Guardian Council Rejects 'Most Important' FATF-Related Bill

The spokesperson for the Guardian Council announced that the council has rejected the bill for Iran's accession to the Convention on Combating the Financing of Terrorism (CFT), which is referred to as the 'most important' bill related to the implementation of the Financial Action Task Force (FATF) regulations. Previously, various representatives in the parliament had described Iran's accession to the CFT as the 'most important' step to meet the expectations of the FATF from Iran, with Behrouz Namati, the spokesperson for the parliament's presiding board, stating that 'solving many of the country's current problems depends on resolving the CFT.' Opponents of Iran's accession to FATF regulations, mainly from the opponents of President Hassan Rouhani's government, argue that this would block financial assistance to 'Hamas' and 'Hezbollah.' Supporters of Iran's accession to this treaty claim that its opponents fear economic transparency and the prevention of banking corruption. Abbasali Kadkhodaei tweeted on Sunday that, from the Guardian Council's perspective, the parliament's approval of the mentioned bill included 'issues contrary to Sharia, contrary to the Constitution, and ambiguity.' Mr. Kadkhodaei also told the Fars news agency that the Guardian Council identified more than 20 objections to this bill. He also reported that the objections of the Expediency Discernment Council regarding the 'non-compliance' of this bill with the 'general policies of the system' have been sent to the parliament. According to Iranian laws, the parliament must 'resolve' the objections of the Guardian Council to this bill. This bill, which was approved in a controversial session on October 7, is referred to as the 'most important' bill related to the implementation of FATF regulations. Of the three other bills, including 'the bill to amend the law on combating the financing of terrorism,' 'the bill to amend the anti-money laundering law,' and 'the Palermo bill,' only the first has been approved by the Guardian Council, and the status of the others is unclear. Despite Ayatollah Khamenei's previous opposition, it was announced in a public session of the parliament that the Supreme Leader has no objection to the approval of the bill for Iran's accession to the Convention on Combating the Financing of Terrorism. According to a letter sent from the Supreme Leader's office to the parliament, Ayatollah Khamenei stated: 'What I said in my meeting with the representatives regarding the four bills and conventions was related to the principle of the conventions and not a specific convention; therefore, I have no objection to the examination of these bills in the parliament.' However, some of Ayatollah Khamenei's appointees have called for the Guardian Council to reject the parliament's approval, and several Friday prayer leaders emphasized this demand in their sermons on October 20. The FATF expressed regret on October 19 that most of Iran's commitments remain unresolved, while extending Iran's suspension from the group's blacklist for another four months. The International Monetary Fund has advised Iran to implement anti-money laundering and counter-terrorism financing measures before the FATF's February 2019 deadline. Previously, several parliament members, including Alireza Beigi, quoted Abbas Araghchi, Iran's Deputy Foreign Minister, stating that although the implementation of FATF regulations is not directly related to the JCPOA, European cooperation in new negotiations with Iran depends on the implementation of these regulations. The FATF's expectations from Iran include criminalizing the financing of terrorism without exempting those terrorist groups that 'strive against foreign occupation, colonialism, and racism.' [The Iranian parliament, however, still does not consider 'legitimate popular struggles against colonial domination and foreign occupation' as part of terrorist actions in its October 7 resolution.] Identifying and blocking the assets of terrorists in accordance with UN Security Council resolutions. Ensuring the implementation of a reliable regime regarding 'necessary assessments.' Ensuring the complete independence of the financial intelligence unit and the necessity of reporting suspicious financial transactions if such transactions occur. Demonstrating how officials identify and punish unlicensed financial service providers. Approving and implementing the Palermo and counter-terrorism financing conventions and clarifying the ability to provide legal services. Ensuring that financial institutions register all financial transactions with complete information of the sender and receiver. Considering penalties for violators of money laundering laws. Ensuring the approval of necessary laws and processes for the confiscation of assets as appropriate. In this context, the Expediency Discernment Council rejected another bill related to the FATF regulations. Zarif stated regarding the FATF: it does not solve all problems, but it strengthens the country's interests. Iran was banned from cooperating with other countries to combat money laundering. The examination of the bill for Iran's accession to the CFT in the parliament was met with protests from opponents outside the building. The opposition from Friday prayer leaders and the Expediency Discernment Council to the FATF-related bills continues.