The House Foreign Affairs Committee approved a bill in mid-February that would expand the Iran and Libya Sanctions Act of 1996 by extending sanctions to a broader range of companies.
As a general matter, under H.R. 957, U.S. parent companies could be sanctioned for the actions of their foreign subsidiaries, to the same extent as if the parent company itself had engaged in the prohibited action. In particular, sanctions would be imposed on U.S. parent companies where they or their foreign subsidiaries invest in Iran’s energy sector or import certain Iranian goods or services. With regard to energy investment, sanctions would apply if major investments (i.e., exceeding $10 million) in Iran total more than $40 million.
Before it reaches the House floor, the bill will also be taken up by the House Financial Services, House Ways and Means and House Oversight and Government Reform committees.