Seif Expresses Hope for Iranian Banks to Exit 'Black List'

Valiollah Seif, the Governor of the Central Bank of Iran, stated in an interview with CNBC that officials from the intergovernmental Financial Action Task Force (FATF) were unaware of the changes made in Iran's banking system. He expressed hope that Iranian banks would be removed from the 'black list', but did not specify when this might happen. Seif's interview on May 1 coincided with a recent 'meeting' between representatives of the Iranian government and the FATF in Paris, marking the first meeting at this level in eight years, which the Central Bank Governor confirmed. The FATF, established by the initiative of the G7 countries, aims to combat money laundering and prevent the financing of terrorism. Seif mentioned that during the recent meeting, the representatives from Iran and the FATF were surprised by the steps taken by Iranian banks and economic organizations, as they were unaware of the recent actions taken by Tehran. CNBC reported that FATF officials confirmed the recent meeting but did not provide further details. Seif stated that Iran has undertaken new measures that include new laws to combat money laundering and 'counter terrorism', arguing that Iran's presence on the black list is 'unfair'. The FATF's black list includes only North Korea besides Iran. Iran is striving to exit this 'black list', which would allow for financial transfers and the release of Tehran's blocked funds. However, this largely requires the use of the US dollar, and despite the lifting of nuclear sanctions, ongoing sanctions related to Iran's missile program, 'state-sponsored terrorism', and human rights violations have caused many European banks to remain hesitant to engage in transactions with Iran. The Supreme Leader of the Islamic Republic has emphasized that Iran will continue its missile tests. Iran still faces accusations of 'supporting terrorism', which includes its backing of groups like Hezbollah in Lebanon. Iranian officials have consistently denied the accusation of 'supporting terrorism'. International organizations frequently criticize human rights violations in Iran, a claim that is met with rebuttals from Iranian officials who insist that there are no human rights issues in the country. The FATF warned last February that if Iran does not enhance its activities in 'combating money laundering' and 'risk of terrorism financing', it will ask countries to take more serious actions against Tehran in the upcoming meeting in June. John Kerry, the US Secretary of State, recently stated during a meeting with Mohammad Javad Zarif, Iran's Foreign Minister, that Washington does not oppose international banks cooperating with Iranian companies and institutions that are not under sanctions. Kerry mentioned that the US government is ready to clarify what types of transactions with Iran are permissible under the nuclear agreement (JCPOA). Abbas Araghchi, Iran's Deputy Foreign Minister for Legal and International Affairs, stated last week that there has been good progress in some areas regarding the lifting of sanctions under the JCPOA, but there are still problems in the banking sector. In this context, the Iranian Foreign Ministry reported on Zarif's meeting with several members of the US Congress.