New Act Mandates Detailed Reporting on $6 Billion in Iranian Funds and Tightens UN Diplomatic Travel

The "No Paydays for Hostage-Takers Act" is essentially Congress putting the Executive Branch on a very short leash regarding anything to do with Iran, sanctions, and especially hostage-taking. This isn't just a feel-good policy statement; it creates heavy, mandatory reporting requirements and forces the President to make public decisions about who gets sanctioned and why.

The $6 Billion Watchdog

Remember the $6 billion in Iranian funds that were unfrozen and moved from South Korea to restricted accounts in Qatar? This bill makes sure everyone knows exactly what’s happening with every penny. Starting 90 days after the law passes, and then every six months for the next six years, the President has to send Congress a deeply detailed, itemized list of every transaction made using that money (SEC. 4). This includes who was involved, which banks were used, and what goods were bought. If you are one of the financial institutions managing these funds, get ready for an audit that makes tax season look like a picnic.

Crucially, the President must certify whether there is credible evidence that any of those funds were used for non-humanitarian purposes or, even more subtly, whether using those funds allowed Iran to free up its own budget to spend more on defense or "harmful foreign activities" (SEC. 4). This provision aims to close a common loophole where funds released for humanitarian aid indirectly finance military spending, forcing the administration to publicly own that assessment.

Sanctions: No More Hiding in the Paperwork

This Act formalizes the process of going after the specific individuals involved in wrongful detentions. Every year for six years, the President must review the last 10 years of cases where Iran held a U.S. national hostage and identify every foreign person complicit in that activity (SEC. 5). The report then has to state whether sanctions under the existing Robert Levinson Act have been applied to those individuals or if they will be applied within 30 days.

If the administration decides not to sanction someone identified as a hostage-taker, they must provide a detailed legal justification explaining exactly why the sanctions were waived (SEC. 5). For the families of those detained, this means the government can no longer quietly ignore or delay applying sanctions; they must either act or publicly explain the political or legal reason for inaction. It’s a massive transparency boost aimed at ensuring accountability for those who target Americans.

Tightening the Diplomatic Loophole

Perhaps the most direct impact on daily diplomatic life comes from Section 6, which targets Iranian diplomats coming to the U.S. for United Nations business. Congress is updating the criteria for denying visas, specifically adding that if an Iranian diplomat has been sanctioned under existing counter-terrorism or proliferation Executive Orders (13224 or 13382), they should be denied entry (SEC. 6). While the U.S. has always had the right to limit travel for security reasons, this provision explicitly uses existing sanctions lists as grounds for denial, making it easier to shut the door on specific individuals.

This means Iranian diplomats and their families working at the UN will face increased scrutiny and travel restrictions, potentially straining diplomatic functions and increasing friction between the U.S. and Iran at the UN. For the State Department, it adds another layer of complexity to managing international obligations while balancing national security concerns.

The Travel Warning and Deterrence Strategy

Finally, the bill mandates a review of whether U.S. passports should be declared invalid for travel to Iran (SEC. 9). The Secretary of State must report annually on whether travel to Iran still poses an "immediate danger" to U.S. travelers, a power previously used to restrict travel to North Korea. This isn't a ban, but it’s a serious escalation of the travel warning, potentially impacting journalists, academics, or anyone with dual citizenship who might need to travel there.

On the policy front, the President must develop a comprehensive strategy within six months to deter future hostage-taking (SEC. 10). This strategy must clearly lay out the penalties the U.S. will use and, critically, detail the U.S. policy forbidding ransom payments. This aims to create a clear, unified front—both domestically and with allies—to ensure that foreign adversaries know that taking an American citizen will only result in severe consequences, not a payday.