And boys, different ethnic groups. Those votes can show the way, can solve problems. Not only for our country, but for the whole region and the whole world. Your votes on the seventh will be a vote for logic, will be a vote for love, it will be a vote to safeguard and stand up for your rights. That vote, on the election day would mean that people are interested in rebuilding the country based on dialogue. It is not for those who want to turn the back on the law. We are not voting for those who go for bickering and wrangling and extremism. We vote for modern and free iran. We will build iran. The grandeur of the iranian nation, our national grandeur, we will bring that grandeur to the max, to a place where it deserves, through unity and with gods grace. May god bless you all. I would also like to thank our foreign guests attending the ceremony. Every election cycle, we are reminded how important it is for citizens to be informed. Cspan is a home for political junkies and a way to track the government. There are a lot of cspan fans up on the hill. My colleagues will say, i saw you on cspan. There is so much more that cspan does to make sure that people outside the beltway make sure people know what is going on inside it. Nuclear agreement was the focus of a House Foreign Affairs meeting this week. , lead coordinator for Irans Nuclear implementation of the state department. This hearing will come to order. This morning, the committee continues our extensive oversight of the Obama Administrations Nuclear Agreement with iran and its consequences for the National Security of the United States, its consequences also for our allies. As many know here, i feel those consequences are quite higher. January 16 was implementation day. That marked and historic turning point in the middle east, because in a snap, irans record pariah statusts was dropped, and this reconnected iran to the International Trade and financial system. Now, with access to 100 billion in unfrozen access, iran has instantly become the dominant country in the region. Allregime has achieved this without having to and its aggression against its neighbors. It still calls for the overthrow of the government in bahrain and saudi arabia and other regional states. It has done it with without swearing off on its support for terrorism. And the iranian economy was , frankly, prior to this hemorrhaging. , hemorrhaging because the sanctions we had pushed had worked. The sanctions we pushed in 2010 and had led by 2013 to the 2012, implosion of the economy there. Now now, irans leader are predicting swift growth. They are probably right. Because we see these European Countries that have observed that the sanctions dam is broken. They are sprinting in to the Iranian Market to cut billions in deals and to invest there. They are making a mockery of the administrations claim that sanctions could snap back if iran cheats. You tell me if these companies are going to turn back when iran stiffs international inspectors. The revolutionary guards, already irans most powerful economic actor. Those are the words of our Treasury Department. The most powerful economic actor why would that be the iranian guards . Because they are the ones that nationalize the construction firms and the companies. They are only going to grow more powerful with this Additional International investment. Just hours after the agreements implementation, the regime disqualified 2967 of roughly 3000 moderate candidates from running in the parliamentary elections later this month. After the administration finally responded to irans missile test with very minor sanctions and very diminished sanctions, irans moderate president , as hes called, ordered the military to accelerate its Intercontinental Ballistic Missile program. Thats aimed here at the United States. It is designed to carry a nuclear payload, the icbm program. The ayatollah says it is every militarys man mission to help mass produce icbms. Now, worse the administration , continues to go out of its way to appease the Iranian Regime. They even thanked iran after it recently seized ten u. S. Sailors in a highly provocative act, if you ask me. When was the last time weve seen u. S. Sailors taken off of their ship with their hands behind their head, guns trained on them, their ship is stripped, photographs of one of the photographs for propaganda purposes taken photographs of , one of the sailors crying appearing in the iranian press, and medals given to those iranian agents who took them in to custody. It appears the administration is determined to protect this deal at all costs. And just look at how the Obama Administration backed away from a new bipartisan u. S. Law ending visa waiver travel for those who have traveled to iran, iraq, syria after an outcry after , an outcry from the Iranian Regime. The administration has now decided to basically ignore the law and irans ongoing sponsorship of terrorism by stretching a narrow National Security waiver far beyond reason. President obama signed this bill in to law. But he has essentially allowed the Supreme Leader to veto it. In an unusual move, the state department settled a decades old financial settlement the day after implementation day, sending the Iranian Regime a check for 1. 7 billion. As you know, mr. Ambassador, the committee eagerly awaits answers from the state department to the many questions surrounding that surprise payment. The administration had countless opportunities to seek Committee Input to this matter in advance, but purposively did not do so. Thats the conclusion that i have to reach. Iran has never complied with any of its past Nuclear Agreements. Were watching this to see if this time, it will be different. But even if iran meeting all of the administrations expectations, in a few short years, the accord will leave it the dominant power in the middle east and only steps away from the capability to produce Nuclear Weapons on an industrial scale. All the while this is the most vexing part to me all the while, irans leaders continue on friday, to chant death to america. And many of us are struggling to see how this tilt toward iran makes us safer. I now recognize the Ranking Member for any opening comments you may have. Thank you, mr. Chairman, and thank you again for calling this hearing. Ambassador welcome to the , Foreign Affairs committee. I know your current role is an american diplomat. No matter whether we supported the iran deal laura posted, we lucky to have you as our point person on implementation. Mr. Smith, thank you for your service. Your office has led the way and cracking down on some of irans worst offenses. In my view, treasury could be doing more if we had an undersecretary for terrorism and financial intelligence. But the nomination of adam zooman is bogged down, despite the urgent need to cut off iran, isis, north korea, and others from their resources. The senate should confirm mr. Zooman immediately. This is far from the first time this committee has held a hearing on iran. We understand what the deal was and is. Todays hearing is different from any weve had before , because the iran deal has been implemented. Nuclear related sanctions have been lifted. Iran no longer has enough fuel to make a Nuclear Weapon. Again, no matter what anyones position was on the iran deal, and i strongly opposed the iran deal, we have to decide which course to chart. One option is to continue to bring up legislation designed to undermine the deal. The house have to build like this already largely along party , lines. These are symbolic votes. They will never become law. In my view, they are not a valuable use of the committee or congresss time. I dont think we should treat dealtan deal the way we with the Affordable Care act, voting again and again to repeat it. Again, i didnt like it. I voted against it. But, it passed. There is another option. The other option, the one i support, is to work in a bipartisan manner to hold irans feet to the fire and make sure there are serious consequences. Im confident we can work across the aisle to find Common Ground that we can build on. Iran remains the worlds most active state sponsor of terror and a chronic human rights abuser. Iran continues to break in break International Law with impunity. We dont trust iran. That. Licies must reflect our policies must reflect that. Thats why im glad we slapped new sanctions on iran for testing mediumrange Ballistic Missiles last year, tests that were blatant violations of the nuclear deal. There are other problems we need to address. An iran freed from sanctions can spread more resources to bad actors throughout the region, strengthening the murderous assad regime, and supporting shiite militias in iraq. As the chairman pointed out, it is galling that after we sign an agreement with iran, their leaders continue to yell death to america. We need to Work Together on new legislation that will crack down on the other dangerous behavior of iran and sure up our allies and partners in the region. Ambassador mull and mr. Smith, i look forward to you about the implementation, the monitoring, and what else we can be doing with respect to iran to help make our country safer and enhance stability in the region. Iran had sanctions lifted because of the Nuclear Agreement. There are a lot of things that iran has not yet done, and a lot of bad things i think they are doing, that i think will warrant additional sanctions. It is not something we can turn a blind eye to, and we shouldnt. So, we need to figure out why we figure out the way we can be most effective, what we can do iran, outsideo the scope of the nuclear deal. During the nuclear deal, we were told we cant talk about anything else. We can only talk about the nuclear deal. Again, it is gulling. The frustration you heard from the chairman is the frustration that all of us have with the iranians and with their bad behavior and with their not changing at all after they signed the agreement showing no good faith whatsoever. Poking us in the eye. Continuing to walk on the line and walk over on the wrong way. We really must hold their feet to the fire. I look forward to your testimony, gentleman. Thank you, mr. Chairman. I yield back. Rep. Royce thank you. We are joined by a distinguished panel. We had ambassador mull. He serves as the lead coordinator for Iran Nuclear Limitation at the department of state. Prior to the appointment, ambassador mull served as the ambassador to poland and has executive secretary of the state department. Mr. Smith is the acting director of the office of foreign assets control at the Treasury Department. Fac, mr. Smithng o served as an expert at the United Nations al qaeda and taliban sanctions committee, and as a Trial Attorney at the department of justice. Without objection, the witnesses full statements will remain part of the record, and members here will have five calendar days to submit any statements or questions or extraneous material for the record. If you would, mr. Ambassador please summarize your remarks, and well go to you first. I appreciate the opportunity to be with you today to testify on the progress that weve had on implementing the joint comprehensive plan of action, or the jcpoa. This is a really important deal for americas security, and that of our friends and allies around the world. I welcome congresss oversight and partnership in making sure we get this exactly right. On january 16th, the International AtomicEnergy Agency issued a report verifying that iran had completed its key nuclear steps under the jcpoa, thus reaching implementation day. Those commitments signified that iran had dismantled twothirds of the centrifuge, including all of the most advanced machines and rolled back its Enrichment Program which had been growing over the past decade. It shipped out almost all about 25,000 pounds worth of its enriched uranium material. Iran can possess no more than 300 kilograms of up to 3. 67 for the next 15 years. Further iran removed the core of its iraq reactor and rendered it inoperable, cutting off the path by which iran could have produced significant amounts of weapons grade plutonium. Iran placed the Nuclear Program under the unprecedented and continuous verification and regime. Program under the unprecedented and continuous verification and regime. Using modern technologies like seals and enrichment monitors that can detect and report cheating. Have oversight of the entire Nuclear Fuel Cycle from enrichment to facilities and production plants ensuring that iran cannot divert Nuclear Materials to a potential program, covert program. Any goods and technology usable must now gopurposes through a procurement channel administered by the united council,curity creating yet another layer of transparency, oversight, and to Irans Nuclear program. Iran is now visually inclined. Visual protocol to the agreement with the iaea. Jcpoalong with the special provisions to address disputes regarding the access to an undeclared location ensures have all ofa will the access it needs to ongoing and verify irans commitments. A result of these actions and keeping with the deal on january states,e united european union, and the united liftedSecurity CouncilNuclear Related sanctions against iran allowing the resumption of some andrnational, commercial, investment activity with iran. With the commitments, we will not try to block the commercial activity that the jcpoa permits. We will be closely monitoring it to be ready to act with the existing authorities that we have as a government if that areort goals hostile to the interest with terrorism or the missile program. U. S. Sanctions on iran that are not Nuclear Related remain in effect. As evidenced just a few weeks ago when we designated for sanctions, a number of individuals and entities for supporting the Ballistic Missile no way, the jcpoa in limits our ability or will to to respond tos irans other destabilizing activities. Alliesprecisely why the and nations around the world support this deal. The threat of a nucleararmed iran. It gives the international tomunity unprecedented tools ensure the Nuclear Program remains exclusively peaceful forward, and it doesnt limit or ability to respond to the destabilizing policies and actions. Makes the world safer for all of us. Israeliew weeks ago, Defense Force chief of staff jcpoaledged that the reduces the immediate threat to israel because it quote rolls Irans Nuclear capability and deepens the monitoring capability of the International Community in to tehrans activities. Remarks, he said he believes that iran will make great efforts to fulfill their the bargain. It was not built on a prediction of the future. It is built on the solid regime. Working everyue day to confirm that iran is jcpoa up to its commitments or face the consequences. They look forward to continuing engage and with the congress in general on the important topic. I look forward to answers your today. Ns thank you. Thank you, ambassador. Mr. Smith. Mr. Smith good morning distinguished members of the committee. Thank you for the invitation to appear today before you to oncuss our actions implementation day of the joint comprehensive plan of action or efforts tond our enhance and enforce our iranrelated sanctions Going Forward. Ill be addressing the key steps that my office, the Treasury Departments Office of foreign ofac, took to or control the commitments on implementation day. Ill address the many iranrelated sanctions authorities that remain in place ourhow we approach responsibilities to enforce those authorities. Is a strong deal. It protects the National Security of the United States partners and allies overseas. Was aplementation day significant milestone of the for iranexchange completing the key nuclear equipments. We lifted Nuclear Related sanctions on iran. Our steps on implementation day only after atomic energynal agency verified that iran had completed its key nuclear the jcpoa. Under the deal gives us the necessary flexibility to respond to iran it fails to comply with the commitments, including the ability to fully snapback international and domestic sanctions. As the agency tasked with enforcing thend u. S. Economic sanctions, we are that eyed about the fact iran remains a state sponsor of terrorism and continues to in other destabilizing activities. We believe it is crucial to andinue to implement enforce the sanctions that remain in place. The unitedtation day states took action with respect to sanctions in two key areas. First and most significant to affect wait the are directedh towards nonu. S. Persons for activity outside of the u. S. Jurisdiction. Second area ya concerns the relative exceptions to the embargo on iran, pl