U.S. Sen. Marco Rubio, R-Fla., ramped up his opposition as the Obama administration mulls over allowing banks and other countries to use the American dollar in transactions with Iran.
Currently, the federal government has a ban in place on foreign governments and banks to use American currency in transactions with Iran. But with the White House cutting back on sanctions on Iran as part of its nuclear deal with that country, the administration is considering ending the currency restriction with U.S. Treasury Sec. Jack Lew floating the idea in speech last week. That led Rubio and U.S. Sen. Mark Kirk, R-Ill., sent a letter to Lew against backing down sanctions on Iran.
On Tuesday, at a Senate Foreign Relations Committee hearing, Rubio engaged with Thomas Shannon, the undersecretary of State for political affairs, on the issue. Rubio asked Shannon if an international bank could use American currency in business with Iran.
“I’m not sure. I would have to check because if it doesn’t touch a U.S. bank, if it doesn’t touch the U.S. financial system…” Shannon said. “Because what our sanctions legislation has done and what we have been able to accomplish in terms of limiting Iran’s access to our larger financial system is we have not permitted U-turn authorization.
“In other words, no exchange of dollars inside the U.S. financial system, and we have not allowed it access to our larger financial system,” Shannon added. “But I do not know, again I’m not a financial expert here, I’d have to check with Treasury, but I do not know if what you just described is authorized under the legislation.”
Rubio asked if the currency issues were part of Obama’s deal with Iran over its nuclear program.
“Was there ever a moment or is it part of this agreement that we would somehow help Iran get access to dollars in some way that did not violate the need to deal directly with the U.S. bank?” Rubio asked. “And you said here today that you are not aware of that ever being part of this agreement or conversation in any way.”
“I did not take part of the negotiations of the agreement, but my reading of the agreement indicates otherwise" Shannon answered.
“The Iranian banking sector posed a hazard because of its laundering activities and so forth,” Rubio insisted. “Has Iran taken any actions to halt the use of its financial institutions for money laundering or for other illicit behavior?”
“My understanding is it’s much more careful about which institutions it uses” Shannon said. “But it still is engaged in money laundering activities that we attempt to block and stop.”
Rubio ramped up his opposition after the hearing, saying he would put a hold on any Treasury appointment until the matter is clear.
“I will continue to demand answers on these attempts to give Iran concession after concession even as the regime’s behavior makes clear that it has no intention of halting its threats to Israel and its regional efforts to sow instability,” Rubio said. “I cannot support the consideration of key Treasury Department officials until I receive clear answers to my letter to Secretary Lew.”
Rubio is not the only Florida Republican focusing on the matter. From her perch as chairwoman of the U.S. House Middle East and North Africa Subcommittee, U.S. Rep. Ileana Ros-Lehtinen, R-Fla., stressed her opposition to lowering the currency sanction.
"If reports are true that the Obama administration is seeking ways to allow Iran to access to the U.S. financial system or dollar transactions, it would be not only be foolish but dangerous for our national security interests” Ros-Lehtinen said on Friday. “It would be a stunning reversal of the promises the administration gave to Congress repeatedly while the debate over the JCPOA was ongoing, but considering the way the administration obfuscated and circumvented Congress during the negotiations, this would be par for the course. No doubt the Iranians have threatened to walk away from Mr. Obama's precious deal, and as we have seen time and again in the past, he is willing to give away the store to the regime in order to keep this weak and dangerous deal in place.
"There is simply no justification for allowing Iran access to our financial system and the dollar when we know the regime will use this as a means to launder its illicit cash and finance its global terror operations” Ros-Lehtinen added. “Yet the president seems eager to hand over our greatest piece of leverage over the Iranians in an attempt to preserve his nuclear accord. Congress must act to take every measure possible to block this attempt, and to further restrict Iran's access to the U.S. and global financial institutions. The regime has done nothing but antagonize since the implementation of the JCPOA, and we must move to not only fully and vigorously enforce existing sanctions, but to expand on them and reimpose others.”
Reach Kevin Derby at kderby@sunshinestatenews.com or follow him on Twitter: @KevinDerbySSN
