According To Iran News, Gholamreza Mesbahi-Moghadam, a member of the Expediency Council, has said that accepting the FATF (the Financial Action Task Force) would not have improved the current economic condition and it could even worsen it.

Speaking to IRIB, he said that so far the country has observed 39 paragraphs out of the 41 paragraphs of the FATF but the country has seen no positive action from it.

Mesbahi-Moghaddam added that only two paragraphs of the FATF have been left which are about joining Palermo Convention and CFT Convention, adding it is interesting that those who claim the country should have joined the FATF do not at know or are not aware that these two paragraphs of the FATF are about what and what topics are, and they even do not know the country has implemented or ignored which paragraphs.

He went on to say that he has a question from those who claim that by joining the FATF, economic problems would almost be resolved and the question is if the country joins FATF and CFT, are they certain that foreign banks would continue cooperation with Iran?

He noted the answer is clear and they will not work with Iranians because of the U.S. threats over its imposed sanctions on Iran, and foreign banks have to choose cooperation between Iranian or American banks.

Mesbahi-Moghaddam further said that by joining the Palermo and CFT conventions and accepting their obligations, the country cannot cover any financial transaction and the offence will be considered as money-laundering.

He noted that the country is currently skirting the sanctions, and foreign banks are working with Iran as the country last year imported some $43b and exported $41b, and all the money was transferred under covering financial transfers.

He added that the U.S., Israel and Saudi Arabia are among 37 executive board of FATF and they are waiting for us to join the FATF in order to monitor the country’s financial transactions, and joining the FATF is some kind of self-sanctioning and it make the condition worse for the national economy.

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Following is the text of the statement, released by the Iranian administration at a Wednesday session of the cabinet:

“1. Iran’s anti-terrorism policy is based upon the justice-seeking and peaceful nature of the Islamic Republic of Iran’s Establishment, and is being seriously enforced in all areas, including the fight against financing of terrorism, and our motivation for pursuing all measures against money-laundering and financing of terrorism are demanded by our people and our domestic laws and regulations which have been ratified during various terms of the Parliament and the Administration.

2. Accordingly, we have also welcomed cooperation with the other countries in this field, and have approved the implementation of the regulations accepted by the world countries and the international standards in this regard which have been in line with our internal laws and regulations and for the country’s benefit.

3. Placing Iran in the list of non-cooperative countries (blacklist), either during the tenth administration or in this term, has undoubtedly taken place with the provocations and political motivations from certain ill-wishers of Iran. However, Iran’s technical and expert handling under the 11th Administration, which resulted in the confirmation of Iran’s action plan, foiled the provocations in that stage.

4. Since Iran has always believed in fighting against money-laundering and against financing of terrorism, the road for cooperation with the FATF and the agreement on implementing the work plan had been ratified since the tenth Administration with the efforts by the Supreme National Security Council and the Ministry of Economic Affairs and Finance and had been put on the Administration’s agenda.

5. Following the change of Administration and the activation of the exit from sanctions diplomacy, the Administration was actively present in this international body (FATF) as well, and proposed its activities in the fight against money-laundering and sponsoring of terrorism, which led to a change in the status of Iran and gave a two-year time limit on international interaction.

6. In this interval, the Administration carried out whatever possible in the action plan that was within the purview of the executive power, and also adopted and ratified four bills, which were among the very important items of the “action plan”, and submitted them to the Parliament. The Parliament also ratified those bills with some modifications. The Guardian Council sent back one of the bills, namely the bill on countering the financing of terrorism (CFT), to the Parliament after making a number of objections. Ultimately, the case was referred to the Expediency Council as the Parliament was not convinced of the reason for putting that important bill on hold; and there, this major issue has been shelved after a year since being put forward, because the (Expediency) Council has not made a decision on it.

7. Unfortunately, the other important bill, namely the bill on joining the anti-money laundering convention, which had been practically finalized after the Parliament addressed the objections raised by the Guardian Council, was put on the (Expediency) Council’s agenda without any disagreement between the Parliament and the Guardian Council, but this bill has been also shelved without any decision after one year.

8. The Administration has held and still holds the belief that while the ill-wishers of Iran, spearheaded by the US government, are plotting to recruit allies to once again form a front against Iran, we must double our efforts to express the law-abiding, disciplined and anti-terrorism image of Iran; and giving the enemies any wrong pretext would help their anti-Iranian plots.”

The FATF voted on February 21 to keep Iran on its blacklist for what it said failing to comply with international anti-terrorism financing norms.

Last October, Iran’s parliament approved four bills put forward by the government to meet standards set by the FATF.

Only two of them have so far gone into effect and the fate of the two others, one on Iran’s accession to the United Nations Convention against Transnational Organized Crime and the other one a bill amending Iran’s Combating the Financing of Terrorism (CFT) law, is still in limbo.

FATF’s proponents have said the measure would smooth the path for Iran’s increased financial transactions with the rest of the world and help remove the country from investment blacklists.

Opponents, however, say membership in the FATF will only make the country vulnerable to outside meddling.

They say Iran’s implementation of FATF standards so far has not only failed to attract investment, but it has also exposed various institutions to extraterritorial regulations and penalties.

The FATF cannot impose sanctions, but individual states that are its members have used the group’s reports to take punitive measures against their adversaries. As a result, Iran has been targeted by US and European sanctions.

Iran has already been implementing a domestic anti-money laundering law as part of its efforts toward financial transparency. Additionally, it has long been combating terror financing.

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“Opposition and failure of acting despite regulations of the FATF is harmful to the country and will make the situation of the country worse and will add to the economic problems. So, this issue must not be viewed just from political and factional aspects. There should be a more comprehensive view on the country’s interests,” Davoud Hermidas-Bavand, professor of political science and international law, told ISNA in an interview published on Wednesday.

He noted that failure to conform to banking and financial standards will cause serious problems.

However, Mohsen Rezaee, secretary of the Expediency Council, said on Wednesday that politicizing the issue of FATF and exerting pressure on the council to approve it are “suspicious”. Rezaee said the issue is being discussed by the opponents and proponents in the council.

On December 24, Rezaee said that Palermo and CFT bills are still under assessment in the council. “The FATF-related bills (Palermo and CFT) are still under evaluation in the Expediency Council, so, I can’t say anything now (about the outcome of assessment),” Rezaee said, according to Fars.

Diako Hosseini, director of the World Studies Program at the presidential Centre for Strategic Studies, told IRNA in an interview published on Monday that being blacklisted by the FATF will have serious consequences.

“The consequences can be equal to return to the United Nations Security Council’s sanctions against Iran,” Hosseini said.

He noted that a wise decision must be taken regarding the country’s situation.

Abolfazl Soroush, a member of the Hope parliamentary faction, told ISNA in an interview published on Saturday that joining the FATF will prevent the economic isolation of Iran.

“The truth is that Iran’s joining to the FATF will not result in a miracle, however, it will prevent worsening of the country’s economic situation,” he said.

He noted that joining the FATF does not mean an end to the United States’ sanctions, however, it will prevent more economic pressure on the country.

Mehdi Zakarian, an expert on international relations, also told IRNA in an interview published on Saturday that “standards of the FATF have turned into an international convention in countering corruption and money laundering, and Iran is required to join it in order to be present at the international arena.”

Hossein Abbasinejad, the dean of the faculty of economics at the University of Tehran, also told IRNA in an interview published on Saturday that it is wise to take a decision in line with the country’s interests.

He said that refusing to approve bills related the FATF will cause more economic problems for the country.

The FATF must be studied regardless of factional disputes, Abbasinejad noted.

In a letter to the Leader of the Islamic Revolution Ayatollah Ali Khamenei, a number of MPs have pushed for the approval of the FATF by the Expediency Council.

MP Shahabuddin Bimeghdar told IRNA on Wednesday that it is said in the letter that being blacklisted by the FATF will isolate the economy which is already restricted by the United States’ “cruel sanctions”.

The MPs said failure to join the FATF will cause “closure of the bank accounts in foreign countries”, “accusations of money laundering against the country”, “international distrust”, “financial and banking crisis”, “inefficiency of Iranian bank branches in foreign countries” and also “destabilization in stock exchange market”.

In October 2018, the parliament voted to join the FATF. However, the Guardian Council rejected it. Now the ball is in the Expediency Council’s court.

When there is a dispute between parliament and the Guardian Council the issue is referred to as the Expediency Council for final arbitration.

The Paris-based Financial Action Task Force (FATF) said on October 18 that it has given Iran a final deadline of February 2020 to tighten its laws against money laundering in compliance with the global watchdog’s financial standards.

“If before February 2020, Iran does not enact the Palermo and Terrorist Financing Conventions in line with the FATF Standards, then the FATF will fully lift the suspension of counter-measures and call on its members and urge all jurisdictions to apply effective counter-measures, in line with recommendation 19,” the FATF said in a statement, Reuters reported.

The government is pushing for the approval of the FATF.

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Making the remarks on the sidelines of a cabinet meeting on Wednesday, Abdolnaser Hemmati, CBI governor, said China and Russia have informed that Iran’s will to not joining FATF would create problems in the way of banking transactions between Iran and these countries.

Asked about the possibility of U.S. pressures tightening after Iran joins the task force, Hemmati said, “There are some standards in international banking transactions which are set by the FATF, and joining the FATF not only does not create any barriers for Iran but makes its transactions more transparent and smooth.”

“We have nothing to worry about. We are following anti-money laundering rules and regulations very seriously,” the governor added.

Earlier on Monday, Government spokesman Ali Rabiei said the government will support any decision the Expediency Council and the Guardian Council make on the fate of the FATF-related bills, but argued that Iran’s interests will be secured by not exiting the FATF.

The Iranian parliament ratified the FATF in October 2018. However, the oversight Guardian Council rejected the bill.

The Paris-based Financial Action Task Force said on October 18 that it has given Iran a final deadline of February 2020 to tighten its laws against money laundering in compliance with the global watchdog’s financial standards.

“If before February 2020, Iran does not enact the Palermo and Terrorist Financing Conventions in line with the FATF Standards, then the FATF will fully lift the suspension of counter-measures and call on its members and urge all jurisdictions to apply effective counter-measures, in line with recommendation 19,” the FATF said in a statement, Reuters reported.

One of the actions Iran is required to take to appease the FATF is to ratify the CFT, the convention combatting the financing of terrorism.
The government is pushing for the approval of the FATF.

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According To Iran News, Secretary of the Expediency Council Mohsen Rezaei said the two remaining FATF-related bills, namely the Palermo and CFT, are still being reviewed by the Council’s members.

He said the issue was still being reviewed at the Expediency Council and he could not disclose any information about the case at the moment.

“I will talk about the FATF-related bills in the future and after the necessary studies have been conducted. The issue is still being addressed by the Council,” he added.

Asked when the Council would reach a conclusion on the bills, Rezaei said “I don’t know yet. I will talk about it after the issue has been discussed.”

The Paris-based Financial Action Task Force (FATF), a global anti-money laundering body, has given Iran a final deadline of February 2020 to implement a set of four bills to meet the standards set by the watchdog.

Last October, Iran’s Parliament passed the four bills, but only two of them have so far gone into effect.

The Expediency Council is in charge of deciding the fate of the two other bills, namely one on Iran’s accession to the United Nations Convention against Transnational Organized Crime, commonly known in Iran as ‘Palermo’, and the other one a bill amending Iran’s Combating the Financing of Terrorism (CFT) law.

Those against the endorsement of the FATF-related bills say the move would impose further restrictions on Iran’s economic relations while the country is under US severe sanctions.

“It is not in the country’s best interest to make its dealings transparent to institutions such as FATF,” Mesbahi Moghadam, a member of the Expediency Council had said.

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TEHRAN (Iran News) – A member of the Expediency Council, the body in charge of deciding on FATF-related bills, said on Sunday that the two remaining bills, namely the Palermo and CFT, are still being evaluated by the Council.

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According To Iran News, An Iranian lawmaker, Hosseinali Haji Deligani, has warned against the adverse consequences of ratifying the FATF-related bills for the country.

Speaking to Mehr correspondent on Saturday, MP Hosseinali Haji Deligani cautioned the government against ‘throwing the country into the pit of the FATF’, which could leak Iran’s trade information to the Western countries.

“The government must learn from the failed experience of the nuclear deal and not repeat it with FATF,” he said, adding “the JCPOA has had no benefits for the country and the other sides have failed to live up to any of their commitments.”

The Paris-based Financial Action Task Force (FATF), a global anti-money laundering body, has given Iran a final deadline of February 2020 to implement a set of four bill to meet the standards set by the watchdog.

Last October, Iran’s Parliament passed the four bills, but only two of them have so far gone into effect.

On Wed., Gholamreza Mesbahi Moghadam, a member of the Expediency Council, the body in charge of deciding on FATF-related bills, said that one of the two remaining bills, namely the one on Iran’s accession to the United Nations Convention against Transnational Organized Crime, commonly known in Iran as ‘Palermo’, is no longer on the agenda of the Council.

He added that the deadline for reviewing the bill amending Iran’s Combating the Financing of Terrorism (CFT) law is not over yet.

“With Iran under the most severe sanctions, accession to such conventions is an act of self-imposing sanctions,” the EC member said, adding “When the US is seeking to restrict Iran’s financial relations, it is not in the country’s best interest to make its dealings transparent to institutions such as FATF.”

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IRAN NEWS ECONOMIC DESK

TEHRAN –  Finance and Economic Affairs Farhad Dejpasand said yesterday that if Iran is blacklisted by the Financial Action Task Force (FATF), it will difficult to be delisted.

Speaking to reporters on the sidelines of the cabinet meeting yesterday, Dejpasand pointed to the FATF’s decision for extending deadline for Iran, noting that if FATF puts Iran on its blacklist, it will be difficult for the country to be removed from the list.

He added that the government has asked several times the FATF to extend its deadline and they have accepted, reiterating that the FATF has warned Iran this time that this would be the last chance and it would not be extended.

Dejpasand went on to say that the country has only less than four months to decide on it, adding that one month before the main meeting of the FATF, there would be a preliminary meeting where Iran has to present a report about its acts and measures.

He reiterated that it is natural that if the country does not take any action before the deadline, Iran would be automatically put on the blacklist and then it would be difficult for the country to be delisted and it should prepare “action plan” and it can deteriorate the condition.

Dejpasand went on to say that two bills of Palermo and CFT have still remained as the government hopes that they would be approved.

He reiterated that the government is determined about combatting money laundering and will pursue it.

The minister also noted that the government is determined to develop non-oil exports, adding that the country is determined to boost non-oil exports as much as it can and it will reduce restrictions regarding non-oil exports.

He went on to say that the ministry has not restricted issuance of license for exports and everything is normal.

On the recent fluctuation in the stock market, Dejpasand said that it is natural because such fluctuations in the stock market are natural and it can happen, reiterating that the stock market will bounce back soon.

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“In spite of the implementation of Joint Comprehensive Plan of Action (JCPOA), we witness that enemies of the country have not relinquished imposition of sanctions on Iran,” he said.

It is 40 years since the Islamic Republic of Iran has been under sanctions and during these years, the country managed to attain self-sufficiency in many fields, Salek highlighted.

The country must not fall back on its rights in the face of pressure from the enemies, he said, adding “unlike the US, Zionist regime and Saudi Arabia, Islamic Republic of Iran is currently at the peak of sovereignty and dignity in the international arena. Under such circumstances, we must not give in to the enemy.”

“We are not seeking to cut ties with the outside world, rather, we are following up measures to broaden our ties with other countries in the world,” he said, adding that endorsing the FATF-related bills by Iran has nothing to do with development of relations with other countries.

Earlier this month, the Expediency Council’s Public Relations has rejected the Tuesday remarks of Vice President Es’haq Jahangiri on FATF-related bills, saying the council will mull over the bills regardless of all the pressure.

The rapporteur for the Iranian Parliament’s National Security and Foreign Policy Committee said earlier that talking about ratifying a bill related to the Financial Action Task Force (FATF) is not logical when the country is under sanctions.

“When a part of financial and monetary mechanism worldwide is not capable of working with Iran due to the U.S. sanctions, talking about the FATF is meaningless and ratification of FATF-related bills is model of self-sanctioning, Seyed Hossein Naqavi Hosseini said.

At the time the JCPOA (the official name for the 2015 nuclear deal) went into force, the signatories were claiming that they had been facing some FATF-related restrictions to fulfill their obligations, the MP said.

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