U.S. Takes Steps to Formalize Prisoner Exchange with Iran and Unfreeze $6 Billion of Iranian Assets

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The Biden administration has paved the way for the liberation of five U.S. citizens imprisoned in Iran. It has done so by granting a comprehensive waiver that allows international banks to move $6 billion in Iranian funds currently frozen in South Korea to Qatar, without facing repercussions from U.S. sanctions. Simultaneously, the administration has consented to the release of five Iranian nationals who are in custody in the United States.

The U.S. Secretary of State, Antony Blinken, authorized the sanctions exemptions last week. This authorization comes a month following the preliminary agreement between U.S. and Iranian representatives. Congress, however, was only briefed on the decision this Monday, as indicated by an official document acquired by The Big Big News.

Although the basic terms of the agreement were already public knowledge, this is the first instance the U.S. administration confirmed it would free five Iranian inmates as part of the arrangement. The identities of these prisoners have yet to be disclosed.

The newly issued waiver is expected to face scrutiny, particularly from Republican circles and others who argue that this action may invigorate the Iranian economy, at a time when Iran is perceived as an escalating threat to American military forces and allies in the Middle East.

The waiver effectively ensures that banks in Europe, the Middle East, and Asia will not be in violation of U.S. sanctions when they facilitate the transfer of these frozen funds from South Korea to the Central Bank of Qatar. There, the money will be reserved for Iran’s acquisition of humanitarian goods.

The $6 billion fund transfer was the linchpin in securing the release of American prisoners. Four out of the five detainees have already been shifted from Iranian prisons to house arrest as of last month, while the fifth was already under house arrest.

The waiver was necessary because numerous U.S. sanctions targeting foreign banks engaged in transactions beneficial to Iran had made several European nations hesitant to participate in the fund transfer. Blinken’s sanction waiver aims to alleviate such apprehensions.

Sources acquainted with the negotiation procedures anticipate that the release of the detainees could occur as early as the coming week.

The imprisoned Americans include Siamak Namazi, detained since 2015 and later condemned to a 10-year prison term on spying charges that have been globally criticized; Emad Sharghi, a venture capitalist also sentenced to 10 years; and Morad Tahbaz, a British-American environmentalist of Iranian descent who was arrested in 2018 and received a 10-year sentence. The identities of the remaining two prisoners remain undisclosed.

Blinken stated, “In order to expedite their liberation, the U.S. has agreed to release five Iranian citizens currently detained in the United States and to enable the transfer of approximately $6 billion in Iranian funds held in South Korea to restricted accounts in Qatar, earmarked solely for humanitarian trade.”

This waiver applies to financial institutions located in South Korea, Germany, Ireland, Qatar, and Switzerland.

Blinken further clarified, “I have determined it aligns with the U.S. national security interests to waive sanction impositions on foreign financial institutions primarily operating under the jurisdictions of Germany, Ireland, Qatar, the Republic of Korea, and Switzerland. This is to the extent required for these institutions to participate in transactions effective from or after August 9, 2023.”

The exemption extends to transactions involving entities like the National Iranian Oil Company and the Central Bank of Iran. These entities are authorized “to move funds from accounts in South Korea to accounts in Switzerland and Germany, and from there to accounts in Qatar, for the purpose of carrying out additional humanitarian transactions, as per guidelines from the U.S. Government,” as Blinken elaborated.

Frequently Asked Questions (FAQs) about Prisoner Exchange with Iran

More about Prisoner Exchange with Iran

• U.S. Department of State Official Announcement
• Congress Briefing on Iran Sanctions Waiver
• Background on U.S.-Iran Relations
• Overview of U.S. Sanctions on Iran
• Profile of American Detainees in Iran
• Analysis of the Impact of Sanctions on Iranian Economy
• Humanitarian Trade Regulations with Iran
• Reactions to the Prisoner Exchange Deal
• International Law and Prisoner Exchanges
• The Big Big News Original Article