Strong Criticism from Three American Lawmakers on Facilitating Transactions with Iran

Shortly after the U.S. Treasury Department announced that it had facilitated certain dollar financial transactions between Iran and foreign financial institutions, several Republican lawmakers expressed severe criticism of this decision, even considering it as 'abandoning the idea of a democratic future for Iran.' On Friday, October 8, the U.S. Treasury announced in a new business guideline that it would facilitate transactions by foreign companies with Iran and financial transfers between Iran and financial institutions. The U.S. Treasury conditioned these transfers on the stipulation that the funds do not enter the U.S. financial system. Additionally, under this new decision, broad and general sanctions against those Iranian companies managed by individuals subject to U.S. sanctions will be lifted. In reaction to this decision, Mike Pompeo, a Republican representative from Kansas, stated that the changes made by the Treasury are akin to 'giving a green light to terrorists.' According to a report on Sunday, October 10, by the Wall Street Journal, Mr. Pompeo added that in his view, the new text removes barriers to foreign engagement with companies controlled by the Islamic Revolutionary Guard Corps (IRGC). This Republican representative in the U.S. House of Representatives further stated that 'this appeasement and leniency suggests that the Obama administration has abandoned any idea of a democratic or pro-Western future for Iran.' Meanwhile, Senator Tom Cotton, a Republican senator from Arkansas, also reacted to the Treasury's decision on Sunday, stating that 'the new guideline undermines the existing understanding that the U.S. dollar cannot be used to facilitate transactions with Iranian entities, especially those under sanctions.' He added, 'By allowing transactions between foreign subsidiaries linked to American companies and Iranian entities, the President is disregarding the explicit text of the Congressional law.' On the other hand, Senator Mark Kirk from Illinois, who chairs the Senate Banking Committee, also stated that the new business guideline 'amounts to new concessions from the White House to Tehran.' The committee that Mr. Kirk chairs is responsible for overseeing the sanctions law against Iran. These criticisms come as U.S. Treasury officials emphasized on Sunday that the new guideline they published does not signify a compromise or leniency with Iran and is merely part of the Treasury's periodic reviews of the sanctions regime. The Treasury's recent decision follows increasing Iranian protests regarding the U.S. non-implementation of the JCPOA. Iran claims that the U.S. has not reduced the severity of sanctions and has not fulfilled its commitments under the JCPOA. Despite the nuclear agreement, U.S. sanctions against Iran and certain Iranian companies remain in place. The U.S. states that some of these sanctions remain due to Iran's missile program, a history of human rights violations, or support for groups that the U.S. considers terrorist.