republic-os/legal/us/code/title-22/chapter-94/section-8725.md

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LegalText	22 U.S.C. § 8725	Liability of parent companies for violations of sanctions by foreign subsidiaries	us	united_states_code	code_section	22	FOREIGN RELATIONS AND INTERCOURSE	94	IRAN THREAT REDUCTION AND SYRIA HUMAN RIGHTS	8725	22 U.S.C. § 8725	current	119-100	2026-06-26	official	https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc22@119-100.zip	/us/usc/t22/s8725	data/legal/raw/us/code/title-22/usc22.xml	8b253b3a3aef25fc660e472babfb375c0b7a5f1c33c32bd486010d024aa30a88	b9c63ede722f5e0bf8eabfe9029e06e312ab9bcfd95c4d1424ed515baff1df83	5be7d270ae165846bd3de75a41cd33852080e3b3d1780a04eb5c264b4f4d99ab	2026-07-04	official	legal us-code

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

Text

(a) Definitions In this section:

(1) Entity The term “entity” means a partnership, association, trust, joint venture, corporation, or other organization.

(2) Own or control The term “own or control” means, with respect to an entity—

(A) to hold more than 50 percent of the equity interest by vote or value in the entity;

(B) to hold a majority of seats on the board of directors of the entity; or

(C) to otherwise control the actions, policies, or personnel decisions of the entity.

(b) Prohibition Not later than 60 days after August 10, 2012, the President shall prohibit an entity owned or controlled by a United States person and established or maintained outside the United States from knowingly engaging in any transaction directly or indirectly with the Government of Iran or any person subject to the jurisdiction of the Government of Iran that would be prohibited by an order or regulation issued pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) if the transaction were engaged in by a United States person or in the United States.

(c) Civil penalty The civil penalties provided for in section 206(b) of the International Emergency Economic Powers Act (50 U.S.C. 1705(b)) shall apply to a United States person to the same extent that such penalties apply to a person that commits an unlawful act described in section 206(a) of that Act if an entity owned or controlled by the United States person and established or maintained outside the United States violates, attempts to violate, conspires to violate, or causes a violation of any order or regulation issued to implement subsection (b).

(d) Applicability Subsection (c) shall not apply with respect to a transaction described in subsection (b) by an entity owned or controlled by a United States person and established or maintained outside the United States if the United States person divests or terminates its business with the entity not later than the date that is 180 days after August 10, 2012.

(Pub. L. 112–158, title II, § 218, Aug. 10, 2012, 126 Stat. 1234.)

Notes

Termination of SectionFor termination of section, see section 8785(a) of this title.

Editorial Notes

References in TextThe International Emergency Economic Powers Act, referred to in subsec. (b), is title II of Pub. L. 95–223, Dec. 28, 1977, 91 Stat. 1626, which is classified generally to chapter 35 (§ 1701 et seq.) of Title 50, War and National Defense. For complete classification of this Act to the Code, see Short Title note set out under section 1701 of Title 50 and Tables.