Financial transactions
Official text prohibited actmental stateif conditionpenaltylegal term
(a) Offense. Except as provided in regulations issued by the Secretary of the Treasury, in consultation with the Secretary of State, whoever, being a United States person, knowing or having reasonable cause to know that a country is designated under section 6(j) [1] of the Export Administration Act of 1979 (50 U.S.C. App. 2405) as a country supporting international terrorism, engages in a financial transaction with the government of that country, shall be , imprisoned for not more than 10 years, or both.
(b) Definitions. As used in this section—
(1) the term "financial transaction" has the same meaning as in section 1956(c)(4); and
(2) the term "United States person" means any—
(A) United States citizen or national;
(B) permanent resident alien;
(C) juridical person organized under the laws of the United States; or
(D) any person in the United States.
History: (Added Pub. L. 104–132, title III, §321(a), Apr. 24, 1996, 110 Stat. 1254; amended Pub. L. 107–273, div. B, title IV, §4002(a)(5), Nov. 2, 2002, 116 Stat. 1806.)
1 See References in Text note below.
Simplified explanation
It is a federal crime for a U.S. person (citizens, nationals, permanent residents, U.S. companies, or anyone in the U.S.) to do a financial transaction with the government of a country officially listed as supporting international terrorism. This applies when the person knows, or has reasonable cause to know, of the country's listing.