Title: Iran Moves Closer to FATF Blacklist Exit as Talks Resume in Madrid
Negotiations Begin for Iran’s Potential Removal from FATF Blacklist
Iran’s Minister of Economic Affairs and Finance, Seyyed Ali Madanizadeh, has announced that negotiations with the Financial Action Task Force (FATF) have officially commenced in Madrid. The discussions, attended by the head of Iran’s Financial Intelligence Unit (FIU), mark a critical step toward the country’s potential removal from the FATF blacklist.
This development follows Iran’s recent approval of the Palermo Convention by the Expediency Discernment Council—a milestone achieved after years of deliberation. The Palermo Convention, originally signed by Iran in 2000 and ratified domestically in 2017, strengthens international cooperation against transnational organized crime, including money laundering and human trafficking.
Timeline for Exit: 12 to 18 Months
While the Palermo Convention’s ratification is a significant step, Iran must still secure approval for the Combating the Financing of Terrorism (CFT) Convention. Experts estimate that full compliance with FATF standards—and subsequent removal from the blacklist—could take 12 to 18 months.
Despite the lengthy process, officials remain optimistic that Iran’s adherence to FATF guidelines will eventually ease financial restrictions and improve international banking relations.
Safeguarding Financial Sovereignty
Critics of FATF compliance argue that increased financial transparency could hinder Iran’s ability to navigate sanctions. However, Hadi Khani, head of Iran’s Financial Intelligence Center, firmly denied claims that sensitive banking data would be shared with FATF.
“No bank transaction records or financial institution data will be provided to FATF,” Khani emphasized. “Our legal review confirmed that Iran’s economic sovereignty remains fully protected. If FATF demanded such disclosures, major global economies—including those under sanctions like Russia—would never cooperate with it.”
Understanding FATF and Key Conventions
FATF’s framework includes four key pillars:
- Palermo Convention – Focuses on combating transnational crime, money laundering, and human trafficking.
- CFT Convention – Targets terrorism financing through asset freezes and international judicial cooperation.
- Anti-Money Laundering (AML) Laws
- Counter-Terrorism Financing (CTF) Laws
Iran has already amended its AML and CTF laws and ratified the Palermo Convention. The pending CFT approval is the final hurdle before FATF reevaluates Iran’s status.
Looking Ahead
As talks progress, Iran aims to balance FATF compliance with safeguarding its economic interests. Successful negotiations could pave the way for reintegration into the global financial system while maintaining national sovereignty.
Source: Tasnim News Agency
