Iran rejects law banning terrorist financing

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Iran's Revolutionary Guard commander Mohammad Ali Jafari speaks during a rally in front of the former US Embassy in Tehran on Nov. 4, 2018, marking the 39th anniversary of the seizure of the embassy by militant Iranian students. (AP Photo/Vahid Salemi)
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Iranian people burn the American flag as they mark the anniversary of the seizure of the US Embassy in Tehran Nov 4, 2018. (Tasnim News Agency /Handout via REUTERS)
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Demonstrators walk on a banner showing altered images of US banknotes with a picture of President Donald Trump on the ground during a rally in front of the former US Embassy in Tehran on Nov. 4, 2018. (AP Photo/Vahid Salemi)
Updated 05 November 2018
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Iran rejects law banning terrorist financing

  • As US sanctions begin, Tehran chooses to fund Hezbollah, Hamas
  • Previous legislation on money-laundering and organized crime has also been delayed by higher authorities, including the Guardian Council, after being approved by Parliament

JEDDAH: Iran’s powerful Guardian Council on Sunday rejected legislation to join the UN convention against terrorist financing, just a few hours before the reintroduction of tough US sanctions on Tehran’s oil trade and banking sector.

Joining the convention is crucial to Iran’s hopes of obtaining European support in evading the sanctions, which came into effect at midnight on Sunday. But conservative hawks on the council fear it would prevent them from funding groups such as Hezbollah in Lebanon and Hamas in Gaza, by forcing greater financial transparency.

The council said aspects of the bill were against Islamic law and the constitution and sent it back to Parliament for revision. The legislation “has flaws and ambiguities,” spokesman Abbas Ali Kadkhodaie said.

The bill, narrowly passed by Parliament last month, is one of four proposed by President Hassan Rouhani’s government to meet demands set by the international Financial Action Task Force (FATF), which monitors countries’ efforts to tackle money-laundering and terrorist financing.

Rouhani’s government says the law is vital after US President Donald Trump withdrew from the 2015 nuclear deal and reimposed sanctions. The other parties to the deal — Britain, France, Germany, China and Russia — have demanded that Iran accede to the FATF if it wants to maintain trade.

“Neither I nor the president can guarantee that all problems will go away if we join the UN convention, but I guarantee that not joining will provide the US with more excuses to increase our problems,” Iran’s Foreign Minister Mohammad Javad Zarif said during the parliamentary debate last month.

Previous legislation on money-laundering and organized crime has also been delayed by higher authorities, including the Guardian Council, after being approved by Parliament.

The council is made up of six clerics appointed by supreme leader Ayatollah Ali Khamenei and six lawyers appointed by the judiciary.

Iran’s failure to pass the FATF “is only symptomatic of the larger issue of Iran’s support for extremist and terrorist groups and organizations,” the security analyst Dr. Ted Karasik told Arab News.

“The legislation is good for domestic consumption by particular groups of officials, but the whole process is of course a sham.

“Its funding for terrorist militias and its acts of espionage make Iran, and specifically the Quds Force, simply unqualified for FATF status.”


Saudi crown prince, Pompeo send a message to Iran: End hostility or pay the price

Updated 17 June 2019
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Saudi crown prince, Pompeo send a message to Iran: End hostility or pay the price

  • The US secretary of state said the US was discussing a possible international response
  • MBS hoped the Iranian regime “would opt to become a normal state and cease its hostile policy”

JEDDAH: The US will take all actions necessary — “diplomatic and otherwise” — to deter Iran from disrupting Gulf energy supplies, US Secretary of State Mike Pompeo warned on Sunday.

Pompeo spoke hours after Saudi Crown Prince Mohammed bin Salman said the Kingdom would “not hesitate in dealing with any threat against our people, sovereignty and vital interests.”

The twin warnings to the regime in Tehran followed last week’s attacks on two oil tankers in the Gulf of Oman, widely assumed to have been carried out by Iran.

“We don’t want war. We’ve done what we can to deter it,” Pompeo said in a TV interview. “But the Iranians should understand very clearly that we will continue to take actions that deter Iran from engaging in this kind of behavior.

“What you should assume is we are going to guarantee freedom of navigation throughout the Strait of Hormuz. This is an international challenge, important to the entire globe. The US is going to make sure that we take all the actions necessary, diplomatic and otherwise, that achieve that outcome.”

Pompeo said the US was discussing a possible international response, and he had made a number of calls to foreign officials about the tanker attacks.

He said China, Japan, South Korea and Indonesia relied heavily on freedom of navigation through the strait. “I’m confident that when they see the risk, the risk to their own economies and their own people, and outrageous behavior of Iran, they will join us in this.”

The Saudi crown prince, in an interview with the Arabic-language newspaper Asharq Al-Awsat, said the Kingdom had “supported the re-imposition of US sanctions on Iran out of our belief that the international community needed to take a decisive stance against Iran.”

He hoped the Iranian regime “would opt to become a normal state and cease its hostile policy.”

Crown Prince Mohammed said the Kingdom’s hand was always extended for peace, but the Iranian regime had disrespected the Japanese Prime Minister Shinzo Abe during his visit to Tehran by attacking the two oil tankers in the Gulf, one of which was Japanese.

“It also employed its militias to carry out a shameful attack against Abha International Airport. This is clear evidence of the Iranian regime’s policy and intentions to target the security and stability of the region.”

The crown prince said the attacks “underscore the importance of our demand before the international community to take a decisive stance against an expansionist regime that has supported terrorism and spread death and destruction over the past decades, not only in the region, but the whole world.”

Prince Mohammed’s interview was “a message to Tehran, and beyond Tehran, to the international community,” the Saudi political analyst and international relations scholar Dr. Hamdan Al-Shehri told Arab News.

“He sent out the message that we do not want a war in the region. He was offering peace, as is our nature, and that is what we are doing now. But if it is going to affect our vital interests, our vital resources and our people, we will defend ourselves and take action to handle any threat.  

“We are facing aggressive, barbaric and terrorist threats from Iran, and we must take rapid and decisive action against that. The Kingdom of Saudi Arabia is sending a message to the world that there must be a solution.”