BAKU, Azerbaijan, May 11
By Elnur Baghishov – Trend:
Many foreign investors are waiting for the ratification of FATF conventions in Iran, the head of Foreign Investment Association at Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) Hossein Salimi told ILNA, Trend reports.
According to Salimi, even foreign investors who received licenses in recent months are delaying the process so that the issue of the FATF becomes clear.
Salimi added that in any case, it should clarify the FATF conventions in Iran. Because foreign investors want to transfer their money through banks.
“In addition, the investment may increase with the lifting of US sanctions against Iran. Because one of the main obstacles to foreign investment is sanctions,” he said.
The official noted that one of the most important issues in attracting foreign investment to the country is economic stability and devaluation.
For example, some time ago, when a foreign investor brought $1 million to the country, he could spend 2.5 trillion rials on certain activities in the country. At present, this figure is 200 billion rials. This has a certain impact on the decisions of investors, Salimi stressed.
“In any case, foreign investors are currently focusing on the nuclear discussions in Vienna. Investors will not invest until they are sure of the outcome of these discussions. In this regard, we need to wait for an agreement on the nuclear program and its impact on attracting foreign investors in the next 1-2 months,” he said.
The objectives of 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 recent FATF meeting, Iran has been warned that it may be added to the list of non-cooperative countries within 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.
The amendments to the Counter-Terrorist Financing Act, Anti-Money Laundering Act, Convention against Transnational Organized Crime (Palermo), and International Convention for the Suppression of the Financing of Terrorism (CFT) were prepared by the Iranian government and sent to the parliament.
Although the four conventions have been approved and sent to the Expediency Council of Iran, the CFT and Palermo conventions have not yet been ratified by the Council.
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.
Iran was included in the FATF blacklist in 2007. The anti-Tehran steps have been taken since 2009. Thus, the countries were cautious in their financial and banking transactions with Iran.
Taking reciprocal steps against Iran through diplomatic steps has been postponed since 2016. FATF included Iran on the blacklist again on Feb. 21, 2020.
As reported, the discussions are underway between Iran and the 4 + 1 group (Russia, China, Britain, France, Germany) in Vienna.
In late 2020, the Iranian parliament has decided to implement a strategic plan to tackle the sanctions, citing the non-implementation of the Joint Comprehensive Plan of Action (JCPOA) signed between Iran and six countries and the imposition of sanctions on Iran. According to the decision of the Iranian parliament, as of February 23, Iran suspended the implementation of additional steps and an additional protocol provided for in the nuclear deal.
Iran's Fordow nuclear facility currently produces 17-20 grams of 20-percent enriched uranium per hour.
According to the decision of the Iranian parliament, 1,000 units of IR2M centrifuges must be installed. The operations have been begun in this regard, and more than 320 units of IR2M centrifuges have been installed.
In January 2016, JCPOA was launched between Iran and the P5+1 group (US, Russia, China, UK, France, and Germany) in connection with Iran's nuclear program. In May 2018, the US announced its withdrawal from the deal and imposed sanctions on Iran in November of the same year.
To preserve the agreements reached as part of the JCPOA, the European signatories of the deal started in January 2019 that a financial mechanism for maintaining trade with Iran called INSTEX was formed.
On May 8, 2019, Iran announced that it had ceased fulfilling its commitments regarding the sale of over 300 kilograms of uranium, as stated in the deal, basing its decision on the other signatories that have not fulfilled their obligations. On July 7, Iran announced that it will not be fulfilling its commitments regarding the enrichment of uranium at 3.67 percent and the reconstruction of the Arak Heavy Water Reactor Facility as stated in the deal.
Iran announced that it will enrich uranium using next-generation centrifuges and will not mix it with the enriched uranium residues as part of the third step of reducing commitments in JCPOA on Sept.5.
On Nov. 5, 2019, Iran announced that it took the fourth step in connection with reducing its commitments to the nuclear agreement. So, uranium gas is being pumped to the centrifuges at the Fordow Fuel Enrichment Plant.
On Jan.2020, Iran took the last fifth step in reducing the number of its commitments within JCPOA.
The US imposed new sanctions on Iran in November 2018. Over the past period, the sanctions affected Iranian oil exports, more than 700 banks, companies, and individuals. The sanctions have resulted in the freezing of Iranian assets abroad.
Iran announced on April 13 that it has begun enriching uranium to 60 percent.
