The Shurat Hadin Israel Law Center, which represents Israelis with American citizenship, sent a letter to U.S. congressmen this week to protest the transfer of $1.7 billion in foreign hard currency to Iran as part of the nuclear deal.
The $1.7 billion was demanded by Iran as leftover interest from business deals between the countries prior to the Islamic Revolution in 1979. U.S. law, however, prohibits the transfer of such funds before the deduction of compensation payments to families of American citizens wounded in terrorist attacks either carried out or supported by Iran.
Shurat Hadin Director Nitsana Darshan-Leitner said, "The secrecy surrounding the transfer of these funds was part of the White House's effort to conceal the erasing of its debts to Iran, with compensation money intended for those who have been hurt by its terrorism."
Fox News reported earlier this month that the Obama administration secretly transferred the sum around the time four American prisoners were released -- and it was far more than the $400 million initially reported.
Republicans have called the payment "ransom."
Congressional officials told the Wall Street Journal that the remaining $1.3 billion was paid in two more installments, delivered on Jan. 22 and Feb. 5, just days after the initial prisoner release.
According to the U.S. Treasury, the cash payments were necessary because of the "effectiveness of U.S. and international sanctions," which isolated Iran from the international finance system. The payments were made in Swiss francs, euros and other currencies. The $1.3 billion represented estimated interest on the Iranian cash the U.S. had held since the 1970s.
On Sept. 6, Sen. Marco Rubio and Rep. Ed Royce introduced bills that would curb such payments.
"The U.S. government should not be in the business of negotiating with terrorists and paying ransom money in exchange for the release of American hostages," Rubio said in a statement at the time.
The senator’s proposal would bar the U.S. government from paying ransom money and prohibit further payments to Iran from the so-called Judgment Fund until Iran returns the "ransom money" and pays American victims of Iranian terrorism.
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