Parliament Refers 'Most Important' FATF-Related Bill to the Expediency Council

On Sunday, January 30, members of the Islamic Consultative Assembly insisted on their previous resolution regarding Iran's accession to the Convention on the Suppression of the Financing of Terrorism, which is set to be reviewed by the Expediency Council. This bill is referred to as the 'most important' legislation related to the implementation of Financial Action Task Force (FATF) regulations. Previously, Ali Larijani, the Speaker, and other representatives had reported that European banks and even banks from 'friendly countries' have stated that the approval of bills related to the implementation of FATF regulations is a condition for cooperation with Iran. Opponents of Iran's accession to FATF regulations, mainly appointed by the Supreme Leader, argue that the approval of these bills would block financial assistance to groups like Hamas, Hezbollah, and similar organizations. Proponents of joining this convention claim that the opponents fear economic transparency and the prevention of banking corruption. The Guardian Council had rejected the parliament's resolution regarding these bills for the second time, and the National Security and Foreign Policy Commission insisted on its previous resolution during its session to address the council's objections. Meanwhile, on Sunday, the parliament approved the commission's resolution with 117 votes in favor, 62 against, and 2 abstentions out of 197 representatives present. According to the parliament's resolution, Iran will set conditions while joining this convention. Among these conditions, the Islamic Republic does not consider groups that, according to Iranian officials, conduct 'legitimate defense' as terrorist organizations. However, the Guardian Council had previously stated that other clauses of this resolution negate this precondition. Meanwhile, Heshmatollah Falahatpisheh, the head of the National Security and Foreign Policy Commission, stated that the parliament has set 'strong conditions' for Iran's accession to this convention. He predicted that the fate of this bill and the bill for Iran's accession to the Palermo Convention would be clarified within a month at the Expediency Council. The Expediency Council did not approve the bill for Iran's accession to the Palermo Convention during its session on Saturday, January 29, and it was decided that a decision would be made after reviewing it in two commissions next week. Laya Janidi, the legal deputy of the president, announced on Friday that the government has requested the Expediency Council to expedite the review of the Palermo bill. Two other FATF bills, including the 'Amendment to the Anti-Terrorism Financing Law' and the 'Amendment to the Anti-Money Laundering Law,' have been approved by the Guardian Council and the Expediency Council. The FATF expressed regret on October 19 that most of Iran's commitments remain unresolved, while extending Iran's suspension from its blacklist for another four months, which was welcomed by Iranian officials. Meanwhile, the International Monetary Fund has advised Iran to implement anti-money laundering and counter-terrorism financing measures before the February 2019 deadline set by the FATF.