WANA (Apr 08) – Iran’s government is seeking to complete the FATF action plan through the Expediency Council in order to resolve economic issues, but the Americans say that FATF mechanisms will also help prevent the circumvention of sanctions.

 

“Iran has created a complex covert banking system that enables it to sell its oil, petrochemical products, and other goods and circumvent sanctions.” This was stated a few days ago by U.S. Treasury Secretary, Scott Bessent.

 

He emphasized that Washington will use intelligence tools and cooperation with the international financial system to counter these financial networks.

 

Previously, Trump had signed a document against Iran instructing the Treasury Secretary to keep Iran under pressure within the Financial Action Task Force (FATF) and to take measures to prevent Iran’s revenues.

 

Despite this, the head of the Expediency Council, Sadeq Amoli Larijani, said in Aban (October/November) of last year that 40 out of the 42 FATF recommendations are already being implemented in the country, and that the remaining two—including Palermo—can also be accepted with reservations.

 

Countries cooperating with FATF are obligated to share their banking transactions with other countries’ Financial Intelligence Units (FIUs) through their own FIUs.

 

Currently, the Iranian government is seeking to complete the FATF action plan by ratifying the Palermo and CFT conventions in the Expediency Council and to implement all items of the action plan provided by FATF to Iran.

 

International trade law expert Gholam-Nabi Feyzi says that joining FATF would remove Iran from the list of high-risk countries and thereby facilitate foreign investment in the country.

 

However, international economics expert Masoud Barati believes that joining FATF and the CFT and Palermo conventions would make circumventing sanctions more difficult, limiting Iran’s ability to export oil and petroleum products.

 

Experts believe that by implementing domestic anti-money laundering standards, strengthening economic diplomacy, expanding bilateral and multilateral economic relations, and establishing alternative financial institutions, Iran can boost trade interactions with other countries without FATF and without exposing its sanction-evasion channels.