The Expediency Council Rejects Secretary's Remarks on FATF Bills

The Expediency Council denied the statements made by its secretary, Mohsen Rezaei, who had declared that the approval of bills related to the Financial Action Task Force (FATF) was contingent upon 'Europe's guarantee for reciprocal action.' In a speech on Sunday, March 17, Rezaei stated, 'The Europeans were making every effort for the swift approval of the Palermo and FATF international bills by Iran.' The foreign ministers of three European countries, in a statement related to the establishment of a financial mechanism for trade with Iran, said that 'it is expected' that Iran 'will decisively implement all elements related to FATF.' However, Rezaei announced, 'The logical stance of the Expediency Council for approving these conventions is to obtain a commitment and a definite guarantee from the Europeans through the Ministry of Foreign Affairs.' Hours after the news was published, the public relations office of the Expediency Council described Rezaei's remarks as 'incomplete.' The Council stated that the approval of these bills 'depends on the expert reviews' of this body and the arguments of other institutions, and that it 'will not pay attention to the unsupported statements and promises of some countries.' Rezaei also mentioned that 'the Europeans committed to purchasing Iranian oil and allowing the establishment of a banking branch and banking transactions with Iran under the JCPOA, but they are not fulfilling these commitments.' The FATF granted Iran an extension until June, following a week-long meeting in Paris, to comply with international standards. So far, the group has given the Islamic Republic four opportunities to exit its blacklist by approving laws and adhering to global standards. However, the bills for Iran's accession to the Convention on Combating the Financing of Terrorism and the Convention against Transnational Organized Crime (Palermo) remain unresolved in the Expediency Council. Former President Mahmoud Ahmadinejad and several reformist figures have suggested holding a referendum on this matter. Some close to the Supreme Leader, including Friday prayer leaders and members of the Assembly of Experts, oppose the approval of these bills. Meanwhile, 75 members of parliament wrote a letter to Sadeq Larijani, the head of the Expediency Council, calling the FATF a 'mysterious and dependent' group. According to these representatives, the government has implemented parts of the group's requirements that did not need parliamentary approval 'as much as it could' over the past three years. They claimed that the implementation of these requirements over the past three years 'has caused self-sanctioning and severe blows to the country's economy and people's livelihoods' and that 'continuing this retreat will further sink the country's economy.' This claim comes despite statistics indicating an improvement in Iran's economic situation after the implementation of the JCPOA. The U.S. withdrawal from the JCPOA and the reinstatement of sanctions against Tehran have led to the devaluation of the national currency and the bankruptcy of many Iranian industries in recent months, with people facing shortages of baby diapers for a time. Currently, the crisis of meat shortages and the rising prices of essential goods are affecting many sectors of Iranian society. Meanwhile, Gholamreza Mesbahi Moghadam, a member of the Expediency Council, stated on March 8 that Iran must create 'cover companies inside and outside the country' to circumvent sanctions and that by joining these conventions, 'it must abandon such transactions.' Opponents of Iran's accession to FATF regulations argue that the approval of these bills would block financial assistance to 'Hamas,' 'Hezbollah,' and similar groups. Proponents of Iran's accession to this treaty argue that its opponents fear economic transparency and the prevention of banking corruption.