Iran risks losing remnants of international support

Iran risks losing remnants of international support

Baku, Azerbaijan, November 14

By Azer Ahmadbayli – Trend:

By rejecting the Financial Action Task Force (FATF) bill, Iran runs the risk of losing the fragile support that the international community is still lending to it.

Iran's Parliament has endorsed the FATF bill on combating the financing of terrorism (CFT); however the bill failed to pass the Guardian Council – a supervisory body overseeing the Iranian Parliament.

The bill, passed by the Parliament on October 7, is one of four put forward by the government of President Hassan Rouhani in order to meet demands set by FATF.

Even Iran's foreign minister Mohammad Javad Zarif, who is used to deal with diplomatic language, could not keep his regret about the rejection of the CFT bill, and criticized the current negative attitude in some circles of the Iranian society against the approval of the documents, saying that there are groups in the country that profit from money laundering.

Pointing to the confidential facts in this case, he admitted: "Even if I have any proof of it, I will not be able to make it public, but there are many cases that show the volume of money laundering in the country."

"I don't want to point finger at someone, but there are some places where thousands of billions of rials is laundered, Zarif said. “I do not accuse any organization. I think of individuals who benefit from this negative atmosphere."

Iranian hardliners believe, sincerely or not, that accepting FATF demands is a threat to the national sovereignty and may lead to losing it.

Kazem Sedighi, one of the well-known clerics, has praised Guardian Council for rejection of the FATF bill, Iranian media reported.

“Today, we are asking the authorities to not approve the humiliating bills of FATF which is similar to capitulation treaty (the so-called capitulation law - diplomatic immunity from the local jurisdiction, granted by the Shah to American military personnel in Iran in 1964),” he said.

“The Supreme Leader has stated that these laws are written to colonialize us, so we appreciate the Guardian Council that rejected the bills", he said.

The bill should finally be sent to Expediency Discernment Council to decide its fate. The Council is an advisory body in Iran’s political structure acting as an arbiter, in which the Conservatives make absolute majority.

Meanwhile, 40 conservative MPs have sent a letter to the Expediency Council, urging it to reject a package of bills making Iran a party to international agreements on combating terrorism financing and money laundering, Radiofarda reported.

“I think the opinion of the Expediency Discernment Council, according to the position of Ayatollah Movahedi Kermani has already been announced,” MP Jalal Mirzaie said. “It is clear that this dispute is not supposed to be resolved.”

In the meantime negative effects were just around the corner.

Due to the rejection of the CFT bill, the UAE banks have blocked more than 1,500 Iranian bank accounts, and their condition to re-open the accounts is joining FATF, the head of Iran - UAE Chamber of commerce Masoud Daneshmand said in an interview with Trend.

The Emirates’ bankers said that any financial transfer must be transparent and within the framework of FATF, and since Iran is not a member of it, they cannot have any bank account in the UAE, he added.

The CFT bill has passed in the Parliament by low votes and had many opponents who supposed to be following the benefits of specific groups that seek lack of transparency of financial transactions, weakening government and capital accumulation by creating fluctuations in the market, Iranian economist Mahmoud Jamsaz told ILNA.

"Some of these groups have benefited greatly from the previous sanctions," he added.

"Although the Europeans are looking for resolutions like Special Purpose Vehicle (SPV) to facilitate the banking transactions, their decision will be weakened by such Iran’s approaches and lead the US to claim that Iran lacks financial transparency. This will hurt the small and medium European companies so they might refuse to invest in Iran," the expert said.

Referring to the remained time of passing the FATF bills (February is a deadline), Jamsaz says that if the FATF bills will not go through in the upcoming 4 months, even Europe, Russia and China won't support Iran, since they are also following their own interests and will not get into a trade war with the US because of the Islamic Republic.

Another economic expert, Kamran Nadri, also believes that if the FATF requirements and recommendations are not met by Tehran, the financial relations of such friendly countries as Russia and China with Iran will become very complicated, according to Khabarfarsi.

Even the neighboring countries won’t cooperate with Iran if it doesn’t have financial transparency, Member of the Iranian Parliament’s Agriculture, Water and Natural Resources Committee Jalal Mahmoudzadeh said in an interview with ILNA last week.

“Without financial transparency, European banks won’t cooperate with us,” he said. “FATF projects should be approved if we want to carry out banking operations with other countries.”

Today, Iran is not in a position to ignore the support from major world powers such as the EU, Russia or China, and risks being targeted by them. Perhaps, the issue can go even further and the EU, as well as others may at some point decide to entirely join the US sanctions.

So after all, there is a question: which one is a real threat to the national sovereignty – enactment of CFT bill or inability of the Iranian foreign minister to make the ugly facts public?

Subscribe to Trend in Google News! Subscribe
Azerbaijan considering sending medical workers of Baku clinics to district hospitals
Azerbaijan considering sending medical workers of Baku clinics to district hospitals
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 1,795 more COVID-19 cases, 1,967 recoveries
Azerbaijan confirms 1,795 more COVID-19 cases, 1,967 recoveries
Loading Bars
Latest
UN says international migration rose last year despite Covid-19 impact
Kyrgyz border service reports shots from Tajikistan
Bennett declares ‘Yamam’ Israel’s national counterterrorism force
Transport infrastructure in Karabakh to turn Azerbaijan into logistics hub between Central Asia and Europe – CAERC
Four injured after old WWII aircraft bomb explodes in Munich - police
1st US case of COVID-19 omicron variant identified - Fauci
OPEC can elect new secretary general in January 2022 — source
President Erdogan talks bilateral relations with Crown Prince of UAE
Georgia to receive special PCR tests to detect new Omicron variant of coronavirus
Qatar Airways to launch flights to Uzbekistan from Jan 17, 2022
Iran military clashes with armed men on Afghan border
Armenia found itself in complete military-political isolation even within CSTO - Russian military expert
Net foreign assets in Azerbaijan grow for 10M2021
New geopolitical situation in region opens way for Azerbaijan’s further development - ambassador
Ambassador of Kazakhstan expresses condolences to Azerbaijan due to helicopter crash
Azerbaijan working on reconstruction railway line which is part of Zangazur corridor (PHOTO)
SOCAR’s STAR refinery tests numerous types of crude oil
Azerbaijan considering sending medical workers of Baku clinics to district hospitals
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 1,795 more COVID-19 cases, 1,967 recoveries
Azerbaijani National Depository Center opens tender to buy new generation security system
Georgia boosts honey exports
Solar PV growth to surpass wind in EU in 2021-2026
Servicemen injured in Azerbaijani helicopter crash talk about incident (PHOTO/VIDEO)
Turkmen company exports paper products to Uzbekistan, Turkey
Iranian companies express readiness to restore factories in Syria - minister
Azerbaijani, Armenian FMs to meet in Sweden
President Ilham Aliyev receives EU Special Representative for South Caucasus (PHOTO/VIDEO)
US Marshall Legacy Institute sends eight more mine detection dogs to Azerbaijan (PHOTO)
Iran’s Bahar Azadi gold coin price rebounds
Azerbaijani agency shares data for mine detection, clearing work in liberated territories
Central Bank of Azerbaijan opens tender to insure fixed assets
Azerbaijan’s 10M2021 oil exports to Spain revealed
Uzbek Statistics Committee shares data on volume of retail trade turnover
Georgian medics advise reconsidering COVID-19 passports issuance
Overview of Uzbekistan's volume of wholesale trade turnover dynamics between 2010-2020
Price indexes of construction, trade sectors at Uzbek stock exchange fall
Georgia, IMF discuss new co-op program
Prices for goods and services in consumer market of Uzbekistan rise
Turkey’s diesel fuel exports to Georgia down
Georgia, NATO discuss further co-op and Black Sea security
Iran bans import of musical instruments due to lack of foreign exchange resources
Turkmen ministry prolongs tender for supply of metal blanks
IRENEX shares data on sales of Tabriz Oil Refining Company
Activities in Iran’s Imam Khomeini port down
Star Refinery satisfies about quarter of Turkey's refined petroleum product needs - CEO
Kazakhstan’s oil and gas company opens tender to supply fittings
Mobile phones rank first in Iran’s total imports - IRICA
Turkmenistan’s education ministry extends tender for setting drip irrigation system
Oil minister tells president, parliament that Iran's oil exports 'significantly grow'
Azerbaijan, Pakistan talk prospects for development of military co-op (PHOTO)
Azerbaijan's SOCAR Polymer exports increase over 10M2021
Iran unveils volume of dates export
Iran’s CBI reveals data on balance of bank loans
EU to exceed current renewable capacity plans for 2030
Azerbaijan reveals oil exports to Italy in 10M2021
Azerbaijan shares data on oil export to Croatia in 10M2021
Baku Metro provides ‘November 8’ station with backup power supply (Exclusive) (PHOTO)
Renewable electricity generation to exceed average annual growth rate of 2015-2020
Expansion of bioenergy for power capacity to slow down
Renewable energy capacity to expand by 2026, says IEA
Azerbaijan talks ongoing work to provide electricity to liberated Lachin district
Special representative of Azerbaijan's President in liberated territories within Karabakh economic region appointed
German Ambassador expresses condolences to Azerbaijan over deadly helicopter crash
Iran, Syria sign four cooperation agreements
Iran to invest in Syrian industrial towns
Austria extends COVID-19 lockdown by 10 days
Branch of Azerbaijan’s Balakhani Operating Company opens tender to buy pipes, pumps
Baku electric company opens tender to buy materials for lamp posts repair
Organization of social zone of Aghdam Industrial Park completes in Azerbaijan – minister
Deputy Prime Ministers of Azerbaijan, Armenia and Russia to meet in Moscow today
Azerbaijan’s Azerishig opens tender for reconstruction of substation in Sumgayit
Kazakhstan increases trade with India over 9M2021
Nar continues to grow IT professionals (PHOTO)
India provides medical, humanitarian aid to over 150 countries to deal with COVID-19: MEA
Georgia receives COVID-19 support grant from German Development Bank
Turkey-Azerbaijan trade turnover grows in October 2021
Kazakhstan reports increase in maritime transport volumes
SOCAR Petroleum to open new petrol station in Azerbaijan’s Gubadli district
SOCAR Georgia Gas increases gas tariffs
Iran reveals COVID-19 data for December 1
Azerbaijan discloses data on oil exports to Israel
Georgian cities receive EU grant for cultural development
Saudi Arabia reports first Omicron case coming from north Africa
Georgian FM expresses condolences for lives lost in crash of military helicopter
PMO records increase in cargo movements in Iranian ports
Turkey’s BOTAS increases gas imports
Hungary launches Stipendium Hungaricum scholarship programm
Russia working out celebration program for 30th anniversary of ties with Azerbaijan - MFA
Burial ceremony of Azerbaijani helicopter crash victims held in second Alley of Martyrs (PHOTO/VIDEO)
Georgian Embassy expresses condolences to Azerbaijan on helicopter crash
Iran to prepare budget bill with highest economic growth estimates - President Raisi
Construction and installation work under completion at Azerbaijan’s Khojasan metro station (PHOTO)
Dynamics of OPEC+ production in 2021-2023
Share of Iranian government in earnings from crude oil exports to decrease – Official
Some try to use helicopter crash for political purposes - Azerbaijan's prosecutor general (PHOTO)
Azerbaijan lost comrades - head of Azerbaijani State Border Service on helicopter crash
Azerbaijan sees increase in local payments of foreigners via bank cards
Azerishig OJSC reveals work done to supply power to Azerbaijan’ Kalbajar
Russian Moscow Exchange and Uzbek Toshkent Stock Exchange sign co-op agreement
All news