Iran: The U.S. Must Compensate If It Seizes Central Bank Assets

On Thursday, January 3rd, the spokesperson for Iran's Foreign Ministry warned the United States that it would be responsible for compensating Iran if it seized the assets of the Central Bank of Iran to pay damages to victims of terrorist incidents. According to ISNA news agency, Hossein Jaberi Ansari commented on ongoing efforts in the U.S. to confiscate the assets of the Central Bank of Iran for compensating these diplomats, stating: "The recent attempt in the U.S. Supreme Court to seize the assets of the Islamic Republic of Iran is the final stage of a lawsuit filed since 2007 in various U.S. courts against the Islamic Republic of Iran, which is contrary to fundamental principles of international law and has no legal validity." In a press conference, he also accused the U.S. judicial system of violating basic principles of international law with the support of the government and Congress, issuing and enforcing "illegal" rulings against the Islamic Republic of Iran based on "baseless and unfounded accusations." Jaberi Ansari emphasized that these rulings do not grant any rights to U.S. citizens, and if the assets of the Islamic Republic of Iran and its institutions and citizens are seized, the U.S. government would bear the responsibility for compensation and damages. In the U.S. federal budget for 2016, which was approved by Congress, $4.4 million was allocated for 52 diplomats or their survivors who were held hostage in Tehran by students known as "followers of the Imam" for 444 days. The New York Times reported that this compensation would be funded from a $9 billion fine against BNP Paribas Bank in Paris for violating sanctions against Iran, Sudan, and Cuba. According to this report, $1 billion of the $9 billion fine is also set aside for compensating victims of terrorism, but potentially more assets may be considered for future claims. One of the mentioned cases for adding resources to the fund is the controversial Peterson case against the Central Bank of Iran. A few years ago, after Deborah Peterson, sister of one of the victims of the 1983 Beirut bombing, and the families of other victims became aware of Iranian assets in Citibank New York, they demanded compensation from these assets. The Obama administration ordered the seizure of the Central Bank's assets in Citibank about three years ago, and some American lawmakers, along with Peterson and others, have supported this issue until today. Iran is calling for a review of this decision, and the U.S. Supreme Court is set to hear Iran's defense in the appeal next month. The Central Bank claims that Congress's interference in this judicial case has undermined the independence of the court. If the final ruling of the U.S. Supreme Court is not in favor of the Central Bank, then over $2 billion of this bank's assets could also be added to the compensation fund for American victims of state-sponsored terrorism. This is a matter that the Iranian government has already reacted to.