Senior officials on Wednesday called on top legislative authorities to ratify remaining anti-money laundering bills demanded by the Financial Action Task Force, after the global watchdog issued a four-month deadline for Tehran on Friday.
Addressing a weekly Cabinet meeting in Tehran on Wednesday, the government spokesman Ali Rabiei said complying with FATF rules is in the interest of the nation.
“Our national interest demands that FATF-related bills not be rejected,” IRNA quoted him as saying.
The Paris-based FATF said in a statement Friday that it had given Iran a final deadline to comply with international anti-money laundering rules by February 2020. It said should Tehran not comply before the deadline expires, it would call on all its members to apply counter-measures against the country.
"If before February 2020, Iran does not enact the Palermo and Terrorist Financing Conventions in line with the FATF standards, then FATF will fully lift the suspension of countermeasures and call on its members and urge all jurisdictions to apply effective countermeasures," the statement read.
Amendments to the counter-terrorist financing and anti-money laundering acts have already been enacted by Iran. However, bills to ratify the Palermo (convention against transnational organized crime) and terrorist financing conventions have been passed by the parliament but not yet endorsed by higher legislative authorities.
The two remaining bills failed to win approval of the Guardian Council - a watchdog that ensures laws are in line with the Constitution and Sharia - and was sent to the Expediency Council- constitutional arbiter between the Majlis and the Guardian Council – for the final decision.
Backing From Top Body
Rabiei said the issue has been discussed with the Supreme Council of Economic Coordination whose members back the enforcement of FATF protocols.
The top council is an ad hoc economic decision-making body, comprising heads of the three branches of government, formed at the behest of Leader Ayatollah Seyyed Ali Khamenei to address major economic issues.
Senior authorities in Iran are not unanimous about complying with FATF. Proponents say it could ease foreign trade with Europe and Asia when the country's economy is targeted by US sanctions. Opponents argue that passing legislation to join FATF could hamper Iran's support for its overseas allies.
Rabiei tried to disabuse opponents over fears that ratifying the remaining bills would expose Iran to foreign surveillance, saying FATF’s blacklist, conversely, means an increased foreigners surveillance over Iran’s international financial deals.
“Our analysis is that if we are blacklisted by FATF, we will become more exposed to foreign surveillance, unlike what is perceived [by the opponents],” he said.
In the same vein, President Hassan Rouhani underscored the need to pave the way for Iran’s normal financial and banking exchange with the outside world and criticized “those who create barriers”.
“We are proud of the fact that we are fighting terrorism and corruption, that's why we shouldn’t allow our banking system to be accused of money-laundering.”
The presidential chief of staff, Mahmoud Vaezi, called on dissidents to be courageous and take responsibility for the consequences of non-abidance by FATF rules and requirements.
“We must inform the people that the government and Majlis have done whatever they were supposed to do… and those who create barriers should be held responsible,” he told reporters Wednesday.
Self-Embargo!
Pointing to the urgency of ratifying all FATF bills, Vaezi said by failing to take action after the four-month deadline, “we have practically sanctioned ourselves with regard to banking relations with the world”.
Foreign businesses say Iran's compliance with FATF rules is crucial, if Tehran wants to attract investors, especially after the United States imposed new sanctions last year.
In June 2016, the FATF welcomed Iran’s high-level political commitment to address its strategic AML/CFT deficiencies, and its decision to seek technical assistance in the implementation of the Action Plan.
In November 2017, Iran established a cash declaration regime. In August 2018, it enacted amendments to its Counter-Terrorist Financing Act and in January 2019, Iran also enacted amendments to its Anti-Money Laundering Act.
The bills to ratify the Palermo and Terrorist Financing Conventions have passed the parliament but have yet not come into force.
The FATF has made known that it can only consider fully enacted legislation.
“Once the remaining legislation comes fully into force, the FATF will review this alongside the enacted legislation to determine whether the measures contained therein address Iran’s Action Plan, in line with the FATF standards,” the global watchdog said in its last plenary meeting on Friday.
