Iran: Passing FATF-related bills depends on Europe's approach

Business Materials 19 March 2019 15:43 (UTC +04:00)

Tehran, Iran, March.19


Iran's government seeks to pass the two remaining FATF- related bills that would allow Iran to join the Financial Action Task Force organization and smooth the path for INSTEX functioning, however passing the bills are being delayed by Iran's Expediency Council.

On Jan. 31, three European countries – France, Germany and the UK (shortened as E3) – officially announced the creation of the Instrument in Support of Trade Exchanges (INSTEX), a special purpose vehicle, to allow them bypass US sanctions on trade with Iran. INSTEX facilitates non-dollar trade with Iran, allowing European companies to trade with the Islamic Republic without being hit by the sanctions.

Iranian MP Ghasem Mirzaei, who is in favor of the parliament passing the FATF bills, discussed the issue with Trend.

"I think if the conditions of countries that implemented the sanctions would change, it would result in Iran passing the UN Convention on Transnational Crime (Palermo bill). I think if the current approach continues the bills would not pass," he added.

Referring to fate of Instrument in Support of Trade Exchanges (INSTEX) he said that if the INSTEX can resolve problems, it would open the path to pass these bills, otherwise things will get worse.

"I think until now the Expediency Council's thoughts on the issue were negative," said the MP. "The Council believes these bills have caused no effect in improving Iran's trade relations so they (Europeans) know that they should do."

He noted the Europeans' pre-condition for INSTEX operation is to have the FATF bills passed.

"The parliament has done its work and the decision now depends on the Expediency Council," he said.