U.S. administration looks to cut Iran’s access to gold
Democrats appeared eager Wednesday to poke holes in the
seriousness of President Obama's vow to deter Iran from developing
a nuclear warhead, raising tough questions about whether the White
House is squeezing hard enough on sanctions against the Islamic
Republic's economy, the Washington Times reported.
"Why haven't we sanctioned all Iranian banks? You've done 23. Why
haven't you done the rest?" Rep. Brad Sherman, California Democrat,
demanded from two senior administration officials appearing before
the House Committee on Foreign Affairs.
David S. Cohen, the Treasury Department's undersecretary for
terrorism and financial intelligence, responded that 28 Iranian
financial institutions have been sanctioned on grounds that there
was "evidence that they have either supported Iran's nuclear
program or supported its international terrorist activity."
Mr. Sherman responded that since "all banks are operating under
regulation and control of the Iranian government", they "all have
to be sanctioned immediately".
Earlier, the Undersecretary of State for Political Affairs Wendy
Sherman, who had vowed to the committee that the Obama
administration is "absolutely pedal to the metal" with regard to
sanctions on Iran and preventing Tehran's pursuit of a warhead.
During Wednesday's House hearing and a similar hearing earlier in
the day before the Senate Committee on Foreign Relations,
Republicans and Democrats called on the White House to get tougher
on Iran.
Rep. Theodore E. Deutch, Florida Democrat, warned that "the
ultimate bar for success of sanctions is Iran ending its nuclear
program."
He noted that thus far the U.S. is "no closer to stopiing Iran's
brutal human rights abuses, its support for Syrian regime, which
unfortunately leaves many to wonder how the U.S. policy of
sanctions and diplomacy ultimately can work".
Such statements overshadowed the claims of success made during the
hearing by Ms. Sherman and Mr. Cohen, the latter of whom said
current sanctions on Iranian banks, coupled with the
administration's push for a global embargo on Iranian crude oil,
have "imposed a very significant strain on the Iranian regime."
With Iran's currency already hit hard by European and Asian
participation in the U.S.-led embargo of Iranian crude, Mr. Cohen
asserted that his staff is broadening its efforts to include
blocking the movement of pure gold into the Islamic republic.
"I can assure you that we are looking very, very carefully at any
evidence that anyone outside Iran is selling gold to Iran," he
said.
The remark came after Rep. Edward R. Royce, California Republican
and the Foreign Affairs Committee's chairman, asked whether the
administration was aware of recent reports indicating an uptick in
the flow of gold into Iran.
"With its currency now in free fall, the Iranians desperately need
gold," said Mr. Royce, who noted that a U.S. law authorizing the
Obama administration to sanction anyone selling gold to citizens
inside Iran does not take effect until July 1.
With existing U.S. law only allowing sanctions on the sale of gold
directly to the Iranian government, Mr. Cohen told lawmakers the
administration is keeping a close eye on the situation.
While Mr. Cohen acknowledged that U.S. authorities have "no
question that there is gold going from Turkey to Iran," he said
that "in large measure what we're seeing is private Iranian
citizens buying gold as a protection to the falling value" of
Iran's currency, the rial.
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