Why it matters:
Established in 1989, the FATF sets international standards for anti-money laundering (AML) and counter-terrorism financing (CFT).
FATF membership enhances a country's reputation and demonstrates its commitment to combating money laundering and terrorist financing. By adopting these standards, countries can improve their financial systems, making them more transparent and resilient against illicit activities. Over 200 jurisdictions have committed to FATF standards, either as members or through FATF-style regional bodies.
The Big Picture:
In response to a question from Iran Press, Guardian Council spokesman Hadi Tahan Nazif said: "The Guardian Council has expressed its opinion on the FATF years ago, and now this issue is being reviewed by the Armed Forces Recognition Council, and we are not in a position to express an opinion on it."
Between the lines:
Masoud Pezeshkian, Iran's President, announced that Iran's Islamic Revolution's Leader has agreed to review the Palermo and CFT bills in the Expediency Discernment Council.
Key Points:
- FATF consists of a set of laws and regulations, many of which are already in place
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- Now there are discussions around the Palermo and CFT in the Expediency Discernment Council.
What they are saying:
Hassan Rouhani: “How can we sell oil without being financially in contact with the world?”
Rouhani: If our connection with FATF is stopped, our banking transactions with the world will cease.
The Expediency Discernment Council, which had previously opposed Iran's joining the FATF, had declared: "For the Islamic Republic to join such international conventions is a strategic mistake if they are intended to neutralize the enemy's excuses (to harm Iran)."
Go Deeper:
In 2015, during Hassan Rouhani's presidency, Iran expressed its readiness to join FATF and agreed to 39 out of 41 actions of this group. Only the two conventions on combating organized financial crimes (Palermo) and the convention on combating the financing of terrorism (CFT) were agreed upon. The review of joining or not joining these two conventions was referred to the Expediency Discernment Council.
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