Former Top Treasury Official Warns Senators Against Iran Sanctions Bill (2024)

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Former Top Treasury Official Warns Senators Against Iran Sanctions Bill (1)

WASHINGTON ― President Donald Trump’s former acting treasury secretary warned lawmakers that an Iran sanctions bill under consideration in the Senate Foreign Relations Committee could undermine the Iran nuclear agreement and hurt U.S. relations with allies.

The legislation as currently written would “provoke a terrible reaction in Iran and with our allies, as it would be seen as contrary to at least the spirit of the Joint Comprehensive Plan of Action,” Adam Szubin wrote Friday in a letter to committee members.

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Szubin, who left government in February, led U.S. sanctions policy against Iran in his previous role as Treasury Department acting under secretary for terrorism and financial intelligence. The Treasury Department has cited this effort as a key reason Iran agreed to an international deal that rolled back its nuclear program in exchange for sanctions relief.

Though Szubin was nominated for the job by former President Barack Obama, he is considered hawkish on Iran and has pushed for aggressive enforcement of sanctions. Trump asked Szubin to serve as acting head of the Treasury Department until Secretary Steve Mnuchin was confirmed.

The Senate legislation, called the Countering Iran’s Destabilizing Activities Act, was introduced in March and has broad bipartisan support. Twenty-nine Republicans and 14 Democrats have signed on as co-sponsors. But Szubin’s letter is likely to carry significant weight with lawmakers.

“It’s certainly a letter to take note of and will be read seriously,” a committee aide told HuffPost.

The Senate’s sanctions bill in its current form “would contribute no benefit, as it would impose no additional pressure on Iran’s malign activities outside the nuclear space,” Szubin wrote. “As such, I think it would be harmful to our interests to pass this bill.”

He recommended either scrapping the legislation or making two changes:

  • Removing a clause that would impose new sanctions on anyone the president determines “poses a risk of materially contributing” to Iran’s ballistic missile program. That change would leave in place language calling for sanctions on anyone who has “materially contributed” to the program.

  • Removing a section that would create new conditions for the lifting of sanctions related to Iran’s ballistic missile program. This section would include sanctions that the U.S. is obligated to lift in the future as part of the nuclear deal. Lawmakers also could add an exemption stating that sanctions would be lifted as required by the nuclear accord, Szubin wrote.

An aide to Senate Foreign Relations Committee Chairman Bob Corker (R-Tenn.) declined to comment on whether he was open to any of Szubin’s suggestions. Instead, the aide pointed to the bill’s broad bipartisan support, and said the chairman “looks forward to the committee advancing it to the Senate floor in the coming weeks.”

Shortly after the sanctions bill was introduced in March, seven foreign policy heavyweights who served in the Obama administration voiced concerns similar to Szubin’s. The experts, who served in the National Security Council, State Department, Pentagon, and CIA, additionally objected to language in the bill they argued would likely lead the president to designate Iran’s Revolutionary Guards, or IRGC, a terrorist group.

The Trump administration has already considered an executive order designating the organization a terrorist group. Officials from the State Department and Pentagon warned that the designation could complicate the U.S. fight against ISIS in Iraq, where IRGC-backed groups are also fighting ISIS.

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The Senate Foreign Relations Committee is expected to hold a markup session to consider changes to the bill at the end of May. The markup will likely come days after the May 19 presidential election in Iran, where current President Hassan Rouhani faces a tough re-election challenge from more hard-lined candidates.

Sen. Ben Cardin (Md.), the ranking Democrat on the Foreign Relations Committee, told reporters last month that the timing of the legislation was unrelated to elections in Iran.

Trump, who during the campaign described the nuclear accord as “the worst deal ever negotiated,” has said he will look for ways to renegotiate the agreement. Secretary of State Rex Tillerson certified Iran’s compliance with the deal last month ― but added that Trump had ordered an inter-agency review to evaluate whether the U.S. should continue to waive sanctions pursuant to the agreement.

Read Szubin’s letter here:

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Former Top Treasury Official Warns Senators Against Iran Sanctions Bill (2024)

FAQs

What has caused the US sanctions against Iran? ›

US sanctions since 1984

In 1995, in response to the Iranian nuclear program and Iranian support of terrorist organisations, Hezbollah, Hamas, and Palestine Islamic Jihad, President Bill Clinton issued several executive orders with respect to Iran.

Which president sanctioned Iran? ›

The Iran and Libya Sanctions Act (ILSA) was signed into law on 5 August 1996 by President Clinton.

What is the Iran Sanction Review Act? ›

Iran Sanctions Relief Review Act of 2023

This bill restricts the President's authority to unilaterally undertake certain actions with respect to Iran and increases congressional oversight of those actions.

Did Biden loosen sanctions on Iran? ›

No direct connection between sanctions relief and Iran's recent attack on Israel has been shown to date. Nevertheless, it is true that President Biden has repeatedly ordered the suspension of Iran sanctions.

Who does Iran sell oil to? ›

Iran ships oil to China using dark fleet tankers and receives payments in renminbi through small Chinese banks. The dark fleet tankers operate without transponders to avoid detection. Once oil shipments reach China, they are rebranded as Malaysian or Middle Eastern oil, and bought by “teapots” in China.

What did Trump do against Iran? ›

In April 2019, less than a year after Trump announced that the U.S. would be withdrawing from the Iran nuclear deal, his administration designated a branch of Iran's military as a foreign terrorist organization.

What did Biden say about Iran? ›

Statement from President Joe Biden on Iran's Attacks against the State of Israel. Earlier today, Iran—and its proxies operating out of Yemen, Syria and Iraq—launched an unprecedented air attack against military facilities in Israel. I condemn these attacks in the strongest possible terms.

Which president was involved in the Iran scandal? ›

Ronald Reagan's efforts to eradicate Communism spanned the globe, but the insurgent Contras' cause in Nicaragua was particularly dear to him.

How long have we had sanctions on Iran? ›

The United States has imposed restrictions on activities with Iran under various legal authorities since 1979, following the seizure of the U.S. Embassy in Tehran.

What is the U.S. sanction waiver for Iran? ›

The United States first issued the sanctions waiver in July, giving Iran access to funds that were in escrow in Iraq. Since then, the Biden administration has reissued the waivers in November and March — approximately a month and a half after Iran-backed Iraqi militias killed three U.S. servicemembers in Jordan.

What is Section 5 of the Iran Sanction Act? ›

5) Directs the President to impose certain economic sanctions against persons who with actual knowledge have: (1) made an investment of $40 million or more in any 12-month period that directly contributes to Iran's or Libya's ability to develop its petroleum resources; or (2) exported to Libya any goods or technology ...

What is the US doing about Iran? ›

Iran's Military and Foreign Policy.

The U.S. government has used various tools, including comprehensive sanctions, limited military action, and diplomatic engagement with leaders in Iran and other countries to counter what the U.S. officials describe as Iranian threats to U.S. interests.

When did the US freeze Iranian assets? ›

Background. Iran's assets were first frozen by U.S. president Jimmy Carter in 1979, after revolutionaries overthrew the U.S.-allied Mohammad Reza Shah Pahlavi's administration and took American hostages.

How does Iran get around sanctions? ›

Iranian currency exchange houses create front companies abroad to enable trade on behalf of their Iranian clients and help them evade U.S. sanctions. Companies utilizing these networks have generated tens of billions of dollars for the Iranian regime across a variety of fields.

What is Executive Order 13382? ›

Executive Order 13382 of June 28, 2005, blocks the. property of persons engaged in proliferation activities and their support networks. OFAC administers this blocking program, which initially applied to eight organizations in North Korea, Iran, and Syria.

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