Details of Prisoner Exchange and Frozen Funds; U.S.: Our Policy Towards Iran Has Not Changed

Two senior officials of the Biden administration explained to reporters on Sunday night about the prisoner exchange between Tehran and Washington and the transfer of frozen Iranian funds from South Korea to Qatar, which is being conducted under supervision for humanitarian purposes. The two officials, who wished to remain anonymous, stated that in exchange for the release of five [Iranian-American] citizens from prison, including Siamak Namazi, Emad Sharqi, Morad Tahbaz, and two other citizens who do not wish to be named for family reasons, along with two members of the Namazi and Tahbaz families who were banned from leaving, five individuals will be handed over to Iran. The officials did not disclose the names of these Iranians but mentioned that they are individuals accused or convicted of "non-violent" crimes. According to these officials, two of the five are currently in prison, with one of them set to complete their sentence in less than 100 days, while three are awaiting trial and have not yet been convicted. It is anticipated that "two of the Iranians who do not have legal status in the U.S. will return to Iran via Doha, Qatar." In another part of the conference call, the officials discussed the transfer of Iranian funds from South Korea to Qatar, stating: "We are also transferring $6 billion of Iranian funds that were previously held in South Korea to a restricted account in Qatar, where it will be available for very limited humanitarian transactions, namely food, medicine, medical equipment, and agricultural products for Iran." The officials continued to address criticisms regarding why a portion of Iran's frozen funds is being released simultaneously with the prisoner exchange, saying: "First, this money is not American taxpayer dollars; this [transfer of funds] is not a payment from the U.S. and no money is being paid to Iranian companies or entities. These funds have been legally available to Iran for trade in non-sanctioned items even under the previous U.S. administration. These are Iranian funds, payments that South Korea made to Iran for oil purchases years ago. [What has happened now is that this money] has been transferred from a restricted account in South Korea to another restricted account in Qatar." The U.S. officials emphasized that "these funds will only be available for humanitarian transactions through non-Iranian third-party vendors." Regarding the oversight of transactions, they stated: "We are implementing this through the establishment of a humanitarian channel in Qatar, and the Treasury Department will provide more information, including a description of its monitoring standards and thorough review. This channel is explicitly designed to guard against money laundering and abuse of U.S. sanctions." It was further emphasized that "no money ever goes to Iran." The officials continued in the conference call: "If Iran attempts to divert the funds or use them for anything other than the permitted limited humanitarian purposes, we will take action to lock the funds. Therefore, this humanitarian channel complies with the long-standing law and policy of U.S. administrations throughout history that U.S. sanctions do not prevent limited humanitarian transactions for food, agricultural products, medicine, and medical equipment." The officials also mentioned that under the Levinson Act, named after a former FBI agent, Mahmoud Ahmadinejad will be sanctioned for lies he told regarding Levinson's status, as will the Iranian Ministry of Intelligence. They emphasized that the U.S. will continue to hold Iranian officials accountable. The officials also issued a strong warning to American citizens, including Iranian-Americans, not to travel to Iran: "The Islamic Republic does not recognize dual citizenship. Travel to Iran should not occur." The senior officials stressed that the prisoner exchange agreement between the Biden administration and the Islamic Republic, which coincides with the transfer of frozen Iranian funds from South Korea to Qatar, "in no way changes our relationship with Iran." They stated: "[The Islamic Republic] Iran is an enemy and a supporter of terrorism. We will hold them accountable as much as possible. Just 48 hours ago, on the anniversary of Mahsa Amini, the President issued a statement, and we imposed nearly 30 new sanctions, including against [the television network] Press TV and individuals and entities involved in suppressing the people of Iran." The officials further referenced recent U.S. actions in the region, stating: "We have increased our military presence in the region, we have responded decisively to Iran's attacks on our forces by its supported militia groups, including through targeted strikes, we have prevented arms shipments to Yemen, and through U.S.-led diplomacy, we have ensured an 18-month period of calm in Yemen, the quietest period since the war began nearly a decade ago." The U.S. officials continued, emphasizing that "we are also united with our allies on [related] policy towards Iran," stating: "We removed Iran from the UN Commission on the Status of Women, and last week, 62 other countries joined us in announcing Iran's non-cooperation with the International Atomic Energy Agency in Vienna." They reiterated that "the United States will never allow Iran to acquire nuclear weapons," emphasizing the use of "diplomacy or other tools" to achieve this goal. The U.S. officials stressed that "we are daily focused on a policy for the Middle East that combines deterrence with diplomacy to reduce the risk of aggression or to de-escalate tensions wherever possible and to help create a more stable, integrated, and prosperous Middle East region."