Sponsors (2)
The bill strengthens U.S. sanctions tools and clarifies enforcement authorities to pressure Russia and protect the U.S. financial system, but it also raises economic and compliance costs for banks and businesses and grants the Executive discretionary waiver power that could weaken enforcement or be politicized.
Taxpayers and policymakers get a clearer congressional record documenting Russian attacks, strengthening the legal and political basis for diplomatic pressure, sanctions, or additional security assistance to Ukraine.
U.S. financial institutions and the broader financial system are better insulated from Russian-linked money flows by measures to block risky correspondent accounts and restrict access to U.S. dollar clearing, reducing contagion risk and increasing sanctions leverage.
Banks and investors gain clearer, faster Treasury guidance (e.g., whether Gazprom, Rosneft, Lukoil count as 'foreign persons'), improving compliance certainty and enabling quicker enforcement decisions.
Taxpayers could face higher costs if the Act increases the likelihood of sustained U.S. involvement, prolonged sanctions, or extended economic measures (the Act can remain in force up to five years if destabilizing activities continue).
U.S. businesses, foreign banks, and customers risk losing access to U.S. banking services—disrupting international trade and payments, raising transaction costs, and encouraging de‑risking that can harm small businesses and consumers.
The President’s broad, time-limited waiver authority (180 days with possible renewals) and a vague 'national interest' standard create a risk of politicized or opaque exemptions that could weaken sanctions enforcement and U.S. leverage.
Based on analysis of 6 sections of legislative text.
Restricts U.S. correspondent/payable-through accounts for foreign banks that knowingly serve specified Russia-related actors and Russian energy-sector operators.
Official title: To secure a peaceful resolution to the Russia-Ukraine conflict by requiring the Secretary of the Treasury to prohibit, or impose strict conditions on, the opening or maintaining in the United States of a correspondent account or a payable-through account by certain foreign financial institutions, and for other purposes.
Introduced July 7, 2025 by Zach Nunn · Last progress July 7, 2025
Prohibits or tightly restricts U.S. correspondent and payable-through banking relationships for foreign banks that knowingly provide substantial financial services to specified Russia-related entities (sanctioned persons, entities tied to EO 14024 directives, or firms operating in Russia’s energy sector). It directs the Treasury to issue implementing regulations within set deadlines, allows the President limited waiver authority with congressional notice, requires a 90-day report on whether Gazprom, Rosneft, and Lukoil qualify as targeted Russian energy-sector ‘‘foreign persons,’’ and sunsets automatically when Russia stops destabilizing Ukraine or after five years. The bill uses existing emergency authorities in IEEPA to implement prohibitions and applies civil and criminal penalties for violations; it is focused on expanding economic pressure tools against Russia by restricting access to U.S. correspondent banking services for designated Russian-linked actors and their financial facilitators.