BAKU, Azerbaijan, May 15. Iran’s Guardian Council has approved the Palermo Convention on combating transnational organized crime under the Financial Action Task Force (FATF), an intergovernmental body focused on anti-money laundering and counter-terrorism financing measures, Hadi Khani, Deputy Minister of Economic Affairs and Finance of Iran, told local media,Trend reports.
Khani noted that after months of expert discussions, the convention was finally approved on May 15. He emphasized that this step will strengthen Iran’s position in fighting organized crime and protecting national interests.
Khani also stated that the FATF’s Convention on Combating the Financing of Terrorism (CFT) will be reviewed in upcoming Guardian Council sessions.
To note, Iran's Expediency Discernment Council is currently re-examining the two conventions (CFT and Palermo) that have not been ratified in Iran. He explained that there are differing opinions within the country about the approval of these conventions, with some seeing them as detrimental, while others believe they align with the country's interests.
The Financial Action Task Force (FATF) of the Organization for Economic Cooperation and Development is an intergovernmental body that regulates the rules for combating money laundering and terrorist financing. At the last meeting of this organization, Iran was warned that if the country's program of steps is not improved, Iran may be added to the list of non-cooperative countries. Iran has complied with 37 out of 41 FATF steps.
The remaining four steps or conventions fall under the scope of the legislation. "Amendments to the Law on Combating Money Laundering," "Amendments to the Law on Combating the Financing of Terrorism," "Accession to the International Convention on Combating Transnational Organized Crime (Palermo)," and Accession to the International Convention on Combating the Financing of Terrorism (CFT) have been drafted by the Iranian government and sent to the parliament. Although the four conventions were approved by the parliament and sent to the Advisory Council, the CFT conventions and the Palermo Convention have not yet been approved by the mentioned council.
The G7 group founded the FATF in 1989 to combat the complexities of money laundering activities. The entity encompasses a cohort of 37 stakeholders, with its governance apparatus strategically located in Paris, France.
The FATF designated Iran as a high-risk jurisdiction in 2007 and enacted formal sanctions on Tehran in 2009. Consequently, nations needed to exercise prudence in financial and banking transactions with Iran. Since 2016, diplomatic initiatives have postponed the implementation of retaliatory actions on Iran.
The Financial Action Task Force (FATF) designated Iran as a non-cooperative country (blacklist) on February 21, 2020.
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