Prohibiting Future Ransom Payments to Iran Act

To provide for the prohibition on cash payments to the Government of Iran, and for other purposes. 1. Short title This Act may be cited as the Prohibiting Future Ransom Payments to Iran 2. Findings Congress makes the following findings: (1) Since 1979, when it held more than 50 United States citizens for 444 days, Iran has repeatedly held United States citizens hostage. (2) Presidential Policy Directive 30 issued by President Barack Obama on June 24, 2015, states that It is United States policy to deny hostage-takers the benefits of ransom, prisoner releases, policy changes, or other acts of concession. (3) On January 17, 2016, the President announced that Iran would release several United States citizens while the United States would grant clemency to and release seven Iranian nationals serving sentences or awaiting trial in the United States for serious crimes. (4) Senior officials of the Department of State have acknowledged that these United States citizens were released as part of a prisoner swap (5) On January 17, 2016, the President also announced that The United States and Iran are now settling a longstanding Iranian government claim against the United States Government. (6) The overall amount of the settlement is approximately $1,700,000,000. (7) Subsequent reports revealed that $400,000,000 of this $1,700,000,000 settlement was secretly flown to Iran, in cash, simultaneously with the release of these United States citizens. (8) One of the United States citizens released that night, Pastor Saeed Abedini, has stated that Iranian officials explained a delay in their departure was due to the status of another plane. (9) Senior officials at the National Security Division of the Department of Justice reportedly objected to the $400,000,000 cash payment, warning that Iran would see it as a ransom. (10) On August 18, 2016, a Department of State spokesman admitted that the $400,000,000 cash payment was leverage (11) Iranian State Television quoted General Mohammad Reza Naghdi, commander of the Basij militia, as claiming Taking this much money back was in return for the release of the American spies. (12) According to Presidential Policy Directive 30, the United States policy against paying ransom and releasing prisoners protects United States nationals and strengthens national security by removing a key incentive for hostage-takers to target United States nationals, thereby interrupting the vicious cycle of hostage-takings, and by helping to deny terrorists and other malicious actors the money, personnel, and other resources they need to conduct attacks against the United States, its nationals, and its interests. (13) Since the United States released Iranians serving sentences or awaiting trial in the United States for serious crimes and provided Iran with $400,000,000 in cash, Iran has taken several more United States citizens hostage. (14) On August 22, 2016, the Department of State issued an Iran Travel Warning Iranian authorities continue to unjustly detain and imprison U.S. citizens, particularly Iranian-Americans, including students, journalists, business travelers, and academics, on charges including espionage and posing a threat to national security. (15) The Government of the United States has designated Iran as a state sponsor of terrorism since 1984 and a jurisdiction of primary money laundering concern since 2011. (16) The Department of State’s most recent Country Reports on Terrorism makes clear that Iran continued its terrorist-related activity in 2015, including support for Hizballah, Palestinian terrorist groups in Gaza, and various groups in Iraq and throughout the Middle East. (17) In announcing Iran’s designation as a jurisdiction of primary money laundering concern, the Department of the Treasury made clear that any and every financial transaction with Iran poses grave risk of supporting (18) On March 17, 2016, the Department of State acknowledged in a letter to Congress that there remain some large claims many of which are against the United States 3. Statement of policy It shall be the policy of the United States Government not to pay ransom or release prisoners for the purpose of securing the release of United States citizens taken hostage abroad. 4. Prohibition on cash payments to the Government of Iran (a) Prohibition Notwithstanding any other provision of law, beginning on the date of the enactment of this Act, the United States Government may not provide, directly or indirectly, promissory notes (including currency) issued by the United States Government or promissory notes (including currency) issued by a foreign government, to the Government of Iran. (b) Licensing Requirement (1) In general Beginning on the date of the enactment of this Act, the conduct of a transaction or payment in connection with an agreement to settle a claim or claims brought before the Iran-United States Claims Tribunal may be made only— (A) on a case-by-case basis and pursuant to a specific license by the Office of Foreign Assets Control of the Department of the Treasury; and (B) in a manner that is not in contravention of the prohibition in subsection (a). (2) Publication in Federal Register The President shall publish in the Federal Register a list of transactions and payments, including the amount and method of each such transaction and payment, by the United States Government to the Government of Iran in connection with the agreement described in paragraph (1). (c) Termination The prohibition in subsection (a) and the licensing requirement in subsection (b) shall remain in effect until the date on which the President certifies to the appropriate congressional committees that— (1) the President has rescinded a preliminary draft rule or final rule (as in effect on the day before the date of the enactment of this Act) that provides for the designation of Iran as a jurisdiction of primary money laundering concern pursuant to section 5318A of title 31, United States Code; and (2) the Secretary of State has removed Iran from the list of countries determined to have repeatedly provided support for acts of international terrorism under section 6(j) of the Export Administration Act of 1979 (as continued in effect pursuant to the International Emergency Economic Powers Act), section 40 of the Arms Export Control Act, section 620A of the Foreign Assistance Act of 1961, or any other provision of law. (d) Appropriate congressional committees defined In this section, the term appropriate congressional committees (1) the Committee on Foreign Affairs and the Committee on Financial Services of the House of Representatives; and (2) the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate. 5. Report on outstanding claims before the Iran-United States Claims Tribunal (a) Report The President shall submit to the appropriate congressional committees a report that lists and evaluates each outstanding claim before the Iran-United States Claims Tribunal. (b) Matters To be included The report required under subsection (a) shall include the following: (1) The total value of each outstanding claim. (2) The current status of each outstanding claim. (3) The likelihood that each claim will be resolved in the next 6 months. (c) Submission to congress The report required under subsection (a) shall be submitted to the appropriate congressional committees not later than 30 days after the date of the enactment of this Act and every 180 days thereafter for a period not to exceed 3 years. (d) Appropriate congressional committees defined In this section, the term appropriate congressional committees (1) the Committee on Foreign Affairs of the House of Representatives; and (2) the Committee on Foreign Relations of the Senate. 6. Notification and certification relating to settlements of outstanding claims before the Iran-United States Claims Tribunal (a) Notification The President shall notify the appropriate congressional committees not later than 30 days prior to conducting a transaction or payment from the Government of the United States to the Government of Iran in connection with an agreement to settle a claim or claims brought before the Iran-United States Claims Tribunal. (b) Matters To be included The notification required under subsection (a) shall include the following: (1) The total amount of the settlement, including the total principal and interest, and an explanation of the calculation of the interest. (2) A legal analysis of why the settlement was made, including a detailed description of all claims and counter-claims covered by the settlement. (3) A certification by the President that the settlement is not a ransom for the release of individuals held hostage by Iran. (4) An identification of each entity of the Government of Iran that will receive amounts from the settlement. (5) A certification that the funds provided to Iran under the settlement will not be used to provide support to foreign terrorist organizations, the regime of Bashar al-Assad, or other destabilizing activities. (6) Whether an equal amount of Iranian funds are available and accessible in the United States to satisfy judgments against Iran by victims of Iranian-sponsored terrorism. (7) A copy of the settlement agreement. (8) A description of the disposition of any related claims that have been subrogated to the United States Government. (9) A certification that the settlement is in the best interest of the United States. (c) Appropriate congressional committees defined In this section, the term appropriate congressional committees (1) the Committee on Foreign Affairs of the House of Representatives; and (2) the Committee on Foreign Relations of the Senate. 7. Exclusion of certain activities Nothing in this Act shall apply to any activities subject to the reporting requirements of title V of the National Security Act of 1947. 8. Rule of construction Nothing in this Act shall be construed to authorize any payment by the Government of the United States to the Government of Iran. 9. Definitions In this Act: (1) Government of Iran The term Government of Iran (A) the state and the Government of Iran, as well as any political subdivision, agency, or instrumentality thereof; (B) any entity owned or controlled directly or indirectly by the foregoing; (C) any person to the extent that such person is, or has been, or to the extent that there is reasonable cause to believe that such person is, or has been, acting or purporting to act directly or indirectly on behalf of any of the foregoing; and (D) any person or entity identified by the Secretary of the Treasury to be the Government of Iran under part 560 of title 31, Code of Federal Regulations. (2) Iran-United States Claims Tribunal The term Iran-United States Claims Tribunal September 20, 2016 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

Summary: Prohibiting Future Ransom Payments to Iran Act (Sec. 3) This bill declares that it shall be U.S. policy not to pay ransom or release prisoners for the purpose of securing the release of U.S. citizens taken hostage abroad. (Sec. 4) The U.S. government is prohibited from providing monetary instruments or precious metals to the government of Iran. The conduct of a transaction or payment in connection with an agreement to settle a claim or claims brought before the Iran-United States Claims Tribunal (established on January 19, 1981) may be made only: (1) on a case-by-case basis pursuant to a specific license by the Department of the Treasury's Office of Foreign Assets Control, and (2) in a manner that does not contradict such monetary instruments or precious metals prohibition. The President must publish in the Federal Register a list of such transactions or payments. The term "agreement to settle a claim or claims brought before the Iran-United States Claims Tribunal" shall not be construed to mean a promissory note. The prohibition on the transfer of monetary instruments or precious metals and the licensing requirement shall remain in effect until the President certifies that: (1) a preliminary or final rule providing for Iran's designation as a jurisdiction of primary money laundering concern has been rescinded, and (2) the Department of State has removed Iran from the list of countries that have repeatedly provided support for acts of international terrorism. (Sec. 5) The President shall submit within 30 days and every 180 days for up to 3 years a report that evaluates each outstanding claim before the tribunal, including its value, current status, and likelihood of resolution within 6 months. (Sec. 6) The President shall provide notice not later than 30 days before conducting a transaction or payment from the U.S. government to the government of Iran in connection with a claim settlement agreement. Such notice shall include: the total amount of the settlement, including principal and interest; a legal analysis of why the settlement was made, including a description of all claims and counter-claims; a certification by the President that the settlement is not a ransom for the release of individuals held hostage by Iran; an identification of each Iranian government entity that will receive settlement amounts; a certification that the settlement funds will not be used to support foreign terrorist organizations, the regime of Bashar al-Assad, or other destabilizing activities; whether an equal amount of Iranian funds are available in the United States to satisfy judgments against Iran by victims of Iranian-sponsored terrorism; a copy of the settlement agreement; a description of the disposition of any related claims that have been subrogated to the U.S. government; and a certification that the settlement is in the best interest of the United States. (Sec. 7) Nothing in this bill shall: (1) apply to activities subject to the non-covert intelligence reporting requirements under title V of the National Security Act of 1947, or (2) be construed to authorize any U.S. government payment to the government of Iran. (Sec. 9) The "government of Iran" means: the state and the government of Iran, as well as any related political subdivision, agency, or instrumentality; any entity owned or controlled by the foregoing; any person acting or purporting to act on behalf of any of the foregoing; and any person or entity identified by Treasury to be the government of Iran. (Sec. 10) The bill prohibits the President and all U.S. government officers from making a payment to a government, person, or entity to secure the release of unjustly detained U.S. nationals or permanent resident aliens, except that such prohibition does not prohibit the U.S. government from providing assistance to such nationals or permanent residents. (Sec. 11) The President shall, within 60 days, block transactions in U.S.-sited or -controlled property and property interests with respect to any Iranian person or entity that: is involved in the kidnapping or detention of any U.S. national or permanent resident alien; engages in an activity or transaction that materially contributes to, or poses a risk of materially contributing to, such a kidnapping or detention; or is owned or controlled by, or is acting on behalf of, an aforementioned person or entity or that provides financial, material, technological, or other support to such person or goods or services in support of such activity. The requirement to block and prohibit all property and property interest transactions shall not include the authority to impose sanctions on the importation of goods. (Sec. 12) The U.S. government may not provide monetary instruments or precious metals to the government of, or to an agent working on behalf of, a state sponsor of terrorism. Such prohibition shall apply to an agency or instrumentality of the government of the Democratic Peoples' Republic of Korea, or an agent acting on its behalf, in the same manner and to the same extent as would apply to an agency or instrumentality of a state sponsor of terrorism.