counterterrorism remains a cornerstone of our mission and i completed cyber security must be another. making tangible improvements to our nation cyber security is a top priority for me, and president obama before we leave office. two days ago the president announced his cyber security national action plan, which is the culmination of seven years of efforts by his administration. the plan includes a call for the creation of a commission on enhancing national cyber

security, additional investments in technology, federal cyber security, cyber education, new cyber 10 went in the and improved cyber infinite response. dhs has auroral-- role in zero most every aspect of this plan. as reflected in the 2017 budget request, we went to expand our cyber response team from 10 to 48 and double the number of cyber security advisers to make house calls to assist private sector organizations with in person customized cyber security assessment and best practices. building on dhs is stop, think, connect campaign we will promote public awareness on multifactor authentication and collaborate with underwriter laboratories others to develop a cyber security assurance program to test and certified network devices within the internet, such as your home alarm system,

refrigerator or even your pacemaker. last year we greatly expanded the capability of dhs national cyber security communications integration center. it increased its distribution of information, the number of vulnerability assessments conducted and the number of his-- incident responses and we build a system to automate the receipt and distribution of cyber threat indicators in near real-time speed and built this in a way that also includes privacy protection. we did this ahead of schedule. i have issued an aggressive timetable for improving federal civilian the cyber security, principally through two ths programs. the first is called einstein. einstein wanted to have the ability to detect and monitor cyber security threats in our federal civilian systems and are now in place across all federal civilian departments and agencies. einstein 38 is the newest

iteration of the system and has the ability to block potential cyber attacks on our federal system's. thus far e3 a has block 700,000 cyber threats and we are rapidly expanding this capability. about a year ago e3 eight covered only about 20% of our federal civilian network and in the wake of the opm attack in may last year i directed our cyber security team to make at least some aspects available to all federal departments and agencies by the end of last year. they met that deadline. now the system is available to everyone, 50% are actually online including opn and we are working to get all federal departments and agencies on board by the end of this year. the second program called continuous diagnostics and medication helps agencies detect and prioritize vulnerability in

their networks and in 2015 we provided cds centers to 95% of the federal civilian government and next year dhs will provide that second phase of cdm to the second phase of the civilian government and we have worked with 0mb and dni to identify government high-value systems and we are working aggressively with owners of the systems to increase their security. in september, dhs awarded a grant to the university of texas san antonio to work with industry to identify a common set of best practices for the development of information sharing and analysis organization or-- finally, i think congress for passing the cyber security act of 2015. this new law is a huge assist to dhs and our cyber security mission. we are in the process of implementing this new law now. turning to immigration and border security.

as i explained to both democrats and republicans, immigration policy must be two sides of the same coin. the resources we have to enforce immigration laws are finite and they must be used wisely. this is true of every aspect of law-enforcement and is referred to as prosecutorial discretion. with the immigration enforcement resources we have ice focus morse art-- sharply on public safety and border security and those are convicted of serious crimes or who are apprehended at the border are top priorities for removal. we will enforce the law in accordance with these priorities. accordingly, over the last several years deportation by ice has gone down. but, an increasing percentage of those deported are convicted criminals. in on increased percentage of those in immigration detention around 85% are in the top priority for removal.

we will continue to focus our resources on the most significant threats to public safety and border security. in furtherance of our public safety efforts in 2014, we did away with the controversial secure community program and replaced it with the new priority enforcement program. fixes the political and legal controversy in my judgment associated with secure community and enables us to take their-- into custody local-- from local law enforcement the most dangerous removable criminals and sends pep was created cities and counties that previously refused to work with secure communities are coming back to the table. of the 25 largest counties that refused to work with ice before, 16 are now participating in pep. in 2016, we want to get more to participate in because we are

asking ice immigration enforcement officers to focus on convicted criminals and do a job that is more in line with law enforcement, last year we were formed their pay scale accordingly and now these immigration officers are paid on the same scale as the rest of federal law enforcement. we have also prioritized the removal of those apprehended at the border. we cannot allow our borders to be open to illegal migration. over the last 15 years, our nation across multiple administrations has invested a loss and border security. this investment has yielded positive results. apprehension, which are an indicator of total attempts to cross the border illegally are fraction of what they used to be. in 2014, overall apprehension increased as we saw a spike in the number of families and unaccompanied children from central america during the spring and summer of 2014. that year the overall number of

apprehensions was 479,000 and across the government we responded aggressively and the numbers fell sharply within a short time. in fy 15 the number apprehended on the southwest border was 331,000 with the exception of one year and this was the lowest number since 1972. from july 2 december 2015 the number of migrants from central america began to climb again. in january, i announced a series of focused enforcement actions to take into custody and remove those who had been apprehended at the border in 2014 or later. then, ordered removed by an immigration court. i know this made a lot of people i respect and happy. as i said, we must respect the lot in accordance with our priorities and enforce it. in january, overlap pension on the southwest border dropped 36% from the month before.

at the same time, the number of unaccompanied children apprehended dropped 54% and the number of those of families dropped 55%. so far in february, the numbers have remained as this-- at this decreased level and this six week kline is encouraging, but does not mean we can dialback our efforts. we will continue to enforce the law. which includes those apprehended at the border in 2014 or later. there is the other side of the coin. new line enforcement policy the president and i announced in november 2014, makes clear the limited resources will not be focused on the removal of those who have committed no serious crimes have been in this country for years and have families here. under our new policy, these people are not priorities for removal, nor should they be. in fact, the president and i

went to offer to those who have lived here for at least five years, part parents of us citizens or lawful residence and have committed no serious crime the opportunity to request deferred action on a case-by-case basis, to come out of the shadows, get on the books and be held accountable. we are pleased the supreme court has agreed to hear the cases of texas versus united states, which involves the new deferred action policy. our immigration enforcement priorities, the ending of secure communities and the new deferred action policy now in the courts are among 10 executive actions the president and i announced in november 2014, to fix our broken immigration system. we have also issued a proposed rule to expand eligibility for provisional extreme hardship waivers of the three and tenure bars to a person's who statutorily qualify for a waiver.

the comic period is closed and we are preparing to issue the final rule on the waivers and we publish new guidance for public comment on extreme hardship requirements. the comment period is six gloat-- close. we are about to publish a final rule to strengthen the program that provides practical training for students in stem fields studying at us universities. we finalized a new rule that allows spouses of high skilled workers who are here in the united states under age for the says to a pipe or work authorization and we are working with the department of labor and other agencies to ensure for the protection of workers the consistent enforcement of federal labor employment and immigration laws. we are promoting an increasing access to citizenship through the new white house task force on new americans. the week of september 14 to 21,

we celebrated the stand a stronger commitment to sedition ship campaign and in that one week us eis naturalized 40000 people. we now permit credit cards as a payment option for naturalization fees. our overall policies to focus our immigration resources more effectively on threats to public safety and border security and within our existing legal authority do as much as we can to fix the broken immigration system. we are disappointed that congress has not been our partner in this effort. finally, we recognize that more border security and deportations may deter illegal migration, but they do not-- they do nothing to overcome the pushback factors that prompt us to people to flee central america in the first place. we prepared to offer vulnerable individuals fleeing the violence and central america a safe and

legal alternative path to a better life. we are expanding our refugee admissions program to help bulbul men, women and children and central america who qualify as refugees and we are partnering with the un high commissioner for refugees and nongovernmental organizations in the region to do this as soon as possible. this approach builds on our recently established central american miners program, which is now providing an in country refugee processing option for certain children with lawfully present parents in the united states. we are doing our part to address the syrian refugee crisis. us eis in conjunction with the department state is working hard to meet our commitment to admit at least 10000 syrian refugees by the end of this fiscal year. we will do this carefully, screening refugees in a multilayered and intense screen process involving multiple law enforcement national security

and intelligence agencies across the federal government. over the last year, director joe clancy of the secret service has done a tremendous job reforming his agency. including hiring a chief operation-- operating officer him outside of the secret service, altering the structure and management of the agency, ramping up efforts to hire new members of its workforce and expanding training opportunities. in 2016, we will continue to work on areas that still need improvement. with the help of congress in 2016, we will continue to rebuild the coast guard fleet. this year, as has provided funding for a national security cutter, design for the offshore patrol cutter and funding to continue production of our fast response cutter. as reflected in the president's 2017 budget request we will also seek 150 million were the design of a new heavy icebreaker at--

in recognition of the expanding commercial activity in the arctic. since 2012, our federal law enforcement training center has trained more than it quarter million federal, state and local officers and agents and at the same time continually updates its curriculum to address the biggest challenges facing law enforcement to include training for active shooter situations, in cyber forensics and human trafficking. in 2016, fema will continue to do its extraordinary job of supporting the american people and communities to prepare for, respond to and recover from the various disasters. seem a will continue to focus on efforts to enhance resilience and mitigation efforts before disaster strikes to prevent loss and save lives. we continue to promote lawful trade and travel and will continue to pursue the presence us-mexico high-level at high economic dialogue and his beyond

the border initiative with canada and are implementing a single window of a witch by december 2016, will enable the private sector to use just one portal to transmit information to 47 government agencies that exports and imports thereby eliminating over 200 different forms of streamlining the trade process. last week the secretary of commerce and i join the president of mexico to open a new six lane bridge near el paso that will replace a 70-- 78-year old tulane one and next week i will join the mexican secretary finance to an operate a pre-inspection pilot in laredo, texas. in conclusion,-- [laughter] >> according to time magazine, i have probably the hardest job in america. that is not true. the president has the hardest job in america.

but, i may rake in the top 10. i have a lot of challenges, a lot of problems and a lot of headaches. there is also far too much partisanship in washington and especially during an election year. politics has become a blood sport in this town. too often it is more important to score political points than a chief smarr, sound, government policy on behalf of the american people. through it all, i still love public service. i am dedicated to serving the american people, protecting our homeland and serving our presidents. i find inspiration in that merrick-- in the amazing stories of our workforce that i told you about at the beginning of this speech. i also find inspiration and strength in the weekly batch of letters i received from the american people who serve, particularly from school kids. here is one from a young man named brett shepherd. hand written in pencil.

to jay johnson. i just want to say i think you are doing a good job. [laughter] >> iran for class president in my government class. i ended up becoming the secretary of homeland security. [laughter] >> which, honestly i would rather be. president is not all it's cracked up to the. like brett, at this moment in the life of our nation there is nothing i would rather be then secretary of homeland security. it is and always will be the highlight of my professional life. in the time left to me in office , i pledge all of my energy to continue to protect the homeland and leave the department of homeland security and better place than i found it. thank you very much. [applause].

>> well, j, thank you for the longest and best received address in my tenure at the wilson center and a conclusion was great and to all who work in the department, thank you for your service and a late introduction to the newly mentioned principal deputy undersecretary for intelligence and analysis over in the corner, david grannis, who was former chief of staff to the intelligence committee, but more important and that a member of team harmon. time is short. the best trained people in the department. i used it to work for team harmon. i will only ask one question and then i will call on my dear friend homeland number two,

michael chertoff, to as the second question and then we will try to take a few more. so, my question is this: we have been predicting for years that there could be bombs on airplanes. we have fortunately foiled most of the plots. however, in two cases recently, but not in the united states and not on planes going dreck late to the united states, there have been bombs on airplanes. the first one was an egyptian airliner that blew up and crossed over the sinai and the second one was in somalia, just a week or so ago. it looked like and i think we think an airport employee, in fact, we have video helped a suicide bomber bring a computer on board that was in fact a bomb. he die. everyone else survived, miraculously. you addressed the issue of airport security. but, what additional details can

you give us about how intensely you are focused on the issue of airport employees catering and others bringing bombs on airplanes? >> well, the good news is we have a very proactive tsa administrator and i think a very proactive secretary of homeland security when it comes to aviation and airport security. we are focused on airport security, as i said, in my prepared remarks we reduced domestically the number of access points, more continuous screening of airline and airport personnel and just two days ago tsa issued further guidelines to build on that. right after the crash of metro jet 9268, we within a couple of days put in place further

security enhancements at certain airports in the region. i won't identify precisely which ones. around things brought on airplanes, we sent inspectors to these airports, not just the specific one, but a number of them in the region. i'm always concerned about not just responding to the last event, but the potential future events i'm a witch will not to the last event and so we are doing all of this. we are focused and we are considering more that we should be doing with respect to overseas airports. we have the ability to airlines, through our relationship with other countries to put out guidelines that influence the behavior of airport-- airport authority and security at overseas airports. in particular, last point of departure airports and those are mostly in europe, somewhere in

the middle east and we regulate those pretty carefully and the security at our last point of departure airports is pretty good. as i said in my prepared remarks i want to send our customs officers on the front end of the flights which is what is referred to as preclearance where we have this setup it has been very effective. but, the overall point here is that in anything we do in aviation security and airport security, you got to strike the right balance between the appropriate level of physical security and not overburdened the american public, the traveling public and making no lines unduly long. as i said in my remarks, because of the enhancements we have been pose over the last six, nine months, wait times have gotten longer, but i think he american public understands that and appreciates that. >> michael chertoff, we have a microphone coming.

>> first, let me say, secretary johnson, great talk and a great survey of what has been going on and what is to come. i know director klapper i think recently testified that there may be more violent jihadi now in the world then there have been at any previous time and also we have begun to see in san bernardino and paris, what i sometime called crowdsourcing of terrorism, people who are not necessarily trained in country, but are inspired to carry out a task. those are generally low signature, not quite as easy to detect as a large plot. i wanted to hear if you could expand a little bit on what we are doing with state and local governments and law enforcement and with the private sector to help them deal with this new model where we may not have passed traffic terrorist attacks , but we may have multiple low-level attacks in

various places, sequentially or at the same time. >> first of all, i am very proud of the fact that mike and i for the good of homeland security have struck a very good bipartisan relationships. last year at exactly this time when we were trying to get funding for our department and were looking at a government shutdown of our department, mike and tom ridge stood with me at an event where we highlighted the need to keep funding homeland security for the american people, so i really do appreciate mike. that is one. that terrorist inspired actor makes for a more complex homeland security challenge and it is very difficult to identify

this city over that city that could be at risk of an attack from a terrorist inspired actor. so, as you know, through our grantmaking we provide a lot of assistance to state and local law enforcement, provides state-level grants. we provide urban area security initiative grants, urban area grants, which we will announce in the next couple of days for 2016, and as i see this threat evolve, i think our relationships in our grants to state local law enforcement are becoming more and more importance. i have many points and you saw that in the graphic of highlighting active shooter training, active shooter training works. i have seen it work. i have seen videos of our very own personnel responding to events and responding on impulse

with how to-- what to tell the public and when you ask of them, why did you respond so quickly and they say we had packed-- active shooter training, so i know the value of it and i have been making a point of highlighting it, which is why went to the new york city event, the miami event last weekend and i will do more of this and when i spoke to the major county sheriff's last-- yesterday i said if you're not doing active shooter training you need to be. the key to active shooter training is very often because of the rapid response it will be multijurisdictional and multidisciplined. so, in the miami training last weekend, for example, you had a collection of police forces, first responders who were all converging on an event at the moment and we need to do more of that training and we need to support that kind of training. you know about rc-- it is almost always the case that when

someone self radicalize his there is someone in a position to know about it. the more we build bridges to communities, muslim communities in particular, the better off, i think, we will be and when i do these i always want to bring state and local law enforcement with the because they are the ones who more than the federal government's have their finger on the pulse of the community. >> on the subject of bipartisanship i've long said terrorists will not check our party registration up with a said. there are many questions and no time, so we will do a lightning round. the women in the green dress, the man in the middle in the red tie and in the back, the person and glasses right there-- you. those are the three. please just ask one short question. >> thank you.

originally president obama released 4.1 trillion us dollars budget for 2017 including more than $40.6 billion for the department of homeland security, which is a bit less than 2015. does this mean your department is facing less challenges and confronting terrorism and also, according to isis says it will attack us soil this year. how do you make sure to prevent that from happening? >> that was one and a half questions. >> the answer is-- >> way, we are doing all three at once. >> i have to remember. >> i will remember. it's your budget-- select the short answer is we have not-- we have to live within our budget limits in the budget agreement that was made. >> the homeland secretary is not listening to me. [laughter]

>> the man in the middle and then the one in the back. .. >> >> this new and this is alan

cybersecurity in the budget, is there evidence that stolen dated issues to access government systems with the intention of destroying or manipulating the data so the government can no longer rely upon its integrity? >> you get the prize for one question and. [laughter] >> the answer is i am not sure i can comment publicly we are always extremely vigilant the first question that tracksey heard from stephe,

the lead coordinator at the state department. the hearing is two hours and ten >> >> this meeting will come to order. this morning the committee continues our extensive oversight of the obama administration in nuclear agreement with iran and to the consequences of the national security of the united states for our allies as many know i feel those consequences are quite dire.

, jr. teesixteen was implementation day. to mark an historic turning point in the least because is it a snap the status was clear the pariah status was dropped in and reconnecting the end to the financial system and now with access to $100 billion of unfrozen assets and distinctions wiped away ivory and has instantly become the dominant country in the region. the regime has achieved this without ending aggression with the overthrow the government of baja raid and the regional states and has done it without swearing off support of terrorism indian

economy was hemorrhaging because the sanctions that we pushed in 2010 issued 2012 and 2013 led to the implosion of the economy. and now predicting swift growth because b.c. the european countries that are sprinting into the iranian market to cut billions of deals to invest and make a mockery of the administration's claim to snapback. if they cheat a unit you tell me if they will turn back when they have international inspectors.

in those other words of the department live with debbie? because they nationalize the construction in the company's. just hours after being greeted the implementation of roughly 3,000 from running in the parliamentary election. and after the administration finally responded to the missile test with very minimum sanctions the president ordered the military to accelerate the

intercontinental ballistic missile program. is designed to carry a nuclear payload. with the ayatollah and to mess produce is the administration continues to go out of its way to appease the iranian regime and after they recently was in a provocative act. wed was the last time we have seen u.s. sailors taken off their ship with their hayden's behind their heads? photographs for the purposes taken photographs of one of

the sailors crying and then medals given to those agents it is the tournament to protect this deal at no cost. with a bipartisan u.s. law for those who travel to iran and iraq after the outcry from the iranian regime. andy to stretch schaede national-security waiver. president obama resigned this into law to allow their rand supreme leader to veto.

and the state department settled a decades-old freddie until settlement the day after the implementation to send the iranian regime a check at $1.7 billion. as he eagerly awaits answers. into the many questions to have callouses opportunities to seek community employment in defense -- and they answered and it did not do so. that is a conclusion i have to reach. they never complied with any agreements there watching this to see if this time it will be different. but even if it meets all the expectations, in a few short

years the court will be that the dominant power in the middle east and only steps away to produce nuclear weapons on the industrial scale. all the while this is the most vexing part, iran leaders continue on friday to chant death to america and many are struggling to see how all the tilt makes us safer. >> thank you mr. chairman and for calling the hearing. i know the ambassador the matter of we support the everyone deal -- the iranian

deal. mr. smith thinks for your service. and for cracking down the treasury could be doing more of the members of financial intelligence despite the urgent need to cut off isis and north korea and iran from their resources. this is far from the first time we have held a hearing and we'll understand exactly what the deal was and is but today's hearing is distinctly different from any we have had before. but again the matter

anyone's position now to find which course to charge. is designed to undermine the deal. and in my view if they're not part of the times i don't take we should treat the deal to repeal that even though it is a settled issue. i didn't like get but it passed so there is another option. to hold the feet to the fire so i am confident we can

find common ground. so to being the active state sponsor of terror. and the policies must reflect that. that's why we should put extensions on to iran last year for those test for in the bleeds in violation of the resolutions governing the nuclear deal. and the other problems we need to address and for those rollout the region and hosting its yemen and iraq and as the chairman pointed out to sign an agreement with iraq who continues deal

death to america. but we need to work together to crack down on this dangerous behavior and violence flared to hearing from you to monitor the verification living up to its commitment and what else we can be doing outside the scope of the new deal to make our country safer for enhanced availability in the region. because of the nuclear agreement but there are a lot of things that iran has not done to wharfage additional sanctions to support terrorism it is not something we can turn a blind eye to and shouldn't.

and we need to figure out how to be more effective with respect to everyone we're told we cannot talk about anything else. so when we look at iran is galling. with the iranians in not changing in all it poking a lesson in the eye we really must hold their feet to the fire. i yield back. stake we are joined by our distinguished panel.

in prior to this appointment as the ambassador to poland and executive secretary of the state department. mr. smith is the acting director of foreign assets control at the treasury department is serving as an unexpected -- expert for the taliban sanctions committee at the u.s. department of justice. in to be made part of the record and will have five calendar days to submit in the statements were questions for the record. >> with pleasure and all distinguished members of the panel i appreciate the opportunity to meet with you

today with the joy comprehensive plan of action. this is important for americans security. five welcome congress' oversight on january 16 and when iran had completed the key steps greasing implementation. that signified that every and dismantled two-thirds of the centrifuge capacity and drastically pull back its program which was growing exponentially over the last decade. it took out almost all 25,000 pounds of enriched uranium material. going forward are rented possess no more than

300 kilograms of 3.6 percent enriched uranium over 15 years. in with the iraq iraq go dash reactor sealed with concrete cutting off the path it could have produced significant amounts of weapons grade plutonium. with the unprecedented in a continuous and i a ea regime like the electronic seals to detect and report cheating. and also has oversight of the entire fuel cycle to gingrich bin facilities in centrifuge production plants to be sure it cannot divert materials to a program and furthermore any other for purposes now goes through a

procurement channeled from the united nations security council creating another layer of transparency in oversight and monitoring into the program is no provisionally applying the additional protocol with a safeguard agreement of the iaea end jpcoa special provisions regarding iaea access within a short period of time insurers the iaea will have all access it leads in the ongoing way and as a result of these actions united states european union lifted nuclear related sanctions against iran with the presumption of investment activity with iran. and in keeping with our commitment we will not block

what jpcoa permits the we will closely monitor to act for what we still have as a government if it supports goal setter house style tour interest of terrorism or ballistic missile program all sanctions with a rand better not nuclear related as evidenced just a few weeks ago the number of individuals for supporting the ballistic missile program will use these tools to respond. that is precisely why the nations around the world with the threat of a nuclear-armed iran with the international community unprecedented to wills remains exclusively peaceful going forward and then to

respond to the destabilizing policies and actions. just a few weeks ago the israeli defense chief staff acknowledged jpcoa reduces the immediate threat to israel because it'' mackerels back the nuclear capability to deepen the monitoring capability of the international community for iran's activities. in the same remarks he also said he believes the late great efforts to fulfill their side of the bargain. jpcoa was not built on a prediction on a solid verification regime and we will continue working every day to the jpcoa commitments or face consequences. it will engage with this committee on this important topic and afford to answering your questions

today. >> mr. smith's been a good morning. distinguished members of the committee thinks for the invitation to appear today to discuss sanctions on implementation day with the plan of action on the jpcoa with the efforts to enhance and enforce sanctions going forward. the treasury department of foreign asset control took to fill the sanctions related commitments to address the authorities to remain in place our we approach our responsibilities. jpcoa is a strong deal to protect the national security of the united states and our partners and allies overseas and implementation date is a

significant milestone of the jpcoa in exchange to iran with those commitments under the jpcoa with those nuclear related sanctions on iran. to verify and including the ability to step back to implement and enforce sanctions we're clear about the fact iran remains the state-sponsored terrorism to engage in other destabilizing activities. we believe it is crucial to

implement and enforce the sanctions to remain in place. united states to attraction in two key areas. the first and most significant was the lifting of secondary sanctions directed for that activity outside of jurisdiction. but with the primary embargo on everyone to remain in place. they issued the statement of licensing policy with respect to exports to iran of commercial passenger aircraft to be used exclusively for commercial passenger aviation. also into authorize the importation into coated states in those foreign

entities that were consistent with the jpcoa in those effective on implementation day and a summary of the actions we took as long as the documents to explain in detail. including a guidance document the lifting of the nuclear related sanctions that we being a set of those frequently asked questions and the changes we made. into continue to a minister a robust sanctions regime in the range. broadly it remains in place

as purses are prohibited to a engaged in transactions or unless they are authorized. in addition they continue to attach to the more than 200 individual entities designated as well as any such persons we add in the future. treasury remains fully committed to target support for terrorism the ballistic missile program and the destabilizing activities in the region. >> let me start with your testimony for anyone

connected to support for terrorism. why haven't we been able to do more with the iranian passenger airline with the country's islamic revolutionary guard corps? to ferry the weapons and personnel into syria to aid the syrian regime. to a list russian support for the counter offensive these flights to syria increased so last year we

testified regardless of the deal back index a financial transaction with iran will risk losing access to the systems. so instead of more action as part of the prisoner deal to lift the notice against the chief executive and senior manager but u.s. treasury said was responsible for the airline sanctions invasions' operations. if we're serious take immediate action that transact those institutions on the airline's behalf and slap heavy fines on the ground service companies and

will we do that? >> we have been very engaged around the world and have remanded -- reminded our allies of those sanctions -- secondary sanctions them remain in designate those that try to support around the world with designations on the need to stop working on there. >> i just have 2.0 to but in the meantime they are expanding operations. and you can see what is happening. and with those dire consequences in syria.

what i don't see is the of push back. but what is the specific national security interest that is a klay waiver? that you don't get the automatic waiver you have to go to the regular process. tillich to syria or ivory and/or saddam. what is that national security interest to justify the waiver? after the legitimate business in iran the legitimate business and the

reality is dash year treasury department says the revolutionary guard corps is the most powerful economic actor. how does this justify simply because the iranians protested? >> with respect to the iranian revolutionary guard corps we continue to enforce those with the waiver program at the state department. >> let me explain what the administration should have told everyone is stop supporting terrorism because the way we wrote that with the state sponsors of terrorism.

with 100,000 gps and to better target inside israel but instead instead of taking that stance to create the exception in tucson and the law that sounds harsh but this is the supreme leader effectively would veto the bill. that was passed inside. >> mr. chairman administration supported the law that the legislation sent to amend with the visa waiver program to tie in the security of our borders to the administration.

the congress concluded a labor provision for those cases that affected the national security of the united states. and to develop that criteria to exercise what those waivers will be and i can tell you how to promote impeachment with iran aimed at making sure those people who carry out important missions with the iaea inspectors to verify they are keeping their commitments to allow a journalist to gold in. >> that is not our objection that the administration turn the concept of the case by case waiver on its head. under the law the proper

question is is why is it a national security interest of canada states that this person be allowed to enter the united states without the visa? the use and are they involved in legitimate business at a time when the controls over the businesses and is a broad category expressly discussed and rejected the during the legislative process. we had this debate with the administration in reached our consensus the bill was signed into law and then vendor objected because they wanted more business with these other entities by controlled by the iranian revolutionary guard.

>> my time is expired. >> with you are hearing is the frustration that while we seem to talk tough at iran in reality that are far away from the rhetoric we want to make sure their feet are held to the fire into don't want loopholes to wiggle out of their obligations. ambassador, a bin to cover

around $50 billion to claim 100 billion was released to we know exactly how much? >> estimate to help the process to be slightly upwards of $100 million of financial institutions around the world. a certificate portion is more than $50 billion to be committed to create deals because of the frozen assets better slightly efforts of $100 billion and that is the assessment throw.

>> mr. smith recently in europe with the economic ties between italy and france are we expecting that europe will hold of a hard-line? if i read in sheets to become economically beneficial to have the european countries have with everyone is fed when they cheat and i suspect that they will lead to forego those ventures to slap those sanctions on ivory and. >> to evade a committed partner with those programs

remember europe had many of these trade deals before 2012 and to sacrifice those steals the first time around to cut them off in compliance with the coordination that we have implemented so i fully expect he would comply with the deal that we struck spinnaker the lifting of the arms embargo and sanctions to further destabilize the region into a legally ship weapons to hezbollah and interdiction efforts and

after eight years countries can sell iran components because with the entire negotiations was a lot ballistic missile programs and suddenly this allows them from being banned from purchasing. had we address this issue? bin part of the reason is the way and we got the win consensus as part of that

nuclear related file. i will tell you those u.s. sanctions are secondary with respect to the ballistic missile program with all of those components on our list. secondary sanctions remain on those individuals and entities that any debt deals with them with the ballistic missile program will still have to contend with secondary sanctions. >> what has the response bin since implementation date? what is the administration in doing to reach out those that our more closely affected.

>> ladies take on this responsibility several times with a senior israeli officials to maintain a regular dialogue of the israeli leadership and our allies with the basis to address their concerns it is no secret they were opposed to the deal but since it came into force that they want to work with us to make sure it was implemented fully. i intend to go to israel in the next few weeks to continue that dialogue as secretary kerry was speaking with his counterparts to be supportive of the deal as well but to focus on the

destabilizing activity. >> in the 1990's confirmed with congressional testimony to send technology in the former state department official end it was testified before our committee a cooperation agreement signed 2,002 was the keystone for the number three a designated nuclear reactor built by a iran and syria through 2007 and there were reports confirming the collaboration on missile technology on scientist and

technicians with those collaboration and reports indicate an iranian scientist with the nuclear test in j. larry so i have several questions related to that. what is tasked with monitoring collaboration on nuclear ballistic missile issues? and if iran acquires that knowledge from north korea and just the expertise and not actual materials would everyone be in violation of the jpcoa or any other sanctions?

and can you confirm if they were present with the latest nuclear detonation on january 6? in this nuclear cooperation end are obligated to cooperate to help iran develop the program. has the u.s. or any other p p5 + 1 country began to transfer to iran and what has been transferred and how do we reconcile these transfers with the prohibition under existing u.s. law? in the west to launder seems to care as much about i read and human-rights atrocities

and support for terrorism worldwide because the administration's seems fixed on giving a iran and a good report card of complying with the deal if you could comment on that as well. >> that was very topical and through the years there are connections with many other parties with the nuclear program to be said judge grave threat in interest of israel. that is the reason we took on this deal for the capacity of this program to pose a threat. >> so i can assure you with

the diplomatic attention in the nuclear threats from north korea and elsewhere. in fact, i would say even board engaged with specific criteria to judge compliance >> i cannot. >> if iran has the expertise is that a violation? >> jpcoa list the specific number a centrifuge centrifuge, enriched material, . >> but if iran gets the know-how or advice? or results from tests is

that a violation? >> north korea is not specifically mention but any agreement they are to refrain from all research to develop a nuclear weapon. if we have reason to believe they for not complying. >> quickly have we begun any transfers to iran on the third and next -- an ex? >> it does not require cooperation it has not provided any material but we will co-chair a working group that will review the development of the reactor. >> in to over space human rights record of that

support of terrorism. >> no. we continue to be engaged and designate the lows principal actors and continue to follow the evidence. >> i want to touch on three different things. to talk about the $100 billion of frozen assets that our available with u.s. secondary sanction under the deal and first to explain 50 billion is tied up elsewhere and dash a

matter that the numbers are to track as it is released as it goes into the hands of those who support terrorist that trigger terrorist sanctions. >> in this setting i can tell you as the assets go as they are released as general copper testified but so far it seems that those go into infrastructure projects. we have not seen a substantial change for terrorist activity but remain focused through the sanctions we have remaining in but take appropriate

penalties when required. >> i appreciate that response to engage in this discussion in this setting. but with ballistic missiles talk about secondary sanctions i am less concerned now to violate the u.n. security council resolution in we impose sanctions for doing so but the jpcoa the international component is frowned upon the security council resolution so what can we expect them to do with the clear violation that is engaged into testing of missiles?

>> those that are in ballistic missile testing. >> i understand. i would probably defer more to my colleagues. >> for them to remain focused. >> we took the test to the security council and then it goes to the sanctions committee. how likely is it that if they don't sanction with a clear violation with their ability to carry out the term. >> is the feature that the members have a veto so there is the strong belief to

condemn this as a violation of what we believe the same shin's committee agreed with that the security council has not yet one that awful agreement but i will tell you we don't counter the program we have a broad range of tools. >> i appreciate that but my main point under the terms of the jpcoa that specifically includes the of ballistic missile and oldsmobile we have been told our allies remain committed which the question is is is our closest allies or the p5 + 1? the last issue is the 300

individuals we have been told repeatedly that if any one of those should be sanctioned for violating terrorism that they would be sanctioned. have you identified any and when will they be applied? >> even before we reached the implementation to remove because they were put there for nuclear reasons on implementation day. we added 200 as a backlog because of terrorism. i can ask mr. smith for details.

>> before that we did a comprehensive review to make sure we were comfortable we did see any support for terrorism and recap those entities on. since that time we follow the evidence of any kind of activity to violate sanctions we will act against those. >> i want to clarify. i did not know this but you say of the 400 individuals who are effected, 200 are still sanctioned. >> and not related to terrorism. as the government or the financial institution. the u.s. persons are still

obligated to blockage you know, transactions as anybody identified so those 200 with the financial institution where are you to scrub the list and when you make a determination that should be subject to sanctions? >> we have all evidence that comes in and toolkit every day we have 5,000 names with again all of the intel. should we add any? to work with the partners in the u.s. government to collect the information whether or not you are removed from the list and never on the list is when we

take action. >> we took action after implementation day after the number of ballistic missile supporters we are continuing to work across the program. >> your time is expired. >> the simple yes or no will be helpful. will the administration support the act so nuclear related sanctions can be snapback if iran cheese? i need to not think this talk is premature. second in terms of enriched uranium what can of 5,000

machines actually produce to coast to any threat whatsoever? how can we be sure that has or hasn't happened? and with the stockpile with 300 kilograms in you tell us where the enriched uranium has been shipped? it can be a clandestine i and i raise this with secretary kerry with the other concerns with korea to provide such material in the clandestine i way. i will be chairing my subcommittee another hearing

they are despicable with use of torture there are very few parallels. north korea comes to mind but how many individuals is the top justice been designated? >> i will start with the last question we continue to designate but we decimated all top actors almost from the beginning with the list on human-rights icrc, with the iranian ministry of intelligence and security and law-enforcement facilities to investigate organized crime all love the actors who had any touched

on human-rights abuses and the numbers are 37 to have been designated because we went after all the big factors. >> what is that designation in real terms? >> but it carries the secondary sanctions so with these individuals if europe tries to deal with those of the human-rights abuses if they're still remaining on their sanctions list we would go to anyone to see you are cut off if you can teal -- continue to deal with those factors. >> have you done that?

centrifuges that are permitted to operate, the operational part of the agreement, this is what they produce. iran may not have more than 300 kilograms at any time in the next 15 years of no more than 3.67 low enriched uranium. if they exceed that amount, it will face a responsibly joint commission, which could feature being declared in violation of .he agreement that would be one of the consequences. if iran builds or employs more also be0 they will subject to being declared in violation of the agreement. these enrichment facilities are under 24/7 monitoring with cameras, regular business. we have a good handle on whether or not they will be keeping those commitments. in terms of other covert

support, because there is full-time iaea monitoring of the entire few cycle within iran, it is impossible to introduce elements into that system without being detected by the system, by the iaea. that applies to whether north korea supplies material or anyone. the material that iran shipped out, 25,000 pounds of nuclear enriched material, russia took that under its control. we obviously have many differences with russia, but one of the features of our relationship is pretty close cooperation on protection of nuclear material. we do not have a concern about material -- >> do we have any on-site accountability? can we go and verify ourselves? mr. mull: we cannot. >> who does? mr. mull: russia has tons of nuclear material and has for many years. russia is responsible for

maintaining access. >> where is the repository for it? where has it been put? mr. mull: it has not been fully decided where exactly russia will place this. >> it has to go somewhere. mr. mull: it is still in the process of being delivered in its entirety. >> it is not all shipped out yet? mr. mull: it is all shipped out. >> it has to be somewhere. mr. mull: it is on a russian ship in russia under russian control. >> it is on a ship right now? >> if it has not arrived, it will very soon and will be kept in controlled-russian facilities. >> we are trusting the russians to say that they have it under their purview? i mean, they are so close to iran, specially the middle east, the syrians, i don't know why we would trust them. could you tell us where it's going?

that's important. >> we do not have concerns about russian custody of this material, what's important in this deal is will it go back to iran and i can guaranty there are sufficient controls in place that if one piece of dust of that material goes back into iran we're going to be aware. >> can you verify it's there and follow it as it goes to its final resting place? >> iaea has different monitoring arrangements with each country in the world. >> i would not have confidence, it's not even in a city that you're saying, it's not somewhere in russia where you can say where it is. >> the iaea verified -- >> loading and where it ends up is very important. >> that's very important where the russian's responsibility is

at. we remain ready to work with the committee to decide on its proper whenn and if it should be properly -- >> i think it's our opinion, manyce of us. not everyone, if you want snapback sanctions and you want regimen, then i don't know why it's a yes. >> but the siha extremist alliancemi based in tehran is me dangerous and evil. they have killed far more americans, hundreds in the 1980's and hundreds in afghanistan from iranian-provided ied's. this alliance of iran, assad, hezbollah and the hothie is

killing more americans with the death of 200 syrians. the difference assad supported by iran and by the money that iran now has available, when -- when isis kills 50 people, they put it on youtube. when assad kills thousands he has a good taste to deny it. now, the nuclear deal was not supposed to be a get-out-of-jail free card. we have in section 301 and 302 of the iran threat reduction act that i work with, our former and

present chairman you've only designated 70 entities under 301 but just as important under 302 you have not sanctioned a single business that i can identify for doing business with the iran revolutionary corps. what's the well-most prominent company that's been sanctioned for doing business with the iran revolutionary guard corps. >> sir, i have to get you the information. >> 0.0. >> regc -- >> designations are nice. what about sanctions? >> if you have the irgc label on

our website, if we -- >> the irgc is getting supplies from companies in europe. european companies have you sanctioned for doing business with the iran revolutionary guard corps? >> when we designate irgc and that carries secondary sanctions >> the answer is -- >> have you imposed a secondary sanction on any business in europe?? >> the european actors have moved away from that business. >> none of them are doing business with the t irgc? >> i have not seen evidence of european actors continuing to do with irgc. >> nobody is doing -- >> the treasury department has announced that the irgc is huge economic, you've only designated

70. there's a lot more fronts for you to designate. you say it's huge and economic and you can't find an east asian or south asian company that's doing business with them. let me move onto mahan, the airline of choice for the iran revolutionary guard corps and thugs going to syria to kill people. they're flying air bus aircraft into friendly countries in the middle east and europe. those air bus aircraft have u.s. technology on it. what have we done to prevent those aircraft from being received in those friendly cities?en >> a number of agencies have been actively engaged to try to event mohan air from being able to fly. >> have we stopped anything or are we just sending letters? >> we have stopped. >> where have we stopped mahan?

>> i don't think i can say that in this setting. >> they're flying to asian and middle eastern cities. why haven't we nailed a -- >> if we find the evidence then we will go after it. >> you have found zero evidence -- i mean, we are relying on the executive branch to enforce this deal because you're able to monitor what iran does and here is an example where you can't -- you've got a major airline doing business in dozens of cities and you can't find them doing business with a single bank. >> thank you, mr. chairman. thank you.

mr. rohrabacher. >> thank you. i -- i would like to say that there are ways of approaching the human rights issue that will have an impact for today. there are other ways of approaching it that will have a major impact, let me just say that we have with us today yellow jackets who remind us. they are here as testimony to the fact that we have a brutal human rights abusive team in tehran, they are here to remind us that they have families and whether they're in camp liberty or in iran itself who are being held or tortured and being

repressed by this government that has -- they think they have the destiny, they have -- how do you say it? the blessings of god for the horrible crimes that they are committing against their own people and have been doing so for decades now. if we are to have a nuclear-free iran and what we are really trying to do is trying to stop this, we recognize that shia sunni andd the last thing we wt to see is between sunni muslims and shia muslims, to try to prevent that weapon system to become part of that historic fight between these two fights of islam.

let me just note that just the sanctions for human right abuses it's not enough and i don't believe we arere doing it with determination that we need to, you know more about that than i do and what the potential use of this is, but that's one part of the human-right approach. the other approach is we need to be supporting those people and not just those prezzing the population but supporting those people in the population to bring about ai more democratic iran and separate from their iron grip that they have on iranian society, have we done anything based on the fact, have we in anyway stepped up for an

iran that's trying to make a more democratic country. >> i'm afraid i'll have to take that back for you. in my responsibilities day-to-day, we make sure that it doesn't get to have a nuclear weapon's capability. we remain great deal concerned about the human situation, the human-right situation in iran. i think there's probably not another country in the world that speaks up for often about our concern and takes action through the international community and organizations as well as to our own laws. >> i understand that you folks wouldn't know if we had operations going on this part of the human rights issue, i'm challenging those people who are violating human rights versus helping those people like the

mek and others who are trying to overthrew this dictatorship, if we had a more democratic government there. let me just say if we do not do that, if we do not help those people who are struggling to build a more democratic iran, we are just postponing the time when iran and the mulas will have a nuclear weapon because our treaty that we are talking about, how many years before it no longer applies? is it a 15-year thing? instead of postpone, we don't need to postpone that time. we already postponed it long enough, we need to eliminate that eventuality so thank you

very much. >> thank you, mr. connolly of virginia. >> some of theon most loud crits of entering into that deal at all are now focused on airlines and revolutionary activities and sanctions and closing up banks rather than the actual elements of the nuclear agreement which they were the first to say it would never work. they would cheat, the metrics weren't good enough, this was enabling nuclearth development y iran, so embassador i'm going to ask, any evidence of iran cheating? >> so far no, i can tell you congressman in the six months i

have be een working up to implementation day, whenever we've detected that there might be a potential or moving away from the commitments, we've engaged with our iranian counterparts and addressed those concerns every single time. >> every single time. we are going to run real quickly. i want to try to understand. let me see. one of the requirements the agreement was to modify the iraq heavy-water research reactor so it could not longer produce plutonium; is that correct? >> that's correct. >> did they do that? >> yes. >> what did they do to that? >> they removed and filled with concrete. >> that reversible? >> not easily. >> was it observable in. >> yes. >> pretty big deal. they required to get 5104; is that correct?

>> yes. >> did they do that? >> yes. >> was that observable? >> it was verified by the aiae. >> oh, my lord. what's the status there? >> the tons enrichment is proceeding allowed by the agreement, all enrichment has been afford being seized. the highest amount 19.7%. >> is that weapons -- >> no. >> but they're required to go 3.67; is that correct? >> yes, sir. >> from 19 to less than four did they do that. >> yes, sir. >> was that observable? >> yes, it was. >> now, did i understand you to say that their stockpile of enriched uranium was in excess

of 25,000 kilograms. >> 25,000 pounds. >> the agreement says they can't have no more than 300 kilograms? >> yes, sir. >> did they do that? >> yes, d sir. >> you're kidding? >> no. >> they complied again? >> yes. >> and was that observable? >> it was observed and document by the iaea. >> now, they also had to agree that centrifuge production in mines and mills would be subject toia iaea inspection at any tim; is that correct? >> yes, sir. >> have they complied with that? >> yes, sir. >> so all those predictions of the end of the world, the fact is we are enabling a nuclear development, it sounds to me, embassador mull, that at least so far, we are not dealing with a perfect state, we are not dealing with perfect behavior,

with respect to this agreement so far they have abided by not cheating that we know of, we have a pretty vigorous inspection regime, we have metrics that met and it sounds to me like despite predictions to the contrary notwithstanding their further away from a nuclear weapon today than they were before the agreement; is that correct? would that be a fair assessment from your point of view? >> that is undeniable true. >> well, my lord. we can decide in one the most important nuclear agreements in my lifetime. i happen to draw the opposite conclusion of the prime minister of israel. the threat to israel would have been denying this agreement.

it's hard work to make an agreement, it's hard work to make it implemented, it's hard work to validate it, it's hard work to stick withi it and oversee it but so far it's working and thank god it is. >> and it's hard work to say that's enough. mr. connolly and now we turn to mr. wilson. >> thank you, madame chair. and i really appreciate the extraordinary efforts of chairman to expose the increasing threats to american families viable by iran deal. additionally i'm grateful this is a bipartisan concern, we heard it from ranking member, congressman sherman. i believe that your testimony today confirms american families are at greater risk thanever that the terrorists are better financed than ever to achieve

their goal to death to america and death to israel. in fact, mr. smith you admitted that irathn is a state-sponsor f terrorism. how could you nota recognize tt byno releasing $100 billion to a state sponsor of terrorism that a significant amount of that money would be used to kill american families? >> sir, i think we thought that the state sponsor of terrorism with a nuclear windshield wiper was a far dangerous threat to the international community, its neighbors and to the united states, what i can say that we put through efforts of sanctions, iran in a half a trillion dollar hole and what we released allows iran to have $50 billion, much of what it needs to stabilize its currency and have any foreign trade whatsoever. >> american families are at risk. in fact, last month in baghdad it was iranian-backed terrorists that kidnapped four americans and so they're not stopping and

that may be kidnapping today. i have still not forgotten 283 u.s. marines killed in barut by the iranian regime. we shouldha not forget that. i had two sons in iran, dismissing this is incredible and putting american people at riske and mull, this is in diret contradiction to every bit of information that we received from the israelis themselves, yes or no, does israel support this or not? >> congressman, as i said in my testimony the chief of staff has publicly said that the threat to israel has declined as a result of this agreement. does that mean that the entire israeli government is happy with

it, no. that i have had serious concerns about it. >> again, yes or no, in a democracy, thank god israel is a democracy, you have good people agree and disagree. back again to the development of the ballistic missiles, embassador, there was no response as iran continues to do that. there's only one purpose for the icbm's as indicateed congressman to develop nuclear weapons to strike america. is there any other reasons for icbm's? >> that's one of the reason that isis we undertook to attach nuclear payloads to those missiles. missiles icbm missiles can be used without nuclear payloads, that's why they're still a threat to our allies and why we are working hard to get them. >> the real use of icbm is used a nuclear capability, not to --

to make some type of conventional attack. the american people are truly at risk and for this to simultaneously occur is extraordinary to me and there not be repurcusions. is it true there's not an american in team? >> americans do not travel to iran. >> no. what you really described, american people need to know this, no americans, no canadians, what you're really describing is self-verification by the iranians of their own existence, and so i really am saddened by what i hear today and too me it confirms what lieutenant general, former director of the intelligence agency said, in quote, middle-east policy is willfull

ignorance. i'm grateful to working about zero tolerance for violations. i yield back my time. >> thank you, mr. wilson. mr. cicilline. >> thank you, this agreement as been approved and now we have the responsibility to be certain that it's been implemented properly. i think you said embassador mull our consequences to push back in iran and a number of ways in the region because of aggression and ongoing activity, it would be a very different scenario if it were require to push back in iran and make difficult situation even more dangerous.

so i have three very specific questions. when the united states began negotiating with iran, the breakout time was a few weeks or a few months according to most experts, at that point they would have enriched uranium to build a weapon, how far are they from breakout time? >> two months to at least one year. >> agency is beingag asked to do significant work in terms of compliance with this agreement and i actually wrote to the president about this to provide resources to thewe iaea. i know that the proposal provides modest increase, would you speak that in a bipartisan allocateff sufficient resources, recognizing that we don't fund

the entire operation but we meet the financial request of iea to do the work that we are asking them to do? >> i am in contact with the director, you canan affirm thate has resources to do a very important job that's vital to our national security interest and he has assured me that in terms of the -- its responsibilities for the nuclear program, it is fully unitedded and has everything it needs for the rest of this year, obviously we will continue. we very much welcome the congress bipartisan support for making sure that the iaea is fullye funded. >> the request they made for fiscal year 2017 is $10.6 million. i don't think that's reflected but many of us are very concerned ant want to be certain that they have the resource that is they need. finally, i know there's been

discussion about the snapback provisions and noncompliance by iran for obviously the behavior of this country and its leaders give us lots of reasons to be noncompliance. what work the administration has done while some people argue there's the slightest unintentional that the deal is off and that would obviously result a deal from preventing iran from being a nuclear power, doesn't give us the result we want to allow iran to pursuit ambition. there has to have been some conversation about what is the administration's position about minor violations of the agreement, have we developed and communicated those to our european allies, i know there's some discussion of zero tolerance, if there's anything the deal is completely abandoned, i would like to know your thoughts on that, what the administrationwo is considering and how we should think about

sending a clear message to iranians that any violation, this comes with a punishment and the consequence even that it doesn't mean rejecting the deal? can tell youi jcpoa allows quite a broad range of potential responses to violations or contradictions to pull imposition to not only bilateral sanctions. i'm not sure that it would be helpful for me to speculate here in what violation and contradictions to the agreement, we think that's diplomatic asset as we go forward. the gold standard for us in deciding how to respond is the breakout time that we talked about a few moments ago. that if iran's breakout time

diminishes below a year we would consider a very serious violation and work with our allies to have proper response. >> and communicating with the iranians that any violation would be addressed and punished inbe an appropriate way? there's no death by a small a thousand cuts? >> yes, sir, we are in contact on their evaluation with the situation in terms of iran's compliance. >> mr. duncan is recognized. >> thank you, madame chair. first off, let me say that i hope history is right and sides with mr. connolly's comments and we will see. i hope that iran continues to comply, i hope that they don't have a nuclear weapon because consequences are dire. i want to talk about the visa-waiver law that was