Iran ex-Central Bank Governor: FATF compliance could facilitate transactions with China, Russia

Valiollah Seif told Donyaye Eghtesad economic daily on Monday, that aligning with FATF regulations could simplify dealings with countries such as China and Russia, even if international sanctions remain in place.

“Right now, our international banking relations are completely severed,” Seif stated, explaining creeping out of the FATF blacklist could improve relations with Iran’s neighbors and friendly countries, although the countries adhering to U.S. sanctions might not change their behavior even after sanctions are lifted.

However, Seif cautioned that the solution is not a panacea, admitting “It’s a positive step with beneficial effects, but it cannot fully resolve our problems.”

Seif emphasized the necessity of implementing several fundamental measures to normalize Iran’s international banking relations, including adherence to financial reporting standards and corporate governance within banks.

It has been five years since Iran was blacklisted by FATF, resulting in significant economic losses and sanctions.

Seif said that exiting the FATF blacklist could signal Iran’s willingness to implement economic reforms and improve international relations.

This step, alongside political and economic strategies, could reduce trade costs, enhance economic transparency, and strengthen Iran’s position in the global financial system, he opined.