Iran’s Expediency Council to review CFT, Palermo Conventions separately from FATF

Mohsen Dehnavi noted that the Council’s mandate is strictly limited to evaluating these two conventions.

Dehnavi, responding to criticism over this decision, explained that the Expediency Council intervenes in cases where there is a dispute between the Iranian Parliament and the Guardian Council.

He went on to say that since the Parliament had approved Iran’s accession to the CFT and Palermo conventions, a detailed, independent review of each was deemed necessary.

The FATF, an international watchdog for financial crimes, has long urged Iran to adopt these conventions as part of its broader recommendations for transparency and anti-money laundering measures. The Palermo Convention focuses on combatting transnational organized crime, while the CFT Convention requires states to cut off financial support to terrorist groups.

Iran’s position on these agreements has been deeply divisive. Proponents argue that joining them would facilitate international banking transactions, help reintegrate Iran into the global financial system, and reduce restrictions on trade. They believe non-compliance has further isolated Iran economically.
Opponents, however, warn that adopting these conventions would expose Iran’s financial transactions, making it harder to circumvent U.S. sanctions and conduct trade through alternative channels.

While some view ratification as a means to economic relief, others see it as a potential threat to Iran’s financial autonomy.