Obama administration used NY Federal Reserve and European banks to funnel money to Iran

The Washington Free Beacon has reported that a member of the House Intel Committee is alleging that the Obama government is funneled around $1.7 billion in taxpayer money to Iran that used the New York Federal Reserve and some European banks to complete the process, reveals new information acquired by a legislator.

GOP Representative and a member of the House Intelligence panel Mike Pompeo was informed by the Treasury Department the originally a payment of $400 million was made to Iran via the NY Federal Reserve Bank. The money was then converted to Swiss francs and transferred to an account at the Swiss National Bank, shows a facsimile of the communication.

The files show that following the transfer of the money, “FRBNY withdrew the funds from its account as Swiss franc banknotes and the U.S. Government physically transported them to Geneva” before personally supervising the transfer to an agent of Iran’s central bank.

The former Obama administration has been under fire for the transfer of a large sum of money to Iran, a state that shortly after receiving the money released several U.S. hostages. Many have seen the exchange as a ransom.

The payment has been carefully looked into by Congress for some tie now, claiming that the administration is rejecting some of the requests that demand more information about the exchange with Iran.

“By withholding critical details and stonewalling congressional inquiries, President Obama seems to be hiding whether or not he and others broke U.S. law by sending $1.7 billion in cash to Iran,” stated Pompeo. “But Americans can plainly see that the Obama administration laundered this money in order to circumvent U.S. law and appease the Islamic Republic of Iran.”

As the story unfolds before our eyes, Congressmen like Pompeo and Cruz are growing increasingly suspicious of the transfer, believing it could mean Obama’s administration channeled money so that Iran can be granted quick access.

“Think about this timeline: the U.S. withdraws $400 million in cash from the Swiss National Bank and then physically transports it to another city to hand-off to Iranian officials—three days before Iran releases four American hostages,”Pompeo added. “But it gets worse: less than a week after this, the U.S. again sends hordes of cash to Iran.  As we speak, Iran is still holding three more Americans hostage and I fear what precedent this administration has set.”

The original ransom with Iran was made on January 14, 2016, when the U.S. made a $400 million payment, Pompeo found from information provided by the Department of Treasury.

“For the first settlement payment in January, Treasury assisted the Defense Finance and Accounting Services (DFAS) in crafting a wire instruction to transfer the $400 million in principal from the Iran FMS [Foreign Military Sales program] account on January 14, 2016,” the documents show.

“Treasury worked with DFAS and the Federal Reserve Bank of New York (FRBNY), which was acting as Treasury’s financial agent, so that the funds were converted from dollars to Swiss francs and credited to an FRBNY account at the Swiss National Bank (SNB), which is the central bank of the Switzerland [sic],” the files read.

As we said before, not long after the ransom, Iran released the U.S. hostages.

To read full story as reported by the Washington Free Beacon, click here



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