IIB 
114TH CONGRESS 
2D SESSION 
H. R. 5931 
IN THE SENATE OF THE UNITED STATES 
SEPTEMBER 26, 2016 
Received; read twice and referred to the Committee on Foreign Relations 
AN ACT 
To provide for the prohibition on cash payments to the 
Government of Iran, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Prohibiting Future 
Ransom Payments to Iran Act’’. 
SEC. 2. FINDINGS. 
Congress makes the following findings: 
(1) Since 1979, when it held more than 50 
United States citizens for 444 days, Iran has repeat-
edly 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-tak-
ers the benefits of ransom, prisoner releases, policy 
changes, or other acts of concession.’’. 
(3) On January 17, 2016, the President an-
nounced that Iran would release several United 
States citizens while the United States would grant 
clemency to and release seven Iranian nationals serv-
ing 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’’ and Ira-
nian negotiators reportedly asked for a cash pay-
ment. 
(5) On January 17, 2016, the President also 
announced that ‘‘The United States and Iran are 
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now settling a longstanding Iranian government 
claim against the United States Government.’’. 
(6) The overall amount of the settlement is ap-
proximately $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 Di-
vision of the Department of Justice reportedly ob-
jected 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’’ to gain the release of 
Americans held hostage by Iran. 
(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.’’. 
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(12) According to Presidential Policy Directive 
30, the United States policy against paying ransom 
and releasing prisoners ‘‘protects United States na-
tionals and strengthens national security by remov-
ing a key incentive for hostage-takers to target 
United States nationals, thereby interrupting the vi-
cious 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 na-
tionals, 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’’ noting that 
‘‘Iranian authorities continue to unjustly detain and 
imprison U.S. citizens, particularly Iranian-Ameri-
cans, including students, journalists, business trav-
elers, 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 
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1984 and a jurisdiction of primary money laun-
dering 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 ju-
risdiction 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’’ Iran’s ongoing illicit activi-
ties, including terrorism. 
(18) On March 17, 2016, the Department of 
State acknowledged in a letter to Congress that 
there remain some ‘‘large claims’’ pending before the 
Iran-United States Claims Tribunal, ‘‘many of which 
are against the United States’’. 
SEC. 3. STATEMENT OF POLICY. 
It shall be the policy of the United States Govern-
ment not to pay ransom or release prisoners for the pur-
pose of securing the release of United States citizens taken 
hostage abroad. 
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SEC. 4. PROHIBITION ON CASH PAYMENTS TO THE GOV-
ERNMENT OF IRAN. 
(a) PROHIBITION.— 
(1) IN GENERAL.—Notwithstanding any other 
provision of law, beginning on the date of the enact-
ment of this Act, the United States Government 
may not provide, directly or indirectly, to the Gov-
ernment of Iran— 
(A) monetary instruments; or 
(B) precious metals. 
(2) DEFINITIONS.—In this subsection— 
(A) the term ‘‘monetary instruments’’ has 
the meaning given the term in paragraph (dd) 
of section 1010.100 of title 31, Code of Federal 
Regulations; and 
(B) the term ‘‘precious metal’’ has the 
meaning given the term in section 1027.100(d) 
of title 31, Code of Federal Regulations. 
(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 set-
tle 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 As-
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sets Control of the Department of the Treasury; 
and 
(B) in a manner that is not in contraven-
tion 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) RULE OF CONSTRUCTION.—The term ‘‘agreement 
to settle a claim or claims brought before the Iran-United 
States Claims Tribunal’’, as used in subsection (b), shall 
not be construed to mean a ‘‘promissory note’’, as used 
in the definition of ‘‘monetary instrument’’ for purposes 
of subsection (a). 
(d) TERMINATION.—The prohibition in subsection (a) 
and the licensing requirement in subsection (b) shall re-
main in effect until the date on which the President cer-
tifies to the appropriate congressional committees that— 
(1) the President has rescinded a preliminary 
draft rule or final rule (as in effect on the day be-
fore the date of the enactment of this Act) that pro-
vides for the designation of Iran as a jurisdiction of 
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primary money laundering concern pursuant to sec-
tion 5318A of title 31, United States Code; and 
(2) the Secretary of State has removed Iran 
from the list of countries determined to have repeat-
edly provided support for acts of international ter-
rorism under section 6(j) of the Export Administra-
tion 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. 
(e) APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED.—In this section, the term ‘‘appropriate congres-
sional committees’’ means— 
(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 Af-
fairs of the Senate. 
SEC. 5. REPORT ON OUTSTANDING CLAIMS BEFORE THE 
IRAN-UNITED STATES CLAIMS TRIBUNAL. 
(a) REPORT.—The President shall submit to the ap-
propriate congressional committees a report that lists and 
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evaluates each outstanding claim before the Iran-United 
States Claims Tribunal. 
(b) MATTERS TO BE INCLUDED.—The report re-
quired 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 re-
solved 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 con-
gressional committees’’ means— 
(1) the Committee on Foreign Affairs of the 
House of Representatives; and 
(2) the Committee on Foreign Relations of the 
Senate. 
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SEC. 6. NOTIFICATION AND CERTIFICATION RELATING TO 
SETTLEMENTS OF OUTSTANDING CLAIMS BE-
FORE THE IRAN-UNITED STATES CLAIMS TRI-
BUNAL. 
(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, includ-
ing the total principal and interest, and an expla-
nation 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 individ-
uals held hostage by Iran. 
(4) An identification of each entity of the Gov-
ernment of Iran that will receive amounts from the 
settlement. 
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(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 re-
lated 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 DE-
FINED.—In this section, the term ‘‘appropriate congres-
sional committees’’ means— 
(1) the Committee on Foreign Affairs of the 
House of Representatives; and 
(2) the Committee on Foreign Relations of the 
Senate. 
SEC. 7. EXCLUSION OF CERTAIN ACTIVITIES. 
Nothing in this Act shall apply to any activities sub-
ject to the reporting requirements of title V of the Na-
tional Security Act of 1947. 
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SEC. 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. 
SEC. 9. DEFINITIONS. 
In this Act: 
(1) GOVERNMENT OF IRAN.—The term ‘‘Gov-
ernment of Iran’’ means— 
(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 per-
son 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 di-
rectly or indirectly on behalf of any of the fore-
going; 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 Fed-
eral Regulations. 
(2) IRAN-UNITED STATES CLAIMS TRIBUNAL.— 
The term ‘‘Iran-United States Claims Tribunal’’ 
means the tribunal established pursuant to the Al-
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giers Accords on January 19, 1981, to resolve cer-
tain claims by nationals of one party against the 
other party and certain claims between the parties. 
SEC. 10. PROHIBITION ON UNITED STATES GOVERNMENT 
PAYMENT OF RANSOM. 
(a) IN GENERAL.—Except as provided by subsection 
(b), the President and all officers of the United States 
Government shall not make a payment to a government 
or person for the purpose of securing the release of un-
justly detained individuals who are nationals of the United 
States or aliens who are lawfully admitted for permanent 
residence in the United States. 
(b) EXCEPTION.—The prohibition under subsection 
(a) does not prohibit the United States Government from 
providing assistance to individuals who are nationals of 
the United States or aliens who are lawfully admitted for 
permanent residence in the United States that have been 
arrested. 
(c) ENFORCEMENT.—The Secretary of the Treasury, 
in consultation with the Secretary of State and the Attor-
ney General, may take such actions, including the promul-
gation of such rules and regulations, as may be necessary 
to carry out the purposes of this section. 
(d) DEFINITIONS.—In this section: 
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