Iran’s leadership divided over global financial conventions

The top echelons of Iran’s ruling elite appear to remain divided on endorsing international conventions to combat money laundering and terrorism financing, according to a Tehran-based outlet.

The Rouydad24 news site reported on Monday that members of Iran’s Expediency Council, currently reviewing legislation for joining two international conventions, are divided between supporters and opponents.

Rouydad24, though not directly controlled by the state, operates within the constraints of Iran's media landscape.

The outlet, however, suggested that the political system appears to have decided in favor of approving the pending legislation, noting that the presidential administration has received “the green light from higher authorities,” referring to the Supreme Leader.

Iran’s former ambassador to the United Kingdom, Jalal Sadatian, told the website that 10 members of the Expediency Council support the legislation, 22 oppose it, and 10 are undecided.

The international watchdog, the Financial Action Task Force (FATF), urged Tehran more than a decade ago to join several global conventions, adopt transparency measures, and implement safeguards against money laundering and terrorism financing.

Another Tehran website, Faraz Daily, reported on January 18 that Russia has asked Iran to accede to FATF's requests, as Moscow itself is concerned about being blacklisted by the watchdog.

While the Iranian parliament initially passed related legislation in 2017, the Guardian Council, which reviews all laws, rejected two of the approved measures.

The Expediency Council, tasked with resolving disputes between the parliament and the Guardian Council, refrained from making a decision for seven years.

The issue resurfaced late last year as Iran’s economic crisis deepened, prompting calls from within the ruling elite to meet FATF conditions.

The FATF placed Iran on its blacklist in 2020, effectively severing most of Iran’s banking ties with the world and hindering its ability to attract foreign investment.

Opponents of the conventions have particularly criticized the measure banning the financing of terrorism, claiming it would obstruct Iran’s support for proxy groups and regional allies. They also argue that joining international conventions recommended by the FATF would undermine Iran’s sovereignty.

"The issue is simply that the opponents either do not know or pretend not to know," Sadatian said, arguing that Iran has been left at a significant disadvantage by refusing to comply, as 186 countries worldwide have joined the conventions.