This bill rescinds waivers and licenses that allowed Iran to access funds held in South Korea and limits the President's ability to grant similar waivers or licenses in the future.
August Pfluger
Representative
TX-11
This bill rescinds a waiver that allowed the transfer of funds from South Korea to Qatar, as well as any related licenses issued by the Treasury Department. It also prevents the President from reissuing similar waivers or licenses for the same purpose. Additionally, the bill prohibits the President from waiving restrictions or issuing licenses that would allow Iran to access or benefit from certain restricted accounts.
Bill Moves to Block Specific Iran Fund Access, Rescinds South Korea-Qatar Transfer Waiver
This legislation takes direct aim at specific financial channels linked to Iran. It formally terminates a waiver issued September 11, 2023, which permitted funds held in South Korea to be transferred to Qatar for Iran's potential use, citing authority from existing laws like the National Defense Authorization Act (NDAA) for Fiscal Year 2012 and the Iran Freedom and Counter-Proliferation Act of 2012. The bill also cancels any associated licenses from the Treasury Department's Office of Foreign Assets Control (OFAC) that facilitated this specific transfer.
Cutting Off the Tap and Tying Hands
The core action here is twofold. First, it shuts down the specific pathway established by the September 2023 waiver for Iranian funds moving from South Korea via Qatar. Think of it as closing a particular gate that allowed money to flow under specific conditions. Section 1 explicitly prevents the President from issuing similar waivers or licenses for the same purpose in the future, effectively removing this specific tool from the executive branch's foreign policy toolkit regarding Iran.
Broader Account Restrictions
Beyond the specific South Korea-Qatar waiver, Section 2 casts a wider net. It prohibits the President from using waiver powers or issuing licenses that would grant the Iranian government or any Iranian person access to, or benefit from, certain accounts set up under a specific provision of the 2012 NDAA (Section 1245(d)(4)(D)(ii)(II)). While the bill doesn't detail the exact nature or typical use of these accounts, restricting access means potentially limiting Iran's ability to utilize funds held under these specific international financial arrangements.
Real-World Ripples
The immediate effect is clear: the designated funds from South Korea, intended for transfer via Qatar, are halted. This directly impacts Iran's access to those specific assets. The broader restriction on presidential waivers for certain NDAA accounts could limit Iran's access to other funds held internationally, potentially affecting its ability to conduct transactions, even those typically permitted under sanctions regimes (like humanitarian trade, though the bill doesn't specify the exact use of these accounts). This move also signals a tightening of financial pressure and limits the administration's flexibility in using waivers as diplomatic leverage or for facilitating specific, previously allowed transactions involving Iran.