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President Obama Violated the Law with His Ransom Payment to Iran Read more at:



The president hoped to camouflage what he knew to be against the law in his dealings with Iran. Did it ever occur to President Obama to ask why he couldn’t just cut a check to the Iranian regime? Outrage broke out this week over the revelation that Obama arranged to ship the mullahs piles of cash, worth $400 million and converted into foreign denominations, reportedly in an unmarked cargo plane. The hotly debated question was whether the payment, which the administration attributes to a 37-year-old arms deal, was actually a ransom paid for the release of American hostages Tehran had abducted. It is a waste of time to debate that point further. The Iranians have bragged that the astonishing cash payment was a ransom — and Obama has been telling us for months that we can trust the Iranians. The hostages were released the same day the cash arrived. One of the hostages has reported that the captives were detained an extra several hours at the airport and told they would not be allowed to leave until the arrival of another plane — inferentially, the unmarked cargo plane ferrying the cash. The reason American policy has always prohibited paying ransoms to terrorists and other abductors is that it only encourages them to take more hostages. And, as night follows day, Iran has abducted more Americans since Obama paid the cash. No matter how energetically the president tries to lawyer the ransom issue, if it looks like a duck, and quacks like a duck . . .  More worth examining is why the transaction took the bizarre form that it did. To cut to the chase, I believe it was to camouflage — unsuccessfully — the commission of felony law violations. The Wall Street Journal has reported that the Justice Department strongly objected to the cash payment to Iran. As we shall see, that should come as no surprise. What is surprising is the Journal’s explanation of Justice’s concerns: Department officials, it is said, fretted that the transaction looked like a ransom payment. I don’t buy that. It is not a federal crime to pay a ransom; just to receive one. Our government’s stated disapproval of paying ransoms is a prudent policy, not a legal requirement. The Justice Department’s principal job is to enforce the laws, not to ensure good policy in foreign relations. It seems far more likely that Justice was worried that the transaction was illegal. If they were, they had good reasons.

At a press conference Thursday, Obama remarkably explained, “The reason that we had to give them cash is precisely because we are so strict in maintaining sanctions and we do not have a banking relationship with Iran.” Really Mr. President? The whole point of sanctions is to prohibit and punish certain behavior. If you — especially you, Mr. President — do the precise thing that the sanctions prohibit, that is a strange way of being “so strict in maintaining” them. Now, the sanctions at issue exclude Iran from the U.S. financial system by, among other things, prohibiting Americans and financial institutions from engaging in currency transactions that involve Iran’s government. Contrary to the nuclear sanctions that Obama’s Iran deal (the “Joint Comprehensive Plan of Action” or JCPOA) attempts to undo, the sanctions pertinent here were imposed primarily as a result of Iran’s support for terrorism. That is significant. In pleading with Congress not to disapprove the JCPOA, Obama promised lawmakers that the terrorism sanctions would remain in force.

Terrorism-related sanctions against Iran trace back to the early 1980s, shortly after the jihadist regime overthrew the shah, stormed the American embassy, took hostages, and triggered Hezbollah’s killing sprees. But the sanctions most relevant for present purposes stem from President Clinton’s 1995 invocation of federal laws that deal with national emergencies caused by foreign aggression. Clinton concluded that Iran had caused such an emergency by, among other things, “its support for international terrorism.” Note that this was even before Iran killed 19 members of the U.S. Air Force in the 1996 Khobar Towers bombing in Saudi Arabia. To this day, Iran remains on our government’s list of state sponsors of terrorism. Clinton’s state-of-emergency declaration has been annually renewed ever since. Let that sink in: Notwithstanding Obama’s often shocking appeasement of Tehran, he has been renewing the state of emergency since 2009 — most recently, just five months ago. Indeed, it is worth noting what the Obama State Department’s latest report on “State Sponsors of Terrorism” has to say about Iran. This is from the first paragraph: Designated as a State Sponsor of Terrorism in 1984, Iran continued its terrorist-related activity in 2015, including support for [Hezbollah], Palestinian terrorist groups in Gaza, and various groups in Iraq and throughout the Middle East. In 2015, Iran increased its assistance to Iraqi Shia terrorist groups[.] . . . Iran used the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) to implement foreign policy goals, provide cover for intelligence operations, and create instability in the Middle East. The IRGC-QF is Iran’s primary mechanism for cultivating and supporting terrorists abroad. It is due to this atrocious record that Congress pressed Obama to maintain and enforce anti-terrorism sanctions, which the administration repeatedly committed to do. This commitment was reaffirmed by Obama’s Treasury Department on January 16, 2016, the “Implementation Day” of the JCPOA. Treasury’s published guidance regarding Iran states that, in general, “the clearing of U.S. dollar- or other currency-denominated transactions through the U.S. financial system or involving a U.S. person remain prohibited[.]” (See here, p.17, sec. C.14.) I’ve added italics to highlight that it is not just U.S. dollar transactions that are prohibited; foreign currency is also barred. Obama’s cash payment, of course, involved


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