U.S. House Foreign Affairs Committee Bans Cash Payments to Iran

The U.S. House Foreign Affairs Committee, controlled by Republicans, on Wednesday, September 13, prohibited the U.S. government from making cash payments to Iran in the future. According to the committee's resolution, the government must inform Congress of its actions before resolving any disputes involving Tehran. According to the Associated Press, the bill was passed with 21 votes in favor and 16 against, just a week after the Obama administration announced it had made a cash payment of $1.7 billion to settle a legal dispute between Tehran and Washington over a weapons deal from the Shah's regime. The principal amount of $400 million was sent to Tehran on January 17 this year in euros, Swiss francs, and other foreign currencies in wooden boxes, coinciding with the release of Iranian-American prisoners from Iranian prisons. Additionally, $1.3 billion in profits from the cancellation of this contract was also paid to Iran in cash on January 22 and February 5. This information was disclosed by American officials to reporters behind closed doors last week. Republicans have characterized this payment as a form of 'ransom' to Iran, while the U.S. government has stated that such accusations are unfounded. Republicans have also pointed to Iran being designated by the U.S. State Department as the world's largest state sponsor of terrorism, claiming that the Islamic Republic will use this money to financially support terrorist factions around the globe. "Facilitating Iran's aid to terrorist groups" Ed Royce, the chairman of the House Foreign Affairs Committee, stated that the Obama administration has made it easier for Iran to assist Hezbollah and other terrorist groups by sending this untraceable money to Tehran. He remarked, "In fact, we are doing the money laundering for them." Mr. Royce accused the Obama administration of undermining long-standing U.S. policy by paying ransom for the release of hostages held in Iran. He said that his proposed plan emphasizes the transparency of government actions in any future settlements to ensure that payments are not for ransom. Unlike previous instances where there was some coordination between the Democratic and Republican parties on issues related to Iran, no such common stance was observed in Wednesday's meeting. According to the chairman of the House Foreign Affairs Committee, the disagreement was over the concept of cash payments, and senior Democratic committee member Eliot Engel insisted that in the recent case with Iran, some payments were made via wire transfers from European banks, and using this concept in a legal proposal would not reflect accuracy. A representative from New Jersey in the committee emphasized the necessity of passing such a bill, referring to what he termed Iran's activities surrounding its nuclear program, stating, "The fact that the ballistic missile program was not part of the agreement with Iran has enabled this government to enhance its missile capabilities for carrying nuclear weapons, and recent payments in this regard will be significantly helpful." Democrat Brad Sherman called for a delay in the vote on this bill. If Royce's proposed bill is approved by the House of Representatives, the U.S. Senate must also express its approval or disapproval, and then it will be sent to the White House for potential presidential signature to become law. Mr. Sherman stated, "This bill is politically very sensitive, and to prevent any similar payments, Congress must participate in the State Department's future decisions in such cases. Additionally, other countries that support terrorism, as well as North Korea, should be included in this law." Brad Sherman, a staunch opponent of the Islamic Republic in Congress, also called for provisions to prevent activities by Iran that, according to him, are linked to international smuggling networks that procure materials and equipment necessary for nuclear weapons. Ultimately, after lengthy discussions lasting nearly three hours, with proposed amendments and several revisions to the submitted proposal, the bill prohibiting cash payments to Iran was approved by the House Foreign Affairs Committee with 21 votes in favor and 16 against and was sent to the Speaker of the House for discussion and voting in the chamber. The U.S. President stated last month in a press conference at the Pentagon that cash was given to Iran "because we could not send them a check or deposit money into their account. We have no banking relationship with Tehran, which is part of the pressure we have applied to them." However, Mr. Royce stated he recently learned that the Obama administration transferred $8.3 million for the purchase of 32 tons of heavy water from Iran through a bank account. Paul Ryan, the Speaker of the House, said on Wednesday that Republican representatives never thought a resolution was needed to ban cash payments to Iran. He stated, "Paying $1.7 billion to Iran leaves a dangerous precedent that will cost Americans traveling abroad." Democratic representatives who opposed this bill rejected the accusation of the payment being 'ransom' and accused Republicans of seeking political exploitation of the issue. Eliot Engel, the senior Democratic representative on the House Foreign Affairs Committee, stated that this money belongs to Iran, "whether we like it or not." He said that financial transactions with Iran will continue in the future, and the important issue is that Congress should be informed before such actions occur. The mentioned committee rejected Mr. Engel's proposal, which did not impose restrictions on payments to Iran but accepted the provision that Congress must be informed at least five days before any financial transaction with Iran.