S. 556 — Enhanced Iran Sanctions Act of 2025

This section states the policy of the United States, in accordance with the Iran Nuclear Weapons Capability and Terrorism Monitoring Act of 2022 (22 U.S.C. 8701 note), to (1) ensure that Iran does not acquire a nuclear weapons capability, protect against Iranian aggression through missiles and drones, and counter Iranian terrorism; (2) fully enforce sanctions against persons in the international logistical chain supporting Iran's energy sector; (3) deny Iran financial resources through such sanctions to fund terrorism, weapons of mass destruction, destabilizing activities abroad, and repression of Iranian citizens; and (4) strengthen international enforcement of sanctions on Iran's malign activities.

This section defines terms for purposes of the Act, including: (1) "admitted" and "alien," which have the meanings given in section 101(a) of the Immigration and Nationality Act (8 U.S.C. 1101(a)); (2) "appropriate congressional committees," meaning specified committees in the Senate (Foreign Relations, Judiciary, and Banking, Housing, and Urban Affairs) and House (Foreign Affairs, Judiciary, and Financial Services); (3) "foreign person," meaning any person that is not a United States person, including a foreign government; (4) "knowingly," meaning a person has actual knowledge or should have known of the conduct, circumstance, or result; (5) "property" and "interest in property," which have the meanings given "property" and "property interest," respectively, in 31 CFR 576.312 as in effect the day before enactment; and (6) "United States person," meaning a U.S. citizen, alien lawfully admitted for permanent residence, entity organized under U.S. laws (including foreign branches), or any person in the United States.

This section revises sanctions under the Stop Harboring Iranian Petroleum Act (22 USC 8572), requiring the President on or after enactment (previously, 180 days after April 24, 2024) to block property of, and impose visa ineligibility and revocation on, foreign persons—including banks, financial institutions, insurance providers, flagging registries, and LNG facilities—that knowingly engage in transactions involving the processing, export, or sale of Iranian oil, condensates, gas, liquefied natural gas (LNG), or petrochemicals (expanding from prior triggers limited to port/vessel/refinery operations with Iranian petroleum products). Covered persons also include subsidiaries, successors, aliases; those owning or controlled by 50% or greater interests who conduct significant transactions with persons sanctioned under section 3(b) of the Act; corporate officers; and immediate family members of such persons. (Thus, the revision targets a broader range of logistical, financial, and supportive actors in Iran's energy export sector.) The section provides exceptions for goods importation and U.S. international obligations or law enforcement; authorizes case-by-case waivers vital to U.S. national interests for up to 180 days (renewable to a 2-year total, with authority terminating February 1, 2029); and applies International Emergency Economic Powers Act implementation authorities and penalties.

This section establishes the Interagency Working Group on Iranian Sanctions not later than 180 days after enactment of this Act, to be chaired by a presidential designee and composed of one or more representatives from the Departments of State, Treasury, and Justice, as well as other federal agencies determined appropriate by the Secretary of State. The Working Group must endeavor to establish a multilateral contact group with like-minded nations to coordinate international sanctions enforcement against Iran by (1) sharing information on sanctions frameworks to identify differences or enforcement gaps, (2) sharing information on newly designated entities, (3) raising awareness of new sanctions evasion practices, and (4) coordinating new measures to curb Iranian uranium enrichment, ballistic missile production, and terrorism support.

This section expands the State Department rewards program—administered by the Secretary of State to pay rewards for information leading to the arrest, conviction, or identification of individuals involved in international terrorism, narcotics trafficking, sanctions evasion, and related crimes—by authorizing rewards for information identifying (1) a person described in section 4(a) of the Enhanced Iran Sanctions Act of 2025 or (2) any person that has attempted or is attempting to evade sanctions imposed under such Act with proceeds generated by the sale of intercepted oil, gas, liquefied natural gas, petrochemical products, or related products from Iran.