Jannati Warns Government: Implementation of FATF Document Will Be Prevented

Several Friday prayer leaders in Iran have strongly protested against the acceptance of the Financial Action Task Force (FATF) standards by the government of Hassan Rouhani, and the Secretary of the Guardian Council has also requested the government to withdraw its signature from this "document," stating that the implementation of this agreement will be "prevented." According to the state news agency IRNA, Ahmad Jannati, Secretary of the Guardian Council of Iran, said in his Friday prayer sermon on September 9: "I do not know with what audacity they signed such a document secretly? They want to give the enemy financial and banking information of the country under the pretext of fighting money laundering." He also stated that this agreement would lead to "internal sanctions" on institutions such as the Khatam al-Anbiya Headquarters, affiliated with the Islamic Revolutionary Guard Corps (IRGC), and added that "the parliament should not remain silent on this issue" and must exercise its oversight. He further added: "87 individuals and entities will be sanctioned under the FATF agreement; they must withdraw their signatures. With what audacity do you sign a document secretly against the interests of the nation?" Jannati's harsh stance against the implementation of this document comes while experts and even the FATF itself acknowledge that Iran's interaction with this group will only take place within the framework of the "Constitution of the country." Also, according to Fars News Agency, Jannati said: "In any case, this matter will be prevented, but there should be a lesson for them to consider God, the revolution, and the oversight of the people before doing anything they want." On June 24, 2016, the FATF announced that the restrictions on Iran's banking and financial system would be suspended for 12 months. This announcement and the 12-month opportunity were issued after Iranian Central Bank officials reached an agreement with the FATF called the "Action Plan" regarding money laundering and counter-terrorism. Iran committed to implementing the action plan to demonstrate its commitments. In recent days, several close associates of the Supreme Leader of the Islamic Republic, including Hossein Shariatmadari, the Supreme Leader's representative at Kayhan newspaper, Ahmad Alamolhoda, Friday prayer leader of Mashhad, Gholamali Haddad Adel, senior advisor to the Supreme Leader, and several conservative members of parliament have strongly protested this government action. Meanwhile, Asadollah Imani, Friday prayer leader of Shiraz, said in his sermon on September 9 that some banks have informed security and defense institutions via a letter that they cannot conduct transactions with them. According to ISNA, he added: "Today, the parliament is at a dangerous turning point, and we hope that the representatives will perform their duties appropriately." Kayhan newspaper reported on Saturday, September 2, that Iranian banks, including Mellat and Sepah, have announced that they cannot provide currency services to institutions sanctioned by the European Union and the United Nations, including the IRGC. Two days later, the head of the Central Bank instructed banks in a letter to provide services to customers "only based on domestic laws," not based on foreign agreements. On the same day, the spokesperson for the Iranian Foreign Ministry also called "some objections and concerns" regarding the implementation of FATF regulations "unfounded" and stated that they are "not worried about implementing these regulations." While opposition to this document continues from government opponents, the spokesperson for the Hope faction in parliament described the purpose of these objections to the FATF as "political motives" and "undermining the government." According to ISNA, Bahram Parsaei stated that this action, considering Iran's laws, including the "Countering the Financing of Terrorism" law, would not harm national interests. The Shargh newspaper had previously reported that the repeated attacks by conservative media and figures against Hassan Rouhani's government for Iran's accession to this body are due to the implementation of the "Countering the Financing of Terrorism" law, which had previously been approved by the parliament and the Guardian Council. However, Mohammad Ali Pourmokhtar, a conservative representative from the ninth and tenth parliaments, said on Friday that there is no mention of membership in the FATF in this law. The Supreme Anti-Money Laundering Council of Iran had also previously issued a statement rejecting all criticisms raised against the Islamic Republic's accession to the FATF, stating that any interaction with the FATF would be conducted "within the framework of the Constitution of the country and with consideration of the system's interests." Ali Tayebnia, Iran's Minister of Economy, also stated that without cooperation with the FATF, even with the lifting of nuclear sanctions, there would still be no possibility for international banking transactions for Iran.