Economy, Business And Markets

Closer Alliance Between CBI, Majlis Think Tank Essential

Closer Alliance Between CBI, Majlis Think Tank EssentialCloser Alliance Between CBI, Majlis Think Tank Essential

Head of the Majlis Research Center has called for expanding ties with the Central Bank of Iran, which he said “would help maximize the efficiency of regulations.”

“Not enough bills being sent to the parliament is a key issue in the Majlis. Unfortunately there is no specific body in the government in charge of developing bills, but it should focus on the issue and come up with more bills,” CBI’s website quoted Kazem Jalali during a meeting at the CBI late Monday.

“Closer ties between the Majlis Research Center and the CBI would help the government with this issue,” he said noting that the center’s reports are apolitical. “The think tank can link the Majlis to the government.”

Referring to the collaboration between the two bodies in recent years, Jalali said, “The results were important.”

“Banking and central bank regulations are important [for economic development], and by expanding cooperation, they could be devised more effectively and quickly.”

 CBI Bills

Valiollah Seif, the CBI governor, also pointed to the role and influence of the research center on the parliament’s decision-making process and welcomed further cooperation with it.

“Banking and monetary laws have not been updated for 40 years. The central bank will soon present a bill to the parliament in order to reform the rules and regulations.”

 FATF and AML Measures

The senior official also referred to the ongoing talks with Financial Action Task Force (FATF) over removing Iran’s name from its blacklist, but added that “We ourselves explain the criterion for defining terrorism.”

Earlier this month, the FATF announced it welcomed Iran’s adoption of, and high-level political commitment to an action plan to address its strategic (anti-money laundering and anti-terror financing) deficiencies.

The FATF suspended its counter-measures against Iran for 12 months in order to monitor Iran’s progress in implementing the action plan.

“If Iran fails to improve its record as promised, the FATF call for vigorous counter-measures will be reinstated. If there is improvement, the task force will consider further positive steps,” the powerful anti-money laundering body said in a statement.

 “Efficient allocation of resources and helping the production sector are on the CBI plan of action,” Seif said. “However, only injecting money into businesses will not solve the problems they are facing.”

“Issues must be categorized and then proper solutions should found.”

The banking sector was tasked last month to finance small and medium-sized businesses, but also told to give “credits only to efficient businesses.”

The Central Bank of Iran has ordered banks and credit institutions to allocate a minimum 10% of their loans (about 15 to 16 trillion rials) to the SMEs in a move to help create jobs and help lift the beleaguered production sector.

It told banks earlier this month to finance 7,500 enterprises currently in need of finance. An estimated 160 trillion rials ($5.24 billion) is expected to be given to the struggling SMEs, most of which are facing serious shortfalls in their working capital due mainly to the recession.