Iran's Financial Crossroads: A Step Toward Global Compliance

Iran's primary arbitration authority has sanctioned a pivotal bill aimed at potentially extricating Tehran from the blacklist maintained by a global financial crime watchdog, as reported by state media on Wednesday. This crucial decision is viewed as a significant move towards enhancing trade and investment prospects in the nation.

Iran's designation on the blacklist by the Paris-based Financial Action Task Force since 2020, due to non-compliance with anti-terrorism finance and organized crime norms, has compounded its financial market isolation. Recently, the Expediency Council validated the Palermo Convention against transnational organized crime within the confines of local legislation.

The council will evaluate the Combating the Financing of Terrorism (CFT) bill in future discussions. While Iran's government backs FATF compliance to foster foreign trade, opposition from hardliners warns that adherence may undermine support for regional paramilitary allies, such as Hezbollah.

(With inputs from agencies.)