Tehran's Hopes and Fears Regarding Acceptance of F.A.T.F.

Gholamhossein Mohseni Ejei, the first deputy of Iran's judiciary, considered the acceptance of the items proposed by the Financial Action Task Force (F.A.T.F.) to lead to 'more troubles for the country.' Ejei stated on Wednesday in Ilam that there is no guarantee that this body will not later, in his words, 'raise new obstacles.' According to the official website of the F.A.T.F., this organization was established about 27 years ago to combat money laundering, terrorist financing, and other threats to the health of the international financial system. Iran, which was previously on this organization's blacklist, is striving to remove barriers to joining the global banking system to implement the F.A.T.F. regulations. However, what is the reason for the concerns expressed by Ejei and several figures from the so-called principlist faction regarding Iran's agreement to implement the F.A.T.F. requirements? Jamshid Asadi, an economics professor at the American University of Paris, believes these concerns are clear: 'You know that recently two banks in the country refrained from lending and conducting financial transactions for companies affiliated with the Islamic Revolutionary Guard Corps, mainly Khatam al-Anbiya headquarters, because as long as a company is on the blacklist of international organizations and is under sanctions, they will not conduct this transaction because then the bank will be deprived of conducting all its transactions. I think Mr. Ejei's reaction is mainly because they have realized that adhering to the laws that the F.A.T.F. has requested Tehran to follow—which has been done with much goodwill—has led even the banks in their own country to refrain from conducting transactions with companies affiliated with the IRGC.' The F.A.T.F. has also announced that it has suspended the restrictions of this organization on Iran's banking system for a period of 12 months. But what has been the outcome of this development in Tehran, where many have long awaited such an opening? Hamid Mirmaeini, a stock market and capital market expert in Tehran, tells Radio Farda: 'This event can be very good news for the system of international exchanges and also for reducing restrictions. But until this is implemented, it seems to be somewhat time-consuming. Currently, our analysts and also our market activists have not yet assigned a specific weight to this event and are waiting for it to be accepted by Iran in the political structure of the country, and then if it is accepted and the internal political problems and consequences are resolved, we will move towards its implementation.' Now, Mr. Mohseni Ejei, referring to Iran's nuclear agreement with the 1+5 group, says that just as issues like retribution were raised in the implementation of the JCPOA, in the F.A.T.F. only the issue of combating money laundering will not be raised. At the same time, some critics of Iran's interaction with the F.A.T.F. say that in the current regional conditions, weakening a military institution, and in their words, 'self-sanctioning,' is dangerous for Iran's security. However, Jamshid Asadi argues that this claim is not correct: 'Look at how security is defined in the global community; it has four components: one is armed internal conflict, one is high crime rates, another is terrorism, and one is political violence. Well, the political violence that exists in our country, look at the number of political prisoners. Fortunately, there is no terrorism. The issue of crime has a very high growth rate, and unfortunately, the issue of disputes caused by the Islamic Republic's policies in the region: the Shiite empire's dominance has led to disputes with our Sunni compatriots. It is true that these extremists say they are becoming stronger and we must also become stronger. Well, if you do not strengthen Shiite-Sunni tensions and warmongering, there is no need to be at war with them. But it is obvious that if your intention is to create a Shiite crescent in the region, a Shiite dominance in the region, you will face a widespread reaction from countries that are mostly Sunni, and you will again say you need to strengthen yourself. But this strengthening is not Iran's; it is the strengthening of the extremist faction that exists in Iran.' Assuming the success of that part of the Iranian government that seeks interaction with the world, what will be the most tangible outcome of Tehran's adherence to the F.A.T.F. requests in Iran? Hamid Mirmaeini, a stock market and capital market expert in Tehran, considers this tangible outcome to be the entry of international investors into Iran: 'Whether in terms of foreign investment, financing and funding projects, or transferring knowledge and technology, all of this will be in our economy, God willing!' After the implementation of the JCPOA, expectations for Iran's accession to the global banking system have risen, and accepting the demands of the F.A.T.F. by Tehran will be a significant step in this direction.