Iran Guardian Council Rejects Terror Financing Bill

Iran's powerful Guardian Council on Sunday rejected a bill on joining the UN convention against terrorist financing seen as crucial to maintaining trade and banking ties with the world.

The conservative-dominated council, which oversees legislation passed by the parliament, said aspects of the bill were against Islamic law and the constitution and sent it back to lawmakers for revision.

"The Guardian Council has in several sessions reviewed the bill... and it has considered it to have flaws and ambiguities," wrote spokesman Abbas Ali Kadkhodaie on Twitter.

The bill, narrowly passed by parliament on October 7, is one of four put forward by the government of President Hassan Rouhani in order to meet demands set by the international Financial Action Task Force (FATF), which monitors countries' efforts to tackle money-laundering and terrorist financing.

Many hawks in Iran say the laws would limit the country's ability to support "resistance groups" such as Lebanon's Hezbollah and Palestinian Hamas by bringing greater transparency to its accounts.

But Rouhani's government argues it is particularly vital after the United States walked out of the 2015 nuclear deal and reimposed sanctions.

The other parties to the deal—Britain, France, Germany, China and Russia—have sought to salvage the agreement and maintain trade with Iran, but have demanded that it accede to the FATF.

Iran is alone with North Korea on the FATF, although the Paris-based organisation has suspended counter-measures since June 2017 while Iran works on reforms.

Last month, the FATF gave Iran another extension to February to update its laws.

"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," said Iran's Foreign Minister Mohammad Javad Zarif during the parliament debate last month.

A previous bill on the mechanics of monitoring and preventing terrorist financing was signed into law in August.

But two others—on money-laundering and organized crime—have 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.

Photo Credit: IRNA

Iran Parliament Passes Counter-Terror Finance Bill

Iran's parliament on Sunday approved a bill to counter terrorist financing that was strongly opposed by conservatives but seen as vital to salvaging the nuclear deal with European and Asian partners.

The bill, one of four put forward by the government in a bid to meet demands set by the international Financial Action Task Force (FATF), was passed by 143 votes to 120, according to the semi-official ISNA news agency.

It aims to bring Iran's laws in line with international standards and allow it to join the UN Terrorism Financing Convention.

A previous bill on the mechanics of monitoring and preventing terrorist financing was signed into law in August.

But joining the UN convention has been controversial because hardliners say it will limit Iran's ability to support armed groups in the region such as its Lebanese ally, Hezbollah. 

Two other bills—on money-laundering and organised crime—have also been passed by parliament but are being held up by the Guardian Council, which vets all legislation.

Iran is alone with North Korea on the blacklist of the Paris-based FATF, which monitors global money laundering and terrorist financing. 

The FATF suspended counter-measures against Iran in June 2017 and has set a final deadline of mid-October for it to amend its laws. 

The issue has become particularly pressing since the United States walked out of the 2015 nuclear deal with Iran earlier this year and began reimposing sanctions. 

The other parties to the deal—Britain, France, Germany, China and Russia—have sought to salvage the agreement and maintain trade with Iran, but have demanded that it accede to the FATF. 

"Neither I nor the president can guarantee that all problems will go away if we join (the UN convention)," said Iran's Foreign Minister Mohammad Javad Zarif during the debate ahead of the vote.

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

He said Russia and China—two of Iran's "strategic allies"—have refused to maintain financial ties unless it joined the FATF. 

'Death to Traitors'

Conservatives were furious with the vote on Sunday, with hardliners leading chants of "death to traitors" outside parliament. 

In a heated debate ahead of the vote, opponents of the bill said it would not solve the country's financial problems, and would help its enemies. 

"We did what (the FATF) demanded, we passed three bills but nothing happened. Our financial problems will not go away even if we join," said lawmaker Hossein Naghavi Hosseini.

Another hardliner, Mohammad Dehghan, warned the bill means "providing the enemy with intelligence during an economic war" and that passing it amounted to "treason".

Both sides have evoked supreme leader Ayatollah Ali Khamenei to support their position. 

Conservatives pointed to Khamenei's statement in June that Iran has "no need to join" global conventions.

But parliament speaker Ali Larijani, who supports the government's position, said he had received a letter from Khamenei explaining that his remarks were about "conventions in general" and not meant to oppose any particular bills. 

Reformist lawmaker Mohammad Feyzi told the session that Iran does not have "the luxury of choice" and will face negative consequences if it refuses to join the FATF.

Ali Najafi, spokesman for the parliament's commission which produced the bill, said Iran retained the right to walk away from the UN convention "wherever it acts against the Iranian constitution" and emphasized that it does not force Iran to recognize Israel.

Photo Credit: IRNA

Iran's Khamenei Says 'No Need' to Join Global Financial Crime Agreements, Supports Domestic Laws

Iran has "no need to join" global agreements on areas such as terrorism and money laundering, the country's supreme leader Ayatollah Ali Khamenei said Wednesday as the issue divides parliament.

Describing parliament as "mature and wise", Khamenei said lawmakers "must independently make legislation on issues such as terrorism or combating money laundering."

 "Of course some of the provisions of international conventions may be good but there's no need to join these conventions, citing these provisions," the supreme leader told a gathering of MPs, according to his official website.

Khamenei cautioned against signing up to global conventions when "we are not aware of the depth of their aims or (when) we know that they have problems."

Earlier this month Iran's parliament voted to suspend discussion of joining the UN Terrorism Financing Convention for two months, as Tehran waits to see whether its nuclear deal with world powers survives after the US pulled out of the landmark accord.

Debate among Iranian lawmakers on joining such global agreements is often furious, with conservatives warning signing up to the terrorism financing accord would cut off Iranian support to key regional allies Hezbollah and Hamas.

The military wings of both groups are designated as terrorist organizations by the United States and European Union, among others.

But the government has argued international cooperation is essential to confront terrorist groups which have targeted the country.

Iran's commitment to the UN convention is a condition for being removed from the blacklist of the Financial Action Task Force (FATF), a spot shared with North Korea.

Being on the blacklist of the inter-governmental body has added to Iran's woes in accessing global banking.

Iran's struggle to access international markets has been further compounded by the US decision to withdraw from the nuclear deal.

The remaining parties to the accord—Britain, China, France, Germany and
Russia—have committed to staying in the deal.

But their companies risk falling foul of US sanctions if they continue to do business with Iran.

Photo Credit: IRNA