Iran postpones debate on terror financing

Fighters from the Iraqi Shiite Hezbollah Brigade walk into the Wadi al-Salam cemetary in the Shiite holy city of Najaf on December 10, 2017. (AFP)
Updated 10 June 2018
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Iran postpones debate on terror financing

TEHRAN: Iran's parliament voted Sunday to suspend discussion of joining the UN Terrorism Financing Convention for two months, while it waits to see whether its nuclear deal with world powers will survive.
There has been an often furious debate among Iranian lawmakers over whether to join the international Financial Action Task Force (FATF), which requires members to pass numerous laws against terrorism financing and money-laundering.
Iran and North Korea are currently the only countries on the FATF black-list, adding to their difficulties in accessing global banking.
But many conservative lawmakers argue the new laws -- in the works since last year -- will cut off Iranian support to Lebanese Hezbollah and Palestinian Hamas -- whose military wings are designated as terrorist organisations by the United States and European Union, among others.
They say the legislation will also condemn members of the Revolutionary Guards listed as terrorists by the US, including the head of its external operations, Qassem Soleimani.
But Abbas Araghchi, deputy foreign minister, defended the efforts to join the FATF, saying it was firmly in Iran's interests.
"This very parliament was the victim of Daesh terrorism this time last year... Without international cooperation and joining international conventions, it is impossible to confront it," said Aragchi.
"Inside the country there are some holes and weaknesses in banking networks, which unfortunately facilitates terrorist groups and drug-smuggling," he added.
Daesh carried out twin attacks last June on Iran's parliament and the tomb of revolutionary founder Ruhollah Khomeini, killing 17.
Iran, a majority Shiite country, is considered a primary enemy by extremist groups such as Al-Qaeda and Daesh -- and has directly fought these groups in Syria and Iraq.
But with the US pulling out of the 2015 nuclear deal last month and ordering full sanctions to be reimposed on Iran, many say it is pointless to join the FATF.
The other parties to the nuclear deal -- Britain, France, Germany, China and Russia -- are working to salvage the deal and maintain trade ties, but most international banks already refuse to work with Iran for fear of US penalties.
On Sunday, lawmakers voted 138 to 103 (with six abstentions) on suspending the discussion around the Terrorism Financing Convention for two months, while they wait to see how the nuclear deal discussions play out, according to ISNA.


Anti-money-laundering body gives Iran until February to complete reforms

Updated 51 min 46 sec ago
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Anti-money-laundering body gives Iran until February to complete reforms

  • The Financial Action Task Force said it was disappointed that Tehran had acted on only nine out of 10 of its guidelines despite pledges to make the grade

PARIS: The international group that monitors money laundering worldwide said on Friday Iran had until February to complete reforms that would bring it into line with global norms or face consequences.
The Paris-based Financial Action Task Force said after a meeting of its members that it was disappointed that Tehran had acted on only nine out of 10 of its guidelines despite pledges to make the grade.
“We expect Iran to move swiftly to implement the commitments that it undertook at a high level so long ago,” said Marshall Billingslea, the US assistant Treasury Secretary for terrorist financing, after chairing an FATF meeting.
“In line with that, we expect that it will have adopted all of these measures by February. If by February 2019 Iran has not yet done so, then we will take further steps,” he said.
In the meantime, the FATF said it had decided to continue suspending counter-measures, which can go as far as limiting or even banning transactions with a country.
Iran’s parliament approved some new measures against funding terrorism earlier this month under pressure to adopt international standards. But FATF said that it could only consider fully enacted legislation.
Members of FATF had already given Tehran until this month to bring its laws against money-laundering and funding of terrorism up to its guidelines.
Otherwise, Iran risked being returned to a blacklist of non-compliant countries that makes foreign investors and banks reluctant to deal with it.
Britain, France and Germany are trying to keep some financial channels open to Iran after the US pulled out of a 2015 nuclear deal in May and re-imposed sanctions.
Analysts say that inclusion on the FATF’s blacklist could effectively make that all but impossible.