Second Report on JCPOA by the Government and Reactions to It

As stipulated in the JCPOA law, the Iranian Foreign Ministry submitted its second quarterly report on the implementation of the JCPOA to the Parliament on Saturday. In this 41-page report, the government emphasizes that returning to the pre-sanction status "is akin to rebuilding the destruction of a ten-year war, which will certainly require time in technical and operational terms." The Foreign Ministry describes the impact of U.S. human rights and missile sanctions on the lifted nuclear program sanctions as an "undeniable reality" and acknowledges that currency exchanges "still face limitations." Part of the Foreign Ministry's report is dedicated to the banking and financial exchange problems of Iranian banks with foreign entities, noting that the decade-long severance of Iranian banks from the international financial system and changes in the banking sector are among the obstacles to normalizing relations between Iranian banks and the international financial system. Cooperation among international banks has prerequisites such as compliance with anti-money laundering and counter-terrorism financing regulations. Iran's lack of cooperation over the past decade with the Financial Action Task Force (FATF), the international body overseeing interbank cooperation standards, appears to be one of the barriers hindering Iranian banks from collaborating with international banks and financial institutions. While the Central Bank is working to create conditions for joining this task force and removing banking and financial cooperation obstacles, government opponents view these efforts as a currency conspiracy. Valiollah Seif, the head of the Central Bank, stated on July 21 in an interview with the news network regarding the FATF that "standards have been accepted among governments that all countries are obliged to comply with." Hooshang Amir-Ahmadi, a university professor in New Jersey, told Radio Farda: "Iran's accession to the FATF requires transforming the Islamic Republic's banking system and aligning it with the international financial system." However, a member of Parliament on Sunday, July 27, called joining the anti-money laundering oversight body dangerous. On the same day, Abbas Araghchi, Deputy Foreign Minister, stated at a press conference marking the anniversary of the JCPOA that "in practice, the sanctions have not been completely lifted." Mr. Araghchi also mentioned for the first time that crossing the so-called red lines of the system was determined by the high-ranking officials of the system or, in other words, the Supreme Leader of the Islamic Republic. The previous report from the Foreign Ministry was presented three months ago on April 29, which led to criticism from some hardline opponents of the nuclear agreement.