Iran’s parliament passes counter-terror financing bill

ERBIL, Kurdistan Region – Iran’s parliament on Sunday approved a bill that would sign the country onto the convention for countering terror financing. 

The legislation is part of a demand in June by the Financial Action Task Force (FATF) that Tehran enact legislation by October to bring Iran into compliance with international standards or the FATF “will decide upon appropriate and necessary actions.”

The parliament session was attended by Foreign Minister Mohammed Javad Zarif who was there to defend the bill on behalf of President Hassan Rouhani, according to IRNA. 

"Neither I nor the president can guarantee that all problems will go away if we join [the UN convention]," Zarif said in the parliament, AFP reported. 

"But I guarantee that not joining will provide the US with more excuses to increase our problems," he added. 

Intelligence Minister Mahmoud Alavi and Governor of the Central Bank of Iran Abdolnaser Hemmati were also present to respond to questions from lawmakers, ILNA reported. 

Lawmakers passed the legislation with a vote of 143 to 120.

The bill is one of four pieces of legislation to comply with FATF’s demands, addressing money laundering, funding terrorism and joining the Palermo Convention on organized crime. 

The FATF works to protect the international financial system by setting global standards for anti-money laundering and combating the financing of terrorism. 

In June, the body said it was “disappointed by Iran’s failure to implement its action plan” reforming its money laundering and terror financing laws. It  issued a series of issues for Iran to address, including “adequately criminalizing terrorist financing” and ratifying relevant international conventions.

The legislation was strongly opposed by conservatives. Ayatollah Khamenei, however, told the parliament that he had no opposition to the FATF bills being discussed in the legislature, after the body requested his guidance on the matter, according to ILNA news.  

Analysts expect that the reforms will smooth Iran’s economic relations with the rest of the world, especially as Tehran works with European and Asian partners in the nuclear deal and tries to protect its economy from the effects of US sanctions. 

US President Donald Trump withdrew from the nuclear deal in May and slapped renewed sanctions on Iran. Washington has labeled Iran the world’s “biggest sponsor of terrorism.”

Legislation passed by the parliament must be approved by the Guardian Council and the Expediency Council before becoming law.