BAKU, Azerbaijan, Dec. 23
By Elnur Baghishov - Trend:
Iran cannot use barter system and gold in banking transactions, said Ali Deylamganian, a member of Iran-Turkey Chamber of Commerce, Trend reports via ILNA.
Deylamganian was commenting on the proposal by Malaysian Prime Minister Mahathir bin Mohamad to use barter system and gold in banking transactions between Iran, Malaysia, Turkey and Qatar.
Such topics were raised by Iranian officials over the past few years, in practice, however, this cannot be done, the member of the chamber said.
The world trade has its own rules, Deylamganian noted, adding that Iran cannot act beyond these rules.
“Global trade is impossible without a global banking network,” the member of the chamber said.
Deylamganian noted that one wheelbarrow of flour can’t be bartered with 10 egg cartons, adding that there is no alternative to the current financial system.
Commenting on the Financial Action Task Force (FATF) and its conventions, the member of the chamber said that Iran is facing many problems because it is not a party to these conventions. The decline in Iran’s foreign trade is also partly related to these conventions, Deylamganian added.
The FATF was established in 1989 on the initiative of the G7 Group to combat money laundering. FATF has 37 members and its secretariat is in Paris.
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.
During the FATF recent meeting, Iran has been warned that it may be added to the list of non-cooperative countries within the next three months if it does not completely fulfill the FATF requirements. Iran fulfilled 37 of 41 FATF requirements. The remaining four requirements refer to the legislative field.
Although four conventions have been approved and sent to the Expediency Board, the CFT and Palermo conventions have not yet been ratified by the Board.
Iran was included in the FATF blacklist in 2007.