"How can we trust the FATF again? A new political headache for Iran"
Dr Mani Mehrabi in United World International
It was a tense day in the Iranian parliament, with government opposition even calling it a “black day”. This day marks the anniversary of the day nuclear deal with the 5+1 Group (Joint Comprehensive Plan of Action) was ratified, a day that divided Iranian domestic politics into two sides: supporters and opponents of engagement with the United States.
The story goes as follows: The Financial Action Task Force (FATF), which is responsible for reviewing anti-money laundering laws in markets around the world, provides the results of its reviews to member countries every four months, so that they can measure the risk of investing in the reviewed country’s market. One of the most important reasons for Iran’s failure to reach the international markets after the nuclear agreement with the 5+1 Group (JCPoA) was this FATF report. The report bases its review on a country’s financial connections to terrorist organizations and their ability to prevent money laundering via financial transparency. Following these rubrics, the organization blacklisted Iran, and suggested that other countries refuse to carry out any financial transactions with them. The FATF then provided Iran with a specific executive plan, and told the country implement this plan in order to be removed from the blacklist. The FATF included forty-one separate proposals.
Four of the forty-one FATF proposals require that Iran adopt the adjustment as a national law. Iran’s ascension to the “Convention Against Transnational Organized Crime” or Palermo, the “International Terrorist Financing Convention” or CFT, the “Amendments to the Anti-Terrorism Financing Act” and the Amendments to the “Anti-Money Laundering Law”, were voted for approval in the Iranian parliament as quadruple bills. The latest and most controversial bill, the CFT, which relates to the fight against the financing of terrorist organizations, was approved last week.