United States Financial System Protection Act of 2016

Floor Speech

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Mr. ELLISON. Mr. Speaker, I strongly oppose the Financial Services Protection Act of 2016 (H.R. 4992). Unfortunately, I could not be in DC to vote against the bill as I was home in Minneapolis for the funeral of Philando Castile.

This bill undercuts the Joint Comprehensive Plan of Action (JCPOA), also known as the Iran nuclear deal, by disrupting permissible financial transactions between Iran and the rest of the international community that occur completely outside the U.S. financial system. The Financial Services Protection Act of 2016 accomplishes this by reapplying secondary sanctions barring Iranian access to U.S. dollars in all situations, even in exchanges that do not involve a U.S. bank or pass through the U.S. financial system. This provision effectively subjects non-U.S. banks to the restrictions imposed on U.S. banks regarding dollar-denominated transactions with Iran.

This particular sanction barring all Iranian access to the U.S. dollar was lifted on the JCPOA's Implementation Day in return for Iran taking significant steps to meet its nuclear-related commitments, as verified by the International Atomic Energy Agency (IAEA). If this sanction were to be re-imposed, it would make Iran's reintegration into the global financial system incredibly difficult and likely negate much of the relief promised by the JCPOA.

In the Financial Services Protection Act of 2016 becomes law, our partners and Iran would both have reason to question our commitment to the nuclear deal, and Iran would likely seriously question the continued benefits of compliance with the nuclear deal. Therefore, the provisions contained within this bill could open a path for Iran to restart its nuclear program. This would put the nuclear deal at risk, undermine our national security interests, and significantly damage U.S. credibility and leadership abroad.

The JCPOA is a historic diplomatic achievement. It has not only constrained Iran's nuclear program and led to the dismantlement of key components of the program, but also subjected the program to unprecedented verification and monitoring requirements.

Simply put, the JCPOA ensures that Iran's nuclear program is and continues to be peaceful. As long as Iran continues to meet its commitments, we too must keep our commitments. Thus I oppose this bill.

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