Foreign Minister Mohammed Javad Zarif has once again reiterated the crucial role of implementing standards set by the global anti-money laundering watchdog in resolving economic challenges facing the country, a lawmaker said.
“Mr. Zarif … underlined the importance of joining FATF and expressed hope that the Expediency Council would approve [the related bills] to help resolve economic problems,” Mehrdad Lahouti quoted the chief diplomat as saying during a meeting with members of a parliamentary faction on Sunday, ISNA reported.
The legislation has long been demanded by the Paris-based Financial Action Task Force, which wants Iran to strengthen its legal framework to guard against money laundering and financing terrorism.
In its meeting on March 2, the Expediency Council, which can rule in disputes between parliament and the Guardians Council, did not make a decision about the bills approved by the parliament but rejected by the Guardians Council.
This was the council’s last meeting until after the Iranian New Year on March 21. Its next meeting will not be held before April.
If Iran fails to comply with FATF requirements by the extended deadline of June, the watchdog can blacklist the country, severely restricting its ability to have banking relations with the rest of the world.
Two out of the four bills have been approved, but the process has been slowed by those who oppose the legislation, arguing that it could hamper Tehran’s financial support for allies such as Lebanon’s Hezbollah, which the United States has classified as "terrorist".
A lawmaker says Europe’s attitude will influence Iran’s decision on completing the reforms required by FATF
Lahouti said the lawmakers thanked Zarif for his efforts to facilitate Iran’s engagement with the world but demanded that the Economic Department of the Foreign Ministry hold more consultations with representatives of other countries.
Europe’s Behavior
Another parliamentarian believes that Europe’s attitude will influence Iran’s decision on completing reforms required by FATF.
“The Islamic Republic of Iran’s decision … depends on Europeans’ behavior. The determination of the other side will affect our decision-making,” Hossein Naqavi Hosseini, a member of Majlis National Security and Foreign Policy Commission, told ICANA in remarks published on Sunday.
“Considering this issue and the complex nature of the bills, the Expediency Council needs more time to further study the two bills and assess [Europe’s] approach,” he added.
Foreign businesses say conformity with FATF rules is key if Iran wants to attract investors, especially after the United States reimposed sanctions on the country last year after pulling out of the 2015 nuclear deal between Tehran and world powers—technically known as the Joint Comprehensive Plan of Action.
France, Britain and Germany—the European signatories to the nuclear agreement—have tied Iran’s compliance and removal from the FATF blacklist to a new channel for non-dollar trade designed to avert US sanctions.
“We cannot give a unilateral commitment. There should be a mutual commitment and the other side should demonstrate its will so as to prevent a repeat of the JCPOA experience,” Hosseini said, referring to America’s withdrawal from the nuclear pact and the European struggle to offset US sanctions and save the accord.
