.S. person faces the same civil penalties under section 206(b) of the International Emergency Economic Powers Act that would apply to someone who commits an unlawful act under section 206(a) of that Act. (d) Applicability. Subsection (c) does not apply to a transaction described in subsection (b) if the U.S. person sells off, or ends its business with, the foreign entity no later than 180 days after August 10, 2012.