Javad Larijani's Request to Delay Consideration of FATF Bills Until Financial Mechanism Implementation

The Secretary of the Human Rights Headquarters of Iran's Judiciary, Javad Larijani, has called for the approval of bills related to the Financial Action Task Force (FATF) to be postponed until the implementation of the European financial mechanism, INSTEX, which he described as 'credit'. In the same context, the head of the Political-Defense Commission of the Expediency Discernment Council stated that the activation of this mechanism would not affect the decision-making regarding the Palermo Convention on combating transnational organized crime. On Friday, February 1, Larijani stated in an interview with the Mizan news agency that despite the 'great fanfare' surrounding the announcement of this mechanism, it is 'credit'. He added, 'In fact, they created a text on paper in the French Ministry of Finance that is unclear and lacks coherence.' Larijani emphasized that Europe launched this mechanism with a 'calculated delay' to 'harm Iran's economic situation.' His comments come as Bahram Qasemi, the spokesperson for the Iranian Foreign Ministry, welcomed the announcement of the European financial mechanism, INSTEX, emphasizing that 'Iran demands the full implementation of all European commitments as soon as possible.' However, Mohammad Eslami, the Minister of Roads and Urban Development, stated that this mechanism has not created 'extensive possibilities' for Iran and that its only goal is to prevent companies working with Iran from suffering damage. The three European countries, Germany, France, and the UK, announced on Thursday, February 1, the official registration of the special financial mechanism for trade with Iran under the name 'INSTEX' (Instrument in Support of Trade Exchanges), although they conditioned its activation on 'further work.' Although this financial mechanism has been officially registered, its activation has been postponed to the future. These three European countries have asked Iran to decisively implement all FATF elements for this mechanism to be usable. Nevertheless, Javad Larijani suggested that the Expediency Discernment Council delay the consideration of the two bills related to the FATF until the implementation of European actions in this regard. He added, 'We must make the Westerners understand that if our institutions make decisions in the country, they do not finalize it with the decisions of the three European countries but consider the interests of the system.' Meanwhile, Ahmad Vahidi, the head of the Political-Defense Commission of the Expediency Discernment Council, stated that the activation of this mechanism would not affect decision-making regarding the Palermo Convention. He added, 'The actions of the European countries are a small part of Europe's commitments to Iran within the framework of JCPOA commitments, and the status of that minimal commitment has not yet been clarified operationally.' Vahidi also claimed that the FATF is a 'spy structure' and 'a framework that the arrogance seeks to limit and smarten sanctions.' Vahidi had previously claimed that the FATF 'is not an economic organization but an independent security system from the United Nations.' The Expediency Discernment Council has had the Palermo Convention on its agenda in its last two sessions, but it has not yet approved or rejected it. However, the Political-Defense and Legal-Judicial Commissions of the Council have rejected this bill. The bill for Iran's accession to the Convention on Combating the Financing of Terrorism is also on the agenda of this body. Despite Ayatollah Khamenei's previous opposition, a letter from him was read in the public session of the parliament on October 7, stating, 'I have no objection to the consideration of these bills in the parliament.' However, some of Khamenei's appointees, including Friday prayer leaders, have called for the rejection of these bills, and in recent days, gatherings have been held in some Friday prayers and mosques. Meanwhile, several Friday prayer leaders reiterated their opposition to these bills in their sermons on February 1. For instance, Abdolkarim Abedini, the Friday prayer leader of Qazvin, emphasized that these bills 'block our progress' and added, 'We will not allow the revolution to be afflicted by these plagues through Westernized individuals.' Mir Ahmadreza Hajati, the temporary Friday prayer leader of Ahvaz, also stated that the Iranian people have 'no hope' in these bills. Several ministers have requested in a letter to Ali Khamenei, the leader of the Islamic Republic, to approve the two bills related to FATF regulations before the deadline set by this group, which is about a month away. The FATF expressed regret on October 19 that most of the issues related to Iran's commitments remain unresolved, while it extended Iran's suspension from the group's blacklist for another four months, which was welcomed by Iranian officials.