President Joe Biden on Wednesday signed another 120-day sanctions waiver for Iran.
The waiver means the US has unblocked up to $10 million in frozen Iranian funds to the mullahs’ regime by allowing Iraq to pay in cash for electricity, and transferring Iranian funds from the Trade Bank of Iraq to a bank in Oman.
The State Department continues to maintain that the funds can only be accessed by Iran to pay for humanitarian supplies — but four Congressional lawmakers say Iran has a history of lying about its financial transactions.
“Since 2018, the waiver has remained necessary as Iraq weans itself off Iranian energy imports, which cannot happen overnight,” a State Department spokesperson said Tuesday in a statement to the Washington Free Beacon. “And Iraq is making progress in its path to energy self-sufficiency by increasing regional electricity interconnections, capturing and utilizing natural gas associated with oil production, and developing new domestic gas resources.
“”Under these waivers, no money has been permitted to enter Iran,” the spokesperson claimed. “Any notion to the contrary is false and misleading. These funds, which are held abroad in third countries, can only be used for transactions for the purchase of food, agricultural commodities, medicine, medical devices, and other non-sanctionable transactions. The money goes straight to the trusted vendor or financial institution in another country. The money never touches Iran.”
However, former White House National Security Council member Richard Goldberg told the Free Beacon that may not quite be the case.
“This is an Iran sanctions relief waiver that allows Tehran to access money and use it for budget support, including debt payments and import subsidies,” said Goldberg, who is currently a senior adviser for the Foundation for Defense of Democracies think tank.
“The fact that the administration will not even tell the American people how much money Iran has accessed over the last four months—money that subsidized three American soldier deaths and nonstop attacks on the American Navy—should prompt the US Senate to immediately pass the No Funds for Iranian Terrorism Act and send to the president’s desk,” Goldberg added.
The group of four GOP US Representatives protested the move in a letter addressed to Treasury Secretary Janet Yellen and Secretary of State Antony Blinken on March 11, questioning the reasons behind renewal of the waiver.
Four members of the US Congress, @RepHuizenga, @RepBrianMast, @RepBlaine and @RepJoeWilson, have in a letter to @SecBlinken and @SecYellen raised “serious questions” about the Biden admin’s enforcement of Iran sanctions, calling for explanations about its decision to waive… pic.twitter.com/GvCVnjShZn
— Iran International English (@IranIntl_En) March 12, 2024
The letter, posted to the X social media platform by Iran International, was signed by Bill Huizenga, Chair of the Subcommittee on Oversight and Investigations, Brian Mast, Chair of the Subcommittee on Oversight and Accountability, Blaine Luetkemeyer, Chair of the Subcommittee on National Security, Illicit Finance and International Financial Institutions, and Joe Wilson, Chair of the Subcommittee on Middle East, North Africa and Central Asia.
“Only six months ago, the Administration authorized the transfer of over $6 billion worth of Iranian funds from South Korea to a Qatari bank as part of a hostage deal that many viewed as tantamount to ransom,” the letter read. “Later in October, Hamas conducted a devastating attack on Israel. In response, the House of Representatives passed a bipartisan bill to block the Iranian regime’s access to those funds.
“In November … the Biden Administration renewed the 120-day sanctions waiver allowing Iraq to pay Iran for Iranian electricity and allowing the transfer of Iranian funds from the Trade Bank of Iraq to a bank in Oman.
“The November sanctions waiver will expire in the coming weeks. Given the Biden Administration’s posture on the last waiver we presume that the Biden Administration will renew the waiver again to continue to allow for the transfer of funds from Iraq to Oman.
“By waiving the application of sanctions, the Administration is maintaining a financial lifeline for the Iranian regime, even as it continues to support terrorist organizations around the world,” the lawmakers wrote.
“Iran has a history of lying about humanitarian transactions. There is no reason to think that they will not try to skirt these restrictions again. Additionally, money is fungible, and the waiver and subsequent transfer will free up billions in funds that Iran can now spend on its terrorist proxies, nuclear activities, and military,” the lawmakers noted.
The letter added that Iraq pays Iran in euros, not in dinar.
Originally the waiver was created in 2018 to enable Iraq to receive energy imports from Tehran; the waiver was renewed each year, with the condition that Iraq would pay for the imports with humanitarian supplies.
Last year, that changed. The Biden Administration released $10 billion in frozen funds for transfer to Oman, which would then allow Iran to use the money for “non-sanctionable” purposes.
It is not clear how much of the $10 billion has been used since that time, nor on what it was spent.
