Isolating ISIS Act

• facilitates a transaction for the Islamic State of Iraq and Syria (ISIS);
• facilitates a transaction of a person designated for acting on behalf of or at the direction of, or owned or controlled by, ISIS;
• engages in money laundering to carry out such an activity;
• facilitates a transaction or provides financial services to carry out such an activity; or
• facilitates such an activity, conspires to facilitate or participate in such an activity, or is owned or controlled by a foreign financial institution that knowingly engages in such an activity.

Applies specified penalties under the International Emergency Economic Powers Act for violations of this Act.

Authorizes the Secretary to waive the application of a prohibition for up to 180 days (with renewable 180-day waivers) if in U.S. national security interests, and with congressional notification.

Directs the Secretary to identify to Congress every 180 days each foreign central bank that carries out a prohibited activity.

Directs the President to transmit to Congress a list of, and impose specified sanctions against, any person who knowingly engages in a transaction with a foreign person that transfers or receives, or facilitates the transfer or receipt of, any goods or services to or from ISIS.

States that the President shall not be required to include a person on this list if: (1) that person is no longer engaging in or has taken significant steps toward stopping sanctioned activities, and (2) the President has received reliable assurances that such person will not knowingly engage in any new sanctioned activity.

States that nothing in this Act shall apply to authorized U.S. intelligence activities.