Deputy Representative of the Supreme Leader in the IRGC: Banks Will Suffer from Not Cooperating with the IRGC

The deputy representative of the Supreme Leader in the Islamic Revolutionary Guard Corps (IRGC) reacted to the lack of foreign exchange services provided by Iranian banks to the IRGC, stating that if banks lose financial resources from this institution, "they will suffer." According to a report by the Mizan news agency, published on Sunday, September 21, Abdullah Hajizadeh emphasized that "the IRGC has enough capability to manage itself and it is others who need the IRGC." He stated that Iran's joining the Financial Action Task Force (FATF) would not economically harm the IRGC. He stressed that if banks lose the IRGC's financial resources, "they are the ones who will be harmed." The Kayhan newspaper reported on Saturday, September 13, that Iranian banks, including Mellat and Sepah, announced they could not provide foreign exchange services to entities sanctioned by the European Union and the United Nations, including the IRGC. Two days later, the Central Bank Governor ordered banks to provide services "only based on domestic laws," not based on foreign agreements. Some experts have indicated that due to sanctions on these entities, if Iranian banks issue foreign exchange declarations for them, foreign banks will not accept these declarations, and the letters from these banks reflect technical reasons and the current reality. Meanwhile, Hossein Ghazavi, Deputy Minister of Economy, stated on Saturday, September 20, in an interview with Iran newspaper that foreign banks are unwilling to cooperate with Iranian banks regarding individuals still on the Western sanctions list due to existing penalties. He mentioned that an Iranian customer, who is on the Western sanctions list, visited the Mellat Bank branch in Dubai and requested a transfer of dirhams to the National Bank branch in Dubai, but this was not possible because foreign bank branches are subject to the host country's laws. Ghazavi noted that the customer insisted on receiving a written explanation for the refusal, raising the question of why this customer requested a transfer from one Iranian bank to another Iranian bank operating in Dubai. The Deputy Minister also emphasized that whether Iran joins the FATF or refrains from joining it will not affect the status of the 200 individuals who are sanctioned for reasons other than Iran's nuclear case. In recent days, several close associates of the Supreme Leader, including Ahmad Jannati, Secretary of the Guardian Council, have stated that the government's acceptance of FATF standards would lead to "internal sanctions" on entities like the Khatam al-Anbiya headquarters, affiliated with the IRGC, within the country. In contrast, Ali Motahari, Deputy Speaker of Parliament, and Bahram Parsaei, spokesperson for the Hope faction in Parliament, have described the opposition to this as "political motives" and "government sabotage." Iranian Ministry of Economy officials have also stated that among UN members, only Iran and North Korea have not joined this agreement. Meanwhile, the Minister of Interior stated on Sunday that the Supreme Anti-Money Laundering Council is active regarding the acceptance of FATF standards, and the "Combating the Financing of Terrorism" law has also been approved by Parliament. He added, "This year we were suspended from the blacklist for 18 months, and after 12 months we will be evaluated; this is a very important choice, as it allows us to move away from the major accusation of money laundering and financing terrorism on the international stage." A day before the Minister's statements, Abbasali Kadkhodai, spokesperson for the Guardian Council, described the acceptance of the FATF agreement by the Iranian Minister of Economy as a "denial" of the exemption of "liberation organizations" from the "Combating the Financing of Terrorism" law, emphasizing that Iran's accession to this agreement requires parliamentary approval. The "Combating the Financing of Terrorism" law, which was approved by the Guardian Council in 2015, stipulates penalties for money laundering aimed at assisting "terrorist individuals or organizations." According to this law, "nations or groups or liberation organizations are not considered terrorist actions," and "the determination of the groups and organizations subject to this clause is the responsibility of the Supreme National Security Council." Meanwhile, the Shargh newspaper previously reported that the repeated attacks by conservative media and figures against Hassan Rouhani's government for Iran's accession to the FATF are due to the implementation of the "Combating the Financing of Terrorism" law, which had previously been approved by Parliament and the Guardian Council. However, Mohammad Ali Pourmokhtar, a conservative representative in the 9th and 10th Parliaments, stated on Friday, September 19, that there is no mention of membership in the FATF in this law. On June 24, 2016, the FATF announced in a statement that the restrictions on this institution's monetary and financial system on Iran's banking system would be suspended for 12 months. This announcement and the 12-month opportunity for Iran came after the Central Bank officials reached an agreement with a special group called the "Action Plan" regarding combating money laundering and fighting terrorism. Iran committed to implementing the action plan to demonstrate its commitments.