US Sends Pallets of Cash to Iran Worth $400 Million

The US government sent pallets of cash to Iran worth $400 million, a move that raised eyebrows and sparked controversy. This cash was meant to settle a decades-old dispute over a failed Iranian arms deal from the 1970s.

The $400 million was part of a $1.7 billion settlement, which included $2.8 billion in interest that had accrued over the years. This deal was reached after years of negotiations between the US and Iran.

The cash was loaded onto planes and flown to Iran in January 2016, where it was received by Iranian officials.

On a similar theme: Pallets of Cash to Iraq

The U.S. paid $1.3 billion in interest to Iran in January to resolve a decades-old dispute over an undelivered military sale.

This payment was made two days after the administration allowed $400 million in cash to fly to Tehran, which was paid in euros, Swiss francs, and other foreign currency.

The $400 million principal was paid in pallets of cash because the U.S. and Iran didn't have a banking relationship after years of nuclear-related sanctions.

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The interest payments were made to Iran in a "fairly above-board way", using a foreign central bank, according to a senior U.S. official involved in the negotiations.

The money came from a little-known fund administered by the Treasury Department for settling litigation claims, known as the Judgment Fund.

The U.S. previously paid out $278 million in Iran-related claims by using the fund in 1991.

The $1.3 billion payment involved 13 separate payments of $99,999,999.99 and a final payment of about $10 million.

The Treasury Department kept the individual transactions under $100 million, but the reason for this is unclear.

The payment settles a dispute over a $400 million payment made in the 1970s by the U.S.-backed shah's government for military equipment that was never delivered.

The U.S. and Iran agreed that the $400 million would be the interest on the original payment over the decades, which is why the U.S. paid $1.3 billion in interest.

The Obama administration said the payment was not a ransom, but rather a settlement of a long-standing debt.