FATF sanctions have a direct impact on the economy of the sanctioned countries
As far as I know, some believe that the implementation of the FATF will not affect Iran's economic situation. I disagree with this reading. The organization's sanctions have a direct impact on the economy of the sanctioned countries. This can be seen in practice. The FATF calls on its members to respect the laws they have adopted to impose sanctions on member states.
According to Iran's International Stone Exhibition, Professor Go Lisawati is a researcher and lecturer at the Sorbaya University of Law. He is involved in money laundering, anti-corruption and cybercrime.
Referring to some criticisms in Iran against the Financial Action Task Force for the possible blockade of Tehran's way of circumventing sanctions if it adheres to the treaty, he told the reporter: "I honestly don't know that there is any connection between these two issues." The FATF is an organization among governments. I don't know if international money laundering regulations have anything to do with circumventing sanctions. But I don't know much about it. But as far as the FATF Declaration on Iran is concerned, the problem arises from:
Sufficiently criminalized financing of terrorism, including the exemptions for groups that "seek to put an end to foreign intervention and occupation, exploitation and racism."
Identifying and blocking terrorist assets in line with UN Security Council resolutions
Ensuring that the customer system works hard enough
Clarification that transactions take place under the Iranian legal framework
Detect and sanction service providers for unauthorized financial transfers
Implementation of the provisions of the Palermo Treaty and the Convention on the Financing of Terrorism and Transparency on the Capability of Bilateral Financial Services
Ensure that financial institutions designate resources and stakeholders in credit transfer.
"Iran must show that it is ready to act on these issues," he said. The official FATF statement noted that Tehran should also act on the CFT. It must consider the dangers of not meeting these obligations and the threat of the international financial system. It is very important to act on these points.
The FATF reminds Iran that it must comply with the standards of the Palermo Convention on the Suppression of the Financing of Terrorism. So you have to comply with the recommended actions.
Noting that some believe adherence to the convention will give information to individuals as well as organizations to be made available to foreign entities, the university professor said: "Privacy is something that should be fully respected." All the provisions of this Convention are treated as confidential.
He said: On November 3, the FATF published the "Private Sector Sharing" guide, which shows that confidential information plays an important role in this mechanism. Each country has a duty to provide a mechanism to protect its data.
"As far as I know, some believe that the implementation of the FATF will not affect Iran's economic situation," said Professor Go Lisawati. I disagree with this reading. Its sanctions have a direct impact on the economy of the sanctioned countries. This can be seen in practice. The FATF calls on its members to respect the laws they have adopted to impose sanctions on member states.
The money laundering researcher responded that Iran has long been a party to the United Nations Convention against Corruption and that there may be no need to join the FATF, and that joining the FATF is for the benefit of all parties. It is important for Iran to show that it adheres to its recommendations. The United Nations Convention against Corruption deals only with one of the laundering-related offenses, and the FATF considers other forms of money laundering.
Membership in a global convention indicates that countries are attentive to international issues and demonstrate their commitment to public crime.
"Joining the Financial Action Task Force could help improve the banking situation in Iran, as its recommendations include banking issues," the university professor said. But that does not mean the impact on US sanctions on Iran.
He advised: it is better for Iran to show that it is fulfilling its FATF obligations. This will cause Iran to be removed from the blacklist.