The Iranian parliament is taking measures to curb the funding of terrorism commonly linked with the country thus putting the country on most investment blacklists. The measures, which allow Iran to join a convention against the funding of terrorism (CFT), still have to be approved by a clerical body before they become law.
Despite the previous huddles that include lack of legislative backing, Tehran says it has been trying to implement international standards against money laundering and the funding of terrorism set by the Financial Action Task Force (FATF). Hardliners in parliament have opposed legislation aimed at moving toward compliance with FATF standards, arguing it could hamper Iranian financial support for allies such as Lebanon’s Hezbollah, which the United States has classified as a terrorist organization.
The passing of the measures is so timely as Iran has until October to complete the reforms or face consequences that could further deter investors from the country as given by the FATF. Iran has been sanctioned by the US for an allegation of financially funding terror organization as well as have lax financial laws that allow money laundering that gives loopholes that fund terror activities in the Middle East.
