CBI Governor says accession to FATF will serve banking system

Governor of Central Bank of Iran (CBI) Abdolnaser Hemmati said on Wednesday that accession to Financial Action Task Force (FATF) will serve the banking system.

Hemmati made the remarks in Tehran on Wednesday speaking to reporters after the cabinet session.

Asked what if the US targeted Iran with more pressures after joining FATF, Hemmati replied that Tehran's presence in the inter-governmental body will create no obstacle but bring clearer and easier banking transactions.

There is no reason for being worried about as Iran itself follows money laundering rules, the CBI governor said.

Financial Action Task Force (FATF) introduces itself as an inter-governmental body established in 1989 by the Ministers of its Member jurisdictions. The objectives of the FATF are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system. The FATF is therefore a “policy-making body” which works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.

About Russia and China which have advised Iran to join FATF, Hemmati said it is normal that Tehran will face problems in cooperation with Beijing and Moscow if not joining the body, because they have observations that make them follow the regulations.

Not joining the FATF will have negative impact on Iran's banking transactions, Hemmati noted.

Elsewhere, Hemmati talked of the Paris-based transactions channel, named INSTEX- Instrument In Support Of Trade Exchanges, saying that as long as the Europeans do not buy Iran's oil and the income not be settled in the channel, their statements remain in words without action.

"Iran has taken all necessary measures based on regulations and procedure."

Three European Foreign Ministers of France, Germany and Britain Jean-Yves Le Drian, Heiko Maas, Jeremy Hunt respectively issued a joint statement on creation of INSTEX on January 31, 2019.

'France, Germany and the United Kingdom, in accordance with their resolute commitment and continued efforts to preserve the Joint Comprehensive Plan of Action endorsed by United Nations Security Council resolution 2231, announce the creation of INSTEX (Instrument for Supporting Trade Exchanges), a Special Purpose Vehicle (SPV) aimed at facilitating legitimate trade between European economic operators and Iran,' the three countries said in their joint statement.

News Code 191169

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