Iran Ratifies UN Treaty Against Terror Financing Aiming Sanctions Relief

Iran has ratified a law to join the United Nations' International Convention for the Suppression of the Financing of Terrorism (CFT), aiming to ease sanctions and restore access to the global banking system. President Masoud Pezeshkian, elected on a platform to improve relations with the West, supports this move as part of efforts to comply with Financial Action Task Force (FATF) standards, which monitor money laundering and terrorist financing. Despite opposition from conservatives who fear it may expose sensitive information and limit Iran's support for groups like Hamas and Hezbollah, reformists view joining the CFT as essential for economic stability and reconnecting with international markets. The law's implementation is subject to conditions ensuring Iran's compliance aligns with its Constitution and domestic laws. Iran's inclusion on the FATF blacklist since 2020, along with U.S. sanctions, has severely restricted its financial sector, and the country hopes this step will facilitate trade, including with allies like Russia and China. The move also marks Iran's first participation in FATF plenary sessions in six years, signaling potential diplomatic engagement with international financial authorities.