Why in News?
Iran ratified a law to join the UN Convention for the Suppression of the Financing of Terrorism (CFT), aiming to comply with FATF standards, ease international sanctions, regain global banking access, and stabilize its sanctions-hit economy.
Description:
Announced by: Iranian President Masoud Pezeshkian, who came to power on a reformist agenda to improve ties with the West and lift sanctions.
- Purpose:
- Combat money laundering & terror financing.
- Reconnect Iran’s economy with the international banking network.
- Comply with FATF guidelines.
- Background:
- Iran was placed on the FATF blacklist in 2020 (along with North Korea and Myanmar).
- Blacklisting has severely restricted Iran’s financial transactions and trade.
- Recently, an Iranian representative attended an FATF meeting in Paris for the first time in 6 years.
Domestic Debate:
- Supporters (Reformists/Moderates):
- View joining CFT as crucial to reintegrate Iran into the global financial system.
- Expect improved trade with allies like Russia and China.
- Opponents (Hardliners/Conservatives):
- Fear the move may expose sensitive data on Iran’s economy, military, and regional proxies.
- Argue it could limit Iran’s support to groups like Hamas, Hezbollah, and Houthis, which the U.S. designates as terrorist organizations.
Geopolitical Context:
- Iran faces multiple layers of sanctions, mainly from the United States.
- The UN reimposed sanctions in September 2025 after tensions over nuclear program violations and alleged attacks on nuclear facilities by U.S. and Israeli forces.
About the CFT Convention:
- Full Name: International Convention for the Suppression of the Financing of Terrorism (1999).
- Adopted by: United Nations General Assembly.
- Objective: Criminalize the provision of funds to carry out terrorist acts and enhance international cooperation in investigating and prosecuting terror-financing activities.
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