Guardian Council Spokesman: Implementation of FATF Agreement Requires Parliamentary Approval

The spokesman for the Guardian Council described the acceptance of the Financial Action Task Force (FATF) agreement by Iran's Minister of Economy as a "denial" of the exemption of "liberation organizations" from anti-money laundering laws, emphasizing that Iran's accession to this agreement requires parliamentary approval. According to the state news agency IRNA, Abbasali Kadkhodai stated on Saturday, September 20, that the anti-money laundering law, approved by the parliament and confirmed by the Guardian Council in 2015, exempts "nations and liberation organizations" from being classified as terrorist actions. Kadkhodai mentioned that the FATF agreement signed by the Minister of Economy appears to determine the "criteria for groups and terrorist actions." He indicated that the document signed by the Minister of Economy "may" negate the parliament's resolution. The law on "combating the financing of terrorism," which was confirmed by the Guardian Council in 2015, establishes penalties for money laundering aimed at assisting "terrorists or terrorist organizations." According to this law, "nations or groups or liberation organizations are not classified as terrorist actions," and "the determination of the criteria for groups and organizations subject to this clause is the responsibility of the Supreme National Security Council." Meanwhile, the newspaper Shargh previously reported that the repeated attacks by conservative media and figures against President 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 has already been approved by the parliament and the Guardian Council. However, Mohammad Ali Pourmokhtar, a conservative representative from the 9th and 10th Majlis, stated on Friday, September 19, that this law does not mention membership in the FATF. Some parliament members have claimed that if FATF regulations are implemented, Iran will recognize groups such as Hezbollah, Hamas, and Islamic groups as "terrorist groups" from 2018 onwards. However, Abbas Araghchi, Iran's Deputy Foreign Minister, emphasized on Tuesday, July 21, that the Islamic Republic will not "sacrifice anything" regarding Hezbollah. Araghchi stated that Iran intends to reach an understanding with the FATF regarding the concept of terrorist groups, and these negotiations will continue for another 18 months. The "combating the financing of terrorism" law also allows the Iranian government to cooperate "in accordance with its international obligations in exchanging information or judicial assistance with other countries, while respecting Article 77 of the Constitution of the Islamic Republic of Iran." According to Article 77 of the Iranian Constitution, "treaties, agreements, contracts, and international agreements must be approved by the Islamic Consultative Assembly." Meanwhile, the spokesman for the Guardian Council stated that the document signed by the Minister of Economy indicates that this document must be implemented "in accordance with the Constitution." Kadkhodai added, "Since every international agreement requires parliamentary approval, if Iran's accession to the FATF is to be enforced, it must certainly be reviewed in the parliament." A day before the Guardian Council spokesman's remarks, Ahmad Jannati, the secretary of this council, also requested the government to withdraw its signature from the document accepting FATF standards, threatening that he would "prevent" the implementation of this agreement. Previously, several close associates of the Supreme Leader, including Hossein Shariatmadari, the Supreme Leader's representative in the Kayhan newspaper, Ahmad Alamolhoda, the Friday prayer leader of Mashhad, and Gholamali Haddad Adel, a senior advisor to the Supreme Leader, as well as several conservative parliament members, had strongly protested this government action. In contrast, Ali Motahari, the deputy speaker of parliament, and Bahram Parsaei, the spokesman for the Hope faction in parliament, considered the motives behind these oppositions to be "political interests" and "government sabotage." Iranian Ministry of Economy officials have also announced that among UN members, only Iran and North Korea have not joined this agreement. Ali Tayebnia, Iran's Minister of Economy, stated that without cooperation with the FATF, even with the lifting of nuclear sanctions, international banking transactions for Iran would not be possible. Bahram Qasemi, the spokesman for the Iranian Foreign Ministry, also described "some objections and concerns" regarding the implementation of FATF regulations as "unfounded." On June 24, 2016, the FATF announced that it had suspended the financial and monetary restrictions on Iran's banking system for 12 months. This announcement and the 12-month opportunity for Iran followed an agreement reached between the Central Bank officials and a special group regarding an "action plan" to combat money laundering and terrorism. Iran committed to implement this action plan to demonstrate its commitments.