Iran’s Expediency Discernment Council (EDC) did not take a decision about anti-money laundering and anti-terror financing bills approved by parliament but rejected by the Guardian Council. This was the fourth time the Council has discussed the bills but failed either to accept or reject them. Its next meeting will be after the Iranian New Year on March 21 and not before April.
President Hassan Rouhani and Parliament Speaker Ali Larijani were absent from the EDC meeting.
The meeting was the first held after the resignation of the Foreign Minister Mohammed Javad Zarif, which was rejected by the President and later Zarif withdrew the resignation and returned to his post.
The talk about compliance with the Financial Action Task Force (FATF) standards has become controversial in Iran. Iranian circles fear the influence of FATF on the activities of al-Quds Force, the foreign arm of Iran’s Revolutionary Guards Corps (IRGC), and Iranian-sponsored groups in the Middle East.
The government denies any effect of the laws on the activities of IRGC, as Foreign Minister Zarif told the parliament that Iran's compliance will leave any excuse for the US, which was seen by conservative circles as an attempt to appease the United States.
Expediency Council Secretary Mohsen Rezaei said that behavior of European countries will influence the body’s final decision about ratifying FATF-related bills.
“In the new [Iranian calendar] year, we will put these two bills on the agenda and meanwhile FATF’s behavior will also be monitored; since it [FATF] has, on one hand, appreciated Iran’s measures and on the other, it has displayed some ambiguities. The more constructive FATF behavior, the more influential it will be in the council’s decision,” Rezaei announced Saturday at a press conference.
“Behavior of Europeans will affect the council’s decision since we are not satisfied with their performance on JCPOA,” he added
Rezaie went on to say that Iran’s conditions differ from other countries regarding the joining to the Task Force, adding, “maybe if we were not under sanctions, we would review FATF in another way.”
Rezaei criticized Rouhani and described his remarks on the Expediency Council as "unfriendly and illegal" and said the legal issue "is not about a person or 30 people," noting that members of the government are less than members of the Expediency Council.
On Tuesday, Rouhani stated, “we can’t let a group of 10-20 people take control of country.”
Head of the Expediency Council Sadiq Larijani, responded to Rouhani calling it "fallacy" and "wrong." He also accused the Iranian president of misleading the decisions of constitutional organs.
Larijani also responded to Rouhani's claims about the Iranian leader's approval of the government's plan to join the FATF. "The Leader did not say he was OK, but said he had no opinion," he said.
Iranian television said the security, legal and judicial security committees renewed their opposition to the Palermo agreement.
State-owned ISNA news agency quoted council member Ghulam Reza Musbahi as saying that all the signatories and opponents of the agreement presented their positions during the meeting, hinting that results had been reached and will be announced after the New Year holiday.
"The council has now decided not to vote on Palermo and not to discuss the CFT until it makes a clear decision in the future," said Chairman of National Security and Foreign Policy Committee of Iranian Parliament Heshmatollah Falahatpisheh.
Donya-e-Eqtesad newspaper reported that the downward trend in dollar prices has stalled, pointing to the dollar's return to volatility. The dollar exceeded 136 thousand riyals, and reached about 138, after witnessing a decline for two days, according to the newspaper.
Earlier, FATF said Iran has until June to fix its anti-money laundering and terrorism financing rules or face increased international scrutiny of its banks.
US assistant Treasury Secretary for terrorist financing, Marshall Billingslea, who chaired the FATF meeting, said Iran had until June before countermeasures would automatically kick in, according to Reuters.
France, Britain and Germany have tied Iran’s compliance and removal from the FATF blacklist to a new channel for non-dollar trade with Iran designed to avert US sanctions.
Iran’s central bank welcomed the deadline extension granted by the FATF and called in a statement for the “remaining bills to be approved as soon as possible”, IRNA reported.
Foreign businesses say Iran’s compliance with FATF rules is key if it wants to attract investors, especially after the United States re-imposed sanctions on Iran last year.
