Iran: FATF decision to extend suspension - ground for creating "Special Purpose Vehicle"
Tehran, Iran, Oct.20.
Laya Joneydi, Vice-President for Legal Affairs issued a statement on the effect of extending the FATF deadline for Iran to complete reforms to meet conditions for getting out of the body’s black list.
"The approval of four bills, first of all, will help us to have better banking and reduce the possibility offenses in the money transferring. That's why, first and foremost, we need to take steps to improve our banking and financial system and maintain the security of banking and financial relations," Joneydi wrote in a statement posted on government official website.
"So, the government's effort was not just for the Financial Action Task Force (FATF), but for a better banking," she said. “Along with that, it a very positive step in maintaining international banking connectivity, and also provides grounds for new financial arrangements with other countries, including European Union, China, Russia and neighboring countries.”
She noted that this extension is a great help in doing necessary preparations for creating a special purpose vehicle and banking tool for the European Union, which is an important part of the union's package.
A special purpose vehicle (SPV) is a subsidiary of a company which is protected from the parent company's financial risk. It is a legal entity created for a limited business acquisition or transaction, or it can be used as a funding structure. It is sometimes called a special purpose entity (SPE).
"We had intensive talks with the FATF on suspending the inclusion of Iran in the black list, in other words, the removal of Iran's name from the list of countries subject to severe financial and banking restrictions and the issue of countermeasures,” she said in a statement.
"The government and the nation have begun a clever legal battle based on the standards of legitimacy and international civic against the US government,” she said.