In a contentious hearing held by the United States Senate Banking Committee on Tuesday, April 9, Senators delivered scathing rebukes of the US President’s Iran policy, accusing the administration of endangering Americans by releasing sanctioned funds to Iran. The hearing, titled Countering Illicit Finance, Terrorism, and Sanctions Evasion, focused on the potential financial benefits Iran gained from the administration’s decisions and explored strategies to curb such benefits.
In his remarks, Chairman Sherrod Brown underscored the concerning involvement of Iran in financing terrorist activities across the Middle East. He highlighted Iran’s support for various proxies which have been responsible for destabilizing actions in the region. Brown emphasized that Iran’s funding of these groups poses a significant threat to global stability and American national security.
Furthermore, Brown emphasized the necessity of utilizing all available economic tools to counter Iran’s support for terrorism. He stressed the importance of denying bad actors, including Iran, access to the global financial system to prevent the flow of funds that support illicit activities and terrorism. Brown indicated that the Senate Banking Committee would discuss strategies for combatting illicit finance, with a particular focus on Iran’s involvement in funding terrorist proxies.
Senator Robert Menendez conveyed concern to Adewale O. Adeyemo, the Deputy Secretary of the US Treasury, by noting that despite substantial US sanctions, including several that he has spearheaded, reports indicate that Iran’s crude oil exports surged by almost 50% in 2023, reaching their highest point in five years at nearly 1.3 million barrels per day. He pointed out that the majority of this oil, almost exclusively, is shipped to China. According to the Congressional Research Service, a significant portion of these exports finds its way to smaller and medium-sized refineries, which are less reliant on the US financial system. He raised questions about the impact of Iran consistently finding willing buyers for all of its oil in China on the effectiveness of US sanctions and inquired about the steps being taken to pressure Chinese entities importing Iranian oil despite US sanctions.
In response, Deputy Secretary Adeyemo explained that their primary focus had been on disrupting Iran’s ability to sell its oil by targeting intermediaries. He noted that over the past few years, they had imposed over 300 sanctions related to Iran’s petrochemical industry. Additionally, he mentioned their concentration on ensuring that even if Iran manages to sell its oil, receiving and repatriating the proceeds to their country through traditional financial systems is challenging. He added that closely monitoring the flow of these funds has been another area of intense focus for the US administration.
Ranking Member Senator Tim Scott (R-SC) expressed concerns about the ramifications of providing financial resources to Iran, stating, “Every dollar this administration gives to Iran is another dollar that will be used against our sons and daughters.” He criticized the administration for reducing barriers to fund transfers through mechanisms like electricity waivers and licenses.
Every dollar the Biden admin gives Iran access to is another dollar that could harm our soldiers.
It’s an honor to represent many service members, their families, & veterans in South Carolina – that’s why the admin’s actions are so hard to stomach. Today, I pushed back. WATCH: pic.twitter.com/aNhTwF9OET
— Tim Scott (@SenatorTimScott) April 9, 2024
The criticism intensified as senators highlighted the link between Iranian-funded terrorism and recent attacks, such as the ongoing conflict in Gaza. Senator John Kennedy (R-LA) accused the Biden administration of acting as Iran’s “best friend,” emphasizing that the funds provided could be used to procure weapons aimed at targeting Americans and their allies.
The Biden admin has repeatedly waived sanctions on Iran, and they just did it again—6 weeks after Iran killed 3 American soldiers.
Every dollar Pres. Biden gives Iran access to will support terrorism aimed at Americans and our allies. pic.twitter.com/aLEoGqLovn
— John Kennedy (@SenJohnKennedy) April 9, 2024
During the hearing, Deputy Secretary of the US Treasury, Adewale O. Adeyemo, acknowledged the risk associated with providing funds to Iran, stating, “any dollar” made available to Iran “will go towards their violent activity before they deal with their people.” He emphasized the regime’s prioritization of entities like the Islamic Revolutionary Guard Corps (IRGC) over humanitarian concerns, citing the misuse of funds for malign activities.
