Assad Regime Anti-Normalization Act of 2023

New secondary sanctions authority: The President may now impose sanctions on foreign persons who knowingly provide significant financial, material, or technological support to persons engaging in activities described in subparagraphs (B) through (H) of the sanctionable activities list. This is a new 'may impose' category separate from the existing 'shall impose' primary sanctions.

Family member disassociation exception: An adult family member of a sanctioned person is exempt if the President determines there is clear and convincing evidence they have disassociated from the sanctioned person and have no history of helping conceal assets.

Mens rea standard raised for humanitarian aid diversion: Changed from 'knowingly engages in or directs' to 'purposefully engages in or directs' the diversion of goods or international humanitarian assistance intended for the people of Syria, making it harder to establish a violation.

Syria Trust for Development determination expanded: The President must now determine whether the organization meets sanction criteria under three separate bases - the Caesar Act as amended, Executive Order 13894, or by being owned or controlled by a person designated under any OFAC-administered executive order or regulation.

Transaction reporting threshold increased from $50,000 to $500,000 for individual transactions, and a new aggregate threshold of $500,000 within a single year was added. This significantly reduces the volume of transactions requiring reporting.

New definition of 'commercial financial services': Any transaction between the Government of Syria and a foreign bank or financial institution operating in an area under Syrian government control with a valuation exceeding $5,000,000. This creates a specific dollar threshold for when financial services trigger sanctions.

New definition of 'financial institution' referencing section 5312(a)(2) of title 31, United States Code.

Simplified 'significant transaction' definition: Removed the carve-out for transactions authorized by licenses or regulations issued before enactment under IEEPA. The engrossed version simply states it includes any natural gas, electricity, or other energy-related transaction without qualification.

New definition of 'covered transaction': A transaction (investment, grant, contract, or donation) by a foreign person located in one of the listed Middle Eastern/North African countries to a recipient in any area of Syria held by the Assad regime.

Congressional request response deadline extended from 30 days to 120 days for the President to make determinations and submit reports in response to requests from congressional committee chairs and ranking members.

Sunset extension: New provision extends the expiration of Section 7438 of the Caesar Act from 5 years after enactment to a fixed date of December 31, 2032.

Annual report period changed from 'for a period not to exceed 5 years' to a fixed 'for 5 years,' making the reporting requirement mandatory for the full five-year period rather than setting a maximum.

Removed the provision that would have struck Section 7434 of the Caesar Act (the importation-of-goods exception). The engrossed version no longer eliminates this exception, and instead adds a clarifying statement that the Syria Trust for Development determinations do not create new authorities to impose sanctions on importation of goods.