; 50 U.S.C. 1701 note), as amended by subsections (e), (f), and (g), is further amended by adding at the end the following: (D) Exception The President may not impose sanctions under subparagraph (B) or (C) with respect to a foreign person or a United States person if the President determines that the person has exercised due diligence in establishing and enforcing official policies, procedures, and controls to ensure that the person does not sell, supply, or transfer to or from Iran materials the sale, supply, or transfer of which would subject a person to the imposition of sanctions under subparagraph (B) or (C), as the case may be, or conduct or facilitate a financial transaction for such a sale, supply, or transfer. (E) Definitions In subparagraphs (B) and (C) of this paragraph: (i) Agency or instrumentality The term agency or instrumentality has the meaning given such term in section 1603(b) of title 28, United States Code. (ii) Foreign state The term foreign state has the meaning given such term in section 1603(a) of title 28, United States Code. (iii) Government of Iran The term Government of Iran has the meaning given such term in section 561.404 of title 31, Code of Federal Regulations, as such section was in effect on January 1, 2016. (iv) Significant transaction or transactions; significant financial services The terms significant transaction or transactions and significant financial services shall be determined, for purposes of sections 101 and 102, in accordance with section 561.404 of title 31, Code of Federal Regulations, as such section 561.404 was in effect on January 1, 2016. . (i) Sanctions described Section 6(a) of the Iran Sanctions Act of 1996 ( Public Law 104–172